diff --git a/dag/gunbc/live_deploy/member_observe.dag b/dag/gunbc/live_deploy/member_observe.dag
index 76ada9499ed..5ef74983f53 100644
--- a/dag/gunbc/live_deploy/member_observe.dag
+++ b/dag/gunbc/live_deploy/member_observe.dag
@@ -158,21 +158,31 @@ fn entry_presence_in_parent(arm: ObservationArm, parent: String, name: String) -
   }
 }
 
+type PresenceVia
+  = NoViaCause
+  | ViaCause { cause: String }
+
 fn entry_presence(arm: ObservationArm, path: String) -> EntryPresence {
+  entry_presence_above(arm: arm, path: path, via: NoViaCause)
+}
+
+// Tail-recursive: `via` carries the cause of the nearest descendant whose parent could not be
+// listed, which is the only cause a present ancestor can surface (absent and indeterminate
+// ancestors pass through unchanged).
+fn entry_presence_above(arm: ObservationArm, path: String, via: PresenceVia) -> EntryPresence {
   let parent = path_parent(path: path)
   let name = path_basename(path: path)
   match entry_presence_in_parent(arm: arm, parent: parent, name: name) {
-    EntryPresent => EntryPresent
+    EntryPresent => match via {
+      NoViaCause => EntryPresent
+      ViaCause { cause: c } => EntryPresenceIndeterminate { cause: c }
+    }
     EntryAbsent => EntryAbsent
     EntryPresenceIndeterminate { cause } =>
       if parent == "/" {
         EntryPresenceIndeterminate { cause: cause }
       } else {
-        match entry_presence(arm: arm, path: parent) {
-          EntryAbsent => EntryAbsent
-          EntryPresent => EntryPresenceIndeterminate { cause: cause }
-          EntryPresenceIndeterminate { cause: ancestor_cause } => EntryPresenceIndeterminate { cause: ancestor_cause }
-        }
+        entry_presence_above(arm: arm, path: parent, via: ViaCause { cause: cause })
       }
   }
 }
diff --git a/dag/gunbc/runner/runner_microvm_lifecycle_realize.dag b/dag/gunbc/runner/runner_microvm_lifecycle_realize.dag
index 32513bd0fb5..fd64a2524cd 100644
--- a/dag/gunbc/runner/runner_microvm_lifecycle_realize.dag
+++ b/dag/gunbc/runner/runner_microvm_lifecycle_realize.dag
@@ -190,19 +190,35 @@ fn cgroup_child_names(cgroup_path: NonEmptyStr) -> List<String>
   }
 }
 
+// The walk is preorder over a pending list so the self-call is a tail call: the effectful reads
+// (procs, child listing) happen once per node and the accumulator is carried, not concatenated
+// from a non-tail recursive result.
+type CgroupWalkPending { path: NonEmptyStr, depth: Int }
+
 fn walk_cgroup(cgroup_path: NonEmptyStr, depth: Int) -> CgroupWalk
 {
-  let here = CgroupWalkNode { path: cgroup_path, pids: cgroup_procs_pids(cgroup_path: cgroup_path) }
-  if depth <= 0 {
-    CgroupWalk { nodes: [here] }
+  walk_cgroup_pending(pending: [CgroupWalkPending { path: cgroup_path, depth: depth }], nodes: [])
+}
+
+fn walk_cgroup_pending(pending: List<CgroupWalkPending>, nodes: List<CgroupWalkNode>) -> CgroupWalk
+{
+  match pending {
+    Empty => CgroupWalk { nodes: nodes }
+    Cons { head: item, tail: rest } =>
+      walk_cgroup_pending(
+        pending: concat(cgroup_walk_children(item: item), rest),
+        nodes: nodes |> list_push(CgroupWalkNode { path: item.path, pids: cgroup_procs_pids(cgroup_path: item.path) }),
+      )
+  }
+}
+
+fn cgroup_walk_children(item: CgroupWalkPending) -> List<CgroupWalkPending>
+{
+  if item.depth <= 0 {
+    []
   } else {
-    fold(cgroup_child_names(cgroup_path: cgroup_path), init: CgroupWalk { nodes: [here] }, f: (acc, name) =>
-      CgroupWalk {
-        nodes: concat(
-          acc.nodes,
-          walk_cgroup(cgroup_path: cgroup_v2_child_path(parent: cgroup_path, child: trim(s: name) as NonEmptyStr), depth: depth - 1).nodes,
-        ),
-      })
+    map(cgroup_child_names(cgroup_path: item.path), name =>
+      CgroupWalkPending { path: cgroup_v2_child_path(parent: item.path, child: trim(s: name) as NonEmptyStr), depth: item.depth - 1 })
   }
 }