diff --git a/backend/apps/agents/manager/run/handle_run_error.py b/backend/apps/agents/manager/run/handle_run_error.py
index e5acd381..32255892 100644
--- a/backend/apps/agents/manager/run/handle_run_error.py
+++ b/backend/apps/agents/manager/run/handle_run_error.py
@@ -31,7 +31,6 @@ from backend.apps.agents.core.error_classify import (
 from backend.apps.agents.core.is_router_unavailable_error import is_router_unavailable_error
 from backend.apps.agents.core.extract_reset_hint import extract_reset_hint
 from backend.apps.agents.core.redact_for_telemetry import redact_for_telemetry
-from backend.apps.agents.manager.run.RunOptions import PREFIX_NARROWNESS
 from backend.apps.agents.core import flight_recorder
 from backend.apps.agents.manager.run.empty_finish import count_tool_calls
 from backend.apps.agents.session_credential import api_key_twin_model
@@ -377,23 +376,14 @@ async def handle_run_error(e: Exception, session: AgentSession, session_id: str,
         # The provider's abuse classifier declined the REQUEST, and on the subscription lane what it reads as "duplicating model outputs" is OUR recap of the chat on a fresh CLI session (192 blocks in 14 days, 0 on API keys); deterministic, so the one retry that can pass carries no history at all, the session stays that way, and every block is reported with the shape it sent.
         p_sent = session.history_prefix_sent
         p_report_model_error(f"policy_block:{p_sent}", session_id, session, turn, e, p_stderr_tail)
-        # Ratchet on the DECLARED mode, never on what happened to be rendered. `history_prefix_sent`
-        # defaults to "none" on every turn and is only overwritten when a fresh-session rebuild
-        # actually attaches a recap, so on a RESUMED turn (the common case) it reads "none" while the
-        # mode is still "minimal". Keying the ladder on it meant a block on a resumed turn skipped the
-        # ratchet entirely, went straight to "nothing left to strip", and left the mode untouched, so
-        # the next rebuild sent a recap again and blocked again. Live: one chat blocked 3x with
-        # sent going none -> minimal -> none, which ENG-399 says can never happen (2026-08-30).
-        p_mode = session.history_prefix_mode
-        if p_mode != "none":
-            p_next = PREFIX_NARROWNESS[PREFIX_NARROWNESS.index(p_mode) + 1]
-            session.history_prefix_mode = p_next
+        if p_sent != "none":
+            session.history_prefix_mode = "none"
             session.needs_fresh_session = True
             session.pending_continuation = True
             session.pending_continuation_prompt = (
                 "Continue the task exactly where you left off; the session summary was reduced "
                 "this turn, rely on the visible conversation.")
-            logger.warning(f"Agent {session_id}: provider content-policy block (sent={p_sent}); narrowing the recap {p_mode} -> {session.history_prefix_mode} and retrying")
+            logger.warning(f"Agent {session_id}: provider content-policy block on a turn carrying a {p_sent} history prefix; retrying with {session.history_prefix_mode}")
             return
         # The subscription lane declined and nothing is left to strip; fleet data says the same request passes on an API key (0 of 328 vs 4.4%), so a user who connected their own Anthropic key continues there, told in one line, instead of losing the ask (ENG-383).
         p_twin = api_key_twin_model(session.model or "", load_settings())
diff --git a/backend/tests/test_policy_ratchet_uses_declared_mode.py b/backend/tests/test_policy_ratchet_uses_declared_mode.py
deleted file mode 100644
index 0d291813..00000000
--- a/backend/tests/test_policy_ratchet_uses_declared_mode.py
+++ /dev/null
@@ -1,84 +0,0 @@
-"""A blocked chat retried, blocked, retried, blocked (Ken, 2026-08-31; envelopes 2026-08-30).
-
-The ratchet keyed on `history_prefix_sent`, which is an OUTCOME: RunOptions sets it to "none" at the
-top of every turn and only overwrites it when a fresh-session rebuild actually attaches a recap. On a
-RESUMED turn nothing is attached, so it reads "none" while the declared mode is still "minimal".
-
-The handler read that "none" as "nothing left to strip", skipped the ladder, and went straight to the
-terminal card WITHOUT narrowing anything. The next rebuild therefore sent a recap again and blocked
-again. The fleet shows the impossible sequence that proves it: one session, three blocks, sent going
-none -> minimal -> none, when ENG-399 says a session ratcheted to none is never widened back.
-
-Rule this restores: never key a guard on an incidental fact; use the DECLARED signal.
-"""
-import pytest
-
-from backend.apps.agents.core.models import AgentSession
-from backend.apps.agents.manager.run.RunOptions import PREFIX_NARROWNESS
-
-
-def p_session(mode, sent):
-    s = AgentSession(name="t", model="sonnet", dashboard_id="d")
-    s.history_prefix_mode = mode
-    s.history_prefix_sent = sent
-    return s
-
-
-def test_sent_is_an_outcome_not_the_state():
-    """The field the old code trusted defaults to 'none' on a turn that simply resumed."""
-    import inspect
-    from backend.apps.agents.manager.run import RunOptions
-    src = inspect.getsource(RunOptions)
-    assert 'session.history_prefix_sent = "none"' in src, (
-        "if this default ever goes away, the bug's premise changes and this file should be re-read"
-    )
-
-
-@pytest.mark.asyncio
-@pytest.mark.parametrize("mode,expected", [("minimal", "summary"), ("summary", "none")])
-async def test_a_block_on_a_RESUMED_turn_still_narrows(monkeypatch, mode, expected):
-    """sent='none' (nothing attached) while the mode is wider: the ladder MUST still step."""
-    from backend.apps.agents.manager.run import handle_run_error as mod
-    from backend.apps.agents.manager.streaming.state import TurnState
-
-    async def p_send(*a, **k):
-        return None
-    monkeypatch.setattr(mod.ws_manager, "send_to_session", p_send)
-    monkeypatch.setattr(mod, "p_report_model_error", lambda *a, **k: None)
-
-    s = p_session(mode, "none")
-    err = RuntimeError(
-        'API Error: 400 {"error":{"message":"Output blocked as it seems to violate our '
-        'Acceptable Use Policy (legal/aup): reverse engineering or duplicating model outputs"}}'
-    )
-    await mod.handle_run_error(err, s, s.id, TurnState(), [])
-
-    assert s.history_prefix_mode == expected, "the declared mode must narrow one step"
-    assert s.pending_continuation is True, "and the narrowed retry must actually be armed"
-    assert [m for m in s.messages if m.role == "system"] == [], "no terminal card while the ladder has room"
-
-
-@pytest.mark.asyncio
-async def test_only_an_EXHAUSTED_ladder_reaches_the_terminal_card(monkeypatch):
-    from backend.apps.agents.manager.run import handle_run_error as mod
-    from backend.apps.agents.manager.streaming.state import TurnState
-
-    async def p_send(*a, **k):
-        return None
-    monkeypatch.setattr(mod.ws_manager, "send_to_session", p_send)
-    monkeypatch.setattr(mod, "p_report_model_error", lambda *a, **k: None)
-    monkeypatch.setattr(mod, "api_key_twin_model", lambda *a, **k: None)  # no own key, like the field
-
-    s = p_session("none", "none")
-    await mod.handle_run_error(RuntimeError("blocked ... legal/aup ... duplicating model outputs"),
-                               s, s.id, TurnState(), [])
-    cards = [m for m in s.messages if m.role == "system"]
-    assert cards, "with nothing left to strip the user is owed the honest card"
-    assert "start a fresh chat" in cards[-1].content.lower()
-    assert s.pending_continuation is False, "and it must NOT keep retrying a request that cannot pass"
-
-
-def test_the_ladder_only_ever_narrows():
-    assert PREFIX_NARROWNESS == ("minimal", "summary", "none")
-    for i, mode in enumerate(PREFIX_NARROWNESS[:-1]):
-        assert PREFIX_NARROWNESS.index(PREFIX_NARROWNESS[i + 1]) > PREFIX_NARROWNESS.index(mode)