fix(coding-agent): reset retry counter after each successful LLM response

Previously, within a single tool-use turn, rate limit retries would
accumulate across separate LLM calls. For example, if each of 3 tool
calls hit a 429 and retried once, the counter would show '3/3' and fail
even though each individual retry succeeded.

Now the counter resets immediately when a successful (non-error)
assistant message arrives, so each LLM call gets a fresh set of retries.

Fixes #1019

packages/coding-agent/CHANGELOG.md

@@ -9,6 +9,7 @@
 ### Fixed
 
 - Empty array in package filter now disables all resources instead of falling back to manifest defaults ([#1044](https://github.com/badlogic/pi-mono/issues/1044))
+- Auto-retry counter now resets after each successful LLM response instead of accumulating across tool-use turns ([#1019](https://github.com/badlogic/pi-mono/issues/1019))
 
 ## [0.50.1] - 2026-01-26
 

packages/coding-agent/src/core/agent-session.ts

@@ -354,6 +354,19 @@ export class AgentSession {
 			// Track assistant message for auto-compaction (checked on agent_end)
 			if (event.message.role === "assistant") {
 				this._lastAssistantMessage = event.message;
+
+				// Reset retry counter immediately on successful assistant response
+				// This prevents accumulation across multiple LLM calls within a turn
+				const assistantMsg = event.message as AssistantMessage;
+				if (assistantMsg.stopReason !== "error" && this._retryAttempt > 0) {
+					this._emit({
+						type: "auto_retry_end",
+						success: true,
+						attempt: this._retryAttempt,
+					});
+					this._retryAttempt = 0;
+					this._resolveRetry();
+				}
 			}
 		}
 
@@ -366,16 +379,6 @@ export class AgentSession {
 			if (this._isRetryableError(msg)) {
 				const didRetry = await this._handleRetryableError(msg);
 				if (didRetry) return; // Retry was initiated, don't proceed to compaction
-			} else if (this._retryAttempt > 0) {
-				// Previous retry succeeded - emit success event and reset counter
-				this._emit({
-					type: "auto_retry_end",
-					success: true,
-					attempt: this._retryAttempt,
-				});
-				this._retryAttempt = 0;
-				// Resolve the retry promise so waitForRetry() completes
-				this._resolveRetry();
 			}
 
 			await this._checkCompaction(msg);