diff --git a/src/app_controller.py b/src/app_controller.py
index dae12c96..6c731b57 100644
--- a/src/app_controller.py
+++ b/src/app_controller.py
@@ -2218,15 +2218,15 @@ class AppController:
     self.active_project_path = fallback_path
     if fallback_path not in self.project_paths:
      self.project_paths.append(fallback_path)
-   except (OSError, IOError, PermissionError) as e:
+   except (OSError, IOError, PermissionError, RuntimeError) as e:
     logging.getLogger(__name__).debug(
      "Could not save fallback project to %s: %s", fallback_path, e,
      extra={"source": "app_controller._load_active_project.fallback_save"},
     )
     # The save is best-effort; the app can still operate without persisting
     # the empty fallback (e.g., when the test sandbox FR1 guard blocks
-    # writes to the project root). active_project_path stays empty;
-    # the next save will use a proper path.
+    # writes to the project root via the sys.addaudithook RuntimeError).
+    # active_project_path stays empty; the next save will use a proper path.
   self.preset_manager = presets.PresetManager(Path(self.active_project_path).parent if self.active_project_path else None)
   self.tool_preset_manager = tool_presets.ToolPresetManager(Path(self.active_project_path).parent if self.active_project_path else None)
   from src.personas import PersonaManager
diff --git a/tests/test_app_controller_offloading.py b/tests/test_app_controller_offloading.py
index bddd2961..e9fd30b1 100644
--- a/tests/test_app_controller_offloading.py
+++ b/tests/test_app_controller_offloading.py
@@ -18,7 +18,12 @@ def tmp_session_dir(tmp_path, monkeypatch):
  
  monkeypatch.setenv("SLOP_LOGS_DIR", str(logs_dir))
  monkeypatch.setenv("SLOP_SCRIPTS_DIR", str(scripts_dir))
- paths.reset_paths()
+ # v3 paths.py: reset_paths() clears the singleton. Re-initialize with an
+ # empty config (no [paths] section) so the SLOP_LOGS_DIR env var is honored
+ # via _resolve_path. Without this, paths.get_logs_dir() raises RuntimeError.
+ empty_config = tmp_path / "empty.toml"
+ empty_config.write_text("# no [paths] section\n")
+ paths.initialize_paths(empty_config)
  
  # Ensure session_logger is clean
  with patch("src.session_logger._comms_fh", None):