diff --git a/conductor/tracks/qwen_llama_grok_followup_20260611/state.toml b/conductor/tracks/qwen_llama_grok_followup_20260611/state.toml
index 91c54f29..ddf1ec55 100644
--- a/conductor/tracks/qwen_llama_grok_followup_20260611/state.toml
+++ b/conductor/tracks/qwen_llama_grok_followup_20260611/state.toml
@@ -43,8 +43,16 @@ t3_2 = { status = "completed", commit_sha = "26becf2b", description = "Adaptatio
 t3_3 = { status = "completed", commit_sha = "2e181a82", description = "Adaptation 4: stream progress iff streaming. Set self._ai_status = 'streaming...' in _on_ai_stream (gated on caps.streaming); reset to 'done'/'error' in post-stream event dispatches. The 'streaming...' text is rendered in the post-FX status bar via ai_status." }
 t3_4 = { status = "completed", commit_sha = "2e181a82", description = "Adaptation 5: fetch models iff model_discovery. The 3 internal _fetch_models call sites in app_controller.py (line 1860, 2284, 2429) now check caps.model_discovery before firing. If False, no network call; all_available_models stays empty." }
 t3_5 = { status = "completed", commit_sha = "26becf2b", description = "Adaptation 6: token budget max = context_window" }
-t3_6 = { status = "completed", commit_sha = "", description = "Adaptation 7: cost panel: estimate. ALREADY DONE in parent Phase 5 (cost column shows formatted \${cost:.4f}); no work needed" }
-t3_7 = { status = "cancelled", commit_sha = "", description = "Adaptation 8: cost panel: 'Free (local)' for localhost. DEFERRED to Phase 4 (requires caps.local field, t4_1)" }
+t3_6 = { status = "completed", commit_sha = "", description = "Adaptation 7: cost panel: estimate. ALREADY DONE in parent Phase 5 (cost column shows formatted \u0024{cost:.4f}); no work needed" }
+# t3_7 MOVED to Phase 4 (post-t4_1). The 'Free (local)' adaptation
+# depends on the caps.local field that Phase 4 t4_1 adds. Kept the
+# t3_7 identity so audit + plan cross-references still work.
+# t3_7 was MOVED from this block to the Phase 4 block on 2026-06-11.
+# The real t3_7 entry is the pending task in the Phase 4 block.
+# t3_7 MOVED to Phase 4 (post-t4_1) on 2026-06-11 per user request.
+# The real task entry is the t3_7 line in the Phase 4 block.
+# Kept this marker comment so the audit + plan cross-references
+# still work.
 t3_8 = { status = "completed", commit_sha = "26becf2b", description = "Adaptation 9: cost panel: '-' for other cost_tracking=false" }
 t3_9 = { status = "completed", commit_sha = "43182af", description = "Phase 3 checkpoint + git note" }
 # Phase 4: Local-first + matrix v2
@@ -54,6 +62,14 @@ t4_3 = { status = "pending", commit_sha = "", description = "Meta Llama API adap
 t4_4 = { status = "pending", commit_sha = "", description = "GUI: 'Local Model' badge" }
 t4_5 = { status = "pending", commit_sha = "", description = "Add 12 v2 fields to VendorCapabilities" }
 t4_6 = { status = "pending", commit_sha = "", description = "Update all vendor registry entries" }
+# t3_7 (MOVED from Phase 3 on 2026-06-11 per user request).
+# Originally Phase 3 t3_7 ('cost panel: Free (local) for localhost').
+# Re-classified from cancelled to pending-blocked-on-t4_1.
+# Order: must run AFTER t4_1 (caps.local field added) AND t4_6
+# (caps.local populated for llama Ollama wildcard). The cost
+# display in src/gui_2.py will check caps.local and show
+# 'Free (local)' instead of '\$0.0000' for the Ollama backend.
+t3_7 = { status = "pending", commit_sha = "", description = "MOVED FROM PHASE 3: cost panel: 'Free (local)' for localhost. Apply to the per-tier + session-total cost columns in src/gui_2.py. Run AFTER t4_1 (caps.local field) and t4_6 (populated for llama wildcard). blocked_by = t4_1 + t4_6." }
 t4_7 = { status = "pending", commit_sha = "", description = "UI adaptations for new fields (reasoning toggle, code execution panel, etc.)" }
 t4_8 = { status = "pending", commit_sha = "", description = "Phase 4 checkpoint + git note" }
 # Phase 5: Anthropic / Gemini / DeepSeek migration