diff --git a/actions/setup/js/add_labels.cjs b/actions/setup/js/add_labels.cjs
index c160a8e77ba..65865b3141a 100644
--- a/actions/setup/js/add_labels.cjs
+++ b/actions/setup/js/add_labels.cjs
@@ -111,7 +111,11 @@ const main = createCountGatedHandler({
           // In strict mode, objects without rationale and confidence are also rejected
           const missingMetadataLabels = requestedLabelInputs.filter(label => typeof label === "object" && label !== null && (!label.rationale || !label.confidence));
           if (missingMetadataLabels.length > 0) {
-            const error = `Label objects must include both "rationale" and "confidence" when issue_intent is explicitly enabled. Missing metadata on: ${missingMetadataLabels.map(l => JSON.stringify(l.name)).join(", ")}`;
+            const missingMetadataLabelNames = missingMetadataLabels.map(l => {
+              const metadataLabel = /** @type {{name?: string}} */ l;
+              return JSON.stringify(metadataLabel.name ?? "<unnamed>");
+            });
+            const error = `Label objects must include both "rationale" and "confidence" when issue_intent is explicitly enabled. Missing metadata on: ${missingMetadataLabelNames.join(", ")}`;
             core.warning(error);
             return { success: false, error };
           }
diff --git a/actions/setup/js/copilot_harness.cjs b/actions/setup/js/copilot_harness.cjs
index a220a0b770e..ff555713a3a 100644
--- a/actions/setup/js/copilot_harness.cjs
+++ b/actions/setup/js/copilot_harness.cjs
@@ -79,7 +79,16 @@ const PROMPT_FILE_INLINE_THRESHOLD_LABEL = "100KB";
 const MAX_ENV_VAR_PREVIEW_LENGTH = 120;
 const OUTPUT_TAIL_MAX_CHARS = 600;
 const OUTPUT_TAIL_MAX_LINES = 12;
-const POST_RESULT_WATCHDOG_IDLE_TIMEOUT_MS = 20 * 1000;
+const MIN_POST_RESULT_WATCHDOG_TIMEOUT_MS = 50;
+const DEFAULT_POST_RESULT_WATCHDOG_IDLE_TIMEOUT_MS = 20 * 1000;
+function resolvePostResultWatchdogIdleTimeoutMs(env = process.env) {
+  const configuredTimeoutMs = Number(env.GH_AW_HARNESS_WATCHDOG_TIMEOUT_MS);
+  if (!Number.isFinite(configuredTimeoutMs) || configuredTimeoutMs <= 0) {
+    return DEFAULT_POST_RESULT_WATCHDOG_IDLE_TIMEOUT_MS;
+  }
+  return Math.max(MIN_POST_RESULT_WATCHDOG_TIMEOUT_MS, configuredTimeoutMs);
+}
+const POST_RESULT_WATCHDOG_IDLE_TIMEOUT_MS = resolvePostResultWatchdogIdleTimeoutMs();
 const COPILOT_REQUESTS_PROXY_AUTH_403_TEMPLATE_NAME = "copilot_requests_proxy_auth_403.md";
 // Pattern to detect transient CAPIError 400 in copilot output
 const CAPI_ERROR_400_PATTERN = /CAPIError:\s*400/;
@@ -1170,6 +1179,20 @@ async function main() {
           break;
         }
 
+        // When the run fails with partial_execution and the safe-outputs file already contains a
+        // terminal result, treat the run as a success-with-late-activity rather than a
+        // retryable failure.  This covers the common case where the post-result watchdog fires
+        // because the agent kept running exploratory commands after its deliverable was ready
+        // (watchdogFired=true), as well as any other partial_execution failure that occurs
+        // after the primary task output was already produced.  Retrying would reproduce the
+        // same pattern and exhaust the retry budget without ever posting a final safe-output.
+        if (failureClass === "partial_execution" && safeOutputsPath && hasTerminalSafeOutput(safeOutputsPath)) {
+          const reason = result.watchdogFired ? "post-result watchdog fired after terminal safe-output was emitted" : "partial execution after terminal safe-output was already produced";
+          log(`attempt ${attempt + 1}: ${reason} — treating as success (late-activity exit suppressed)`);
+          lastExitCode = 0;
+          break;
+        }
+
         if (nonRetryableGuard.aiCreditsExceeded || nonRetryableGuard.awfAPIProxyBlockingRequests || isInvocationCapExceeded) {
           const reasons = [];
           if (nonRetryableGuard.aiCreditsExceeded) reasons.push("AI credits budget exceeded");
diff --git a/actions/setup/js/copilot_harness.test.cjs b/actions/setup/js/copilot_harness.test.cjs
index 08dbf1880bd..4a89c7fe71c 100644
--- a/actions/setup/js/copilot_harness.test.cjs
+++ b/actions/setup/js/copilot_harness.test.cjs
@@ -2295,6 +2295,91 @@ process.exit(1);`,
     });
   });
 
+  describe("post-result watchdog suppression when terminal safe-output already produced", () => {
+    it("exits 0 without retrying when a terminal safe-output was already produced and run fails with partial_execution", () => {
+      const tempDir = makeHarnessTempDir("copilot-watchdog-suppression-");
+      const safeOutputsPath = path.join(tempDir, "safe-outputs.jsonl");
+      const stubPath = path.join(tempDir, "stub.cjs");
+      const promptPath = path.join(tempDir, "prompt.txt");
+      const callsPath = path.join(tempDir, "calls.jsonl");
+      // Stub writes a terminal safe-output, then remains alive until SIGTERM.
+      // This exercises the watchdog-fired partial_execution path end-to-end.
+      fs.writeFileSync(
+        stubPath,
+        `const fs = require("fs");
+const callsPath = process.env.COPILOT_HARNESS_STUB_CALLS;
+const safeOutputsPath = process.env.GH_AW_SAFE_OUTPUTS;
+fs.appendFileSync(callsPath, JSON.stringify({args: process.argv.slice(2)}) + "\\n");
+fs.appendFileSync(safeOutputsPath, JSON.stringify({type:"add_comment",body:"Daily report posted"}) + "\\n");
+process.stdout.write("Report uploaded. Checking logs...\\n");
+process.on("SIGTERM", () => process.exit(1));
+setInterval(() => {}, 1000);`,
+        "utf8"
+      );
+      fs.writeFileSync(promptPath, "generate the report", "utf8");
+
+      const result = spawnSync(process.execPath, ["copilot_harness.cjs", process.execPath, stubPath, "--prompt-file", promptPath], {
+        cwd: path.dirname(require.resolve("./copilot_harness.cjs")),
+        env: {
+          ...process.env,
+          COPILOT_HARNESS_STUB_CALLS: callsPath,
+          GH_AW_SAFE_OUTPUTS: safeOutputsPath,
+          GH_AW_HARNESS_WATCHDOG_TIMEOUT_MS: "100",
+        },
+        encoding: "utf8",
+        timeout: 15000,
+      });
+      const callCount = fs.readFileSync(callsPath, "utf8").trim().split("\n").filter(Boolean).length;
+      // Only one attempt — no retries when watchdog suppression applies
+      expect(callCount).toBe(1);
+      // Harness exits 0 because the terminal safe-output was already produced
+      expect(result.status).toBe(0);
+      expect(result.stderr).toContain("post-result watchdog fired after terminal safe-output was emitted");
+      expect(result.stderr).toContain("late-activity exit suppressed");
+    });
+
+    it("still retries partial_execution when no terminal safe-output was produced (watchdog not armed)", () => {
+      const tempDir = makeHarnessTempDir("copilot-watchdog-no-output-");
+      const safeOutputsPath = path.join(tempDir, "safe-outputs.jsonl");
+      const stubPath = path.join(tempDir, "stub.cjs");
+      const promptPath = path.join(tempDir, "prompt.txt");
+      const callsPath = path.join(tempDir, "calls.jsonl");
+      // Stub produces output but exits 1 without writing any safe-output.
+      // The watchdog cannot fire (no terminal safe-output to arm it), so this
+      // should fall through to the normal partial-execution retry path.
+      fs.writeFileSync(
+        stubPath,
+        `const fs = require("fs");
+const callsPath = process.env.COPILOT_HARNESS_STUB_CALLS;
+fs.appendFileSync(callsPath, JSON.stringify({args: process.argv.slice(2)}) + "\\n");
+process.stdout.write("partial work done\\n");
+process.exit(1);`,
+        "utf8"
+      );
+      fs.writeFileSync(promptPath, "generate the report", "utf8");
+
+      const result = spawnSync(process.execPath, ["copilot_harness.cjs", process.execPath, stubPath, "--prompt-file", promptPath], {
+        cwd: path.dirname(require.resolve("./copilot_harness.cjs")),
+        env: {
+          ...process.env,
+          COPILOT_HARNESS_STUB_CALLS: callsPath,
+          GH_AW_SAFE_OUTPUTS: safeOutputsPath,
+          // Override retry config to keep the test fast.
+          GH_AW_HARNESS_MAX_RETRIES: "1",
+          GH_AW_HARNESS_INITIAL_DELAY_MS: "1",
+        },
+        encoding: "utf8",
+        timeout: 15000,
+      });
+      const callCount = fs.readFileSync(callsPath, "utf8").trim().split("\n").filter(Boolean).length;
+      // Should retry (2 attempts total with max_retries=1)
+      expect(callCount).toBeGreaterThan(1);
+      // Harness exits 1 because retries are exhausted with no output
+      expect(result.status).toBe(1);
+      expect(result.stderr).not.toContain("late-activity exit suppressed");
+    });
+  });
+
   describe("applyCopilotWireAPI", () => {
     afterEach(() => {
       delete process.env.COPILOT_MODEL;
diff --git a/actions/setup/js/process_runner.cjs b/actions/setup/js/process_runner.cjs
index 74db7a29301..771f1942412 100644
--- a/actions/setup/js/process_runner.cjs
+++ b/actions/setup/js/process_runner.cjs
@@ -69,7 +69,7 @@ function sleep(ms) {
  *   - log       - Caller-supplied logging function (harness-specific prefix)
  *   - logArgs   - Safe arg list used only for logging; defaults to `args`.
  *                 Pass a redacted copy to avoid leaking sensitive values.
- * @returns {Promise<{exitCode: number, output: string, hasOutput: boolean, durationMs: number}>}
+ * @returns {Promise<{exitCode: number, output: string, hasOutput: boolean, durationMs: number, watchdogFired: boolean}>}
  */
 function runProcess({ command, args, attempt, log, logArgs, env, postResultWatchdog }) {
   return new Promise(resolve => {
@@ -78,7 +78,7 @@ function runProcess({ command, args, attempt, log, logArgs, env, postResultWatch
     // emits 'close' after 'error' (or vice-versa); only the first terminal event should
     // log and resolve so callers receive a deterministic result.
     let settled = false;
-    /** @param {{exitCode: number, output: string, hasOutput: boolean, durationMs: number}} result */
+    /** @param {{exitCode: number, output: string, hasOutput: boolean, durationMs: number, watchdogFired: boolean}} result */
     function settle(result) {
       if (settled) return;
       settled = true;
@@ -172,8 +172,16 @@ function runProcess({ command, args, attempt, log, logArgs, env, postResultWatch
     child.on("close", (code, signal) => {
       const durationMs = Date.now() - startTime;
       const exitCode = code ?? 1;
-      log(`attempt ${attempt + 1}: process closed` + ` exitCode=${exitCode}` + (signal ? ` signal=${signal}` : "") + ` duration=${formatDuration(durationMs)}` + ` stdout=${stdoutBytes}B stderr=${stderrBytes}B hasOutput=${hasOutput}`);
-      settle({ exitCode, output: collectedOutput, hasOutput, durationMs });
+      const watchdogFired = sentSigtermAt > 0;
+      log(
+        `attempt ${attempt + 1}: process closed` +
+          ` exitCode=${exitCode}` +
+          (signal ? ` signal=${signal}` : "") +
+          ` duration=${formatDuration(durationMs)}` +
+          ` stdout=${stdoutBytes}B stderr=${stderrBytes}B hasOutput=${hasOutput}` +
+          (watchdogFired ? ` watchdogFired=true` : "")
+      );
+      settle({ exitCode, output: collectedOutput, hasOutput, durationMs, watchdogFired });
     });
 
     child.on("error", err => {
@@ -188,6 +196,7 @@ function runProcess({ command, args, attempt, log, logArgs, env, postResultWatch
         output: collectedOutput,
         hasOutput,
         durationMs,
+        watchdogFired: false,
       });
     });
   });
diff --git a/actions/setup/js/process_runner.test.cjs b/actions/setup/js/process_runner.test.cjs
index 95aef30d0c3..82401d9b0f0 100644
--- a/actions/setup/js/process_runner.test.cjs
+++ b/actions/setup/js/process_runner.test.cjs
@@ -201,6 +201,52 @@ describe("process_runner.cjs", () => {
       expect(logs.some(line => line.includes("post-result watchdog terminating idle process"))).toBe(true);
     });
 
+    it("sets watchdogFired=true when post-result watchdog terminates the process", async () => {
+      const logs = [];
+      const result = await runProcess({
+        command: process.execPath,
+        args: ["-e", 'process.stdout.write("done"); setInterval(() => {}, 1000);'],
+        attempt: 0,
+        log: msg => logs.push(msg),
+        postResultWatchdog: {
+          shouldArm: () => true,
+          inactivityTimeoutMs: 100,
+          pollIntervalMs: 25,
+          termGraceMs: 200,
+        },
+      });
+      expect(result.watchdogFired).toBe(true);
+      expect(logs.some(line => line.includes("watchdogFired=true"))).toBe(true);
+    });
+
+    it("sets watchdogFired=false when the process exits normally without the watchdog firing", async () => {
+      const logs = [];
+      const result = await runProcess({
+        command: process.execPath,
+        args: ["-e", "process.exit(0)"],
+        attempt: 0,
+        log: msg => logs.push(msg),
+      });
+      expect(result.watchdogFired).toBe(false);
+    });
+
+    it("sets watchdogFired=false when watchdog is configured but does not arm", async () => {
+      const logs = [];
+      const result = await runProcess({
+        command: process.execPath,
+        args: ["-e", "setTimeout(() => process.exit(0), 100);"],
+        attempt: 0,
+        log: msg => logs.push(msg),
+        postResultWatchdog: {
+          shouldArm: () => false,
+          inactivityTimeoutMs: 50,
+          pollIntervalMs: 25,
+          termGraceMs: 100,
+        },
+      });
+      expect(result.watchdogFired).toBe(false);
+    });
+
     it("does not terminate processes when watchdog is not armed", async () => {
       const logs = [];
       const result = await runProcess({