fix: budget-exhausted conversations now get a summary instead of empty response - #8935
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…y response The post-loop grace call mechanism was broken: it injected a user message and set _budget_grace_call=True, but could never re-enter the while loop (already exited). Worse, the flag blocked the fallback _handle_max_iterations from running, so final_response stayed None. Users saw empty/no response when the agent hit max iterations. Fix: remove the dead grace block and let _handle_max_iterations handle it directly — it already injects a summary request and makes one extra toolless API call.
This was referenced Apr 13, 2026
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When the agent hits max iterations or budget exhaustion, users see an empty/no response. This is a long-standing bug affecting both CLI and gateway.
Root cause: The post-loop grace call mechanism at line 10156 was dead code. It:
_budget_grace_call = True_handle_max_iterationsfrom running (condition:not self._budget_grace_call)final_response = None→ empty response to userFix: Remove the broken grace block. Let
_handle_max_iterationshandle budget exhaustion directly — it already injects a summary request and makes one extra toolless API call.Change: 5 insertions, 19 deletions. Net simpler.