Task 2 (_handle_reset_session reset) introduced a regression: setting self.active_project_path to empty caused an infinite re-switch loop in _do_project_switch because _flush_to_project writes to active_project_path (raises OSError on empty path), and the finally block re-submitted the failed switch on every iteration. Result: test_context_sim_live saw switching-to status for 5+ seconds and MD-only generation was blocked.
Fix: keep self.active_project_path as-is in _handle_reset_session. Only reset self.project (to a fresh default_project dict) and self.project_paths (to empty list). The stale project state issue is solved by replacing the project dict; the active_project_path stays valid for _flush_to_project.
- src/app_controller.py: refined _handle_reset_session project reset
- tests/test_handle_reset_session_clears_project.py: updated contract test to assert active_project_path is preserved
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