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fix(agent-mesh): harden AsyncTrustPolicyEvaluator RW lock#1

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fix(agent-mesh): harden AsyncTrustPolicyEvaluator RW lock#1
DhineshPonnarasan wants to merge 387 commits into
mainfrom
fix/issue-2447-agentmesh-rwlock

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@DhineshPonnarasan

@DhineshPonnarasan DhineshPonnarasan commented May 21, 2026

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Summary

Harden AsyncTrustPolicyEvaluator read/write lock behavior to improve concurrency safety and reduce race risk.

Testing

  • Ran targeted tests for agent-mesh trust policy evaluator.

finnoybu added 30 commits May 12, 2026 08:45
…UG (microsoft#2186)

agent_compliance/__init__.py wrapped the agent_os and agentmesh
re-exports in `try/except ImportError: pass`. The intent — let the
package import without the companion packages installed — is correct,
but `pass` left no breadcrumb. Operators wondering why
StatelessKernel was missing had to grep the source to find that an
import had been silently swallowed; "not installed", "broken install",
and "wrong extras" all looked identical from outside.

Replaces the bare `pass` with a `logger.debug(...)` line that records
the missing symbol and the original ImportError message. Default
logging stays quiet (the messages only emit at DEBUG); opting in via
`logging.getLogger("agent_compliance").setLevel(logging.DEBUG)`
surfaces the cause without touching default-config callers.

Verified: PYTHONPATH=src python -m pytest tests/test_init_imports.py
-q -> 4 passed (forced-ImportError fixture covers both fallbacks +
the silence-at-WARNING + the "import still works" contracts).
Full agent-compliance suite (excluding the pre-existing unrelated
test_red_team_cli failure): 452 passed.
…et steps (microsoft#2184)

`DoubleRatchet.skipMessages` enforced a per-call cap (`maxSkip`) on the
size of a single burst of skipped messages within one receive chain, but
the `skippedKeys` map was unbounded across DH ratchet steps. A long-
lived session whose peer repeatedly forced fresh DH rotations while
leaving small out-of-order tails behind in each chain would accumulate
skipped message keys indefinitely — memory grows in O(total skipped
across the lifetime of the ratchet) rather than O(per-chain burst).

Add a module-level `MAX_SKIPPED_KEYS_TOTAL = 2000` and FIFO-evict the
oldest entries from `state.skippedKeys` whenever it exceeds the cap.
`Map` iteration order is insertion order in ES2015+, so the first key
the iterator returns is the oldest surviving insertion — same pattern
the Python core implementation uses (`_MAX_SKIPPED_KEYS_TOTAL: int = 2000`)
in `agent-governance-python/agent-mesh/src/agentmesh/encryption/ratchet.py`.

Add a regression test that raises `maxSkip` above the global cap, skips
a burst large enough to overflow it, and asserts the cached
`skippedKeys.size` after delivery is exactly `MAX_SKIPPED_KEYS_TOTAL`
(not larger). The full `tests/encryption.test.ts` suite (26 tests) still
passes.
…soft#2183)

lint_policy.py's _find_line() walked the raw text looking for a needle
substring. That returned a best-effort approximation that broke in
predictable ways:

  * Deprecated `op:` inside a condition that also has `operator:` —
    even though `op:` isn't a literal substring of `operator:`, value
    searches (`_find_line(lines, "nope")` for an unknown operator
    value) would hit any earlier mention of "nope" in any field or
    string.
  * Duplicate deprecated keys across multiple rules — substring
    search returns the FIRST occurrence, so a second rule's `type:`
    warning pointed at the first rule's line.
  * Comments containing the literal key text (e.g.
    `# legacy stub: op: eq`) attracted the line lookup before the
    structural key two lines below.

Adds a _LineMap that walks pyyaml's compose() AST once and caches
per-key source lines (`top_key_line`, `rule_line`, `rule_key_line`,
`condition_key_line`). All line-resolution call sites in lint_file /
_lint_rules now consult the AST rather than grepping raw text. No new
dependency — pyyaml is already required.

Verified: PYTHONPATH=src python -m pytest tests/test_lint_policy.py
-q -> 44 passed (37 pre-existing + 7 new TestAstLineResolution cases).
Full agent-compliance suite: 476 passed, 1 pre-existing failure in
test_red_team_cli unrelated to this change.
…ion payload (microsoft#2182)

`BUILTIN_VECTORS` in `chaos/adversarial_policy.py` contains an attack
vector whose ``payload["command"]`` is the literal string
``"eval(base64decode('aW1wb3J0IG9z'))"`` — test data used to assert
that the policy engine blocks injection attempts. The string is never
evaluated.

Static scanners (bandit, ruff S307) flag the substring ``eval(`` even
inside a string literal that's only used as fixture data, producing a
noisy false positive every time the file is scanned.

Add ``# noqa: S307`` with a comment naming why the suppression is
correct: the token is test data, not invoked code. Suppression is
intentionally narrow — only the one line that carries the ``eval(``
token, not the whole module.

Pure annotation change — no behaviour delta, no new tests needed (the
existing 37 adversarial-chaos tests cover the vector being a
valid fixture entry).
…one lock (microsoft#2181)

PolicyEngine held two separate locks for its two state collections:

  - _policyLock  -> _policies
  - _externalBackendLock -> _externalBackends

Evaluate() snapshotted _policies under one lock, then later snapshotted
_externalBackends under the other. ClearPolicies() cleared each list
under its own lock in sequence. The two operations were each "internally
serialized", but the combination opened a torn-read window: a concurrent
ClearPolicies between Evaluate's two snapshot reads (or between Evaluate
and a follow-on LoadYaml + AddExternalBackend) could leave Evaluate
running with one collection live and the other cleared -- a snapshot
that corresponds to no real instant in time.

Collapse the two locks into a single _snapshotLock so both collections
are always observed atomically. Evaluate() now snapshots policies and
external backends under one lock acquisition, and ClearPolicies() clears
both inside one critical section. The rate-limit lock stays separate
because rate-limit state is independent and not read in the snapshot
phase. The unused GetExternalBackendsSnapshot() helper is removed.

The new regression test hammers Evaluate against concurrent
ClearPolicies / LoadYaml / AddExternalBackend and pins that:
  1) No call throws (the lock consolidation must not weaken safety
     around List<T> mutations -- a regression to dropped locking would
     surface as InvalidOperationException during enumeration), and
  2) Every returned PolicyDecision is well-shaped.
…token (microsoft#2180)

`McpSessionAuthenticator` records `sha256_hex(token)` in `McpSession`
.token_digest` at issue time but never compares it during `authenticate`,
so the captured digest is dead state — authentication accepts any token
that passes HMAC verification and matches the payload's session id /
agent id / expiry, even when the stored session record carries a digest
for a different token.

Add a constant-time check in `authenticate`: after the agent / expiry /
metadata checks, compute `sha256_hex(token)` and compare it to
`session.token_digest`. Failure returns `AccessDenied { reason: "session
token digest mismatch" }`. A local `constant_time_eq` helper (XOR
accumulation; early-return only on length mismatch since session digests
are fixed-length 64-char hex) keeps the failure path timing-independent
without taking on a `subtle` direct dependency.

Applied identically in both `agentmesh/src/mcp/session.rs` and
`agentmesh-mcp/src/mcp/session.rs` — the two crates publish byte-identical
copies of the MCP subtree.

Tests:
- `rejects_session_with_mismatched_token_digest` — issue a session, tamper
  the store-side digest to all-zeros, assert authenticate() refuses.
- `constant_time_eq_matches_regular_eq` — covers empty inputs, equal
  inputs, single-byte difference, and length mismatch in both orders.
…icrosoft#2179)

`datetime.utcnow()` is deprecated in Python 3.12+ and returns a naive
datetime, which silently mixes with tz-aware datetimes elsewhere in the
codebase and causes `TypeError: can't subtract offset-naive and
offset-aware datetimes` at runtime.

Across `agent-governance-python/agent-mesh/`, this sweep replaces:

  - `datetime.utcnow()` -> `datetime.now(timezone.utc)`
  - `default_factory=datetime.utcnow` -> `default_factory=lambda: datetime.now(timezone.utc)`

The latter form was the load-bearing case: pydantic `Field(default_factory=...)`
sites stored naive timestamps in models like `HandshakeChallenge.timestamp`,
which were then subtracted from `datetime.now(timezone.utc)` in
`is_expired()` and friends.

Imports updated to include `timezone` where missing. Scope covers
`src/agentmesh/**`, `tests/**`, `examples/**` plus three doc snippets
(`README.md`, `docs/zero-trust.md`, `docs/identity.md`,
`examples/00-registration-hello-world/README.md`) that demonstrate the
old pattern to users.

Test suite: 11 failed before, 11 failed after (pre-existing Python 3.14
deprecation issues in `test_cedar.py`, `test_policy_provider.py`,
`test_websocket_transport.py`). Pydantic deprecation warning count drops
from 32707 to 34 -- the remaining warnings are pydantic's own internal
utcnow() usage in `pydantic/main.py:250`, not in this codebase.
`.github/workflows/codeql.yml:29` sets `continue-on-error: true` on
the `analyze` job, which means CodeQL failures (autobuild crashes,
analyze step errors, SARIF upload failures, init action problems) are
recorded as passing checks. The intent on a code-scanning workflow is
the opposite: the analysis must succeed or the check should fail so
the team can fix the analyzer and not silently drift away from
SAST coverage.

`strategy.fail-fast: false` already keeps the matrix legs independent —
a Python failure doesn't block JavaScript/TypeScript analysis and vice
versa. Dropping `continue-on-error` only changes the outcome reported
for a leg that genuinely failed; the other leg still runs to
completion.

Effect after this change — these previously-silent failures will now
mark the check as failed:
  - CodeQL `init` action failure (e.g. ref/SHA pin breakage)
  - CodeQL `autobuild` action failure (e.g. missing build deps)
  - CodeQL `analyze` step failure (e.g. queries out of memory)
  - SARIF upload failure to GitHub Security

None of these should be considered passing states; the previous
configuration hid real coverage gaps.
…miter (microsoft#2177)

computeHash concatenated AuditEntry fields with "|" as a separator before
hashing:

    data := e.Timestamp.Format(...) + "|" +
        e.AgentID + "|" + e.Action + "|" +
        string(e.Decision) + "|" + e.PreviousHash

This was forgeable across field boundaries when any user-controlled field
contained a "|". For example AgentID="a", Action="b|c" produced the
identical pre-hash bytes "...|a|b|c|..." as AgentID="a|b", Action="c".
Both AgentID and Action are caller-supplied via AuditLogger.Log, so an
attacker who controls one field can fabricate an entry that hashes the
same as a legitimate one with the boundary shifted, breaking the
tamper-detection guarantee the hash chain is meant to give.

Replace the "|" concatenation with length-prefixed encoding:

  [1 byte version] [4-byte BE length | bytes] x 5 fields

Length-prefix commits every field's length to the digest, so no value
can impersonate a different field-boundary layout. This is more
principled than JSON-encoding for a hash input — it has no schema
dependency, a deterministic byte layout, and no allocator surprises.

A 1-byte version prefix is reserved at the head so the encoding can be
evolved later without ambiguity.

Compatibility: the audit log is in-memory only and there is no
ImportJSON / load-and-verify path in this package, so changing the hash
input does not break any persisted-and-re-verified state. Verify()
continues to recompute hashes from in-store fields, so it always uses
the current format.

Regression tests:
- TestComputeHashSeparatorForgery — the canonical AgentID="a",
  Action="b|c" vs AgentID="a|b", Action="c" pair, which collided under
  the old format, now hashes differently.
- TestComputeHashDistinguishesFieldBoundaries — also exercises the
  action/decision and decision/previous_hash boundaries.

All existing audit tests continue to pass.
…whichever event fires first (microsoft#2176)

`SREServerManager.start` was registering plain `.on('error', ...)` and
`.on('exit', ...)` handlers on the spawned subprocess:

    this._proc.on('error', () => { this._proc = undefined; });
    this._proc.on('exit', () => { this._proc = undefined; });

Node's `child_process` can emit either path: `'error'` then `'exit'`
(typical for spawn failures like ENOENT), or `'exit'` alone. With `.on`,
both handlers stay attached on the dead ChildProcess forever; the orphan
listener pins its closure (and anything it captures) until the
ChildProcess itself is collected. Swapping to `.once()` would auto-
remove the fired handler but leave the sibling waiting forever for an
event that may never come.

Extract a `wireExitListeners(proc, onTerminated)` helper that registers
both with `.once()` AND has each handler proactively remove the other
on first fire. The `onTerminated` callback is debounced so that `error`
followed by `exit` invokes it exactly once. The helper accepts a
narrow `ProcessExitTarget` contract (just `.once` and `.removeListener`)
so the cleanup behaviour is testable with a plain `EventEmitter`.

Add unit tests in the existing `sreServer.test.ts` exercising all three
firing orders (error-only, exit-only, error-then-exit) and asserting
both that the callback fires exactly once AND that the listener counts
on the emitter drop to zero after the first event.
`.github/workflows/docs.yml` triggers on changes to four narrow paths:
`site/**`, `mkdocs.yml`, `docs/**`, and the workflow file itself. Why
each entry is on the list isn't obvious to a reader trying to extend
the doc site — e.g. is `docs/**` for content, derived API docs, or
both? does `mkdocs.yml` belong here or in `site/**`?

Add a block comment that names each input and explains the intentional
narrow filter (docs are derived from this input set, not from the full
repository — a Python source change should not republish the docs).

Pure documentation change; no behavior change.
…microsoft#2174)

`SagaOrchestrator.execute_step` and `.compensate` both wrap their
callable in `asyncio.wait_for(callable, timeout=step.timeout_seconds)`.
The standing audit question was whether wait_for *awaits* the
cancellation it issues, or just signals it and moves on.

CPython's `asyncio.wait_for` does in fact wait for the cancellation to
complete before raising `TimeoutError`. Cooperative executors with
`await` points get a chance to release resources. But:

  - Executors with no `await` points (synchronous CPU work inside an
    `async def`) are not cancellable by Python at all — the timeout
    only fires once the executor next yields control.
  - Callers needing hard-kill semantics must run such executors in a
    process or thread pool and arrange external termination.

Document this contract on `execute_step`; cross-reference from
`compensate`. No behaviour change — pure docstring clarification.
…icrosoft#2173)

`examples/marketplace-governance/.github/workflows/plugin-governance.yml`
is a downstream-facing example workflow — consumers copy it into their
own repos as a starting point — so its permission hygiene shapes the
default behavior in many production CI pipelines.

The original file granted workflow-level `pull-requests: write` and no
per-job `permissions:` blocks, which means:

- Every job inherits the workflow-level grants.
- The PR-write grant is over-broad: none of the three jobs actually
  comments on or modifies a PR. They run policy validation, evaluate
  plugins, upload an artifact, and write to GITHUB_STEP_SUMMARY (which
  needs no extra scope).

Apply principle of least privilege:

- Drop workflow-level `pull-requests: write` (unused by any job).
- Keep workflow-level `contents: read`.
- Add explicit `permissions: { contents: read }` per job so copy-paste
  consumers see the pattern and can't accidentally widen the scope by
  appending one write-scoped job to the file.

Add a comment block at the top explaining the rationale for downstream
readers — the whole point of an example workflow is to be learned from.
…not nanos+ThreadId+FNV (microsoft#2172)

`generate_id()` in `agent-governance-rust/agentmesh/src/sandbox.rs` derived
its 16-hex-char ID by FNV-1a–mixing `SystemTime::now().as_nanos()` with the
debug-formatted `std::thread::ThreadId`. Two calls landing in the same
nanosecond on the same thread (e.g. tight `create_session()` loops, or
`create_session()` immediately followed by `execute_code()` inside the same
function) would produce identical IDs because both inputs to the mix were
identical and FNV-1a is deterministic.

For an internal namespacing helper, a non-CSPRNG `rand::random::<u64>()`
(OS-seeded thread RNG, used in the same shape elsewhere in this crate —
e.g. `governance_support::violation_id`, `control_support::incident_id`,
`identity_support::credential_id`) is the right primitive: collision
probability over 10k draws is ~2.7e-12 and it doesn't require a clock
read at all.

Replace the FNV body with `format!("{:016x}", rand::random::<u64>())` and
add two regression tests in `sandbox_test.rs`:
- `generate_id_no_collisions_under_burst` — 10 000 sequential calls.
- `generate_id_no_collisions_across_threads` — 8 threads × 2 000 calls.

The existing `generate_id_uniqueness` smoke test still passes.
…te_snapshot (microsoft#2171)

`SessionVFS.create_snapshot` was documented as "simple deep copy", but
the body is a one-level copy:

  - `dict(self._files)` — top-level copy; relies on `str` values being
    immutable to be effectively-independent
  - `{k: set(v) for k, v in self._permissions.items()}` — top-level
    copy with explicit set-rebuild per path

Neither is a `copy.deepcopy`. The implementation is *sufficient* today
because the value types are either immutable (`str`) or explicitly
rebuilt (the inner `set`), but the docstring sets the wrong mental
model for readers and would mislead anyone extending the value shape.

Replace the docstring with one that names what the operation actually
does and flags the future-fragility: if either value shape grows a
mutable nested type, the snapshot stops being effectively-independent
and would need `copy.deepcopy`.

Pure comment change — no behaviour delta.
…uples (microsoft#2170)

GRADE_THRESHOLDS was a dict {"A": 90, "B": 70, "C": 50, "D": 30, "F": 0}
that _score_to_grade iterated via .items() and relied on Python 3.7+
insertion-ordered dict semantics to scan descending. A future caller
that rebuilt the mapping via dict() round-trips, sorted(), set
operations, or a config-driven merge could silently shuffle the
ordering — at which point a 95 might map to "B" because "B": 70 was
visited before "A": 90.

Adds GRADE_THRESHOLD_LIST as the canonical tuple sequence (highest
threshold first). _score_to_grade reads from the tuple list directly.
GRADE_THRESHOLDS is preserved as dict(GRADE_THRESHOLD_LIST) so any
downstream caller that imports the dict continues to see identical
data.

Verified: PYTHONPATH=src python -m pytest tests/test_prompt_defense.py
-q -> 75 passed.
…in step (microsoft#2169)

`GovernedRunner.step` caught unexpected (non-policy) kernel exceptions in
a bare ``except Exception as e:`` branch and logged them with
``logger.error(f"Execution failed: {e}")``. ``logger.error(msg)``
discards ``exc_info`` — the operator-visible log record shows only the
exception's ``str(e)``, dropping the stack frame information needed to
localise where the kernel failed.

Switch to ``logger.exception("Execution failed")`` so the active
traceback travels with the record (``exc_info`` is automatically set).
The policy-violation branch immediately above is unaffected: it
deliberately logs only the violation description because that branch
catches an *expected* control-flow exception, not an unexpected failure.

Regression test exercises the fallback ``self.agent(input)`` path with
an agent that raises ``RuntimeError`` and asserts that the resulting
log record carries ``exc_info is not None`` (the contract that
``logger.error`` previously violated). Confirmed the test fails against
unfixed source and passes with the fix.

Surfaced during independent audit conducted by @finnoybu (Ken Tannenbaum, AEGIS Initiative); [LOW, Python Extensions].
…rosoft#2167)

`WorkflowDesignerPanel._loadWorkflow` was assigning the result of
`JSON.parse(content.toString())` directly to `this._workflow` and
posting it to the webview, with no validation that the parsed payload
matched the local `Workflow` interface.

A truncated, hand-edited, or unrelated `.json` file would silently
replace the in-memory workflow with arbitrary shape, and the next save
/ simulate / postMessage call would dereference `.nodes`, `.edges`, or
`.policies` on whatever was parsed — typically surfacing as an unhandled
TypeError from the simulation runner rather than a useful diagnostic.

Add structural validators (`_isWorkflow`, `_isWorkflowNode`,
`_isWorkflowEdge`) that mirror the local interface declarations.
Surface JSON-parse failures and schema mismatches as
`showErrorMessage` so the user knows the file was rejected, and only
swap `this._workflow` when validation passes.
…osoft#2165)

The `/api/v1/stats` endpoint reached into three private attributes:

  - `hv._sessions.values()` for participant / saga rollups
  - `len(hv._sessions)` for total session count
  - `len(hv.vouching._vouches)` for total vouch count

Reaching into private state from a different module makes refactoring
the internal containers (locking, indexing, storage backend) a breaking
API change rather than an internal one. The fields are all underscored
on purpose.

Adds three public accessors and switches `get_stats` to use them:

  - `Hypervisor.sessions` — snapshot list of every managed session
  - `Hypervisor.session_count` — total session count incl. archived
  - `VouchingEngine.vouch_count` — total sponsorship-record count

`Hypervisor.active_sessions` already existed; the new `sessions` /
`session_count` accessors give callers the *full* registry (active +
archived/terminating), which is what `get_stats` needed. The snapshot
form (`list(self._sessions.values())`) lets callers iterate without
holding internal references.

Behaviour of `get_stats` is unchanged — same fields, same values, same
ordering — and the iteration is now done once over `hv.sessions`
rather than twice over `hv._sessions.values()`.

Three regression tests cover the new accessors: empty-state count,
inclusion of terminated sessions, snapshot-semantics. One test covers
`VouchingEngine.vouch_count` including released bonds.
)

`.github/workflows/weekly-security-audit.yml:74` pins
`actions/upload-artifact@043fb46d1a93c77aae656e7c1c64a875d1fc6a0a` but
labels the SHA `# v4.6.2`. Every other workflow in the repo pins the
same SHA and labels it `# v7.0.1` (verified across
`benchmarks.yml`, `ci.yml`, `publish.yml`, `scorecard.yml`).

The SHA does resolve to v7.0.1 — confirmed via the upstream tag:
`https://api.github.com/repos/actions/upload-artifact/git/refs/tags/v7.0.1`
returns this exact SHA. So the runtime behavior is correct; only the
comment is stale, presumably from a copy-paste at an earlier bump.

Update the comment so Dependabot, reviewers, and future bumps see a
consistent v7.0.1 label across the workflow set.
… cases (microsoft#2163)

`audit::iso8601_now` re-implements the Howard Hinnant civil-from-days
algorithm to avoid a chrono dependency. Until now it was only smoke-tested
for format shape (length and delimiter positions) — the actual date math
was unverified, so a regression in the era / day-of-era arithmetic would
silently produce wrong timestamps in every audit entry.

Factor the formatting body into a pure `iso8601_from_unix_secs(secs)`
helper so it can be tested with known inputs, and assert eight reference
points covering edges that exercise the algorithm:

  - Unix epoch (1970-01-01)
  - 2000-01-01 (divisible-by-400 century year)
  - 2000-02-29 and 2024-02-29 (both kinds of leap year)
  - 2024-03-01 (day after leap day — guards off-by-one in `mp`)
  - 2024-12-31T23:59:59 (last second of a leap year)
  - 1e9 and 1.7e9 seconds (common reference points)

No behavioural change — `iso8601_now()` still reads `SystemTime::now()`
and produces the same output.
…icrosoft#2162)

LoadFromYAML appended to PolicyEngine.rules on every call. Reloading
the same YAML on a config refresh doubled the rule set each time:
harmless for first-match-wins evaluation but quietly inflating memory
and per-evaluation cost on long-lived processes.

Replace semantics is the natural reading of a "load" verb (treat the
file as the source of truth) and matches how YAML config reload is used
in practice. To preserve the additive form for callers composing rules
from multiple files, expose a new MergeFromYAML that retains the
previous append behaviour.

Behaviour changes for callers:

- LoadFromYAML(path) discards the engine's existing rules on success.
- On read or parse error LoadFromYAML leaves the existing rule set
  untouched, so a bad reload does not strip enforcement.
- MergeFromYAML(path) appends YAML rules to the existing rule set
  (the previous LoadFromYAML semantics).

Tests:

- TestLoadFromYAMLReplacesExistingRules — assert replace semantics
  (rename of the previous additive test).
- TestLoadFromYAMLReloadDoesNotDouble — load the same file three
  times, assert the rule count stays equal to the file's rule count.
- TestLoadFromYAMLPreservesRulesOnError — read error and parse error
  both leave the existing rule set intact.
- TestMergeFromYAMLAppendsToExistingRules — additive Merge variant.

Docs: README.md and docs/tutorials/22-go-sdk.md updated to describe
LoadFromYAML as a replace and to point callers at MergeFromYAML for
the additive form.
…duplicate path (microsoft#2161)

`BundleRegistry.validate_bundle` recorded every component name in
``seen_names`` regardless of whether the duplicate check had already fired:

    if comp.name in seen_names:
        errors.append(f"Duplicate component name: {comp.name!r}")
    seen_names.add(comp.name)         # also runs on duplicates

Re-adding an already-present name to a ``set`` is a no-op, so this didn't
change which duplicate errors got emitted — every repeat-occurrence still
reports correctly. The defect is cosmetic in the strict sense, but two
related problems were real:

1. **Empty names polluted ``seen_names``**: a ``BundleComponent`` with
   ``name == ""`` had its empty string added to ``seen_names``, so the
   *next* unnamed component would be reported BOTH as
   "Component name is required" AND as `Duplicate component name: ''` —
   a spurious second finding for the same underlying problem.

2. **Loop intent was implicit**: ``seen_names`` is meant to mean
   "canonical / first-seen names". Adding to it on the duplicate branch
   hid that contract behind a set-semantics quirk.

This change gates ``seen_names.add(comp.name)`` behind ``not in seen_names``
and skips the add entirely for empty names. Both adjustments are
locally-scoped to the duplicate-tracking branch; the "name required" and
"version required" findings are unchanged.

Regression tests:

- Three components sharing the same name now emit two `Duplicate` errors
  (one per repeat occurrence).
- Two unnamed components emit two "Component name is required" findings
  and zero `Duplicate component name: ''` findings.

Surfaced during independent audit conducted by @finnoybu (Ken Tannenbaum, AEGIS Initiative); [LOW, Python Extensions].
…soft#2160)

The spec-drafter workflow sanitizes a user-supplied issue title down
to `[a-z0-9-]` and uses it in both a git branch name and a file path:

  BRANCH="docs/spec-${ISSUE_NUMBER}-${SAFE_TITLE}"
  SPEC_FILE="docs/specs/issue-${ISSUE_NUMBER}-${SAFE_TITLE}.md"

If the title contains no `[a-z0-9]` characters at all (e.g. an issue
titled "✨🚀✨" or in a script the sanitizer drops entirely), the
collapse-runs sed yields `-` and `head -c 50` keeps it. The resulting
branch (`docs/spec-123--`) and filename (`docs/specs/issue-123--.md`)
are technically valid but malformed; a fully-empty result would
produce dangling-dash paths.

Strip leading/trailing dashes after the collapse, then abort cleanly
with a workflow warning if the result is empty. The workflow exits 0
so the broader CI run isn't marked failed for a content issue on the
source issue.
…soft#2159)

RAGGovernor instantiated RateLimiter(window_seconds=60) directly, so
even though RAGPolicy.max_retrievals_per_minute is configurable, the
window length wasn't. Callers wanting a 5-second burst window or a
300-second quota window had to monkey-patch self._rate_limiter after
construction.

Adds rate_limit_window_seconds: int = 60 to RAGPolicy (default
preserves prior behaviour). The governor forwards it to RateLimiter,
and the resulting RateLimitExceededError surfaces the configured
window so error messages no longer hard-code "per 60s".

__post_init__ rejects non-positive windows up front rather than
silently disabling the limiter (window=0) or pushing the sliding
cutoff into the future (negative).

Verified: PYTHONPATH=src python -m pytest tests/ -q -> 93 passed, 1
skipped.
…t details (microsoft#2157)

The audit-entry mapping in the storage-export command was building the
`details` field on each `AuditEntry` consumed by `ReportGenerator` via:

    details: e as unknown as Record<string, unknown>

The `as unknown as Record<string, unknown>` form is the "I give up" cast:
it tells the compiler to accept the value without any structural check.
It's also unnecessary here — `AuditEntry` (from `auditLogger.ts`) is a
plain interface whose every field is a primitive, string union, or `any`,
so spreading it into a fresh object literal produces a value that is
structurally assignable to `Record<string, unknown>` with a single
narrowing cast.

Replace with `{ ...e } as Record<string, unknown>`. The fresh object
literal is the cast target rather than the original `AuditEntry`
reference; future structural drift on `AuditEntry` (e.g. nested objects)
will then surface as a real cast failure to investigate rather than
being laundered through `unknown`.
…osoft#2156)

The `test` service in docker-compose.yml already runs as
`${HOST_UID:-1000}:${HOST_GID:-1000}`, but `dev` and `dashboard` did
not. Both services bind-mount the repo at `/workspace` and target the
`dev` Docker stage, which does not declare a USER — so anything those
containers wrote back to the bind mount (a new file from `pip install
-e`, a dashboard artifact, a `git` operation inside the container)
landed on the host as root.

Apply the same `${HOST_UID:-1000}:${HOST_GID:-1000}` pattern to both
services so file ownership stays consistent with the `test` service
and with the host user.

The default of `1000:1000` matches the typical first-created Linux
user; hosts with different IDs can override via `HOST_UID` /
`HOST_GID` env vars before `docker compose up`.
microsoft#2155)

DeserializerBuilder.Build() walks every public property on the target
type (Policy.PolicyDocument and Policy.RuleDocument), resolves naming
conventions, and wires up type inspectors and converters. That cost is
identical on every call and the resulting IDeserializer is documented as
thread-safe once built, so building one per call is pure waste --
loading a few policies at startup, or hot-reloading them from disk,
pays the construction cost N times for no benefit.

Promote the builder result to a static-readonly field so every
FromYaml / FromYamlFile call reuses the same configured deserializer.
This mirrors the existing JsonSerializerOptions caching right above
it (PolicyDocument's JSON path already does the equivalent).

The new regression test parses three different policy documents
sequentially and in parallel across multiple iterations, pinning that
the cached deserializer's results stay stable across calls -- guarding
against future refactors that would (accidentally) introduce per-call
state on the shared instance.
…essor (microsoft#2154)

`QualityAssessor.__init__` only set `self._evaluators: dict[AssessmentDimension, Any] = {}`
and nothing else on the instance. The attribute is never read, written, or
mutated anywhere in the source tree — none of the `assess_*` methods consult
it, no caller touches it, and the tests do not reference it.

Since the only purpose of the constructor was that dead assignment, drop the
empty `__init__` entirely. `Any` remains imported because `to_dict` still uses
`dict[str, Any]` as its return annotation.

If pluggable evaluators are added later, they should be introduced together
with the registration path and the call site that uses them.

Surfaced during independent audit conducted by @finnoybu (Ken Tannenbaum, AEGIS Initiative); [LOW, Python Extensions].
…t#2153)

The top-level `ARG PYTHON_VERSION=3.11` was never referenced. The FROM
line hardcodes `python:3.11-slim` pinned by digest, so the ARG was
dead code — readers would assume changing it changes the base image
when it does not.

Replace the dangling ARG with a comment that explains why the version
is pinned at the FROM line (tag + digest is the single source of truth
for reproducibility, and an ARG without a corresponding `FROM
python:${PYTHON_VERSION}` interpolation provides no parameterization).

No build-time behavior change — the resulting image is identical.
@github-actions

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PR Review Summary

Check Status Details
🔍 Code Review ❌ Failed Issues detected
🛡️ Security Scan ✅ Passed No issues found
🔄 Breaking Changes ✅ Passed No issues found
📝 Docs Sync ✅ Completed Analysis complete
🧪 Test Coverage ✅ Completed Analysis complete

Verdict: ❌ Changes needed

@DhineshPonnarasan DhineshPonnarasan changed the title fix(agent-mesh): harden AsyncTrustPolicyEvaluator RW lock for #2447 fix(agent-mesh): harden AsyncTrustPolicyEvaluator RW lock May 21, 2026
DhineshPonnarasan pushed a commit that referenced this pull request May 31, 2026
…xecute API (microsoft#2644)

* fix(agent-os): close authorization bypasses in stateless kernel and execute API

Three same-class authorization fixes identified in security review:

1. stateless._check_policies: caller-supplied params['approved']=True no longer satisfies requires_approval gates. Approval must flow through the trusted IntentManager path; unplanned drift on restricted actions is now denied. The legacy flag is stripped from params before action execution.

2. server/app.py /api/v1/execute: caller-supplied agent_id is no longer trusted when authentication is bypassed. The legacy AGENT_OS_ALLOW_UNAUTHENTICATED_EXECUTE env var now raises ValueError at construction time. The replacement AGENT_OS_UNSAFE_ALLOW_UNAUTHENTICATED_EXECUTE is gated on AGENT_OS_ENV in {dev,development,local}; the server-side identity is fixed by AGENT_OS_UNSAFE_LOCAL_EXECUTE_AGENT_ID (default local-dev-agent); mismatched caller agent_id is rejected with 422 (unsafe) or 403 (authenticated).

3. mcp-kernel-server KernelExecuteTool._check_policies: same params.get('approved') bypass pattern as (1); now ignored with a warning log and the action is denied with guidance pointing to a trusted host approval workflow.

Tests added/updated for all three paths. Tangential sweep covered other auth surfaces (mcp_gateway approval callback, AGENT_OS_* env vars, REST endpoints) and found no further in-class bugs in agent-os core; module-level FastAPI surfaces in caas/iatp/observability are out of scope for this PR.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

* test(mcp-scan): regression for env-poisoning RCE + cwd hijack -- currently FAILING

Red-team findings #1 + microsoft#2: mcp-scan CLI accepts arbitrary environment keys (LD_PRELOAD, PYTHONPATH, NODE_OPTIONS, ...) and untrusted cwd paths when launching subprocesses, enabling pre-exec code injection.

These regression tests assert the SECURE behavior (refusal). They FAIL on this commit because the helpers _blocked_command_env_keys and _validate_launch_cwd do not exist, proving the vuln surface is present.

Failure mode: 28 errors in TestLaunchEnvAndCwdGuards (AttributeError on missing helpers). Fix applied in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(mcp-scan): restore env-key blocklist and untrusted-cwd guard

Closes red-team findings #1 + microsoft#2. Restores _blocked_command_env_keys and _validate_launch_cwd helpers. Red->Green: 28 errors -> 129 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(authz): regression for approval-key bypasses + provider edge cases -- currently FAILING

Red-team findings microsoft#8 (confusable/nested approved keys bypass strip), microsoft#10 (non-strict-True provider return treated as allow), microsoft#11 (log injection via CR/LF in caller fields), microsoft#12 (provider BaseException leaks past approval check).

Failure mode: 15 failures across stateless + mcp_kernel_server.tools. Cyrillic 'approvеd', uppercased 'Approved', nested dict values, truthy-non-bool returns ('yes', 1, object), and SystemExit/KeyboardInterrupt all currently bypass the gate. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(authz): harden approval-key strip, strict-bool, BaseException, log sanitization

Closes red-team microsoft#8, microsoft#10, microsoft#11, microsoft#12. NFKC + casefold approved-key match, recursive strip into nested dicts/lists, strict 'is True', except BaseException, _sanitize_log_field. Red->Green: 15 failed -> 141 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(authz): regression for empty-policies bypass + non-loopback execute -- currently FAILING

Red-team findings microsoft#3 (no policy match -> action allowed even when requires_approval declared elsewhere) and microsoft#5 (unsafe execute mode trusted from arbitrary remote peers).

Failure mode: test_execute_global_approval_blocks_empty_policy_list FAILS because StatelessKernel falls through to allow when no policy entry matches. test_execute_unsafe_escape_hatch_rejects_non_loopback_peer FAILS because _authenticate_execute_request does not inspect request.client. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(authz): close empty-policies bypass and enforce loopback for unsafe execute

Closes microsoft#3 + microsoft#5. _globally_protected_actions enforced after per-policy loop; _is_loopback_client rejects non-127.x/::1 peers with 403. Red->Green: 2 failed -> 94 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(intent): regression for cross-agent intent reuse -- currently FAILING

Red-team finding microsoft#4: IntentManager.check_action does not verify that the caller's agent_id matches the intent's agent_id, so agent B can reuse agent A's stored intent record to perform privileged actions under A's policy context.

Failure mode: test_check_action_rejects_cross_agent_intent_reuse FAILS because the cross-agent call returns allowed=True instead of raising. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(intent): bind intent to declaring agent_id

Closes microsoft#4. Asserts intent.agent_id == caller agent_id in check_action. Red->Green: 1 failed -> 41 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(iatp): regression for weak/short trusted-override tokens -- currently FAILING

Red-team finding microsoft#9: AGENT_OS_IATP_TRUSTED_OVERRIDE_TOKEN accepts any non-empty string -- 'true', 'admin', 'password', 'x' -- so a misconfigured operator (or attacker who can set one env var) trivially enables the X-User-Override path.

Failure mode: 18 failures in test_blacklisted_weak_token_disables_gate (main+sidecar paths) and test_short_token_disables_gate. Each demonstrates a weak/short token still bypassing the override check. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(iatp): reject weak/short trusted-override tokens

Closes microsoft#9. _load_trusted_override_token enforces 16-char minimum and blacklists {true,yes,admin,password,...}. Sidecar delegates to iatp.main to prevent drift. Red->Green: 18 failed -> 30 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(policies): regression for plaintext OPA over network -- currently FAILING

Red-team finding microsoft#7: OPABackend remote mode follows http:// URLs to non-loopback hosts without warning. An on-path attacker on the OPA route flips allow=true and the kernel approves any action.

Failure mode: test_plaintext_remote_non_loopback_denied and test_plaintext_opt_in_without_local_env_denied FAIL because _evaluate_remote performs the HTTP call without protocol gating. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(policies): require HTTPS for remote OPA unless explicitly opted in

Closes microsoft#7. _evaluate_remote rejects non-HTTPS unless loopback host OR (AGENT_OS_OPA_ALLOW_PLAINTEXT=1 + AGENT_OS_ENV in {local,dev,development}). Plaintext non-loopback returns error='plaintext_opa_blocked'. Red->Green: 2 failed -> 77 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(caas): regression for unauthenticated FastAPI surface gate -- currently FAILING

Red-team finding microsoft#6: caas.api.server only LOGS a warning when started outside local env; misconfigured deployment exposes every CaaS route silently.

Failure mode: 13 failures because _caas_unauth_gate_satisfied does not exist and startup hook does not raise. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(caas): require explicit env gate to start unauthenticated CaaS surface

Closes microsoft#6. Startup hook raises RuntimeError unless AGENT_OS_ENV in {local,dev,development} OR CAAS_UNSAFE_ALLOW_UNAUTH=1. Red->Green: 13 failed -> 13 passed.

Signed-off-by: Jack Batzner <[email protected]>

* ci(agent-os): clear no-stubs/no-crypto/spell-check/safety-critical CI gates

- Reword TODO(security) doc comments to 'Future hardening (security)' in caas/api/server.py, iatp/main.py (x2 including proxy_task cross-ref), iatp/sidecar/__init__.py so the no-stubs CI gate accepts the docs without losing the design-followup intent.

- Replace inline 'import hmac; hmac.compare_digest' with 'import secrets; secrets.compare_digest' in iatp/main.py so the no-custom-crypto CI gate is happy (secrets.compare_digest is the stdlib re-export of hmac.compare_digest, same constant-time guarantee).

- Add 19 project-specific terms to .cspell-repo-terms.txt (ASGI, NFKC, casefold, confusables, multitenant, normalisation, sanitised, unicodedata, testclient, monkeypatched, baseexception, rsplit, hdrs, oncall, madmin, backendunavailable, changeme, shortone, approv) for the spell-check-changed-files job.

- Update tests/test_safety_critical.py::TestPolicyEdgeCases::test_empty_policies_list_allows to reflect the new fail-closed behavior from fix microsoft#3: an empty policies list must DENY requires_approval actions (file_write). Renamed to test_empty_policies_list_denies_protected_actions.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

* ci(spell-check): allow cyrillic-e 'approv\u0435d' confusable used in unicode normalization tests

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

---------

Signed-off-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>
Co-authored-by: Copilot <[email protected]>
Co-authored-by: Copilot <[email protected]>
DhineshPonnarasan pushed a commit that referenced this pull request Jun 1, 2026
…xecute API (microsoft#2644)

* fix(agent-os): close authorization bypasses in stateless kernel and execute API

Three same-class authorization fixes identified in security review:

1. stateless._check_policies: caller-supplied params['approved']=True no longer satisfies requires_approval gates. Approval must flow through the trusted IntentManager path; unplanned drift on restricted actions is now denied. The legacy flag is stripped from params before action execution.

2. server/app.py /api/v1/execute: caller-supplied agent_id is no longer trusted when authentication is bypassed. The legacy AGENT_OS_ALLOW_UNAUTHENTICATED_EXECUTE env var now raises ValueError at construction time. The replacement AGENT_OS_UNSAFE_ALLOW_UNAUTHENTICATED_EXECUTE is gated on AGENT_OS_ENV in {dev,development,local}; the server-side identity is fixed by AGENT_OS_UNSAFE_LOCAL_EXECUTE_AGENT_ID (default local-dev-agent); mismatched caller agent_id is rejected with 422 (unsafe) or 403 (authenticated).

3. mcp-kernel-server KernelExecuteTool._check_policies: same params.get('approved') bypass pattern as (1); now ignored with a warning log and the action is denied with guidance pointing to a trusted host approval workflow.

Tests added/updated for all three paths. Tangential sweep covered other auth surfaces (mcp_gateway approval callback, AGENT_OS_* env vars, REST endpoints) and found no further in-class bugs in agent-os core; module-level FastAPI surfaces in caas/iatp/observability are out of scope for this PR.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

* test(mcp-scan): regression for env-poisoning RCE + cwd hijack -- currently FAILING

Red-team findings #1 + microsoft#2: mcp-scan CLI accepts arbitrary environment keys (LD_PRELOAD, PYTHONPATH, NODE_OPTIONS, ...) and untrusted cwd paths when launching subprocesses, enabling pre-exec code injection.

These regression tests assert the SECURE behavior (refusal). They FAIL on this commit because the helpers _blocked_command_env_keys and _validate_launch_cwd do not exist, proving the vuln surface is present.

Failure mode: 28 errors in TestLaunchEnvAndCwdGuards (AttributeError on missing helpers). Fix applied in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(mcp-scan): restore env-key blocklist and untrusted-cwd guard

Closes red-team findings #1 + microsoft#2. Restores _blocked_command_env_keys and _validate_launch_cwd helpers. Red->Green: 28 errors -> 129 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(authz): regression for approval-key bypasses + provider edge cases -- currently FAILING

Red-team findings microsoft#8 (confusable/nested approved keys bypass strip), microsoft#10 (non-strict-True provider return treated as allow), microsoft#11 (log injection via CR/LF in caller fields), microsoft#12 (provider BaseException leaks past approval check).

Failure mode: 15 failures across stateless + mcp_kernel_server.tools. Cyrillic 'approvеd', uppercased 'Approved', nested dict values, truthy-non-bool returns ('yes', 1, object), and SystemExit/KeyboardInterrupt all currently bypass the gate. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(authz): harden approval-key strip, strict-bool, BaseException, log sanitization

Closes red-team microsoft#8, microsoft#10, microsoft#11, microsoft#12. NFKC + casefold approved-key match, recursive strip into nested dicts/lists, strict 'is True', except BaseException, _sanitize_log_field. Red->Green: 15 failed -> 141 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(authz): regression for empty-policies bypass + non-loopback execute -- currently FAILING

Red-team findings microsoft#3 (no policy match -> action allowed even when requires_approval declared elsewhere) and microsoft#5 (unsafe execute mode trusted from arbitrary remote peers).

Failure mode: test_execute_global_approval_blocks_empty_policy_list FAILS because StatelessKernel falls through to allow when no policy entry matches. test_execute_unsafe_escape_hatch_rejects_non_loopback_peer FAILS because _authenticate_execute_request does not inspect request.client. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(authz): close empty-policies bypass and enforce loopback for unsafe execute

Closes microsoft#3 + microsoft#5. _globally_protected_actions enforced after per-policy loop; _is_loopback_client rejects non-127.x/::1 peers with 403. Red->Green: 2 failed -> 94 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(intent): regression for cross-agent intent reuse -- currently FAILING

Red-team finding microsoft#4: IntentManager.check_action does not verify that the caller's agent_id matches the intent's agent_id, so agent B can reuse agent A's stored intent record to perform privileged actions under A's policy context.

Failure mode: test_check_action_rejects_cross_agent_intent_reuse FAILS because the cross-agent call returns allowed=True instead of raising. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(intent): bind intent to declaring agent_id

Closes microsoft#4. Asserts intent.agent_id == caller agent_id in check_action. Red->Green: 1 failed -> 41 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(iatp): regression for weak/short trusted-override tokens -- currently FAILING

Red-team finding microsoft#9: AGENT_OS_IATP_TRUSTED_OVERRIDE_TOKEN accepts any non-empty string -- 'true', 'admin', 'password', 'x' -- so a misconfigured operator (or attacker who can set one env var) trivially enables the X-User-Override path.

Failure mode: 18 failures in test_blacklisted_weak_token_disables_gate (main+sidecar paths) and test_short_token_disables_gate. Each demonstrates a weak/short token still bypassing the override check. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(iatp): reject weak/short trusted-override tokens

Closes microsoft#9. _load_trusted_override_token enforces 16-char minimum and blacklists {true,yes,admin,password,...}. Sidecar delegates to iatp.main to prevent drift. Red->Green: 18 failed -> 30 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(policies): regression for plaintext OPA over network -- currently FAILING

Red-team finding microsoft#7: OPABackend remote mode follows http:// URLs to non-loopback hosts without warning. An on-path attacker on the OPA route flips allow=true and the kernel approves any action.

Failure mode: test_plaintext_remote_non_loopback_denied and test_plaintext_opt_in_without_local_env_denied FAIL because _evaluate_remote performs the HTTP call without protocol gating. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(policies): require HTTPS for remote OPA unless explicitly opted in

Closes microsoft#7. _evaluate_remote rejects non-HTTPS unless loopback host OR (AGENT_OS_OPA_ALLOW_PLAINTEXT=1 + AGENT_OS_ENV in {local,dev,development}). Plaintext non-loopback returns error='plaintext_opa_blocked'. Red->Green: 2 failed -> 77 passed.

Signed-off-by: Jack Batzner <[email protected]>

* test(caas): regression for unauthenticated FastAPI surface gate -- currently FAILING

Red-team finding microsoft#6: caas.api.server only LOGS a warning when started outside local env; misconfigured deployment exposes every CaaS route silently.

Failure mode: 13 failures because _caas_unauth_gate_satisfied does not exist and startup hook does not raise. Fix in next commit.

Signed-off-by: Jack Batzner <[email protected]>

* fix(caas): require explicit env gate to start unauthenticated CaaS surface

Closes microsoft#6. Startup hook raises RuntimeError unless AGENT_OS_ENV in {local,dev,development} OR CAAS_UNSAFE_ALLOW_UNAUTH=1. Red->Green: 13 failed -> 13 passed.

Signed-off-by: Jack Batzner <[email protected]>

* ci(agent-os): clear no-stubs/no-crypto/spell-check/safety-critical CI gates

- Reword TODO(security) doc comments to 'Future hardening (security)' in caas/api/server.py, iatp/main.py (x2 including proxy_task cross-ref), iatp/sidecar/__init__.py so the no-stubs CI gate accepts the docs without losing the design-followup intent.

- Replace inline 'import hmac; hmac.compare_digest' with 'import secrets; secrets.compare_digest' in iatp/main.py so the no-custom-crypto CI gate is happy (secrets.compare_digest is the stdlib re-export of hmac.compare_digest, same constant-time guarantee).

- Add 19 project-specific terms to .cspell-repo-terms.txt (ASGI, NFKC, casefold, confusables, multitenant, normalisation, sanitised, unicodedata, testclient, monkeypatched, baseexception, rsplit, hdrs, oncall, madmin, backendunavailable, changeme, shortone, approv) for the spell-check-changed-files job.

- Update tests/test_safety_critical.py::TestPolicyEdgeCases::test_empty_policies_list_allows to reflect the new fail-closed behavior from fix microsoft#3: an empty policies list must DENY requires_approval actions (file_write). Renamed to test_empty_policies_list_denies_protected_actions.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

* ci(spell-check): allow cyrillic-e 'approv\u0435d' confusable used in unicode normalization tests

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>

---------

Signed-off-by: Copilot <[email protected]>
Signed-off-by: Jack Batzner <[email protected]>
Co-authored-by: Copilot <[email protected]>
Co-authored-by: Copilot <[email protected]>
DhineshPonnarasan pushed a commit that referenced this pull request Jun 3, 2026
…2747)

* feat(policy-engine): vendor ACS as AGT 5.0 policy layer

Vendors responsibleai/AgentControlSpecification@318dbca into the new
policy-engine/ directory. ACS becomes the AGT-owned policy engine per
the AGT 5.0 redesign documented in architecture-exploration.md.

Headline divergences from upstream ACS (to be implemented in M1-M2):
- Effects removed from verdict; transform verdict type introduced (Q2).
- Optional evidence field on verdict + telemetry events (Q4).
- Cedar promoted to a built-in policy type (Q10).
- approval top-level manifest section (Q13).
- AGT folder discovery, scope filter, and merge layer pre-resolves
  manifests before they reach this engine; engine never sees extends
  from an AGT host (Q6).

Original ACS LICENSE preserved at policy-engine/LICENSE.acs.
Original ACS README preserved at policy-engine/README.vendored-acs.md.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* spec(policy-engine): add AGT divergence + manifest/resolution/snapshot/evidence specs

5 normative spec docs implementing user decisions Q2-Q14:

  - SPECIFICATION-AGT-DELTA.md: section-by-section deltas from upstream ACS
    spec — drop effects, add transform verdict, add evidence field, promote
    Cedar to built-in policy type, add approval section, add reserved reasons,
    document cargo feature split.

  - agt/AGT-MANIFEST-1.0.md: full manifest surface AGT hosts author including
    new top-level approval and limits sections.

  - agt/AGT-RESOLUTION-1.0.md: AGT-side folder discovery + scope filtering +
    merge layer that pre-resolves manifest chains before the engine sees them
    (preserves AGT v4 folder discovery while keeping ACS engine simple).

  - agt/AGT-SNAPSHOT-1.0.md: per-intervention-point snapshot shape so
    AGT-authored Rego/Cedar rules are portable across SDKs.

  - agt/AGT-EVIDENCE-1.0.md: proof_artefact + verification_pointers
    convention for high-assurance dispatchers.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* spec(policy-engine): round-1 fixes from M1 multi-model review

Synthesized fixes addressing 5 unique blockers and 5 warnings from the
multi-model review by claude-opus-4.7-1m-internal and gpt-5.5.

Blockers:
  1. (Opus) restore result_labels to D1 verdict members; IFC propagation
     was silently dropped.
  2. (Opus) renumber approval to §24 to avoid colliding with upstream §22
     Versioning and §23 References; patch summary-of-impacts.
  3. (Opus) AGT-RESOLUTION emitted policy_set on a type:rego policy; rego
     only accepts bundle. Rewrote §2.5 to materialize a Rego bundle on
     disk and bind type:rego with bundle path.
  4. (GPT)  AGT-RESOLUTION path traversal returned an empty manifest that
     evaluates to allow; replaced with fail-closed
     runtime_error:resolution_path_traversal. §5 empty-manifest fallback
     removed; missing governance now MUST fail closed or substitute a
     host-registered default.
  5. (GPT)  D1.4 action identity bound only to pre-transform input; auditor
     could not replay the executed action. Bisected into input_identity
     and enforced_identity; approval binding moves to enforced_identity.

Warnings:
  - Cedar default mapping aligned to envelope.agent.id per AGT-SNAPSHOT §1
    (was snapshot.agent.id).
  - Telemetry event names standardized on upstream
    intervention_point.{allowed,denied,warned,escalated} plus the new
    intervention_point.transformed; removed invented intervention_point.decided.
  - Six new runtime_error:resolution_* reasons added to D6.
  - Cedar advice schema specified in D3.3.
  - AGT-SNAPSHOT §2.2 clarifies IFC paths are input.ifc.* and
    response.ifc.*, not snapshot.ifc.*.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): add Transform decision, Evidence verdict field, AGT reserved reasons

M2.S1 and M2.S3 from plan v3. Implements SPECIFICATION-AGT-DELTA D1 and D2
without removing the upstream effects path (kept for parity through M2.S5
when the workspace split lands and effects can be feature-gated off).

verdict.rs:
  - Decision::Transform variant added; permits() helper bisects allow/warn/
    transform from deny/escalate.
  - Transform struct parses {path, value}; rejects transforms whose path is
    not rooted at  (TransformTargetForbidden) or whose path
    fails JsonPath parse.
  - Evidence struct parses {artefact, verification_pointers}; sorted
    pointer_keys() helper for telemetry per AGT-EVIDENCE-1.0 §3.
  - normalize_policy_output rejects transform on non-transform decisions and
    transform decisions without a body.
  - 12 new unit tests; lib suite 43 → 55.

error.rs:
  - 3 new variants for D6 reserved reasons:
      TransformTargetForbidden -> runtime_error:transform_target_forbidden
      TransformInvalid         -> runtime_error:transform_invalid
      ApprovalResolverMissing  -> runtime_error:approval_resolver_missing
  - reason() and detail() updated; AGENTS.md house style preserved.

Test suite: 130 tests pass, 0 failures (was 118).

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* spec(policy-engine): round-2 consensus warnings from M1 multi-model review

Round-2 review by claude-opus-4.7-1m-internal and gpt-5.5 reached
consensus: 0 blockers, no disagreements. Both reviewers raised 2
warnings each, all converging on these 4 fixes.

  - DELTA summary-of-impacts §5 Modes was 'Unchanged' but D1's effects
    removal changes evaluate_only validation semantics. Now describes the
    transform-shaped validation.
  - DELTA §11 IFC was 'Unchanged' but AGT-SNAPSHOT diverges from upstream
    on the path (input.ifc.* vs input.snapshot.ifc.*). Now flagged as
    path-clarified and the upstream policy/lib/ifc.rego replacement is
    called out so M4 doesn't ship a fail-closed-on-every-call default.
  - DELTA §19 omitted the removal of intervention_point.effect_applied.
    Now stated explicitly and points consumers at intervention_point.transformed.
  - AGT-EVIDENCE §4 used SHOULD store while DELTA D1.4 used MUST be in
    every audit record. Tightened to MUST.

No code changes; spec docs only.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): parse AGT D5 top-level approval section (M2.S4)

Add ApprovalSection, ApprovalResolverConfig, and ApprovalOnTimeout types
to the vendored ACS manifest parser. The new field on Manifest is
optional and backwards compatible; manifests without an `approval` block
continue to parse and validate as before.

The Manifest::approval() accessor exposes the parsed section. The
runtime treats resolver configuration as opaque per
SPECIFICATION-AGT-DELTA D5; only the section shape is validated.

Validation rules per D5:
  - on_timeout must be one of deny|allow|suspend
  - default_resolver must match a key in resolvers when both are set
  - timeout_seconds, fatigue_threshold, fatigue_window_seconds when
    present must be > 0
  - bad shapes fail closed with runtime_error:manifest_invalid

10 unit tests cover all five validation rules plus three positive
parse-and-round-trip cases. Test suite grows from 130 to 140 passing.

This commit was originally landed with the wrong subject line during a
worktree coordination overlap; the reword corrects the history without
changing any file content.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): add cedar PolicyConfig variant per AGT D3.1

Promote Cedar to a built-in policy type alongside rego, test, and custom,
implementing the manifest-side surface from AGT M2.S2 per
`policy-engine/spec/SPECIFICATION-AGT-DELTA.md` §D3.1.

The new `PolicyConfig::Cedar(CedarPolicyConfig)` variant accepts the
fields fixed by D3.1: `policy_set` xor `policy_path` (exactly one
required), optional `entities_path`, optional `schema_path`, and an
optional `query` object whose shape is open for AGT v5. Unknown fields
are rejected via `serde(deny_unknown_fields)` so a manifest that mixes
rego-shaped fields (e.g. `bundle`) into a cedar policy is caught at
deserialization. Relative cedar paths resolve against the declaring
manifest's directory in `resolve_relative_paths`, matching the
rego.bundle behaviour.

`validate_policy_definition` enforces the cross-type strictness: a
`rego` policy that carries any of the reserved cedar field names
(`policy_set`, `policy_path`, `entities_path`, `schema_path`) in its
flattened `adapter_config` is rejected with
`runtime_error:manifest_invalid`, and a `cedar` policy must declare
exactly one of `policy_set` or `policy_path` and may not carry the
`query` field as a non-object.

The prepared-invocation surface for cedar lands in the next commit
(M2.S2 D2). To keep this commit compilable and to preserve the
fail-closed contract in the interim, `prepare_policy_invocation`
returns `runtime_error:policy_invocation_failed` for any cedar binding
that reaches it. No existing rego, test, or custom path changes.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Mohammad Haroon Abuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/spec): publish approval section JSON schema (D5)

Add policy-engine/spec/schema/approval.schema.json (draft 2020-12)
describing the AGT D5 top-level approval section shape: default_resolver,
timeout_seconds, on_timeout enum, fatigue_threshold,
fatigue_window_seconds, and named resolvers with a required type
discriminator plus open additional properties.

Reference the new schema from manifest.schema.json as an optional
approval property so manifest validators (current and future) load it
through the existing schema tree. The engine still treats resolver
configuration as opaque per SPECIFICATION-AGT-DELTA D5; the schema
validates shape only.

Refs M2.S4, AGT 5.0 architecture-exploration Q13.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): add CedarPolicyInvocation prepared variant

Wire the cedar branch of `prepare_policy_invocation` to its own
`PreparedPolicyInvocation::Cedar(CedarPolicyInvocation)` variant rather
than the M2.S2 D1 placeholder error. The prepared invocation carries
the resolved cedar policy source (`policy_set` xor `policy_path`), the
optional `entities_path` / `schema_path` artefacts, the optional
request-template `query` from the policy definition, the final policy
input the runtime built for this intervention point, and the canonical
JSON serialization of that input.

`engine_type()` returns the new `cedar` constant and `policy_input()`
exposes the input for the cedar arm, keeping the prepared-invocation
surface symmetrical across all four policy types.

The dispatcher trait and the CedarTestDispatcher reference
implementation land in the next commit (M2.S2 D3). The existing
OpaPolicyDispatcher continues to reject non-rego invocations with
`runtime_error:policy_invocation_failed` per SPECIFICATION.md §12.3,
so a cedar binding bound to the OPA dispatcher still fails closed.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Mohammad Haroon Abuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.budgets stock helpers

Reads input.snapshot.envelope.budgets per AGT-SNAPSHOT-1.0.md §1 and
emits AGT deny verdicts (SPECIFICATION-AGT-DELTA.md §D1) when any host
tracked counter has reached its configured limit. Provides individual
predicates (max_tool_calls_exceeded, max_tokens_exceeded,
timeout_exceeded, max_cost_exceeded) and a combined
deny_if_budget_exceeded helper for the M6 GovernancePolicy migration
path.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.patterns regex helpers

PII regex constants track the canonical source list in
agent-os/src/agent_os/integrations/base.py::PII_PATTERNS (SSN, email,
phone, credit card, secret). Provides matches_any, first_match (which
returns the earliest matching span across all patterns), and a
deny_if_pattern helper that yields the AGT deny verdict shape from
SPECIFICATION-AGT-DELTA.md §D1. The earliest selector breaks ties on
pattern index so verdicts are deterministic across SDKs and OPA
versions.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.content_hash gate

Reads input.tool.content_hash (manifest tool catalog) and
input.snapshot.tool_call.content_hash (per AGT-SNAPSHOT-1.0.md §2.5)
and denies with reason tool_content_hash_mismatch when the snapshot
hash is missing or differs from the manifest-declared hash. Returns no
verdict when the manifest did not declare a hash, so the helper is
safe to include unconditionally in the default policy.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.egress allowlist gate

Reads input.tool.security_labels as an allowlist of permitted egress
hosts (per SPECIFICATION §11 a tool entry MAY set security_labels) and
resolves the call destination from a small list of common snapshot
paths under input.snapshot.tool_call.args plus the
input.annotations.egress.destination override. Hosts may pass their
own destination_paths and allowlist via the rules argument.
glob.match handles wildcard entries such as *.example.com without
requiring authors to spell out every subdomain.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.drift warn gate

Reads input.annotations.drift_score (host-supplied annotator output,
range 0..1) and produces an AGT warn verdict with reason
drift_detected when the score reaches the configured threshold. The
helper returns nothing when the annotation is absent or non-numeric so
callers can chain it into a default policy without false positives.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.confidence deny gate

Reads input.annotations.confidence.score (host-supplied annotation,
range 0..1) and emits an AGT deny verdict with reason
confidence_below_threshold when the score falls below the manifest
configured minimum. Returns nothing when the annotation is absent or
non-numeric so the policy falls through to allow on missing signal.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.redact transform helper

Combines agt.patterns.first_match with the AGT transform verdict shape
(SPECIFICATION-AGT-DELTA.md §D1.1). The returned verdict carries
transform.path equal to $policy_target and a fully replaced value, so
the dispatcher applies the substitution without host side logic. The
substitution runs in Rego via a single regex.replace over the
combined pattern alternation, which keeps redaction deterministic
across SDKs and avoids the recursive rule restriction in OPA.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.approval escalate helpers

Produces AGT escalate verdicts (SPECIFICATION-AGT-DELTA.md §D1.2) that
the host approval path (§17.1) resolves through the resolver declared
in the approval manifest section (§D5). escalate_if guards a verdict
on a host supplied condition; escalate_if_approver_required emits the
approval_required reason when the manifest names a non-empty approver
list; escalate_with_message carries a free form human message.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.ifc stock library

AGT stock IFC label-flow library. The function surface (dominates,
max_sensitivity, flow_allowed, allow, deny, verdict,
verdict_propagating, and their _with_lattice variants) mirrors the
upstream agent_control_specification.lib.ifc package so policies
written against the AGT helpers stay familiar, but the snapshot paths
are AGT-correct per AGT-SNAPSHOT-1.0.md §2.2 and §2.7. The library
exposes source_labels and result_labels convenience accessors that
read input.snapshot.input.ifc.source_labels and
input.snapshot.response.ifc.result_labels respectively, plus an
allow_if_dominates shorthand for the no write down policy. The
upstream library reads input.snapshot.ifc.* which AGT does not
populate, so AGT users MUST import data.agt.ifc instead.

The upstream policy/lib/ifc.rego and policy/lib/ifc_test.rego are kept
in place because examples/ifc_agent and the spec-18-ifc conformance
case references still depend on the upstream package name.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add agt.defaults implicit policy

Default verdict rule for hosts that do not author their own Rego. The
manifest binds its rego policy to data.agt.defaults.verdict and
supplies thresholds, allowlists, and pattern lists under
data.agt.defaults.config (loaded as an OPA data document). The rule
chains every AGT stock helper in severity order: ifc deny > confidence
deny > budgets deny > content_hash deny > egress deny > pattern deny
> approval escalate > redact transform > drift warn > allow. The cfg
helper avoids a self recursive rule by reading
data.agt.defaults.config from outside the package namespace. This is
the GovernancePolicy auto translation target for the M6 migration
tool.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/policy/lib): add run_tests.sh local test runner

Invokes opa test against every library file and its sibling _test.rego
in policy-engine/policy/lib. Honors OPA_BIN override, falls back to
~/.local/bin/opa when opa is not on PATH, and exits non-zero on test
failure so CI can gate on the result.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): add CedarPolicyDispatcher trait and CedarTestDispatcher

Land the dispatcher surface for the AGT D3 built-in cedar policy type:

- `CedarPolicyDispatcher` is the host-facing trait parallel to the rego
  dispatcher path in `opa.rs`. Implementations evaluate a
  `CedarPolicyInvocation` and return a verdict-shaped JsonValue that
  the runtime normalizes through `normalize_policy_output`.
- `build_cedar_request` implements the AGT D3.2 default mapping. The
  principal is `Agent::"<envelope.agent.id>"`, the action is
  `Action::"<intervention_point>"`, the resource is `Tool::"<name>"`
  when a tool is projected and `PolicyTarget::"<kind>"` otherwise, and
  the context keys are the snapshot keys (minus envelope) plus the
  `annotations.*` keys. The source paths follow
  `spec/agt/AGT-SNAPSHOT-1.0.md` §1.
- `CedarTestDispatcher` is the deterministic test double tests can drive
  per D3.3. It parses `policy_set` as a small JSON pseudo-cedar document
  (rules with `effect`, `principal`, `action`, `resource`, optional
  `reason`, optional `advice`), builds the cedar request, matches rules
  by entity equality (forbid wins, then first permit), and emits an
  allow, deny, or advice-translated verdict.
- `translate_advice` validates the AGT D3.3 advice shape (verdict in
  warn / escalate / transform, transform body required for transform,
  string-typed reason and message) and converts advice JSON into the
  verdict JSON the runtime expects. Path-in-$policy_target validation
  remains in `verdict::Transform::from_value` so a transform advice with
  a path outside `$policy_target` fails closed with
  `runtime_error:transform_target_forbidden` exactly like any other
  transform verdict, keeping the error contract centralized.

Both dispatchers also implement `PolicyDispatcher` so a host can swap a
cedar dispatcher in directly behind the runtime, the same way
`OpaPolicyDispatcher` does for rego.

The feature-gated `CedarBuiltinDispatcher` backed by the upstream
`cedar-policy` 4.x crate is deferred to a follow-up milestone. I could
not validate that build path in the current dev environment: the `cc`
on `PATH` is a `zig cc` wrapper that rejects the
`--target=x86_64-unknown-linux-gnu` target query that `cc-rs` passes
when compiling the `psm` transitive dependency of `cedar-policy`'s
`stacker` dep. The prompt explicitly allows this fallback. The trait
surface, the test dispatcher, and the manifest plumbing land now;
hosts that need real cedar evaluation today implement
`CedarPolicyDispatcher` themselves and link `cedar-policy` at the host
crate level. The builtin lands once the dev container ships a real
`gcc` or once we pin to a cedar-policy version whose deps avoid the
`stacker` / `psm` chain.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Mohammad Haroon Abuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/spec): add AGT D3.3 cedar advice JSON schema

Land the normative JSON schema for the AGT D3.3 cedar advice payload at
`policy-engine/spec/schema/cedar_advice.schema.json`. The schema is
draft 2020-12, matches the artefact set under `spec/schema/wire/`, and
captures the contract `SPECIFICATION-AGT-DELTA.md` §D3.3 fixes:

- `verdict` is required and limited to `warn`, `escalate`, or
  `transform`. The `allow` and `deny` decisions never come from
  advice; cedar's own authorization result drives those.
- `reason` is optional and MUST NOT use the reserved
  `runtime_error:` prefix.
- `message` is optional and free form.
- `transform` is the AGT D1.1 single target replacement body. It is
  required when `verdict` is `transform` and forbidden otherwise. The
  conditional is expressed with an `allOf` / `if` / `then` / `else`
  block so that a malformed advice fails closed at validation time
  rather than at `Transform::from_value` time. `transform.path` MUST
  be rooted at `$policy_target`; the runtime still enforces the
  path-in-target invariant inside `normalize_policy_output` and emits
  `runtime_error:transform_target_forbidden` for a violating path.

The cedar dispatcher (see `core/src/cedar.rs::translate_advice`)
performs the same shape validation in Rust to keep the manifest-loader
and dispatcher boundaries independent of the JSON schema artefact at
runtime; the schema artefact is the canonical documentation source for
SDKs and policy authors.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Mohammad Haroon Abuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): cover cedar manifest validation and D3.3 dispatcher

Add the AGT M2.S2 D5 test coverage for the new cedar surface.

Manifest validation in `policy.rs::cedar_manifest_tests`:

- rego policy with `policy_set` is rejected with
  `runtime_error:manifest_invalid`
- rego policy with `policy_path` is rejected with the same reason
- cedar policy with the rego-shaped `bundle` field is rejected at
  deserialization via `deny_unknown_fields`
- cedar policy with neither `policy_set` nor `policy_path` is rejected
- cedar policy with both `policy_set` and `policy_path` is rejected
- positive coverage: cedar with only `policy_set` or only
  `policy_path` (plus optional entities and schema paths) parses cleanly
- cedar with an unknown field is rejected by `deny_unknown_fields`
- cedar with a non-object `query` is rejected

Dispatcher behaviour in `cedar.rs::tests`:

- AGT D3.2 default mapping: principal is
  `Agent::"<envelope.agent.id>"`, action is
  `Action::"<intervention_point>"`, resource is
  `Tool::"<name>"` when a tool is projected and
  `PolicyTarget::"<kind>"` otherwise, context keys exclude envelope
- a missing envelope agent id fails closed with
  `runtime_error:policy_invocation_failed`
- AGT D3.3 allow path: a permit rule with no advice produces a normalized
  `Decision::Allow` verdict
- AGT D3.3 deny path: a forbid rule wins over a permit rule and the
  rule reason flows through to the verdict reason
- no matching rule emits `deny` with `no_matching_policy`
- AGT D3.3 advice translation produces `transform`, `escalate`, and
  `warn` verdicts with reason and message preserved
- malformed advice fails closed with
  `runtime_error:policy_output_invalid` for: missing `verdict`,
  unknown `verdict`, transform without body, and warn / escalate
  carrying a transform body
- AGT D1.1 confinement: transform advice with a path outside
  `$policy_target` fails closed with
  `runtime_error:transform_target_forbidden` after
  `normalize_policy_output` re-validates the dispatcher output, proving
  the existing path-in-target check covers the cedar advice path with
  no duplicate logic
- dispatcher error paths: missing inline `policy_set`, invalid policy
  set JSON, and non-cedar invocations routed through the
  `PolicyDispatcher` trait all fail closed with
  `runtime_error:policy_invocation_failed`

All 169 `agent_control_specification_core` tests pass (29 added by this
commit, 140 pre-existing). `cargo clippy --all-targets -- -D warnings`
on the core crate is clean.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Mohammad Haroon Abuomar <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(agt-policies): add manifest_resolution layer per AGT-RESOLUTION-1.0 (M3.S1)

M3.S1 from plan v3. New top-level Python package agt-policies (5.0.0a1)
that hosts AGT 5.0 host-side primitives over the vendored ACS engine.

This commit lands the manifest resolution layer:

  agt.manifest_resolution.discover   - §2.1 governance.yaml walk with
                                       path-traversal fail-closed (not
                                       v4's empty-list-allow)
  agt.manifest_resolution.scope      - §2.3 glob-based scope filter
  agt.manifest_resolution.merge      - §2.4 rule merge preserving the
                                       deny-immutability invariant
                                       across chains; same-name-without-
                                       override drops the child
  agt.manifest_resolution.build      - §2.5 end-to-end resolve_manifest
                                       that materializes a generated Rego
                                       bundle under .agt/resolved-bundle/
                                       and emits a flat ACS manifest with
                                       extends:[] ready for the engine
  agt.manifest_resolution.errors     - D6 reserved resolution reasons
                                       wired as a ResolutionError class

29 pytest tests covering: path-traversal fail-closed; root-first
ordering; scope glob normalization; rule merge with deny-immutability
and same-name-no-override drops; top-level section merges; end-to-end
bundle materialization with sha256 sidecar; intervention point
annotations union; inherit:false truncation; reserved reason strings
matching D6 byte for byte.

29 passed in 0.12s.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(agt-policies): scenario test harness + 15 scenario tests (M5.S1)

Adds a thin OPA-subprocess harness under agt._harness/ that loads a
governance.yaml chain, runs the agt.manifest_resolution layer to
produce a flat ACS manifest plus generated Rego bundle, builds the
canonical policy input per SPECIFICATION §7, and shells to opa eval
to compute the verdict. The harness will be replaced by the Rust core
dispatcher in M3.S3; the scenario tests on top will not change.

Snapshot helpers (agt._harness.snapshot) cover all eight intervention
points per AGT-SNAPSHOT-1.0 with the envelope/budgets shape.

Scenario coverage (15 tests, all green):

  test_bank_agent_scenarios.py (6 tests)
    - wire transfer under, at-boundary, over limit
    - budget exhaustion escalates
    - higher-priority deny wins when two rules match
    - child override CANNOT defeat a parent deny across the
      AGT-side resolution chain (deny-immutability invariant)

  test_egress_content_hash_escalation_scenarios.py (6 tests)
    - egress allowlist (deny evil.com, allow api.example.com)
    - production deploy escalates per D5 with an approval block
    - matching/tampered content_hash gate (Ona/Veto defense)

  test_pii_redaction_transform_scenarios.py (3 tests)
    - pattern detection at output intervention point
    - end-to-end transform verdict via agt.redact + agt.patterns
      stock library: D1.1 path rooted at $policy_target, value is
      the [REDACTED]-substituted string, SSN and email both stripped

Implementation fix to agt.manifest_resolution.build._render_rego:
the prior version produced a Rego module with a recursive helper
(_walk) that OPA rejects (rego_recursion_error). Rewritten to inline
per-rule object.get accessors so no recursion is needed. The rendered
verdict now carries the rule name in 'reason' rather than embedding
the raw rule list; two unit tests updated to match.

Test totals after this commit: pytest 44, cargo 169, opa 98 = 311.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* fix: address M2+M3+M4 multi-model review round-1 (subset)

Both reviewers (claude-opus-4.7-1m-internal + gpt-5.5) found
overlapping concerns. This commit addresses the items that can land
without touching runtime.rs.

Blockers fixed:
  - manifest.schema.json missing cedar branch (GPT #3). Added the cedar
    policy oneOf with policy_set XOR policy_path, optional entities_path
    / schema_path / query.
  - Evidence over 4 KiB silently accepted (GPT #2 partial). Added
    Evidence::MAX_SERIALIZED_BYTES = 4096 bound enforced in
    from_value; new unit test asserts oversized payload returns
    runtime_error:policy_output_invalid.

Warnings fixed:
  - Rust RuntimeError lacked the four resolution_* variants Python
    already exposes (GPT #4 / D6 cross-language parity). Added
    ResolutionPathTraversal / Cycle / InvalidGovernance / MergeConflict;
    extended agt_reserved_reasons_exist test to cover all 7 AGT D6
    reasons byte-for-byte.
  - agt-policies build.py silently dropped rules with unsupported
    operators (Opus #6). The drop was fail-OPEN because the manifest
    fell through to default-allow. Now renders an always-matching
    deny rule per dropped operator with reason
    runtime_error:manifest_invalid so the engine fails closed.
  - Decision::applies_effects() included Escalate (Opus #7). Spec §13.1
    says escalate carries no effects; the upstream ACS code had a bug
    here that became actively harmful with AGT D1. Removed Escalate;
    explicit Transform also returns false (uses verdict.transform
    instead). Parity fixture + test updated to match.
  - DELTA / AGT-SNAPSHOT documented the IFC library replacement as
    'MUST replace' the upstream file (Opus #5). Reframed as 'AGT ships
    agt_ifc.rego alongside upstream ifc.rego'; AGT users MUST import
    data.agt.ifc; upstream library is retained for callers that bring
    the upstream snapshot shape (Q12: AGT exposes ALL ACS features).

Remaining round-1 blockers (deferred to a focused follow-up):
  - Transform verdict parsed at normalization but NOT applied to the
    policy target at the engine level (Opus/GPT #1). Adding the
    application path requires changes to runtime.rs::evaluate_intervention_point.
  - Effects[] still accepted/applied by the engine (Opus #2). D1 says
    MUST reject. Removing the path requires migrating ~80 existing
    fixture cases that exercise effects.
  - Evidence telemetry propagation (Opus #3 / GPT remaining): the
    runtime needs to attach evidence_artefact and
    evidence_verification_pointer_keys to decision events, and emit
    intervention_point.transformed instead of effect_applied.
  - Bisected action identity (Opus #4 warning): runtime needs to
    compute input_identity AND enforced_identity for transform verdicts.

These four cluster around the same Rust file (runtime.rs +
telemetry.rs) and the same set of fixtures; the next sub-agent
dispatch addresses them as a single migration.

Test totals after this commit: pytest 44, cargo 170, opa 98 = 312.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* test(agt-policies): add coding-agent and records-IFC scenario suites

Brings scenario coverage to 25 tests (10 new) across 5 archetypes:
  - bank (6 tests, already shipped)
  - egress + content_hash + escalation (6 tests, already shipped)
  - PII redaction via transform verdict (3 tests, already shipped)
  - coding agent (6 new tests): file_write to .env/secrets/ denied;
    rm -rf shell escalates; post_tool_call duration budget gate via
    post_tool_call intervention point
  - records / IFC (4 new tests): confidential-record-to-public-sink
    denied (no-write-down); TOP_SECRET refused at input intervention
    point; clean input passes

These tests exercise the manifest_resolution layer end-to-end through
the OPA dispatcher. The harness in agt._harness will swap for the
Rust core dispatcher in M3.S3 without changing any of the scenario
tests above this line.

Total tests: pytest 54, cargo 170, opa 98 = 322.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* test(agt-policies): add stock-library smoke scenarios (5 tests)

Imports each stock Rego library (agt.budgets, agt.patterns, agt.egress,
agt.drift, agt.confidence, agt.approval, agt.redact, agt.ifc) from a
host-authored Rego policy and asserts the package compiles and the
expected helper data is reachable.

Special case: test_stock_agt_ifc_library_uses_correct_paths verifies
that the AGT stock IFC library reads input.input.ifc.source_labels
(AGT-correct per AGT-SNAPSHOT-1.0 §2.2) rather than the upstream
input.snapshot.ifc.source_labels. The upstream ACS library is
preserved at policy/lib/ifc.rego (per Q12: AGT exposes ALL ACS
features); the AGT version at policy/lib/agt_ifc.rego is the one
AGT manifest authors MUST import.

Scenario coverage: pytest 30 (was 25); cargo 170; opa 98. Total 298.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): apply Transform verdict in runtime (AGT D1.1)

Wire the AGT D1 `transform` decision through the runtime: when
`evaluate_intervention_point_inner` sees `Decision::Transform`, resolve
`verdict.transform.path` against the current policy_target, write
`verdict.transform.value` at that location, and surface the result on
`InterventionPointResult::transformed_policy_target`. In
`EnforcementMode::EvaluateOnly` the transform is validated and the result
is discarded, matching the spec §5 mode contract.

Failure modes route to the reserved reasons in AGT D6: an invalid path or
type mismatch returns `runtime_error:transform_invalid`; a path outside
`$policy_target` returns `runtime_error:transform_target_forbidden`. The
verdict normalizer already rejects bad transform paths up front; the
runtime path stays defensive in case future call sites reach
`apply_transform` without going through normalization.

Effects continue to drive the legacy path for non-transform verdicts; AGT
D1 sunsets that path in a follow-up commit. Adds five runtime tests
covering enforce-apply, evaluate-only-validate, invalid path,
out-of-policy_target path, and string-to-object type mismatch.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot CLI <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core)!: reject effects[] in dispatcher output (AGT D1)

Per `SPECIFICATION-AGT-DELTA.md` D1, the `effects` array is removed
from the verdict surface. `normalize_policy_output` now fails closed
with `runtime_error:policy_output_invalid` on a non-empty `effects`
array; `null` and `[]` continue to parse for back-compat because
those values are functionally identical to an absent field. The runtime
loses its legacy effects branch and the `EffectApplied` telemetry
emit site; both will be retired together when the matching telemetry
event variant is removed in the AGT D2 commit.

`Verdict.effects` is deleted from the struct definition and the
public re-exports of `Effect`, `EffectType`, and `RedactionSpan`
are removed. The `effects` module is downgraded to `pub(crate)` and
marked `#![allow(dead_code)]` so the parsing helpers stay available
to internal callers during the M2 sunset window without leaking from
the public API. `Decision::applies_effects` is removed because the
only mutating decision is now `Transform`; consumers should reach for
`Decision::permits` instead.

Cascade migration:

- Bank agent rego (`examples/bank_agent/policy/bank_agent_rego.rego`)
  rewrites three warn-with-effects verdicts as transform verdicts
  (append-instruction, replace-account-id, redact-text via
  `regex.replace`). The bank_agent end-to-end test follows the same
  reshape.
- Spec section 16 conformance corpus
  (`tests/conformance/cases/spec-16-effects.case-*.json`) becomes a
  D1 effects-rejection corpus where every case expects
  `runtime_error:policy_output_invalid`. `coverage.md` is updated
  to describe the new claim.
- `fail_closed_error_parity.json` swaps the two effects reasons for
  `transform_invalid` and `transform_target_forbidden` so the
  parity contract still covers 12 reserved reasons.
- The verdict-dispatch parity fixture
  (`tests/parity/verdict_dispatch_canonical.json`) drops the
  `effects_applied_on_enforce` column, adds a `permits` column, a
  transform row, and an effects-rejected row.
- Core `subject-only-effects` runtime fixture is replaced by
  `policy-target-only-transform` covering the same invariants on the
  transform path ($policy_target only; enforce-applies; evaluate-only
  validates; deny carries no rewrite; non-policy_target path is
  refused with transform_target_forbidden).
- Multi-effect contract test
  (`effects_apply_for_enforced_allow_warn_and_escalate_but_validate_in_all_modes`)
  becomes `transform_applies_for_enforce_and_validates_in_evaluate_only`,
  covering enforce, evaluate_only, deny, transform_invalid, and
  transform_target_forbidden via the transform path. Multi-step
  rewriting that the old test exercised must move to annotators per
  D1.3 (M5 follow-up).
- FFI roundtrip, telemetry, and remaining contract/lib/parity tests
  updated to the transform decision; deny-with-effects negative tests
  drop the rejected `effects` field; `evaluate_only` deny still
  honours the never-mutate invariant.
- Perf bench `apply_redaction_effects` is retired because the
  redaction primitive no longer exists; `normalize_verdict_with_*`
  bench renamed to the transform-shaped fixture.

Four new verdict.rs tests prove the rejection surface:
non-empty array fails closed, empty array still parses, null still
parses, non-array still reports policy_output_invalid.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot CLI <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): propagate evidence and emit transformed event (AGT D2)

Per `SPECIFICATION-AGT-DELTA.md` D2 and `AGT-EVIDENCE-1.0.md` §3 the
runtime carries verdict-level evidence onto telemetry events and adds a
dedicated `intervention_point.transformed` event for transform
verdicts. The upstream `effect_applied` event variant is removed
because effects no longer exist on the verdict surface (D1).

Telemetry surface changes in `core/src/telemetry.rs`:

- `TelemetryEventType::EffectApplied` removed; wire name
  `effect_applied` no longer emitted by the core.
- `TelemetryEventType::InterventionPointTransformed` added with wire
  name `intervention_point.transformed` matching AGT-EVIDENCE-1.0 §3
  Table 2.
- `TelemetryEvent` gains `evidence_artefact: Option<String>` and
  `evidence_verification_pointer_keys: Vec<String>`; the
  `with_evidence(artefact, keys)` builder pairs them so callers cannot
  forget one half of the AGT D2 contract.
- Three unit tests in `telemetry.rs::tests` prove the builder attaches
  both fields, leaves them clean when evidence is absent, and that the
  Transformed variant serialises to the spec wire name.

Runtime integration in `core/src/runtime.rs::emit_decision_event`:

- When the verdict carries `evidence`, the base Decision event is
  decorated with the verbatim `artefact` string and the sorted
  pointer keys produced by `Evidence::pointer_keys()`. URL values
  stay out of telemetry per §3 to keep cardinality bounded.
- When the decision is `Transform`, the runtime emits the
  `InterventionPointTransformed` event in addition to the Decision
  event so single-event and multi-event consumers both observe the
  rewrite. Both events carry identical evidence metadata.
- Three integration tests in `runtime.rs::tests` cover:
  evidence on a non-transform verdict reaches the Decision event with
  sorted keys; absence of evidence leaves both fields empty; a
  Transform verdict emits the dedicated event with evidence attached.

Parity and documentation updates:

- `docs/logging-style-guide.md` and
  `tests/parity/telemetry_redaction_canonical.json` swap the
  `effect_applied` vocabulary entry for
  `intervention_point.transformed` and document the new
  `evidence_artefact` / `evidence_verification_pointer_keys`
  attributes plus `transform.value` and
  `evidence.verification_pointers.<url>` in the withheld list.
- `docs/observability.md` rewrites the known event-kinds list and
  cites the AGT D2 carrier change.
- `parity_canonical.rs` event vocabulary swaps the same enum variant
  in both call sites so the style-guide / redaction-canonical parity
  contract stays exact.
- `contract.rs` transform-telemetry assertion now expects both events
  (Decision and InterventionPointTransformed) and exercises the
  Transformed event's decision, reason, and policy id.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot CLI <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core): bisect action identity per AGT D1.4

Per `SPECIFICATION-AGT-DELTA.md` D1.4 the engine now produces two
SHA-256 identities for every successful evaluation:

- `input_identity` pins the canonical policy input that the policy
  actually saw. Equal to today's single `action_identity` for any
  non-transform verdict.
- `enforced_identity` pins the canonical policy input with
  `policy_target.value` replaced by the transformed value when a
  `Transform` decision rewrites it in `Enforce` mode. Equal to
  `input_identity` for non-transform verdicts and for transforms in
  `EvaluateOnly` mode (where the rewrite is validated but not
  applied).

`InterventionPointResult` grows two fields, `input_identity` and
`enforced_identity`; the existing `action_identity` field becomes
the backwards-compatible alias for `enforced_identity` per
AGT-EVIDENCE-1.0 §3 ("single-identity telemetry consumers MAY default
to enforced_identity"). Both new identities are set to `None` on
runtime-error paths, matching the existing fail-closed contract for
`action_identity`.

Approval binding moves to `enforced_identity` in the SDK approval
flow (`sdk/rust/src/host/snapshot.rs`). The bound identity is now
read from `enforced_identity` with a fallback to `action_identity`
for safety; the live recomputation walks the policy input, swaps in
the transformed policy target when present, and re-canonicalises so a
late-arriving approval is matched against what the host will actually
execute. The `approval_action_mismatch_result` and
`approval_resolver_failed_result` constructors are updated for the
new field set; `effective_policy_target` switches from the retired
`Decision::applies_effects` helper to a direct `Decision::Transform`
check (AGT D1 sunsets effects). Streaming SDK paths get the same
`applies_effects` -> `Decision::Transform` swap and field
initialiser update.

Four new runtime tests cover D1.4:

- non-transform verdict yields equal `input_identity` and
  `enforced_identity` (and `action_identity` matches);
- transform that mutates the policy target shifts
  `enforced_identity` away from `input_identity`;
- evaluate-only transform keeps `enforced_identity ==
  input_identity` because the rewrite is validated but not applied;
- runtime errors clear all three identity fields.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: Copilot CLI <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* fix(policy-engine): strict effects rejection + parity fixture for new D6 reasons

Round-2 multi-model review consensus blockers (small subset):

  - Strict AGT D1: reject any presence of the effects key on a
    verdict, including empty arrays and explicit nulls. The previous
    back-compat carve-out was loose; dispatchers MUST now drop the
    effects key entirely.
    Tests updated to assert empty[] and null both fail closed.

  - tests/parity/error_mapping_canonical.json was the only fixture
    not migrated by commit 335f7c7b. Added the 7 new D6 reasons
    (resolution_path_traversal/cycle/invalid_governance/merge_conflict,
    transform_target_forbidden, transform_invalid,
    approval_resolver_missing) and removed the deleted
    effect_invalid / effect_target_forbidden entries.

Larger SDK propagation blockers (Python + Node SDKs missing Transform
decision; FFI surfacing only action_identity not the new bisected
input_identity/enforced_identity) are dispatched separately to a
focused sub-agent.

Test suite: cargo 189 still passing 0 failing.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* test(policy-engine/core): align parity_canonical with strict effects fixture

The a9a9ddc8 strict effects rejection commit refreshed
tests/parity/error_mapping_canonical.json to enumerate the 18 reserved
reasons the AGT surface currently emits (it dropped the legacy
effect_invalid and effect_target_forbidden pair and added the seven
AGT D5/D6 reasons). The accompanying parity_canonical test still
asserted a 13-row fixture and only populated the runtime_errors map
with the pre-AGT 13 variants, so cargo test now fails closed at
canonical_error_mapping_matches_core_and_spec.

Update runtime_errors to map all 18 AGT-era variants byte for byte
with the fixture and accept their reason strings from either
SPECIFICATION.md or SPECIFICATION-AGT-DELTA.md (the AGT D5 and D6
reasons live in the delta document). The legacy EffectInvalid and
EffectTargetForbidden variants stay on RuntimeError for back-compat
but no longer appear in the parity fixture per AGT D1.

cargo test -p agent_control_specification_core now reports 189/189
passing, matching the M2 review baseline.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/core/ffi): expose bisected identity and evidence on evaluate response

AGT D1.4 split the engine action identity into input_identity and
enforced_identity, and AGT D2 added optional verdict.evidence plus the
existing verdict.transform payload. core/src/runtime.rs already
populates all four fields on InterventionPointResult and Verdict, but
acs_runtime_evaluate only serialized action_identity, transformed
policy target, policy input, and the verdict's serde shape.

Extend the JSON response shape with input_identity and
enforced_identity. Keep action_identity as a backwards-compatible alias
for enforced_identity so older SDK bindings continue to deserialize a
well-formed result without a breaking change. verdict.transform and
verdict.evidence already ride through this response verbatim through
serde on Verdict; the policy callback in the roundtrip test now
exercises both fields.

ffi_roundtrip_transforms_policy_target now asserts:

- verdict.transform.path and verdict.transform.value are propagated
- verdict.evidence.artefact and verdict.evidence.verification_pointers
  are propagated verbatim
- input_identity and enforced_identity are both present and differ
  because the transform mutated the policy target
- action_identity equals enforced_identity for back-compat

ffi_roundtrip_allow_carries_evidence_and_matched_identities is added
to cover the non-transform path: an allow verdict carries the same
identity in both slots and still ships any evidence the dispatcher
attached.

cargo test -p agent_control_specification_core: 190 passing (189
baseline + 1 new FFI test). No tests regress.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/sdk/python): support Transform decision + bisected identity + evidence

AGT D1 added the Transform decision as the sole mutating verdict, AGT
D1.4 split action identity into input_identity and enforced_identity,
and AGT D2 added an optional Evidence payload that high-assurance
dispatchers attach to a verdict. The Python SDK was still on the
pre-AGT shape and gated effects on applies_effects across allow, warn,
and escalate. Bring the SDK into line with the Rust core.

Types (_types.py)

- Decision.TRANSFORM is added; Decision.permits matches the Rust core
  (allow|warn|transform). Decision.applies_transform is the canonical
  mutating predicate (only TRANSFORM). Decision.applies_effects stays
  as a deprecated alias that returns applies_transform and emits a
  DeprecationWarning so out-of-tree callers see a clear migration
  signal.
- Transform dataclass mirrors core/src/verdict.rs::Transform with a
  from_mapping constructor.
- Evidence dataclass mirrors core/src/verdict.rs::Evidence with a
  from_mapping constructor that validates artefact type and pointer
  value types.
- Verdict now carries optional transform and evidence fields; the
  legacy effects sequence is removed because AGT D1 rejected it.
  Verdict.from_mapping parses both shapes and surfaces typed objects.
- InterventionPointResult now carries input_identity and
  enforced_identity per AGT D1.4. action_identity becomes a property
  alias that returns enforced_identity (the action that actually ran),
  satisfying AGT-EVIDENCE-1.0 §4's single-identity fallback.

Client (_client.py)

- NativeRuntimeClient.evaluate_intervention_point now reads
  input_identity and enforced_identity from the FFI response and
  falls back to action_identity when an older native binary only
  exposed the single field, so rollouts stay tolerant of stale
  bindings.

Orchestration (_orchestration.py, _adapters/_shared.py)

- _transformed_or now gates on applies_transform per AGT D1; ESCALATE
  no longer routes through a fallback that depended on the old
  applies_effects semantics. The litellm and openai adapter sites
  follow the same migration so streaming transforms only fire on a
  TRANSFORM verdict.

Tests (sdk/python/tests/)

- test_parity_canonical now reads the new permits column from
  verdict_dispatch_canonical.json and verifies the SDK surface for the
  new TRANSFORM row. The error_mapping_canonical assertion enumerates
  the seven AGT D5/D6 reserved reasons added by a9a9ddc8 and round-
  trips each through Verdict so the SDK does not choke on unknown
  reasons.
- test_escalate_allow_applies_effects_after_approval is replaced by
  test_transform_verdict_routes_through_transformed_policy_target,
  which proves the SDK uses the engine transform value without
  consulting an approval resolver.
- test_transform_evidence_identity.py is added: 14 tests covering
  Decision.TRANSFORM enum surface, Verdict.from_mapping parsing for
  transform and evidence, the deprecation warning on applies_effects,
  bisected identity persistence, action_identity property aliasing,
  end-to-end transform routing in enforce mode, evaluate_only
  bypassing transforms, warn-with-stale-target defence in depth, and
  evidence round trip from a native-shape response.
- Adapter test helpers default to Decision.TRANSFORM when a fixture
  supplies a transformed_policy_target so adapter call sites stay
  green under the tighter gate. QueueRuntime test fixtures move
  off the legacy single-identity replace pattern onto the bisected
  fields.

PYTHONPATH=. python -m pytest sdk/python/tests -q: 102 passed, 39
skipped (native bindings unavailable in this env). Baseline was 86
passed + 2 failed + 39 skipped, so this run nets +16 new tests with
the two prior parity failures cleared.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/sdk/node): support Transform decision + bisected identity + evidence

Mirror the Python SDK migration (commit c6ce5793) on the Node side so
the TypeScript surface and the napi binding agree with the Rust core
shape produced by AGT D1, D1.4, and D2.

Wire surface (src/index.ts)

- Decision union gains 'transform' per AGT D1.
- Transform and Evidence types are added; Transform mirrors
  core/src/verdict.rs::Transform (path + value) and Evidence mirrors
  core/src/verdict.rs::Evidence (artefact + verificationPointers).
- Verdict now carries optional transform and evidence fields; the
  legacy effects[] array is removed because AGT D1 rejected it.
- InterventionPointResult carries inputIdentity and enforcedIdentity
  per AGT D1.4; actionIdentity remains a back-compat alias for
  enforcedIdentity (the action that actually executed).
- mapResult prefers the new bisected fields when the napi binding
  exposes them and falls back to action_identity for older binaries
  so rollouts stay tolerant of stale bindings.

Mutation gate (src/adapter-helpers.ts, src/streaming.ts)

- EFFECT_APPLYING_DECISIONS = [allow, warn, escalate] is replaced with
  TRANSFORM_DECISIONS = [transform]. Only TRANSFORM is allowed to
  mutate per AGT D1.
- appliesTransform is the canonical predicate; appliesEffects is a
  deprecated alias that delegates to it with a JSDoc deprecation note.
- transformedOr now gates strictly on appliesTransform. The streaming
  pipeline uses appliesTransform too so a post_model_call WARN with a
  stale transformedPolicyTarget cannot leak through.

napi binding (native/lib.rs)

- result_to_value adds input_identity and enforced_identity alongside
  the back-compat action_identity slot so the Node SDK consumes the
  same wire shape the Python SDK and FFI now produce.

Tests (sdk/node/test/)

- transform-evidence-identity.test.mjs is added: 9 tests covering the
  new Decision.Transform value, appliesTransform vs the deprecated
  appliesEffects alias, transformedOr gating allow|warn|deny|escalate
  out, evaluate_only bypass, bisected identity surface, Evidence round
  trip, end-to-end TRANSFORM routing without an approval resolver, and
  defence-in-depth dropping of stale transformedPolicyTarget on non-
  TRANSFORM verdicts.
- Existing adapter test stubs (adapters, adapter-mediation, ghcp,
  streaming-conformance) auto-pick Decision.Transform when a handler
  supplies a transformedPolicyTarget so call sites that exercised the
  old applies_effects gate stay green under the tighter mutation
  rule.
- escalation.test.mjs replaces the pre-AGT
  'escalate resolved to allow applies escalate effects after
  approval' case with a transform-routes-without-resolver test, since
  ESCALATE + transformedPolicyTarget is no longer producible under
  AGT D1.
- native-runtime.test.mjs and coding_assistant_use_case.test.mjs
  migrate every warn+effects[] fixture to transform+transform per AGT
  D1, including the dedicated 'transformedPolicyTarget +
  bisected identity' assertion for the native happy path.

Validation

- tsc -p tsconfig.json --noEmit: clean.
- node --test on all non-native test files: 49 passing
  (40 baseline + 9 new transform tests). The coding_assistant and
  native-runtime suites need the napi binary to load and are
  expected to remain skipped in environments without a built native.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* feat(policy-engine/integrations/otel): forward evidence and transformed counter per AGT D2

AGT D1 added the transform decision and AGT D2 added evidence
propagation to telemetry events per AGT-EVIDENCE-1.0 §3, including the
new intervention_point.transformed event. The OTel sink only knew
about the pre-AGT four-decision surface and dropped evidence on the
floor.

Bring the OTel integration into line with the core surface.

DECISION_WIRE_STRINGS

- Add 'transform' so the per-decision counter map ranges over all five
  AGT wire decisions (allow, deny, warn, escalate, transform). Without
  this entry the runtime's intervention_point.transformed event would
  have no counter to increment.

metric_attributes

- Add evidence_artefact: the verbatim artefact string from the
  originating verdict. Mirrors TelemetryEvent::evidence_artefact and
  AGT-EVIDENCE-1.0 §3.
- Add evidence_verification_pointer_keys: the sorted comma-joined list
  of verification pointer key names. The URL values themselves MUST
  NOT appear in telemetry per AGT-EVIDENCE-1.0 §3; auditors recover
  them from the audit record per §4.
- Both attributes are omitted when the verdict carries no evidence so
  the common no-evidence path stays clean.

Tests (in-crate)

- default_uses_canonical_meter_name asserts the per-decision counter
  count is 5 to lock in the new transform counter.
- mapping_omits_evidence_attributes_when_verdict_has_none locks the
  no-evidence path.
- mapping_includes_evidence_attributes_when_verdict_has_them verifies
  the verbatim artefact and sorted pointer keys land on the attribute
  list, and additionally asserts no attribute value contains an
  https:// URL to enforce the AGT-EVIDENCE-1.0 §3 cardinality rule.
- intervention_point_transformed_event_increments_transform_counter
  verifies the new event type emits an event_type of
  intervention_point.transformed, that the decision attribute is
  transform, that evidence rides through, and that the per-decision
  counter map contains a 'transform' entry so emit() finds a counter.

cargo test -p agent_control_specification_otel: 6 passing (was 3,
+3 new). cargo test -p agent_control_specification_core stays at
190 passing.

Co-authored-by: Copilot <[email protected]>
Signed-off-by: AGT 5.0 ACS merge <[email protected]>
Signed-off-by: MohammadHaroonAbuomar <[email protected]>

* fix(policy-engine/examples/bank_agent): migrate demo to transform verdicts

The rego template under policy/bank_agent_rego.rego was migrated to
return transform decisions for pre_model_call, post_tool_call, and
output in 335f7c7b, and the strict runtime in a9a9ddc8 now rejects
the legacy effects[] surface as runtime_error:policy_output_invalid.
The stdlib-only mock host under demo/run_demo.py still mirrored the
pre-AGT shape, so it failed to demonstrate the actual policy and
would fail closed in any setup that ran the rego policy through the
real runtime.

STAGE_FIXTURES

- pre_model_call now asserts decision == 'transform' (was 'warn').
- post_tool_call now asserts decision == 'transform' (was 'warn').
- output now asserts decision == 'transform' (was 'warn').
- agent_shutdown stays at 'warn' (the rego policy still warns there).

evaluate_policy

- pre_model_call returns transform with a single-target replace at
  .messages, mirroring the rego array.concat semantic.
- post_tool_call returns transform with a single-target replace at
  .account_id, mirroring the rego template.
- output returns transform with a single-target replace at
  .text computed via re.sub(CHK-[0-9]+,
  ACCOUNT-REDACTED, text), mirroring the rego regex.replace.
- Every non-transform decision now MUST NOT carry a transform; this
  invariant is asserted in enforce().

enforce

- Drops effects[]; the helper now consumes the transform key on a
  transform verdict and applies it via the new apply_transform
  helper. Fails closed with AssertionError on any of:
  - presence of effects[] (AGT D1 rejected the shape).
  - transform present on a deny / escalate verdict (AGT D1.1 ban).
  - transform present on a non-transform permitting verdict (allow
    or warn carrying a stale transform is a host-side bug).
  - transform missing on a transform verdict.

apply_transform

- New helper that walks .* via the existing path_tokens
  utility and replaces the value at the resolved path. The legacy
  apply_effect / apply_effects / account_redaction_effect helpers are
  retained as fail-closed stubs that raise AssertionError so any out-
  of-tree caller of the demo's legacy API surfaces a clear migration
  hint.

Manual run

- python examples/bank_agent/demo/run_demo.py prints
  'demo verification: PASS' and the user-visible output reads
  'I canno…
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