docs: M4 revised — approval stays inline (owner decision B); M4 = budget gate only

Owner chose option B: the approval gate's enforcement stays inline because it is
runtime-stateful (live JIT/session state, tool handler, auto-mode-swappable
policy) and a poor fit for the pure-interceptor model — the three coupling gaps
found were each invisible to a unit parity test. Approval observability is
already covered by M2 (approval audit events typed + reader-surfaced; M6 fold
reads them), so no new emit is needed. The approval Slice A interceptor +
tests were reverted as now-unused (commit 6907253). PlanGateError retained
(benign, cleaner plan-block messaging). M4 redefined to budget gate only.

Constraint: docs only; records owner decision B; plan gate remains the one gate moved to an interceptor; approval enforcement unchanged from its proven inline path
Tested: lifecycle 30 (post-revert), mypy clean (runner), docs validator 0 errors
Confidence: high
Roadmap-Status: unchanged

Author: johnteee

docs/generated/docs-inventory.md

@@ -414,7 +414,7 @@ Do not edit this file manually — regenerate instead.
 | `ops/security-hardening.md` | working | 11733 | `0a385c7dab82` |
 | `ops/troubleshooting.md` | working | 9127 | `4921b6d50f5c` |
 | `permission-and-approval-playbook.md` | working | 6560 | `813bc74bb156` |
-| `plans/adr-0032-m1-m6-work-plan-2026-06-13.md` | archive | 49129 | `c1afb6a5bde8` |
+| `plans/adr-0032-m1-m6-work-plan-2026-06-13.md` | archive | 49574 | `fd53521a53fa` |
 | `plans/agent-ecosystem-acceptance-roadmap-2026-05-31.md` | archive | 29099 | `7c4a4972cfeb` |
 | `plans/community-pain-points-response-plan-2026-06-05.md` | archive | 7276 | `571d010133ad` |
 | `plans/competitive-positioning-plan-2026-05-31.md` | archive | 8726 | `d16dfd2bdd99` |
@@ -589,7 +589,7 @@ Do not edit this file manually — regenerate instead.
 | `ux-stability-contract.md` | working | 2238 | `1c5511e10ede` |
 | `wasm-skill-ci.md` | working | 974 | `8340d6f1e5c1` |
 | `work-log/documentation-optimization-work-items-2026-06-04.md` | archive | 11750 | `9233b40b0bce` |
-| `work-log/m4-approval-sliceB-blocked-2026-06-13.md` | archive | 6038 | `a69b3abac821` |
+| `work-log/m4-approval-sliceB-blocked-2026-06-13.md` | archive | 7347 | `3981ed82bc08` |
 | `work-log/operator-friction-log.md` | working | 2560 | `fe79899db10f` |
 | `work-log/p0-p1-governance-implementation-ledger-2026-06-11.md` | archive | 5212 | `0b72cd69de32` |
 | `work-log/parallel-phase-0-implementation-report-2026-06-04.md` | archive | 13181 | `098186167459` |

docs/plans/adr-0032-m1-m6-work-plan-2026-06-13.md

@@ -94,7 +94,9 @@ M0 accepted ADR + dual-write spine                                    [done]
        git-sandbox, skills, tests, undo, provenance, approval/tool-call
        decision events, cancelled/pending lifecycle
       -> M3 plan gate interceptor                  (parity-first)
-        -> M4 approval gate then budget gate       (parity-first)
+        -> M4 budget gate only (parity-first); approval STAYS INLINE
+           (owner decision B, 2026-06-13 — approval is runtime-stateful;
+           see m4-approval-sliceB-blocked report)
           -> M5 HookRegistry on spine
             -> M6 evidence + receipt FOLD          (was M2; corrected
                scope A) — now genuinely event-typed because M2 completed
@@ -162,7 +164,7 @@ consumers by M6.
 | ADR-0032-M1 | AuditLogger can consume RunEvents and produce byte-equivalent JSONL for golden proof runs; legacy call sites delegate instead of directly owning serialization decisions. |
 | ADR-0032-M2 (REDEFINED, taxonomy-only §16) | Every audit event the evidence bundle reads is typed in `RunEventType` and mapped both directions, so the M2-T001 reader surfaces it **from the audit JSONL** (mapper is sufficient; emit-site migration is NOT in M2 — it is deferred to the component milestones, §16). Covers routes, git-sandbox, skills, tests, undo, provenance, approval/tool-call decision events, cancelled/pending lifecycle. Pure additive; zero behavior change. (Old M2 "evidence/receipt fold" moved to M6 — §14.) |
 | ADR-0032-M3 | Plan gate is an interceptor using `PlanValidator`, landed parity-first (§13.3): a shadow-parity test asserting interceptor==inline per reason code went green before the inline branch was deleted in a separate commit. Denials and reason codes match current behavior; adversarial and first-hour tests remain green. |
-| ADR-0032-M4 | Approval gate then budget gate are interceptors, each landed parity-first in two commits (shadow parity green → enforce+delete); budget done last and alone. `pending_approval`, resume, scoped approvals, budget warnings, and budget-exhausted behavior remain unchanged. Decision events keep the contract typed in M2. |
+| ADR-0032-M4 (REVISED — owner decision B, 2026-06-13) | Budget gate ONLY moves to an interceptor, parity-first in two commits (shadow parity green → enforce+delete), done alone. **Approval enforcement STAYS INLINE** — it is runtime-stateful (live JIT/session state, tool handler, auto-mode-swappable policy), a poor fit for the pure-interceptor model (every coupling gap was invisible to a unit parity test; see `docs/work-log/m4-approval-sliceB-blocked-2026-06-13.md`). Approval observability is already provided by M2 (approval audit events are typed + reader-surfaced); the M6 fold reads them. Budget warnings/exhausted behavior unchanged. |
 | ADR-0032-M5 | HookRegistry subscribes through the spine; Claude-Code-compatible hook names remain aliases; public hook API docs and tests pass. |
 | ADR-0032-M6 (was M2 fold; corrected scope A) | Evidence and receipts are folded from the typed event stream and equal the legacy builder on success/failure/pending fixtures (cancelled once emitted in M2); the fold reads the full stream (no fallback flag, per Q1); synthetic receipt-only fixtures are retired or relabeled legacy. Runs only after M2 coverage + M3/M4 decision events exist. |
 | ADR-0032-M7 (was M6) | ContextBus and webhook sinks consume the spine; inline emission paths are deleted; validator shows no orphaned eventing modules. |

docs/work-log/m4-approval-sliceB-blocked-2026-06-13.md

@@ -116,3 +116,28 @@ this decision.
 `bcd9369` is HEAD-ish for this thread: PlanGateError (`5b5f007`) + approval
 Slice A (`2da5d6c`, interceptor + unit parity, NOT wired) + this report. No
 enforce cutover landed. Working tree clean.
+
+---
+
+## RESOLVED — Owner chose (B), 2026-06-13
+
+The owner chose **option (B): approval enforcement stays inline.** The approval
+gate is legitimately runtime-stateful (live JIT/session state, tool handler,
+auto-mode-swappable policy) and is NOT moved to an EventSpine interceptor.
+
+Actions taken:
+- Reverted approval Slice A (`2da5d6c`) — the `ApprovalGateInterceptor` and its
+  unit/parity tests — via revert commit, since under (B) it is unused code and
+  unused code is drift. Approval enforcement is back to its proven inline path,
+  unchanged.
+- **Approval observability needs no new code:** the approval audit events
+  (`tool_call_approved`, `tool_call_denied`, `tool_call_pending_approval`,
+  `approval_*`) were already typed in M2-T002 and are surfaced by the M2-T001
+  reader from the audit JSONL. So the spine carries approval *observability*
+  (for evidence/receipts via the M6 fold) without moving enforcement.
+- `PlanGateError` (`5b5f007`) is retained: harmless under (B) and a small
+  improvement (plan blocks no longer show the misleading "approve this" hint).
+  Its original approval-coexistence justification no longer applies.
+
+**Net M4 redefinition:** M4 = budget gate only. The plan gate (M3) is the one
+governance gate that moved to an interceptor; approval stays inline by design.