diff --git a/TODO_test_full_live_workflow.md b/TODO_test_full_live_workflow.md
index 5d5aa3d7..ab27fa06 100644
--- a/TODO_test_full_live_workflow.md
+++ b/TODO_test_full_live_workflow.md
@@ -14,12 +14,13 @@
 - **Acceptance:** Test polls `/api/project_switch_status` until `in_progress == False` and `path == expected` and `error is None`. Times out after 30s with clear error.
 - **Note on test fix:** The 2nd unit test (`test_get_project_switch_status_default_is_idle`) was originally written without mocking `_make_request`, so it leaked through to the live `live_gui` session and got the real `active_project_path` back. Fixed in same commit by adding `patch.object(client, "_make_request")` mock. The live test (`test_live_project_switch_status_endpoint_idle`) was also loosened: `path` can be `None` or `str` (a project may be loaded at session start).
 
-### 2. [HIGH] Reset project state in `_handle_reset_session` ✅ SHIPPED (commit 6ecb31ea)
-- **What:** Add `self.project = {}; self.active_project_path = ""; self.project_paths = []` (or call a new `_reset_project_state` helper) at the start of `_handle_reset_session`.
+### 2. [HIGH] Reset project state in `_handle_reset_session` ✅ SHIPPED (commit 6ecb31ea) + REGRESSION FIXED (commit e0a3eb8c)
+- **What:** Add `self.project = {}; self.project_paths = []` at the start of `_handle_reset_session`. Do NOT clear `self.active_project_path`.
 - **Where:** `src/app_controller.py:3244-3296`.
 - **Why:** The session-scoped `live_gui` fixture shares the controller across 48 tests. Prior tests leave stale project state. The reset handler currently clears AI session but not project state.
 - **Acceptance:** After `client.click("btn_reset")` followed by the new project-creation click, the test sees a clean project state regardless of which tests ran before it in the tier-3 batch.
-- **Implementation note:** Mirrors `__init__` default-project branch (lines 1743-1745): creates a fresh `project_manager.default_project(reset_name)`, sets `active_project_path = ""`, `project_paths = []`, reinitializes workspace manager. 3 unit tests pass. No regression in 9 related tests.
+- **Implementation note (commit 6ecb31ea):** Mirrors `__init__` default-project branch: creates a fresh `project_manager.default_project(reset_name)`, sets `active_project_path = ""`, `project_paths = []`, reinitializes workspace manager. 3 unit tests pass.
+- **Regression (discovered in commit 6ecb31ea, fixed in commit e0a3eb8c):** Setting `self.active_project_path = ""` caused `test_context_sim_live` to fail. Root cause: `_do_project_switch` calls `_flush_to_project()` which writes to `self.active_project_path` (raises `OSError` on empty path), and the `finally` block's `_switch_project(pending)` re-submitted the failed switch in an infinite loop. Status stuck at "switching to: ..." for 5+ seconds. Fix: keep `self.active_project_path` as-is. Only replace `self.project` (fresh default) and clear `self.project_paths`. The stale state is solved by replacing the project dict. Also removed the `WorkspaceManager(project_root=None)` reinit (not needed for the bug). 3 unit tests + 16 related regression tests pass. `test_full_live_workflow` passes in 10.19s in isolation.
 
 ### 3. [MED] Replace `os.path.abspath("tests/artifacts/temp_project.toml")` with fixture-provided path
 - **What:** Have the `live_gui` fixture provide `temp_project_path` (str) derived from its own `temp_workspace` directory.