From 8996161e992a87a1f01e69070a048a12feec1493 Mon Sep 17 00:00:00 2001
From: Simon <178938782+simonusa@users.noreply.github.com>
Date: Sat, 2 May 2026 19:20:08 +0530
Subject: [PATCH] fix(agents): skip retry paths for tool timeouts

Thread tool-timeout state through timeout-triggered compaction, generic timeout payload synthesis, and the changelog.

Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>
---
 CHANGELOG.md                         |  1 +
 src/agents/pi-embedded-runner/run.ts | 17 +++++++++++++++--
 2 files changed, 16 insertions(+), 2 deletions(-)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3079be3fbd8..7dd987a5c49 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ Docs: https://docs.openclaw.ai
 ### Fixes
 
 - CLI/update: treat inherited Gateway service markers as origin hints and only block package replacement when the managed Gateway is still live, so self-updates can stop the service and continue safely. (#75729) Thanks @hxy91819.
+- Agents/failover: exempt run-level timeouts that fire during tool execution from model fallback, timeout-triggered compaction, and generic timeout payload synthesis. Long `process(poll)`, browser, or `exec` tool calls that exceed `agents.defaults.timeoutSeconds` previously rotated auth profiles, switched to a fallback model, and surfaced a misleading "LLM request timed out" error even though the primary model had already responded. Mirrors the existing `timedOutDuringCompaction` precedent (#46889). Fixes #52147. (#75873) Thanks @simonusa.
 
 ## 2026.5.2
 
diff --git a/src/agents/pi-embedded-runner/run.ts b/src/agents/pi-embedded-runner/run.ts
index c96a7622c3d..208c76fee48 100644
--- a/src/agents/pi-embedded-runner/run.ts
+++ b/src/agents/pi-embedded-runner/run.ts
@@ -1244,7 +1244,10 @@ export async function runEmbeddedPiAgent(
           // ── Timeout-triggered compaction ──────────────────────────────────
           // When the LLM times out with high context usage, compact before
           // retrying to break the death spiral of repeated timeouts.
-          if (timedOut && !timedOutDuringCompaction) {
+          // Skip when the timeout fired during tool execution: the LLM had
+          // already responded, the prompt wasn't the problem, and compacting
+          // would lose the in-flight tool context. See #52147.
+          if (timedOut && !timedOutDuringCompaction && !timedOutDuringToolExecution) {
             // Only consider prompt-side tokens here. API totals include output
             // tokens, which can make a long generation look like high context
             // pressure even when the prompt itself was small.
@@ -2078,7 +2081,17 @@ export async function runEmbeddedPiAgent(
           // Timeout aborts can leave the run without any assistant payloads.
           // Emit an explicit timeout error instead of silently completing, so
           // callers do not lose the turn as an orphaned user message.
-          if (timedOut && !timedOutDuringCompaction && !payloadsWithToolMedia?.length) {
+          // Skip when the timeout fired during tool execution: the assistant
+          // did produce a response (a tool call) that ran long; the generic
+          // "no response from model" payload would mislead the caller. The
+          // partial tool output already in the session is the correct artifact
+          // to surface. See #52147.
+          if (
+            timedOut &&
+            !timedOutDuringCompaction &&
+            !timedOutDuringToolExecution &&
+            !payloadsWithToolMedia?.length
+          ) {
             const timeoutText = idleTimedOut
               ? "The model did not produce a response before the model idle timeout. " +
                 "Please try again, or increase `models.providers.<id>.timeoutSeconds` for slow local or self-hosted providers."