diff --git a/.github/workflows/hotfix.yml b/.github/workflows/hotfix.yml
index fdc2700e3..6284cca30 100644
--- a/.github/workflows/hotfix.yml
+++ b/.github/workflows/hotfix.yml
@@ -1,5 +1,27 @@
 name: Hotfix Release
 
+# Hotfix flow for X.YY.Z patch releases (Z > 0).
+#
+# create:
+#   - Branches hotfix/X.YY.Z from the highest existing vX.YY.* tag (1.27.2 from
+#     v1.27.1, 1.27.1 from v1.27.0). The base IS the cumulative-fix anchor for
+#     the previous patch.
+#   - Auto-cherry-picks every fix:/chore: commit on origin/main that isn't
+#     already in the base, oldest-first. Patch-equivalents (already applied)
+#     are skipped via `git cherry`. feat:/refactor: are NEVER auto-included.
+#   - Conflicts fail the workflow with the offending SHA so the operator can
+#     resolve manually on the branch and re-run finalize with auto_cherry_pick=false.
+#   - Step summary lists every included SHA so the eventual vX.YY.Z tag
+#     self-documents what shipped.
+#
+# finalize:
+#   - install-smoke gate (cross-platform, parity with release.yml/release-sdk.yml)
+#   - Bundles SDK as both loose tree (sdk/dist/cli.js) and recoverable tarball
+#     (sdk-bundle/gsd-sdk.tgz) — parity with release-sdk.yml so a hotfix shipped
+#     during the @gsd-build-token outage carries the same payload shape.
+#   - Publishes to @latest, tags vX.YY.Z, re-points @next → vX.YY.Z, opens
+#     merge-back PR.
+
 on:
   workflow_dispatch:
     inputs:
@@ -14,6 +36,11 @@ on:
         description: 'Patch version (e.g., 1.27.1)'
         required: true
         type: string
+      auto_cherry_pick:
+        description: 'Auto-cherry-pick fix:/chore: commits from origin/main since base tag (create only)'
+        required: false
+        type: boolean
+        default: true
       dry_run:
         description: 'Dry run (skip npm publish, tagging, and push)'
         required: false
@@ -54,10 +81,13 @@ jobs:
           MAJOR_MINOR=$(echo "$VERSION" | cut -d. -f1-2)
           TARGET_TAG="v${VERSION}"
           BRANCH="hotfix/${VERSION}"
-          BASE_TAG=$(git tag -l "v${MAJOR_MINOR}.*" \
-            | grep -E "^v[0-9]+\.[0-9]+\.[0-9]+$" \
+          # Append TARGET_TAG to the candidate list, then sort -V, then walk the
+          # sorted list and print whatever immediately precedes TARGET_TAG. This
+          # is semver-correct for multi-digit patches (v1.27.10 > v1.27.9) where
+          # a plain `awk '$1 < target'` lexicographic compare would mis-order.
+          BASE_TAG=$( ( git tag -l "v${MAJOR_MINOR}.*" | grep -E "^v[0-9]+\.[0-9]+\.[0-9]+$"; echo "$TARGET_TAG" ) \
             | sort -V \
-            | awk -v target="$TARGET_TAG" '$1 < target { last=$1 } END { if (last != "") print last }')
+            | awk -v target="$TARGET_TAG" '$1 == target { print prev; exit } { prev = $1 }')
           if [ -z "$BASE_TAG" ]; then
             echo "::error::No prior stable tag found for ${MAJOR_MINOR}.x before $TARGET_TAG"
             exit 1
@@ -95,29 +125,160 @@ jobs:
           git config user.name "github-actions[bot]"
           git config user.email "41898282+github-actions[bot]@users.noreply.github.com"
 
-      - name: Create hotfix branch
-        if: inputs.dry_run != 'true'
+      - name: Create hotfix branch from base tag and push (skeleton)
+        env:
+          BRANCH: ${{ needs.validate-version.outputs.branch }}
+          BASE_TAG: ${{ needs.validate-version.outputs.base_tag }}
+          DRY_RUN: ${{ inputs.dry_run }}
+        run: |
+          set -euo pipefail
+          git checkout -b "$BRANCH" "$BASE_TAG"
+          # Push the skeleton branch up-front so any subsequent cherry-pick
+          # conflict leaves a remote artefact the operator can fetch, resolve,
+          # and re-push. Skipped on dry-run — local checkout still exercises
+          # the same cherry-pick + bump flow so conflicts are caught.
+          if [ "$DRY_RUN" != "true" ]; then
+            git push -u origin "$BRANCH"
+          fi
+
+      - name: Cherry-pick fix/chore commits from origin/main since base tag
+        if: ${{ inputs.auto_cherry_pick }}
+        env:
+          BRANCH: ${{ needs.validate-version.outputs.branch }}
+          BASE_TAG: ${{ needs.validate-version.outputs.base_tag }}
+          DRY_RUN: ${{ inputs.dry_run }}
+        run: |
+          set -euo pipefail
+          git fetch origin main:refs/remotes/origin/main
+
+          # `git cherry $BASE_TAG origin/main` lists every commit on main not
+          # patch-equivalent in BASE_TAG. + means needs picking, - means
+          # already applied (skipped silently).
+          CANDIDATES=$(git cherry "$BASE_TAG" origin/main | awk '/^\+ / {print $2}')
+
+          if [ -z "$CANDIDATES" ]; then
+            echo "No commits on origin/main beyond $BASE_TAG."
+            echo "## Cherry-pick summary" >> "$GITHUB_STEP_SUMMARY"
+            echo "" >> "$GITHUB_STEP_SUMMARY"
+            echo "Base: \`$BASE_TAG\` — no commits to consider." >> "$GITHUB_STEP_SUMMARY"
+            exit 0
+          fi
+
+          # Re-order chronologically (oldest first) for predictable application.
+          ORDERED=$(git log --reverse --format='%H' "$BASE_TAG..origin/main" \
+            | grep -F -f <(echo "$CANDIDATES") || true)
+
+          INCLUDED=""
+          SKIPPED=""
+          while IFS= read -r SHA; do
+            [ -z "$SHA" ] && continue
+            SUBJECT=$(git log -1 --format='%s' "$SHA")
+            # fix: or chore:, optional scope, optional ! breaking marker
+            if echo "$SUBJECT" | grep -qE '^(fix|chore)(\([^)]+\))?!?: '; then
+              echo "→ cherry-picking $SHA  $SUBJECT"
+              if ! git cherry-pick -x "$SHA"; then
+                # Abort restores HEAD to the last successful pick. On real
+                # runs, push that state so the operator can fetch, resolve
+                # $SHA manually, and finalize with auto_cherry_pick=false.
+                git cherry-pick --abort || true
+                if [ "$DRY_RUN" != "true" ]; then
+                  git push --force-with-lease origin "$BRANCH" || git push origin "$BRANCH" || true
+                fi
+                {
+                  echo "## Cherry-pick conflict"
+                  echo ""
+                  echo "Failed at: \`${SHA}\` — \`${SUBJECT}\`"
+                  echo ""
+                  if [ "$DRY_RUN" = "true" ]; then
+                    echo "**Dry run:** branch was not pushed, so the picks below were discarded with the runner."
+                    if [ -n "$INCLUDED" ]; then
+                      echo ""
+                      echo "Already-applied picks (lost — must be re-applied before resolving \`${SHA}\`):"
+                      echo ""
+                      echo "$INCLUDED"
+                    fi
+                    echo ""
+                    echo "**To resolve:** re-run \`create\` with \`auto_cherry_pick=true\` (real, not dry-run) to materialize the partial branch on origin, then resolve \`${SHA}\` manually. Re-running with \`auto_cherry_pick=false\` would recreate the branch from \`${BASE_TAG}\` and lose every pick listed above."
+                  else
+                    echo "Branch \`${BRANCH}\` was pushed with picks applied up to (but not including) the conflicting commit."
+                    echo ""
+                    echo "**To resolve:** \`git fetch origin && git checkout ${BRANCH} && git cherry-pick -x ${SHA}\`, fix the conflict, push, then re-run \`finalize\` with \`auto_cherry_pick=false\`."
+                  fi
+                } >> "$GITHUB_STEP_SUMMARY"
+                echo "::error::Cherry-pick of $SHA failed. See summary."
+                exit 1
+              fi
+              INCLUDED="${INCLUDED}- \`${SHA}\` ${SUBJECT}"$'\n'
+            else
+              echo "  skip $SHA  $SUBJECT  (not fix/chore)"
+              SKIPPED="${SKIPPED}- \`${SHA}\` ${SUBJECT}"$'\n'
+            fi
+          done <<< "$ORDERED"
+
+          {
+            echo "## Cherry-pick summary"
+            echo ""
+            echo "Base: \`$BASE_TAG\`"
+            echo ""
+            if [ -n "$INCLUDED" ]; then
+              echo "### Included (fix/chore)"
+              echo ""
+              echo "$INCLUDED"
+            else
+              echo "_No fix/chore commits to include._"
+              echo ""
+            fi
+            if [ -n "$SKIPPED" ]; then
+              echo "### Skipped (feat/refactor/etc — not auto-included)"
+              echo ""
+              echo "$SKIPPED"
+            fi
+          } >> "$GITHUB_STEP_SUMMARY"
+
+      - name: Bump version and push
         env:
           BRANCH: ${{ needs.validate-version.outputs.branch }}
           BASE_TAG: ${{ needs.validate-version.outputs.base_tag }}
           VERSION: ${{ inputs.version }}
+          DRY_RUN: ${{ inputs.dry_run }}
         run: |
-          git checkout -b "$BRANCH" "$BASE_TAG"
-          # Bump version in package.json
+          set -euo pipefail
           npm version "$VERSION" --no-git-tag-version
           git add package.json package-lock.json
+          # Keep sdk/package.json in lockstep (parity with release-sdk.yml).
+          if [ -f sdk/package.json ]; then
+            (cd sdk && npm version "$VERSION" --no-git-tag-version)
+            git add sdk/package.json
+            [ -f sdk/package-lock.json ] && git add sdk/package-lock.json
+          fi
           git commit -m "chore: bump version to $VERSION for hotfix"
-          git push origin "$BRANCH"
-          echo "## Hotfix branch created" >> "$GITHUB_STEP_SUMMARY"
-          echo "- Branch: \`$BRANCH\`" >> "$GITHUB_STEP_SUMMARY"
-          echo "- Based on: \`$BASE_TAG\`" >> "$GITHUB_STEP_SUMMARY"
-          echo "- Apply your fix, push, then run this workflow again with \`finalize\`" >> "$GITHUB_STEP_SUMMARY"
+          if [ "$DRY_RUN" != "true" ]; then
+            git push origin "$BRANCH"
+          else
+            echo "DRY RUN — branch not pushed. Local checkout exercised the cherry-pick and bump flow."
+          fi
+          {
+            echo "## Hotfix branch created"
+            echo ""
+            echo "- Branch: \`$BRANCH\`"
+            echo "- Based on: \`$BASE_TAG\`"
+            echo "- Apply additional manual fixes if needed, then run \`finalize\`."
+          } >> "$GITHUB_STEP_SUMMARY"
 
-  finalize:
+  install-smoke:
     needs: validate-version
     if: inputs.action == 'finalize'
+    permissions:
+      contents: read
+    uses: ./.github/workflows/install-smoke.yml
+    with:
+      ref: ${{ needs.validate-version.outputs.branch }}
+
+  finalize:
+    needs: [validate-version, install-smoke]
+    if: inputs.action == 'finalize'
     runs-on: ubuntu-latest
-    timeout-minutes: 10
+    timeout-minutes: 15
     permissions:
       contents: write
       pull-requests: write
@@ -140,31 +301,83 @@ jobs:
           git config user.name "github-actions[bot]"
           git config user.email "41898282+github-actions[bot]@users.noreply.github.com"
 
+      - name: Detect prior publish (reconciliation mode)
+        id: prior_publish
+        env:
+          VERSION: ${{ inputs.version }}
+        run: |
+          EXISTING=$(npm view get-shit-done-cc@"$VERSION" version 2>/dev/null || true)
+          if [ -n "$EXISTING" ]; then
+            echo "::warning::get-shit-done-cc@${VERSION} is already on the registry — entering reconciliation mode (skip publish, continue with tag/release/PR/dist-tag)."
+            echo "skip_publish=true" >> "$GITHUB_OUTPUT"
+          else
+            echo "skip_publish=false" >> "$GITHUB_OUTPUT"
+          fi
+
       - name: Install and test
         run: |
           npm ci
           npm run test:coverage
 
-      - name: Create PR to merge hotfix back to main
-        if: ${{ !inputs.dry_run }}
+      - name: Build SDK dist for tarball
+        run: npm run build:sdk
+
+      - name: Verify CC tarball ships sdk/dist/cli.js (bug #2647 guard)
+        run: bash scripts/verify-tarball-sdk-dist.sh
+
+      - name: Pack SDK as tarball and bundle into CC source tree
         env:
-          GH_TOKEN: ${{ github.token }}
-          BRANCH: ${{ needs.validate-version.outputs.branch }}
           VERSION: ${{ inputs.version }}
         run: |
-          EXISTING_PR=$(gh pr list --base main --head "$BRANCH" --state open --json number --jq '.[0].number')
-          if [ -n "$EXISTING_PR" ]; then
-            echo "PR #$EXISTING_PR already exists; updating"
-            gh pr edit "$EXISTING_PR" \
-              --title "chore: merge hotfix v${VERSION} back to main" \
-              --body "Merge hotfix changes back to main after v${VERSION} release."
-          else
-            gh pr create \
-              --base main \
-              --head "$BRANCH" \
-              --title "chore: merge hotfix v${VERSION} back to main" \
-              --body "Merge hotfix changes back to main after v${VERSION} release."
+          set -e
+          cd sdk
+          npm pack
+          TARBALL="gsd-build-sdk-${VERSION}.tgz"
+          if [ ! -f "$TARBALL" ]; then
+            echo "::error::Expected $TARBALL but npm pack did not produce it."
+            ls -la
+            exit 1
           fi
+          mkdir -p ../sdk-bundle
+          mv "$TARBALL" ../sdk-bundle/gsd-sdk.tgz
+          cd ..
+          ls -la sdk-bundle/
+
+      - name: Add sdk-bundle to CC files whitelist (in-tree, not committed)
+        run: |
+          node <<'NODE'
+          const fs = require('fs');
+          const pkg = JSON.parse(fs.readFileSync('package.json', 'utf8'));
+          if (!Array.isArray(pkg.files)) {
+            console.error('::error::package.json files is not an array');
+            process.exit(1);
+          }
+          if (!pkg.files.includes('sdk-bundle')) {
+            pkg.files.push('sdk-bundle');
+            fs.writeFileSync('package.json', JSON.stringify(pkg, null, 2) + '\n');
+            console.log('Added sdk-bundle/ to package.json files whitelist');
+          }
+          NODE
+
+      - name: Verify CC tarball will contain sdk-bundle/gsd-sdk.tgz
+        run: |
+          set -e
+          TARBALL=$(npm pack --ignore-scripts 2>/dev/null | tail -1)
+          if [ -z "$TARBALL" ] || [ ! -f "$TARBALL" ]; then
+            echo "::error::npm pack produced no tarball"
+            exit 1
+          fi
+          if ! tar -tzf "$TARBALL" | grep -q "package/sdk-bundle/gsd-sdk.tgz"; then
+            echo "::error::CC tarball is missing package/sdk-bundle/gsd-sdk.tgz"
+            exit 1
+          fi
+          echo "✅ CC tarball contains sdk-bundle/gsd-sdk.tgz"
+          rm -f "$TARBALL"
+
+      - name: Dry-run publish validation
+        env:
+          NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
+        run: npm publish --dry-run --tag latest
 
       - name: Tag and push
         if: ${{ !inputs.dry_run }}
@@ -185,55 +398,98 @@ jobs:
           fi
 
       - name: Publish to npm (latest)
-        if: ${{ !inputs.dry_run }}
-        run: npm publish --provenance --access public
+        if: ${{ !inputs.dry_run && steps.prior_publish.outputs.skip_publish != 'true' }}
         env:
           NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
+        run: npm publish --provenance --access public --tag latest
 
-      - name: Create GitHub Release
+      - name: Re-point next dist-tag at this hotfix
+        if: ${{ !inputs.dry_run }}
+        env:
+          VERSION: ${{ inputs.version }}
+          NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
+        run: |
+          npm dist-tag add "get-shit-done-cc@${VERSION}" next
+          echo "✅ next dist-tag re-pointed to v${VERSION} (matches latest)"
+
+      - name: Create GitHub Release (idempotent)
         if: ${{ !inputs.dry_run }}
         env:
           GH_TOKEN: ${{ github.token }}
           VERSION: ${{ inputs.version }}
         run: |
-          gh release create "v${VERSION}" \
-            --title "v${VERSION} (hotfix)" \
-            --generate-notes
+          if gh release view "v${VERSION}" >/dev/null 2>&1; then
+            echo "GitHub Release v${VERSION} already exists; ensuring --latest flag is set"
+            gh release edit "v${VERSION}" --latest || true
+          else
+            gh release create "v${VERSION}" \
+              --title "v${VERSION} (hotfix)" \
+              --generate-notes \
+              --latest
+          fi
 
-      - name: Clean up next dist-tag
+      - name: Create PR to merge hotfix back to main
         if: ${{ !inputs.dry_run }}
         env:
+          GH_TOKEN: ${{ github.token }}
+          BRANCH: ${{ needs.validate-version.outputs.branch }}
           VERSION: ${{ inputs.version }}
-          NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
         run: |
-          # Point next to the stable release so @next never returns something
-          # older than @latest. This prevents stale pre-release installs.
-          npm dist-tag add "get-shit-done-cc@${VERSION}" next 2>/dev/null || true
-          echo "✓ next dist-tag updated to v${VERSION}"
+          EXISTING_PR=$(gh pr list --base main --head "$BRANCH" --state open --json number --jq '.[0].number')
+          if [ -n "$EXISTING_PR" ]; then
+            gh pr edit "$EXISTING_PR" \
+              --title "chore: merge hotfix v${VERSION} back to main" \
+              --body "Merge hotfix changes back to main after v${VERSION} release."
+          else
+            gh pr create \
+              --base main \
+              --head "$BRANCH" \
+              --title "chore: merge hotfix v${VERSION} back to main" \
+              --body "Merge hotfix changes back to main after v${VERSION} release."
+          fi
 
-      - name: Verify publish
+      - name: Verify publish landed on registry
         if: ${{ !inputs.dry_run }}
         env:
           VERSION: ${{ inputs.version }}
         run: |
-          sleep 10
-          PUBLISHED=$(npm view get-shit-done-cc@"$VERSION" version 2>/dev/null || echo "NOT_FOUND")
+          PUBLISHED="NOT_FOUND"
+          for delay in 5 10 20 30 45; do
+            PUBLISHED=$(npm view get-shit-done-cc@"$VERSION" version 2>/dev/null || echo "NOT_FOUND")
+            if [ "$PUBLISHED" = "$VERSION" ]; then
+              break
+            fi
+            echo "Waiting ${delay}s for registry to catch up (saw: $PUBLISHED)..."
+            sleep "$delay"
+          done
           if [ "$PUBLISHED" != "$VERSION" ]; then
-            echo "::error::Published version verification failed. Expected $VERSION, got $PUBLISHED"
+            echo "::error::Version $VERSION did not appear on the registry within timeout"
             exit 1
           fi
-          echo "✓ Verified: get-shit-done-cc@$VERSION is live on npm"
+          LATEST_VER=$(npm view get-shit-done-cc dist-tags.latest 2>/dev/null || echo "NOT_FOUND")
+          if [ "$LATEST_VER" != "$VERSION" ]; then
+            echo "::error::dist-tag 'latest' resolves to '$LATEST_VER', expected '$VERSION'"
+            exit 1
+          fi
+          echo "✓ Verified: get-shit-done-cc@$VERSION is live on @latest"
 
       - name: Summary
         env:
           VERSION: ${{ inputs.version }}
+          BASE_TAG: ${{ needs.validate-version.outputs.base_tag }}
           DRY_RUN: ${{ inputs.dry_run }}
         run: |
-          echo "## Hotfix v${VERSION}" >> "$GITHUB_STEP_SUMMARY"
-          if [ "$DRY_RUN" = "true" ]; then
-            echo "**DRY RUN** — npm publish, tagging, and push skipped" >> "$GITHUB_STEP_SUMMARY"
-          else
-            echo "- Published to npm as \`latest\`" >> "$GITHUB_STEP_SUMMARY"
-            echo "- Tagged \`v${VERSION}\`" >> "$GITHUB_STEP_SUMMARY"
-            echo "- PR created to merge back to main" >> "$GITHUB_STEP_SUMMARY"
-          fi
+          {
+            echo "## Hotfix v${VERSION}"
+            echo ""
+            echo "- Base (cumulative-fix anchor): \`${BASE_TAG}\`"
+            if [ "$DRY_RUN" = "true" ]; then
+              echo "- **DRY RUN** — npm publish, tagging, and push skipped"
+            else
+              echo "- Published to npm as \`latest\`"
+              echo "- \`next\` dist-tag re-pointed to v${VERSION}"
+              echo "- Tagged \`v${VERSION}\` (anchor for the next hotfix's cherry-pick base)"
+              echo "- SDK bundled at \`sdk-bundle/gsd-sdk.tgz\` inside CC tarball"
+              echo "- Merge-back PR opened against main"
+            fi
+          } >> "$GITHUB_STEP_SUMMARY"
diff --git a/.github/workflows/release-sdk.yml b/.github/workflows/release-sdk.yml
index d5c708ecc..803ae433c 100644
--- a/.github/workflows/release-sdk.yml
+++ b/.github/workflows/release-sdk.yml
@@ -25,61 +25,267 @@ name: Release SDK Bundle
 on:
   workflow_dispatch:
     inputs:
-      tag:
-        description: 'npm dist-tag to publish under'
+      action:
+        description: 'publish = normal dev/next/latest publish; hotfix = create hotfix/X.YY.Z branch from latest vX.YY.* tag, cherry-pick fix:/chore: from main, publish to @latest'
         required: true
         type: choice
+        default: publish
+        options:
+          - publish
+          - hotfix
+      tag:
+        description: 'npm dist-tag (publish action only; hotfix forces latest)'
+        required: false
+        type: choice
+        default: latest
         options:
           - dev
           - next
           - latest
       version:
-        description: 'Explicit version (e.g. 1.50.0-dev.3, 1.50.0-rc.2, 1.50.0). Empty = derive from package.json base + tag-appropriate suffix.'
+        description: 'Version. publish: explicit (e.g. 1.50.0-dev.3) or empty to derive. hotfix: REQUIRED patch (e.g. 1.27.1, Z>0).'
         required: false
         type: string
       ref:
-        description: 'Branch or ref to build from (default: the workflow-dispatch ref, typically dev)'
+        description: 'Branch or ref to build from. Ignored for hotfix (workflow uses hotfix/X.YY.Z).'
         required: false
         type: string
+      auto_cherry_pick:
+        description: 'Hotfix only: auto-cherry-pick fix:/chore: commits from origin/main since base tag.'
+        required: false
+        type: boolean
+        default: true
       dry_run:
-        description: 'Dry run (skip npm publish, git tag, and push)'
+        description: 'Dry run (skip npm publish, git tag, and push). Hotfix branch creation/push also skipped.'
         required: false
         type: boolean
         default: false
 
-# Per dist-tag, no concurrent publishes for the same stream. Different streams
-# can publish in parallel because they target different dist-tags.
+# Per stream (dist-tag for publish, version for hotfix) — no concurrent publishes for the same stream.
 concurrency:
-  group: release-sdk-${{ inputs.tag }}
+  group: release-sdk-${{ inputs.action == 'hotfix' && format('hotfix-{0}', inputs.version) || inputs.tag }}
   cancel-in-progress: false
 
 env:
   NODE_VERSION: 24
 
 jobs:
+  # Resolves the effective git ref for this run.
+  #
+  # action=publish  → outputs inputs.ref verbatim (may be empty = workflow ref)
+  # action=hotfix   → branches hotfix/X.YY.Z from highest existing vX.YY.* tag,
+  #                   auto-cherry-picks fix:/chore: from origin/main, pushes,
+  #                   and outputs the new branch as ref. Idempotent: if branch
+  #                   already exists (operator pre-prepared it via hotfix.yml),
+  #                   we just check it out and re-run the cherry-pick step
+  #                   no-ops since `git cherry` will report nothing new.
+  prepare:
+    runs-on: ubuntu-latest
+    timeout-minutes: 10
+    permissions:
+      contents: write
+    outputs:
+      ref: ${{ steps.out.outputs.ref }}
+      base_tag: ${{ steps.hotfix.outputs.base_tag }}
+    steps:
+      - name: Validate hotfix inputs
+        if: inputs.action == 'hotfix'
+        env:
+          VERSION: ${{ inputs.version }}
+        run: |
+          if [ -z "$VERSION" ]; then
+            echo "::error::action=hotfix requires the 'version' input (e.g. 1.27.1)"
+            exit 1
+          fi
+          if ! echo "$VERSION" | grep -qE '^[0-9]+\.[0-9]+\.[1-9][0-9]*$'; then
+            echo "::error::Hotfix version must match X.YY.Z with Z>0 (got: $VERSION)"
+            exit 1
+          fi
+
+      - uses: actions/checkout@de0fac2e4500dabe0009e67214ff5f5447ce83dd  # v6.0.2
+        if: inputs.action == 'hotfix'
+        with:
+          fetch-depth: 0
+
+      - name: Configure git identity
+        if: inputs.action == 'hotfix'
+        run: |
+          git config user.name "github-actions[bot]"
+          git config user.email "41898282+github-actions[bot]@users.noreply.github.com"
+
+      - name: Prepare hotfix branch
+        id: hotfix
+        if: inputs.action == 'hotfix'
+        env:
+          VERSION: ${{ inputs.version }}
+          AUTO_CHERRY_PICK: ${{ inputs.auto_cherry_pick }}
+          DRY_RUN: ${{ inputs.dry_run }}
+        run: |
+          set -euo pipefail
+          MAJOR_MINOR=$(echo "$VERSION" | cut -d. -f1-2)
+          TARGET_TAG="v${VERSION}"
+          BRANCH="hotfix/${VERSION}"
+          # Semver-correct selection: append TARGET_TAG, sort -V, take preceding entry.
+          # Plain lexicographic compare mis-orders multi-digit patches (v1.27.10 vs v1.27.9).
+          BASE_TAG=$( ( git tag -l "v${MAJOR_MINOR}.*" | grep -E "^v[0-9]+\.[0-9]+\.[0-9]+$"; echo "$TARGET_TAG" ) \
+            | sort -V \
+            | awk -v target="$TARGET_TAG" '$1 == target { print prev; exit } { prev = $1 }')
+          if [ -z "$BASE_TAG" ]; then
+            echo "::error::No prior stable tag found for ${MAJOR_MINOR}.x before $TARGET_TAG"
+            exit 1
+          fi
+          echo "base_tag=$BASE_TAG" >> "$GITHUB_OUTPUT"
+          echo "branch=$BRANCH" >> "$GITHUB_OUTPUT"
+
+          # Idempotent branch creation — operator may have pre-prepared via hotfix.yml.
+          git fetch origin main:refs/remotes/origin/main
+          if git ls-remote --exit-code origin "refs/heads/$BRANCH" >/dev/null 2>&1; then
+            echo "Branch $BRANCH already exists on origin; checking out"
+            git fetch origin "$BRANCH"
+            git checkout "$BRANCH"
+            BRANCH_PRE_EXISTED=1
+          else
+            git checkout -b "$BRANCH" "$BASE_TAG"
+            BRANCH_PRE_EXISTED=0
+            # Push the skeleton up-front (real runs only) so cherry-pick conflicts
+            # leave a remote artefact the operator can resolve. Dry-run keeps
+            # everything local — no orphan branch created on origin.
+            if [ "$DRY_RUN" != "true" ]; then
+              git push -u origin "$BRANCH"
+            fi
+          fi
+
+          if [ "$AUTO_CHERRY_PICK" = "true" ]; then
+            CANDIDATES=$(git cherry HEAD origin/main | awk '/^\+ / {print $2}')
+            if [ -n "$CANDIDATES" ]; then
+              ORDERED=$(git log --reverse --format='%H' "${BASE_TAG}..origin/main" \
+                | grep -F -f <(echo "$CANDIDATES") || true)
+              INCLUDED=""
+              SKIPPED=""
+              while IFS= read -r SHA; do
+                [ -z "$SHA" ] && continue
+                SUBJECT=$(git log -1 --format='%s' "$SHA")
+                if echo "$SUBJECT" | grep -qE '^(fix|chore)(\([^)]+\))?!?: '; then
+                  echo "→ cherry-picking $SHA  $SUBJECT"
+                  if ! git cherry-pick -x "$SHA"; then
+                    git cherry-pick --abort || true
+                    # On real runs: push the partial-pick state so the operator
+                    # can fetch + resolve $SHA + push + re-run with auto_cherry_pick=false.
+                    if [ "$DRY_RUN" != "true" ]; then
+                      git push --force-with-lease origin "$BRANCH" || git push origin "$BRANCH" || true
+                    fi
+                    {
+                      echo "## Cherry-pick conflict"
+                      echo ""
+                      echo "Failed at: \`${SHA}\` — \`${SUBJECT}\`"
+                      echo ""
+                      if [ "$DRY_RUN" = "true" ]; then
+                        echo "**Dry run:** branch was not pushed, so the picks below were discarded with the runner."
+                        if [ -n "$INCLUDED" ]; then
+                          echo ""
+                          echo "Already-applied picks (lost — must be re-applied before resolving \`${SHA}\`):"
+                          echo ""
+                          echo "$INCLUDED"
+                        fi
+                        echo ""
+                        echo "**To resolve:** re-run a real hotfix with \`auto_cherry_pick=true\` to materialize the partial branch on origin, then resolve \`${SHA}\` manually. Re-running with \`auto_cherry_pick=false\` would recreate the branch from \`${BASE_TAG}\` and lose every pick listed above."
+                      else
+                        echo "Branch \`${BRANCH}\` was pushed with picks applied up to (but not including) the conflicting commit."
+                        echo ""
+                        echo "**To resolve:** \`git fetch origin && git checkout ${BRANCH} && git cherry-pick -x ${SHA}\`, fix the conflict, push, then re-run with \`auto_cherry_pick=false\`."
+                      fi
+                    } >> "$GITHUB_STEP_SUMMARY"
+                    echo "::error::Cherry-pick of $SHA failed. See run summary."
+                    exit 1
+                  fi
+                  INCLUDED="${INCLUDED}- \`${SHA}\` ${SUBJECT}"$'\n'
+                else
+                  SKIPPED="${SKIPPED}- \`${SHA}\` ${SUBJECT}"$'\n'
+                fi
+              done <<< "$ORDERED"
+              {
+                echo "## Cherry-pick summary"
+                echo ""
+                echo "Base: \`$BASE_TAG\` → Branch: \`$BRANCH\`$([ "$DRY_RUN" = "true" ] && echo " (DRY RUN — local only)")"
+                echo ""
+                if [ -n "$INCLUDED" ]; then
+                  echo "### Included (fix/chore)"
+                  echo ""
+                  echo "$INCLUDED"
+                else
+                  echo "_No fix/chore commits to include._"
+                fi
+                if [ -n "$SKIPPED" ]; then
+                  echo "### Skipped (feat/refactor/etc — not auto-included)"
+                  echo ""
+                  echo "$SKIPPED"
+                fi
+              } >> "$GITHUB_STEP_SUMMARY"
+            fi
+          fi
+
+          # Bump version on the branch (committed) so downstream install-smoke +
+          # release jobs build the correct version. The release job's own in-tree
+          # bump becomes a no-op when the file already has the right version.
+          CURRENT=$(node -p "require('./package.json').version")
+          if [ "$CURRENT" != "$VERSION" ]; then
+            npm version "$VERSION" --no-git-tag-version
+            git add package.json package-lock.json
+            if [ -f sdk/package.json ]; then
+              (cd sdk && npm version "$VERSION" --no-git-tag-version)
+              git add sdk/package.json
+              [ -f sdk/package-lock.json ] && git add sdk/package-lock.json
+            fi
+            git commit -m "chore: bump version to $VERSION for hotfix"
+          fi
+          if [ "$DRY_RUN" != "true" ]; then
+            git push origin "$BRANCH"
+          else
+            echo "DRY RUN — cherry-picks applied locally; branch not pushed. Downstream install-smoke will run against \`$BASE_TAG\` (the cherry-pick verification above is the dry-run signal)."
+          fi
+
+      - name: Determine effective ref
+        id: out
+        env:
+          ACTION: ${{ inputs.action }}
+          INPUT_REF: ${{ inputs.ref }}
+          DRY_RUN: ${{ inputs.dry_run }}
+          BASE_TAG: ${{ steps.hotfix.outputs.base_tag }}
+          BRANCH: ${{ steps.hotfix.outputs.branch }}
+        run: |
+          if [ "$ACTION" = "hotfix" ]; then
+            if [ "$DRY_RUN" = "true" ]; then
+              echo "ref=$BASE_TAG" >> "$GITHUB_OUTPUT"
+            else
+              echo "ref=$BRANCH" >> "$GITHUB_OUTPUT"
+            fi
+          else
+            echo "ref=$INPUT_REF" >> "$GITHUB_OUTPUT"
+          fi
+
   # Cross-platform install validation gate (parity with release.yml).
-  # Publish job depends on this — won't proceed if the package fails to
-  # install cleanly across the supported matrix.
   install-smoke:
+    needs: prepare
     permissions:
       contents: read
     uses: ./.github/workflows/install-smoke.yml
     with:
-      ref: ${{ inputs.ref }}
+      ref: ${{ needs.prepare.outputs.ref }}
 
   release:
-    needs: install-smoke
+    needs: [prepare, install-smoke]
     runs-on: ubuntu-latest
     timeout-minutes: 15
     permissions:
       contents: write       # tag + push + GitHub Release
       id-token: write       # provenance
+      pull-requests: write  # hotfix mode opens merge-back PR via gh pr create
     environment: npm-publish
     steps:
       - uses: actions/checkout@de0fac2e4500dabe0009e67214ff5f5447ce83dd  # v6.0.2
         with:
           fetch-depth: 0
-          ref: ${{ inputs.ref }}
+          ref: ${{ needs.prepare.outputs.ref }}
 
       - uses: actions/setup-node@53b83947a5a98c8d113130e565377fae1a50d02f  # v6.3.0
         with:
@@ -90,10 +296,24 @@ jobs:
       - name: Determine version
         id: ver
         env:
+          ACTION: ${{ inputs.action }}
           INPUT_TAG: ${{ inputs.tag }}
           INPUT_OVERRIDE: ${{ inputs.version }}
         run: |
           set -e
+          # Hotfix forces version=inputs.version and dist-tag=latest.
+          if [ "$ACTION" = "hotfix" ]; then
+            if [ -z "$INPUT_OVERRIDE" ]; then
+              echo "::error::action=hotfix requires the 'version' input"
+              exit 1
+            fi
+            VERSION="$INPUT_OVERRIDE"
+            EFFECTIVE_TAG="latest"
+            echo "version=$VERSION" >> "$GITHUB_OUTPUT"
+            echo "tag=$EFFECTIVE_TAG" >> "$GITHUB_OUTPUT"
+            echo "→ Hotfix: will publish v${VERSION} to dist-tag '${EFFECTIVE_TAG}'"
+            exit 0
+          fi
           RAW=$(node -p "require('./package.json').version")
           BASE=$(echo "$RAW" | sed 's/-.*//')
           if [ -n "$INPUT_OVERRIDE" ]; then
@@ -127,14 +347,21 @@ jobs:
           echo "tag=$INPUT_TAG" >> "$GITHUB_OUTPUT"
           echo "→ Will publish v${VERSION} to dist-tag '${INPUT_TAG}'"
 
-      - name: Refuse if version already exists on npm
+      # Reconciliation mode: if version is already on npm (a prior run
+       # published successfully but a downstream step failed), don't hard-fail.
+       # Set a flag and skip the publish step below; tag/release/PR/dist-tag
+       # steps still execute so the rerun can finish reconciling state.
+      - name: Detect prior publish (reconciliation mode)
+        id: prior_publish
         env:
           VERSION: ${{ steps.ver.outputs.version }}
         run: |
           EXISTING=$(npm view get-shit-done-cc@"$VERSION" version 2>/dev/null || true)
           if [ -n "$EXISTING" ]; then
-            echo "::error::get-shit-done-cc@${VERSION} is already published. Bump version or pass an explicit override input."
-            exit 1
+            echo "::warning::get-shit-done-cc@${VERSION} is already on the registry — entering reconciliation mode (skip publish, continue with tag/release/PR/dist-tag)."
+            echo "skip_publish=true" >> "$GITHUB_OUTPUT"
+          else
+            echo "skip_publish=false" >> "$GITHUB_OUTPUT"
           fi
 
       # Tolerant tag-existence check (matches release.yml pattern). An
@@ -252,7 +479,7 @@ jobs:
           git push origin "v${VERSION}"
 
       - name: Publish to npm (CC bundle, SDK included as both loose tree and .tgz)
-        if: ${{ !inputs.dry_run }}
+        if: ${{ !inputs.dry_run && steps.prior_publish.outputs.skip_publish != 'true' }}
         env:
           TAG: ${{ steps.ver.outputs.tag }}
           NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
@@ -271,7 +498,7 @@ jobs:
           npm dist-tag add "get-shit-done-cc@${VERSION}" next
           echo "✅ next dist-tag re-pointed to v${VERSION} (matches latest)"
 
-      - name: Create GitHub Release
+      - name: Create GitHub Release (idempotent)
         if: ${{ !inputs.dry_run }}
         env:
           GH_TOKEN: ${{ github.token }}
@@ -281,7 +508,14 @@ jobs:
           # Per-tag release flags:
           #   dev, next → --prerelease (won't be highlighted as the latest release on the repo page)
           #   latest    → --latest (becomes the highlighted release)
-          if [ "$TAG" = "latest" ]; then
+          # Idempotent: if release already exists (rerun after a transient
+          # downstream failure), edit the latest flag instead of failing.
+          if gh release view "v${VERSION}" >/dev/null 2>&1; then
+            echo "GitHub Release v${VERSION} already exists; reconciling --latest flag"
+            if [ "$TAG" = "latest" ]; then
+              gh release edit "v${VERSION}" --latest || true
+            fi
+          elif [ "$TAG" = "latest" ]; then
             gh release create "v${VERSION}" \
               --title "v${VERSION}" \
               --generate-notes \
@@ -292,7 +526,27 @@ jobs:
               --generate-notes \
               --prerelease
           fi
-          echo "✅ GitHub Release v${VERSION} created"
+          echo "✅ GitHub Release v${VERSION} ready"
+
+      - name: Open merge-back PR (hotfix only)
+        if: ${{ !inputs.dry_run && inputs.action == 'hotfix' }}
+        env:
+          GH_TOKEN: ${{ github.token }}
+          BRANCH: ${{ needs.prepare.outputs.ref }}
+          VERSION: ${{ steps.ver.outputs.version }}
+        run: |
+          EXISTING_PR=$(gh pr list --base main --head "$BRANCH" --state open --json number --jq '.[0].number')
+          if [ -n "$EXISTING_PR" ]; then
+            gh pr edit "$EXISTING_PR" \
+              --title "chore: merge hotfix v${VERSION} back to main" \
+              --body "Merge hotfix changes back to main after v${VERSION} release."
+          else
+            gh pr create \
+              --base main \
+              --head "$BRANCH" \
+              --title "chore: merge hotfix v${VERSION} back to main" \
+              --body "Merge hotfix changes back to main after v${VERSION} release."
+          fi
 
       - name: Verify publish landed on registry
         if: ${{ !inputs.dry_run }}
@@ -322,23 +576,38 @@ jobs:
 
       - name: Summary
         env:
+          ACTION: ${{ inputs.action }}
           VERSION: ${{ steps.ver.outputs.version }}
           TAG: ${{ steps.ver.outputs.tag }}
+          BASE_TAG: ${{ needs.prepare.outputs.base_tag }}
+          BRANCH: ${{ needs.prepare.outputs.ref }}
           DRY_RUN: ${{ inputs.dry_run }}
         run: |
-          echo "## Release SDK Bundle: v${VERSION} → @${TAG}" >> "$GITHUB_STEP_SUMMARY"
-          echo "" >> "$GITHUB_STEP_SUMMARY"
-          if [ "$DRY_RUN" = "true" ]; then
-            echo "**DRY RUN** — npm publish, git tag, push, and GitHub Release were skipped." >> "$GITHUB_STEP_SUMMARY"
-          else
-            echo "- Published \`get-shit-done-cc@${VERSION}\` to dist-tag \`${TAG}\`" >> "$GITHUB_STEP_SUMMARY"
-            echo "- SDK bundled inside the CC tarball at:" >> "$GITHUB_STEP_SUMMARY"
-            echo "  - \`sdk/dist/cli.js\` (loose tree, consumed by \`bin/gsd-sdk.js\` shim)" >> "$GITHUB_STEP_SUMMARY"
-            echo "  - \`sdk-bundle/gsd-sdk.tgz\` (npm-installable artifact)" >> "$GITHUB_STEP_SUMMARY"
-            echo "- Git tag \`v${VERSION}\` pushed" >> "$GITHUB_STEP_SUMMARY"
-            echo "- GitHub Release \`v${VERSION}\` created" >> "$GITHUB_STEP_SUMMARY"
-            if [ "$TAG" = "latest" ]; then
-              echo "- \`next\` dist-tag re-pointed at \`v${VERSION}\` (kept current with \`latest\`)" >> "$GITHUB_STEP_SUMMARY"
+          {
+            if [ "$ACTION" = "hotfix" ]; then
+              echo "## Release SDK Bundle (hotfix): v${VERSION} → @${TAG}"
+              echo ""
+              echo "- Base (cumulative-fix anchor): \`${BASE_TAG}\`"
+              echo "- Branch: \`${BRANCH}\`"
+            else
+              echo "## Release SDK Bundle: v${VERSION} → @${TAG}"
             fi
-            echo "- Install: \`npm install -g get-shit-done-cc@${TAG}\`" >> "$GITHUB_STEP_SUMMARY"
-          fi
+            echo ""
+            if [ "$DRY_RUN" = "true" ]; then
+              echo "**DRY RUN** — npm publish, git tag, push, and GitHub Release were skipped."
+            else
+              echo "- Published \`get-shit-done-cc@${VERSION}\` to dist-tag \`${TAG}\`"
+              echo "- SDK bundled inside the CC tarball at:"
+              echo "  - \`sdk/dist/cli.js\` (loose tree, consumed by \`bin/gsd-sdk.js\` shim)"
+              echo "  - \`sdk-bundle/gsd-sdk.tgz\` (npm-installable artifact)"
+              echo "- Git tag \`v${VERSION}\` pushed"
+              echo "- GitHub Release \`v${VERSION}\` created"
+              if [ "$TAG" = "latest" ]; then
+                echo "- \`next\` dist-tag re-pointed at \`v${VERSION}\` (kept current with \`latest\`)"
+              fi
+              if [ "$ACTION" = "hotfix" ]; then
+                echo "- Merge-back PR opened against main"
+              fi
+              echo "- Install: \`npm install -g get-shit-done-cc@${TAG}\`"
+            fi
+          } >> "$GITHUB_STEP_SUMMARY"
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8f1c56c15..7bb5677e5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -30,6 +30,7 @@ Format follows [Keep a Changelog](https://keepachangelog.com/en/1.1.0/).
   RC. (#2833)
 
 ### Changed — 1.40.0-rc.1
+- **Hotfix release flow now auto-incorporates fixes from `main` and bundles the SDK** — `hotfix.yml create` auto-cherry-picks every `fix:`/`chore:` commit on `origin/main` not yet shipped (oldest-first; patch-equivalents skipped via `git cherry`; `feat:`/`refactor:` excluded; conflicts halt with the offending SHA; run summary lists every included SHA). `hotfix.yml finalize` adds the `install-smoke` cross-platform gate, bundles `sdk-bundle/gsd-sdk.tgz` inside the CC tarball (parity with `release-sdk.yml`), tightens the `next` dist-tag re-point, and marks the GitHub Release `--latest`. `release-sdk.yml` gains `action: publish | hotfix` plus an `auto_cherry_pick` toggle, with a new `prepare` job that branches `hotfix/X.YY.Z` from the highest existing `vX.YY.*` tag and runs the same cherry-pick logic — idempotent if the branch was pre-prepared via `hotfix.yml`. Hotfix `vX.YY.Z` is now defined as everything in `vX.YY.{Z-1}` plus every `fix:`/`chore:` since that base, so each tag is the cumulative-fix anchor for the next. (#2955)
 - **Planning workspace seam extracted from `core.cjs` into `planning-workspace.cjs`** — path/workstream/lock behavior now lives in a dedicated module (`planningDir`, `planningPaths`, `planningRoot`, active-workstream routing, `withPlanningLock`). `core.cjs` keeps compatibility re-exports while call-sites migrate to direct imports, improving locality and reducing coupling. (#2900)
 - **Skill surface consolidated 86 → 59 `commands/gsd/*.md` entries** — four new
   grouped skills (`capture`, `phase`, `config`, `workspace`) replace clusters of
diff --git a/VERSIONING.md b/VERSIONING.md
index d4b6f37ca..c680b9fc3 100644
--- a/VERSIONING.md
+++ b/VERSIONING.md
@@ -67,15 +67,38 @@ main                              ← stable, always deployable
 
 ### Patch Release (Hotfix)
 
-For critical bugs that can't wait for the next minor release.
+For fixes that need to ship without waiting for the next minor.
 
-1. Trigger `hotfix.yml` with version (e.g., `1.27.1`)
-2. Workflow creates `hotfix/1.27.1` branch from the latest patch tag for that minor version (e.g., `v1.27.0` or `v1.27.1`)
-3. Cherry-pick or apply fix on the hotfix branch
-4. Push — CI runs tests automatically
-5. Trigger `hotfix.yml` finalize action
-6. Workflow runs full test suite, bumps version, tags, publishes to `latest`
-7. Merge hotfix branch back to main
+A hotfix `vX.YY.Z` cumulatively includes everything in `vX.YY.{Z-1}` plus every `fix:`/`chore:` commit landed on `main` since that base. The base tag is the anchor — `git cherry $BASE_TAG main` reveals exactly which commits are still unshipped, and the new `vX.YY.Z` tag becomes the next hotfix's base, so the cycle is self-documenting.
+
+#### Two paths
+
+**Path A — `hotfix.yml` (canonical, two-step):**
+
+1. Trigger `hotfix.yml` with `action=create`, `version=1.27.1`, `auto_cherry_pick=true` (default).
+   - Workflow detects `BASE_TAG` = highest `v1.27.*` < `v1.27.1` (so `1.27.1` branches from `v1.27.0`; `1.27.2` would branch from `v1.27.1`).
+   - Branches `hotfix/1.27.1` from `BASE_TAG`.
+   - Auto-cherry-picks every `fix:`/`chore:` commit on `origin/main` not already in the base, oldest-first. Patch-equivalents are skipped via `git cherry`. `feat:`/`refactor:` are **never** auto-included.
+   - On conflict the workflow halts with the offending SHA. Resolve manually on the branch, then re-run finalize with `auto_cherry_pick=false`.
+   - Bumps `package.json` (and `sdk/package.json`), pushes the branch, and lists every included SHA in the run summary.
+2. (Optional) push additional manual commits to `hotfix/1.27.1`.
+3. Trigger `hotfix.yml` with `action=finalize`. The workflow:
+   - Runs `install-smoke` cross-platform gate.
+   - Runs full test suite + coverage.
+   - Builds SDK, bundles `sdk-bundle/gsd-sdk.tgz` inside the CC tarball (parity with `release-sdk.yml`).
+   - Tags `v1.27.1`, publishes to `@latest`, re-points `@next → v1.27.1`.
+   - Opens merge-back PR against `main`.
+
+**Path B — `release-sdk.yml` (stopgap, one-shot):**
+
+Active while the `@gsd-build/sdk` npm token is unavailable; bundles the SDK inside the CC tarball.
+
+1. Trigger `release-sdk.yml` with `action=hotfix`, `version=1.27.1`, `auto_cherry_pick=true`.
+   - The `prepare` job creates the branch and cherry-picks (same logic as Path A).
+   - `install-smoke` runs against the new branch.
+   - The `release` job tags, publishes to `@latest`, re-points `@next`, opens merge-back PR.
+   - Idempotent: if `hotfix/1.27.1` already exists (e.g. you ran `hotfix.yml create` first), the prepare job checks it out and re-runs cherry-pick as a no-op.
+2. `dry_run=true` exercises the full pipeline without pushing the branch or publishing.
 
 ### Minor Release (Standard Cycle)