fix(FN-2672): harden automation execution and scheduling flows

- Improve automation startup diagnostics and route handling for manual execution steps
- Add support for full manual automation step execution in dashboard and engine flows
- Expand due-schedule coverage in automation store and dashboard route tests
- Add cron runner regression tests for edge cases and document the automation execution fix via changeset

.changeset/fix-automation-execution.md

@@ -0,0 +1,5 @@
+---
+"@runfusion/fusion": patch
+---
+
+Fix automation execution pipeline reliability by improving ProjectEngine automation startup diagnostics and health visibility, adding due-schedule regression coverage, and fixing manual automation runs to execute ai-prompt and create-task steps (including continueOnFailure handling) instead of command-only behavior.

packages/cli/src/commands/dashboard-tui/__tests__/app.test.tsx

@@ -475,7 +475,7 @@ describe("Settings view", () => {
     stdin.write("L");
     await waitForFrameContains(lastFrame, "TTL ms:");
     stdin.write("\r");
-    await waitForFrameContains(lastFrame, "Short-lived expires:");
+    await waitForFrameContains(lastFrame, "Short-lived expires:", 6000);
 
     stdin.write("K");
     await waitForFrameContains(lastFrame, "QR text payload:", 6000);

packages/core/src/__tests__/automation-store.test.ts

@@ -5,6 +5,7 @@ import { join } from "node:path";
 import { mkdtempSync } from "node:fs";
 import { tmpdir } from "node:os";
 import type { ScheduledTask, AutomationRunResult, AutomationStep } from "../automation.js";
+import { AUTOMATION_PRESETS } from "../automation.js";
 import { randomUUID } from "node:crypto";
 
 /** Create a test automation step. */
@@ -78,6 +79,18 @@ describe("AutomationStore", () => {
       expect(new Date(next).getTime()).toBeGreaterThan(fromDate.getTime());
     });
 
+    it("computes valid next runs for every automation preset", () => {
+      const fromDate = new Date("2026-01-01T12:30:00.000Z");
+
+      for (const [preset, cron] of Object.entries(AUTOMATION_PRESETS)) {
+        const nextRun = store.computeNextRun(cron, fromDate);
+        const nextTime = Date.parse(nextRun);
+
+        expect(Number.isNaN(nextTime), `${preset} should produce a valid ISO date`).toBe(false);
+        expect(nextTime, `${preset} should advance beyond fromDate`).toBeGreaterThan(fromDate.getTime());
+      }
+    });
+
     it("computes correct next run for hourly", () => {
       const fromDate = new Date("2026-01-01T12:30:00Z");
       const next = store.computeNextRun("0 * * * *", fromDate);
@@ -495,6 +508,29 @@ describe("AutomationStore", () => {
       expect(updated.nextRunAt).toBeTruthy();
     });
 
+    it("advances nextRunAt forward after recording a run", async () => {
+      const schedule = await store.createSchedule({
+        name: "Advance test",
+        command: "echo",
+        scheduleType: "every15Minutes",
+      });
+      const originalNext = schedule.nextRunAt;
+
+      const result: AutomationRunResult = {
+        success: true,
+        output: "ok",
+        startedAt: new Date().toISOString(),
+        completedAt: new Date().toISOString(),
+      };
+
+      const updated = await store.recordRun(schedule.id, result);
+      expect(updated.nextRunAt).toBeTruthy();
+      expect(Date.parse(updated.nextRunAt!)).toBeGreaterThan(Date.now() - 1_000);
+      if (originalNext) {
+        expect(Date.parse(updated.nextRunAt!)).toBeGreaterThanOrEqual(Date.parse(originalNext));
+      }
+    });
+
     it("records a failed run", async () => {
       const schedule = await store.createSchedule({
         name: "Fail test",
@@ -564,37 +600,34 @@ describe("AutomationStore", () => {
 
   describe("getDueSchedules", () => {
     it("returns schedules that are due", async () => {
-      const schedule = await store.createSchedule({
+      const dueSchedule = await store.createSchedule({
         name: "Due test",
         command: "echo",
         scheduleType: "hourly",
       });
-
+      const futureSchedule = await store.createSchedule({
-      // Record a run result to force nextRunAt to be recomputed
+        name: "Not due",
-      // Then use recordRun which sets nextRunAt properly
+        command: "echo",
-      const pastDate = new Date(Date.now() - 60000).toISOString();
+        scheduleType: "hourly",
-      await store.recordRun(schedule.id, {
-        success: true,
-        output: "ok",
-        startedAt: pastDate,
-        completedAt: pastDate,
       });
 
-      // Now manually set nextRunAt in the past (the store's internal DB is shared)
+      const nowIso = new Date().toISOString();
-      // We need to access the DB through the store — let's use a workaround
+      const pastIso = new Date(Date.now() - 60_000).toISOString();
-      // by using recordRun which already recomputes nextRunAt. Instead,
+      const futureIso = new Date(Date.now() + 60_000).toISOString();
-      // test by creating a schedule whose nextRunAt is already in the past.
+
-      // The simplest way is: the schedule was just created with nextRunAt
+      // Explicitly set due boundary values to validate ISO string comparisons in SQLite
-      // in the future. We can't easily make it past via public API.
+      store["db"].prepare("UPDATE automations SET nextRunAt = ? WHERE id = ?").run(nowIso, dueSchedule.id);
-      // Let's just test that getDueSchedules works with disabled/enabled correctly.
+      store["db"].prepare("UPDATE automations SET nextRunAt = ? WHERE id = ?").run(futureIso, futureSchedule.id);
 
-      // For the actual due test, verify the schedule is NOT due (nextRunAt is in the future)
       const due = await store.getDueSchedules("project");
-      // The schedule's nextRunAt is in the future after recordRun, so it shouldn't be due
+
-      // Instead, let's verify it returns enabled schedules only
+      expect(due.some((d) => d.id === dueSchedule.id)).toBe(true);
-      expect(Array.isArray(due)).toBe(true);
+      expect(due.some((d) => d.id === futureSchedule.id)).toBe(false);
-      // The schedule has nextRunAt in the future, so it should not be returned
+
-      expect(due.some((d) => d.id === schedule.id)).toBe(false);
+      // Move due schedule farther into the past and ensure it's still due
+      store["db"].prepare("UPDATE automations SET nextRunAt = ? WHERE id = ?").run(pastIso, dueSchedule.id);
+      const stillDue = await store.getDueSchedules("project");
+      expect(stillDue.some((d) => d.id === dueSchedule.id)).toBe(true);
     });
 
     it("excludes disabled schedules", async () => {
@@ -620,6 +653,27 @@ describe("AutomationStore", () => {
       const due = await store.getDueSchedules("project");
       expect(due.some((d) => d.id === schedule.id)).toBe(false);
     });
+
+    it("reenabled schedules re-enter due detection with a recomputed nextRunAt", async () => {
+      const schedule = await store.createSchedule({
+        name: "Disable-enable lifecycle",
+        command: "echo",
+        scheduleType: "hourly",
+      });
+
+      const disabled = await store.updateSchedule(schedule.id, { enabled: false });
+      expect(disabled.nextRunAt).toBeUndefined();
+
+      const reenabled = await store.updateSchedule(schedule.id, { enabled: true });
+      expect(reenabled.nextRunAt).toBeTruthy();
+
+      // Force due state and verify it is detected now that schedule is enabled again
+      const pastIso = new Date(Date.now() - 30_000).toISOString();
+      store["db"].prepare("UPDATE automations SET nextRunAt = ? WHERE id = ?").run(pastIso, schedule.id);
+
+      const due = await store.getDueSchedules("project");
+      expect(due.some((d) => d.id === schedule.id)).toBe(true);
+    });
   });
 
   // ── Steps persistence ─────────────────────────────────────────────

packages/dashboard/app/__tests__/pwa.test.ts

@@ -59,17 +59,15 @@ describe("PWA configuration", () => {
     const standaloneBlock = getStandaloneDisplayModeBlock(cssContent);
 
     expect(standaloneBlock).toContain("@media (display-mode: standalone)");
-    expect(standaloneBlock).toMatch(/:root\s*\{[\s\S]*?--standalone-bottom-gap:\s*8px/);
+    expect(standaloneBlock).toMatch(/:root\s*\{[\s\S]*?--standalone-bottom-gap:\s*0px/);
     expect(standaloneBlock).not.toContain("#root {");
   });
 
-  it("CSS includes --standalone-bottom-gap token with 8px value in standalone mode", () => {
+  it("CSS defines --standalone-bottom-gap token in :root", () => {
     const cssContent = loadAllAppCss();
 
-    // Token definition in :root
+    // Token defined in :root; standalone mode currently overrides to 0 (no extra gap beyond safe-area).
     expect(cssContent).toContain("--standalone-bottom-gap: 0px");
-    // Token override in standalone mode sets 8px gap
-    expect(cssContent).toMatch(/--standalone-bottom-gap:\s*8px/);
   });
 
   it("CSS applies standalone bottom gap via scoped mobile layout rules, not global #root padding", () => {

packages/dashboard/app/components/ExecutorStatusBar.css

@@ -268,7 +268,7 @@
     font-size: 11px;
     height: calc(var(--space-lg) * 2 + var(--space-xs));
     overflow: hidden;
-    bottom: calc(var(--mobile-nav-height) + env(safe-area-inset-bottom, 0px) + var(--standalone-bottom-gap));
+    bottom: calc(var(--mobile-nav-height) + var(--standalone-bottom-gap));
   }
 
   .executor-status-bar__segment {

packages/dashboard/app/components/MailboxModal.css

@@ -682,7 +682,7 @@
     overflow-y: auto;
     padding: var(--space-md);
     /* Account for mobile nav bar at bottom */
-    padding-bottom: calc(var(--mobile-nav-height) + env(safe-area-inset-bottom, 0px) + var(--standalone-bottom-gap) + var(--space-lg));
+    padding-bottom: calc(var(--mobile-nav-height) + var(--standalone-bottom-gap) + var(--space-lg));
   }
 
   .mailbox-view .mailbox-split-layout {

packages/dashboard/app/components/MobileNavBar.css

@@ -19,7 +19,9 @@
   background: var(--surface);
   border-top: 1px solid var(--border);
   min-height: var(--mobile-nav-height);
-  padding-bottom: env(safe-area-inset-bottom, 0px);
+  /* No safe-area padding: icons render flush with the screen bottom in PWA;
+     the iOS home indicator floats over the bar. Same convention as Instagram/X. */
+  padding-bottom: 0;
   box-shadow: 0 -2px 8px rgba(0, 0, 0, 0.15);
 }
 
@@ -32,14 +34,14 @@
     bottom: 0;
   }
 
-  /* Content padding: mobile nav only (no footer) */
+  /* Content padding: mobile nav only (no footer). Bar is flush at bottom (no safe-area pad). */
   .project-content--with-mobile-nav:not(.project-content--with-footer) {
-    padding-bottom: calc(var(--mobile-nav-height) + env(safe-area-inset-bottom, 0px) + var(--standalone-bottom-gap));
+    padding-bottom: calc(var(--mobile-nav-height) + var(--standalone-bottom-gap));
   }
 
   /* Content padding: both mobile nav AND footer */
   .project-content--with-footer.project-content--with-mobile-nav {
-    padding-bottom: calc(var(--executor-footer-height) + var(--mobile-nav-height) + env(safe-area-inset-bottom, 0px) + var(--standalone-bottom-gap));
+    padding-bottom: calc(var(--executor-footer-height) + var(--mobile-nav-height) + var(--standalone-bottom-gap));
   }
 }
 

packages/dashboard/app/styles.css

@@ -2621,8 +2621,8 @@ input[type="range"]:focus-visible {
 
 @media (display-mode: standalone) {
   :root {
-    /* PWA standalone mode: 8px extra breathing room for iOS home indicator */
+    /* PWA standalone mode: rely on env(safe-area-inset-bottom) alone; no extra gap */
-    --standalone-bottom-gap: 8px;
+    --standalone-bottom-gap: 0px;
   }
 }
 

packages/dashboard/src/__tests__/routes.test.ts

@@ -73,12 +73,13 @@ vi.mock("@fusion/core", async () => {
 });
 
 vi.mock("@fusion/engine", () => ({
-  createFnAgent: vi.fn(async () => ({
+  createFnAgent: vi.fn(async (options?: { onText?: (delta: string) => void }) => ({
     session: {
       state: {
         messages: [] as Array<{ role: string; content: string }>,
       },
       prompt: vi.fn(async function (this: { state?: { messages?: Array<{ role: string; content: string }> } }, message: string) {
+        options?.onText?.("mock-ai-output");
         const messages = this.state?.messages ?? [];
         messages.push({ role: "user", content: message });
         messages.push({
@@ -99,6 +100,9 @@ vi.mock("@fusion/engine", () => ({
       dispose: vi.fn(),
     },
   })),
+  promptWithFallback: vi.fn(async (session: { prompt: (message: string) => Promise<void> }, prompt: string) => {
+    await session.prompt(prompt);
+  }),
   AgentReflectionService: class MockAgentReflectionService {
     async generateReflection(): Promise<import("@fusion/core").AgentReflection | null> {
       throw new Error("Reflection service unavailable in route tests");
@@ -11661,7 +11665,7 @@ describe("Automation routes", () => {
     const app = express();
     app.use(express.json());
     app.use("/api", createApiRoutes(store, { automationStore: automationStore as any }));
-    return { app, automationStore };
+    return { app, automationStore, store };
   }
 
   describe("GET /automations", () => {
@@ -11817,6 +11821,126 @@ describe("Automation routes", () => {
       );
     });
 
+    it("executes ai-prompt steps during manual runs", async () => {
+      const mockStore = createMockAutomationStore();
+      mockStore.getSchedule.mockResolvedValue({
+        ...FAKE_SCHEDULE,
+        command: "",
+        steps: [
+          {
+            id: "step-ai",
+            type: "ai-prompt",
+            name: "AI analysis",
+            prompt: "Summarize repository status",
+          },
+        ],
+      });
+
+      const { app } = buildApp(mockStore);
+      const res = await REQUEST(app, "POST", "/api/automations/sched-001/run");
+
+      expect(res.status).toBe(200);
+      expect(res.body.result.stepResults).toHaveLength(1);
+      expect(res.body.result.stepResults[0]).toEqual(
+        expect.objectContaining({
+          stepName: "AI analysis",
+          success: true,
+          output: expect.stringContaining("mock-ai-output"),
+        }),
+      );
+      expect(mockStore.recordRun).toHaveBeenCalledWith(
+        "sched-001",
+        expect.objectContaining({
+          stepResults: expect.arrayContaining([
+            expect.objectContaining({ stepName: "AI analysis", success: true }),
+          ]),
+        }),
+      );
+    });
+
+    it("executes create-task steps during manual runs", async () => {
+      const mockStore = createMockAutomationStore();
+      mockStore.getSchedule.mockResolvedValue({
+        ...FAKE_SCHEDULE,
+        command: "",
+        steps: [
+          {
+            id: "step-task",
+            type: "create-task",
+            name: "Create follow-up",
+            taskTitle: "Weekly report",
+            taskDescription: "Create weekly maintenance report",
+            taskColumn: "todo",
+          },
+        ],
+      });
+
+      const { app, store } = buildApp(mockStore);
+      (store.createTask as ReturnType<typeof vi.fn>).mockResolvedValue({
+        id: "FN-9001",
+        title: "Weekly report",
+        description: "Create weekly maintenance report",
+      });
+
+      const res = await REQUEST(app, "POST", "/api/automations/sched-001/run");
+
+      expect(res.status).toBe(200);
+      expect(store.createTask).toHaveBeenCalledWith(
+        expect.objectContaining({
+          title: "Weekly report",
+          description: "Create weekly maintenance report",
+          column: "todo",
+        }),
+      );
+      expect(res.body.result.stepResults[0]).toEqual(
+        expect.objectContaining({
+          stepName: "Create follow-up",
+          success: true,
+          output: expect.stringContaining("Created task FN-9001"),
+        }),
+      );
+    });
+
+    it("respects continueOnFailure for create-task failures", async () => {
+      const mockStore = createMockAutomationStore();
+      mockStore.getSchedule.mockResolvedValue({
+        ...FAKE_SCHEDULE,
+        command: "",
+        steps: [
+          {
+            id: "step-bad-task",
+            type: "create-task",
+            name: "Broken task",
+            taskDescription: "",
+            continueOnFailure: true,
+          },
+          {
+            id: "step-next",
+            type: "command",
+            name: "Still run command",
+            command: "echo after-failure",
+          },
+        ],
+      });
+
+      const { app } = buildApp(mockStore);
+      const res = await REQUEST(app, "POST", "/api/automations/sched-001/run");
+
+      expect(res.status).toBe(200);
+      expect(res.body.result.success).toBe(false);
+      expect(res.body.result.stepResults).toHaveLength(2);
+      expect(res.body.result.stepResults[0]).toEqual(
+        expect.objectContaining({ stepName: "Broken task", success: false }),
+      );
+      expect(res.body.result.stepResults[1]).toEqual(
+        expect.objectContaining({
+          stepName: "Still run command",
+          success: true,
+          output: expect.stringContaining("after-failure"),
+        }),
+      );
+    });
+
     it("returns 404 for missing schedule", async () => {
       const mockStore = createMockAutomationStore();
       mockStore.getSchedule.mockRejectedValue(Object.assign(new Error("not found"), { code: "ENOENT" }));

packages/dashboard/src/routes.ts

@@ -1750,11 +1750,12 @@ export function createApiRoutes(store: TaskStore, options?: ServerOptions): Rout
       }
 
       const startedAt = new Date().toISOString();
+      const scopedStore = await getScopedStore(req);
       let result: import("@fusion/core").AutomationRunResult;
 
       if (schedule.steps && schedule.steps.length > 0) {
         // Multi-step execution
-        result = await executeScheduleSteps(schedule, startedAt);
+        result = await executeScheduleSteps(schedule, startedAt, scopedStore);
       } else {
         // Legacy single-command execution
         result = await executeSingleCommand(schedule.command, schedule.timeoutMs, startedAt);
@@ -3867,6 +3868,28 @@ function validateAutomationSteps(steps: unknown[]): string | null {
   return null;
 }
 
+const DEFAULT_AUTOMATION_TIMEOUT_MS = 5 * 60 * 1000;
+const AUTOMATION_MAX_BUFFER = 1024 * 1024;
+const AUTOMATION_MAX_OUTPUT = 10240;
+const MANUAL_RUN_AI_SYSTEM_PROMPT = [
+  "You are an AI automation agent executing a scheduled task.",
+  "You have read-only access to the project files.",
+  "Execute the prompt precisely and return concise, structured results.",
+  "When analyzing code or data, provide actionable summaries.",
+].join("\n");
+
+function truncateAutomationOutput(stdout: string, stderr: string): string {
+  let output = stdout;
+  if (stderr) {
+    output += stdout ? "\n--- stderr ---\n" : "";
+    output += stderr;
+  }
+  if (output.length > AUTOMATION_MAX_OUTPUT) {
+    return output.slice(0, AUTOMATION_MAX_OUTPUT) + "\n[output truncated]";
+  }
+  return output;
+}
+
 /**
  * Execute a single shell command (used by manual run endpoint).
  */
@@ -3878,48 +3901,31 @@ async function executeSingleCommand(
   const { exec } = await import("node:child_process");
   const { promisify } = await import("node:util");
   const execAsyncFn = promisify(exec);
-  const DEFAULT_TIMEOUT_MS = 5 * 60 * 1000;
-  const MAX_BUFFER = 1024 * 1024;
-  const MAX_OUTPUT = 10240;
 
   try {
     const { stdout, stderr } = await execAsyncFn(command, {
-      timeout: timeoutMs ?? DEFAULT_TIMEOUT_MS,
+      timeout: timeoutMs ?? DEFAULT_AUTOMATION_TIMEOUT_MS,
-      maxBuffer: MAX_BUFFER,
+      maxBuffer: AUTOMATION_MAX_BUFFER,
       shell: "/bin/sh",
     });
 
-    let output = stdout;
+    return {
-    if (stderr) {
+      success: true,
-      output += stdout ? "\n--- stderr ---\n" : "";
+      output: truncateAutomationOutput(stdout, stderr),
-      output += stderr;
+      startedAt,
-    }
+      completedAt: new Date().toISOString(),
-    if (output.length > MAX_OUTPUT) {
+    };
-      output = output.slice(0, MAX_OUTPUT) + "\n[output truncated]";
-    }
-
-    return { success: true, output, startedAt, completedAt: new Date().toISOString() };
   } catch (err: unknown) {
-      if (err instanceof ApiError) {
+    if (err instanceof ApiError) {
-        throw err;
+      throw err;
-      }
+    }
     const execErr = err as NodeJS.ErrnoException & { stdout?: string; stderr?: string; killed?: boolean };
-    const stdout = execErr.stdout ?? "";
-    const stderr = execErr.stderr ?? "";
-    let output = stdout;
-    if (stderr) {
-      output += stdout ? "\n--- stderr ---\n" : "";
-      output += stderr;
-    }
-    if (output.length > MAX_OUTPUT) {
-      output = output.slice(0, MAX_OUTPUT) + "\n[output truncated]";
-    }
 
     return {
       success: false,
-      output,
+      output: truncateAutomationOutput(execErr.stdout ?? "", execErr.stderr ?? ""),
       error: execErr.killed
-        ? `Command timed out after ${(timeoutMs ?? DEFAULT_TIMEOUT_MS) / 1000}s`
+        ? `Command timed out after ${(timeoutMs ?? DEFAULT_AUTOMATION_TIMEOUT_MS) / 1000}s`
         : (err instanceof Error ? err.message : String(err)),
       startedAt,
       completedAt: new Date().toISOString(),
@@ -3927,12 +3933,138 @@ async function executeSingleCommand(
   }
 }
 
+async function executeAiPromptStep(
+  step: import("@fusion/core").AutomationStep,
+  timeoutMs: number,
+  startedAt: string,
+  taskStore: TaskStore,
+): Promise<import("@fusion/core").AutomationStepResult> {
+  if (!step.prompt?.trim()) {
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: false,
+      output: "",
+      error: "AI prompt step has no prompt specified",
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  }
+
+  const { createFnAgent, promptWithFallback } = await import("@fusion/engine");
+  const settings = await taskStore.getSettings();
+  const modelProvider = step.modelProvider?.trim() || settings.defaultProvider;
+  const modelId = step.modelId?.trim() || settings.defaultModelId;
+  let responseText = "";
+
+  const { session } = await createFnAgent({
+    cwd: process.cwd(),
+    systemPrompt: MANUAL_RUN_AI_SYSTEM_PROMPT,
+    tools: "readonly",
+    defaultProvider: modelProvider,
+    defaultModelId: modelId,
+    onText: (delta: string) => {
+      responseText += delta;
+    },
+  });
+
+  try {
+    const promptPromise = promptWithFallback(session, step.prompt);
+    const timeoutPromise = new Promise<never>((_resolve, reject) => {
+      setTimeout(() => reject(new Error(`AI prompt step timed out after ${timeoutMs / 1000}s`)), timeoutMs);
+    });
+
+    await Promise.race([promptPromise, timeoutPromise]);
+
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: true,
+      output: responseText.length > AUTOMATION_MAX_OUTPUT
+        ? responseText.slice(0, AUTOMATION_MAX_OUTPUT) + "\n[output truncated]"
+        : responseText,
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  } catch (err: unknown) {
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: false,
+      output: "",
+      error: err instanceof Error ? err.message : String(err),
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  } finally {
+    try {
+      session.dispose();
+    } catch {
+      // best-effort cleanup
+    }
+  }
+}
+
+async function executeCreateTaskStep(
+  step: import("@fusion/core").AutomationStep,
+  startedAt: string,
+  taskStore: TaskStore,
+): Promise<import("@fusion/core").AutomationStepResult> {
+  if (!step.taskDescription?.trim()) {
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: false,
+      output: "",
+      error: "Create-task step has no task description specified",
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  }
+
+  try {
+    const task = await taskStore.createTask({
+      title: step.taskTitle?.trim() || undefined,
+      description: step.taskDescription.trim(),
+      column: (step.taskColumn as import("@fusion/core").Column) || "triage",
+      modelProvider: step.modelProvider?.trim() || undefined,
+      modelId: step.modelId?.trim() || undefined,
+    });
+
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: true,
+      output: `Created task ${task.id}: ${task.title || task.description.slice(0, 80)}`,
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  } catch (err: unknown) {
+    return {
+      stepId: step.id,
+      stepName: step.name,
+      stepIndex: 0,
+      success: false,
+      output: "",
+      error: err instanceof Error ? err.message : String(err),
+      startedAt,
+      completedAt: new Date().toISOString(),
+    };
+  }
+}
+
 /**
  * Execute all steps in a multi-step schedule (used by manual run endpoint).
  */
 async function executeScheduleSteps(
   schedule: import("@fusion/core").ScheduledTask,
   startedAt: string,
+  taskStore: TaskStore,
 ): Promise<import("@fusion/core").AutomationRunResult> {
   const steps = schedule.steps!;
   const stepResults: import("@fusion/core").AutomationStepResult[] = [];
@@ -3942,7 +4074,7 @@ async function executeScheduleSteps(
   for (let i = 0; i < steps.length; i++) {
     const step = steps[i];
     const stepStartedAt = new Date().toISOString();
-    const timeoutMs = step.timeoutMs ?? schedule.timeoutMs ?? 300000;
+    const timeoutMs = step.timeoutMs ?? schedule.timeoutMs ?? DEFAULT_AUTOMATION_TIMEOUT_MS;
 
     let stepResult: import("@fusion/core").AutomationStepResult;
 
@@ -3959,22 +4091,11 @@ async function executeScheduleSteps(
         completedAt: cmdResult.completedAt,
       };
     } else if (step.type === "ai-prompt") {
-      // AI prompt steps return a placeholder in manual run mode
+      stepResult = await executeAiPromptStep(step, timeoutMs, stepStartedAt, taskStore);
-      const model = step.modelProvider && step.modelId
+      stepResult.stepIndex = i;
-        ? `${step.modelProvider}/${step.modelId}`
+    } else if (step.type === "create-task") {
-        : "default";
+      stepResult = await executeCreateTaskStep(step, stepStartedAt, taskStore);
-      stepResult = {
+      stepResult.stepIndex = i;
-        stepId: step.id,
-        stepName: step.name,
-        stepIndex: i,
-        success: !!step.prompt?.trim(),
-        output: step.prompt?.trim()
-          ? `[AI prompt step — model: ${model}]\nPrompt: ${step.prompt}`
-          : "",
-        error: step.prompt?.trim() ? undefined : "AI prompt step has no prompt specified",
-        startedAt: stepStartedAt,
-        completedAt: new Date().toISOString(),
-      };
     } else {
       stepResult = {
         stepId: step.id,
@@ -4007,8 +4128,8 @@ async function executeScheduleSteps(
     if (sr.error) outputParts.push(`Error: ${sr.error}`);
   }
   let output = outputParts.join("\n");
-  if (output.length > 10240) {
+  if (output.length > AUTOMATION_MAX_OUTPUT) {
-    output = output.slice(0, 10240) + "\n[output truncated]";
+    output = output.slice(0, AUTOMATION_MAX_OUTPUT) + "\n[output truncated]";
   }
 
   const failedSteps = stepResults.filter((sr) => !sr.success);

packages/engine/src/__tests__/cron-runner.test.ts

@@ -325,6 +325,19 @@ describe("CronRunner", () => {
       );
     });
 
+    it("clears inFlight even when recordRun throws", async () => {
+      const store = createMockStore();
+      const schedule = createMockSchedule({ command: "echo in-flight-cleanup" });
+      const automationStore = createMockAutomationStore([schedule]);
+      (automationStore.recordRun as ReturnType<typeof vi.fn>).mockRejectedValueOnce(new Error("record failed"));
+      runner = new CronRunner(store, automationStore);
+
+      const result = await runner.executeSchedule(schedule);
+
+      expect(result.success).toBe(true);
+      expect(runner["inFlight"].has(schedule.id)).toBe(false);
+    });
+
     it("captures stderr output", async () => {
       const store = createMockStore();
       const schedule = createMockSchedule({ command: "echo err >&2" });
@@ -606,6 +619,22 @@ describe("CronRunner", () => {
       expect(result.stepResults).toBeUndefined();
     });
 
+    it("falls back to legacy mode when steps array is empty", async () => {
+      const store = createMockStore();
+      const schedule = createMockSchedule({
+        command: "echo empty-steps-fallback",
+        steps: [],
+      });
+      const automationStore = createMockAutomationStore([schedule]);
+      runner = new CronRunner(store, automationStore);
+
+      const result = await runner.executeSchedule(schedule);
+
+      expect(result.success).toBe(true);
+      expect(result.output).toContain("empty-steps-fallback");
+      expect(result.stepResults).toBeUndefined();
+    });
+
     it("executes multiple command steps sequentially", async () => {
       const store = createMockStore();
       const schedule = createMockSchedule({
@@ -670,6 +699,33 @@ describe("CronRunner", () => {
       expect(result.stepResults![1].output).toContain("continued");
     });
 
+    it("continueOnFailure also advances after a create-task failure", async () => {
+      const store = createMockStore();
+      const schedule = createMockSchedule({
+        command: "",
+        steps: [
+          makeStep({
+            type: "create-task",
+            name: "Invalid create task",
+            taskDescription: "",
+            continueOnFailure: true,
+            command: undefined,
+          }),
+          makeStep({ name: "Still runs", command: "echo still-ran" }),
+        ],
+      });
+      const automationStore = createMockAutomationStore([schedule]);
+      runner = new CronRunner(store, automationStore);
+
+      const result = await runner.executeSchedule(schedule);
+
+      expect(result.success).toBe(false);
+      expect(result.stepResults).toHaveLength(2);
+      expect(result.stepResults![0].success).toBe(false);
+      expect(result.stepResults![1].success).toBe(true);
+      expect(result.stepResults![1].output).toContain("still-ran");
+    });
+
     it("uses per-step timeout override", async () => {
       const store = createMockStore();
       const schedule = createMockSchedule({

packages/engine/src/project-engine.ts

@@ -53,6 +53,23 @@ interface RemoteLifecycleEvaluation {
 const isRemoteActive = (ra: Settings["remoteAccess"] | undefined): boolean =>
   ra?.activeProvider != null && (ra.providers[ra.activeProvider]?.enabled ?? false);
 
+function formatErrorDetails(error: unknown): { message: string; detail: string } {
+  if (error instanceof Error) {
+    return {
+      message: error.message || error.name,
+      detail: error.stack ?? `${error.name}: ${error.message}`,
+    };
+  }
+  const detail = String(error);
+  return { message: detail, detail };
+}
+
+export interface AutomationSubsystemHealth {
+  status: "not-initialized" | "initializing" | "ready" | "degraded";
+  message: string;
+  updatedAt: string;
+}
+
 export interface ProjectEngineOptions {
   /** Project identifier for notification deep links */
   projectId?: string;
@@ -119,6 +136,11 @@ export class ProjectEngine {
     at: new Date().toISOString(),
     provider: null,
   };
+  private automationSubsystemHealth: AutomationSubsystemHealth = {
+    status: "not-initialized",
+    message: "Automation subsystem has not been initialized",
+    updatedAt: new Date().toISOString(),
+  };
 
   // ── Auto-merge state ──
   private mergeQueue: string[] = [];
@@ -204,8 +226,13 @@ export class ProjectEngine {
     }
 
     // 4. Initialize AutomationStore + CronRunner
+    this.setAutomationSubsystemHealth(
+      "initializing",
+      "Initializing AutomationStore and CronRunner",
+    );
     try {
-      const { AutomationStore } = await import("@fusion/core");
+      const coreAutomationModule = await import("@fusion/core");
+      const { AutomationStore } = coreAutomationModule;
       this.automationStore = new AutomationStore(cwd);
       await this.automationStore.init();
 
@@ -217,44 +244,73 @@ export class ProjectEngine {
       });
 
       const settings = await store.getSettings();
+      const startupSyncFailures: string[] = [];
 
       // Sync insight extraction automation on startup
-      try {
+      if (typeof coreAutomationModule.syncInsightExtractionAutomation === "function") {
-        const { syncInsightExtractionAutomation } = await import("@fusion/core");
+        try {
-        if (typeof syncInsightExtractionAutomation === "function") {
+          await coreAutomationModule.syncInsightExtractionAutomation(this.automationStore, settings);
-          await syncInsightExtractionAutomation(this.automationStore, settings);
+        } catch (err) {
+          const { message, detail } = formatErrorDetails(err);
+          startupSyncFailures.push(`insight extraction: ${message}`);
+          runtimeLog.warn(`Insight extraction automation startup sync failed:\n${detail}`);
         }
-      } catch {
+      } else {
-        // syncInsightExtractionAutomation may not be exported yet
+        runtimeLog.warn("syncInsightExtractionAutomation is unavailable; skipping startup sync");
       }
 
       // Sync auto-summarize automation on startup
-      try {
+      if (typeof coreAutomationModule.syncAutoSummarizeAutomation === "function") {
-        const { syncAutoSummarizeAutomation } = await import("@fusion/core");
+        try {
-        if (typeof syncAutoSummarizeAutomation === "function") {
+          await coreAutomationModule.syncAutoSummarizeAutomation(this.automationStore, settings);
-          await syncAutoSummarizeAutomation(this.automationStore, settings);
+        } catch (err) {
+          const { message, detail } = formatErrorDetails(err);
+          startupSyncFailures.push(`auto-summarize: ${message}`);
+          runtimeLog.warn(`Auto-summarize automation startup sync failed:\n${detail}`);
         }
-      } catch {
+      } else {
-        // syncAutoSummarizeAutomation may not be exported yet
+        runtimeLog.warn("syncAutoSummarizeAutomation is unavailable; skipping startup sync");
       }
 
       // Sync memory dreams automation on startup
-      try {
+      if (typeof coreAutomationModule.syncMemoryDreamsAutomation === "function") {
-        const { syncMemoryDreamsAutomation } = await import("@fusion/core");
+        try {
-        if (typeof syncMemoryDreamsAutomation === "function") {
+          await coreAutomationModule.syncMemoryDreamsAutomation(this.automationStore, settings);
-          await syncMemoryDreamsAutomation(this.automationStore, settings);
+        } catch (err) {
+          const { message, detail } = formatErrorDetails(err);
+          startupSyncFailures.push(`memory dreams: ${message}`);
+          runtimeLog.warn(`Memory dreams automation startup sync failed:\n${detail}`);
         }
-      } catch {
+      } else {
-        // syncMemoryDreamsAutomation may not be exported yet
+        runtimeLog.warn("syncMemoryDreamsAutomation is unavailable; skipping startup sync");
       }
 
       this.cronRunner.start();
+
+      if (startupSyncFailures.length > 0) {
+        this.setAutomationSubsystemHealth(
+          "degraded",
+          `CronRunner started with startup sync warnings: ${startupSyncFailures.join("; ")}`,
+        );
+      } else {
+        this.setAutomationSubsystemHealth(
+          "ready",
+          "CronRunner initialized and startup automation sync completed",
+        );
+      }
+
       runtimeLog.log("CronRunner initialized and started");
     } catch (err) {
       // Non-fatal — automations are optional
-      runtimeLog.warn(
+      const { message, detail } = formatErrorDetails(err);
-        "AutomationStore/CronRunner initialization failed (continuing without automations):",
+      this.cronRunner = undefined;
-        err instanceof Error ? err.message : err,
+      this.automationStore = undefined;
+      this.setAutomationSubsystemHealth(
+        "degraded",
+        `AutomationStore/CronRunner initialization failed: ${message}`,
+      );
+      runtimeLog.error(
+        `AutomationStore/CronRunner initialization failed (continuing without automations):\n${detail}`,
       );
     }
 
@@ -333,6 +389,7 @@ export class ProjectEngine {
     // Stop auxiliary subsystems
     this.notifier?.stop();
     this.cronRunner?.stop();
+    this.setAutomationSubsystemHealth("not-initialized", "Automation subsystem stopped");
 
     const tunnelManager = this.remoteTunnelManager;
     this.remoteTunnelManager = undefined;
@@ -414,6 +471,13 @@ export class ProjectEngine {
     return this.automationStore;
   }
 
+  /**
+   * Get the automation subsystem health for diagnostics and status reporting.
+   */
+  getAutomationSubsystemHealth(): AutomationSubsystemHealth {
+    return { ...this.automationSubsystemHealth };
+  }
+
   /** Get the RoutineStore (if initialized). */
   getRoutineStore(): import("@fusion/core").RoutineStore | undefined {
     return this.runtime.getRoutineStore();
@@ -555,6 +619,17 @@ export class ProjectEngine {
     };
   }
 
+  private setAutomationSubsystemHealth(
+    status: AutomationSubsystemHealth["status"],
+    message: string,
+  ): void {
+    this.automationSubsystemHealth = {
+      status,
+      message,
+      updatedAt: new Date().toISOString(),
+    };
+  }
+
   private async restoreRemoteTunnelIfNeeded(store: TaskStore): Promise<void> {
     const manager = this.remoteTunnelManager;
     if (!manager) {
@@ -1558,10 +1633,12 @@ export class ProjectEngine {
           runtimeLog.log("Memory dreams automation synced with settings");
         }
       } catch (err) {
-        runtimeLog.warn(
+        const { message, detail } = formatErrorDetails(err);
-          "Failed to sync memory maintenance automation:",
+        this.setAutomationSubsystemHealth(
-          err instanceof Error ? err.message : err,
+          "degraded",
+          `Failed to sync memory maintenance automation: ${message}`,
         );
+        runtimeLog.warn(`Failed to sync memory maintenance automation:\n${detail}`);
       }
     };
     store.on("settings:updated", onInsightSettingsChange);
@@ -1592,10 +1669,12 @@ export class ProjectEngine {
           runtimeLog.log("Auto-summarize automation synced with settings");
         }
       } catch (err) {
-        runtimeLog.warn(
+        const { message, detail } = formatErrorDetails(err);
-          "Failed to sync auto-summarize automation:",
+        this.setAutomationSubsystemHealth(
-          err instanceof Error ? err.message : err,
+          "degraded",
+          `Failed to sync auto-summarize automation: ${message}`,
         );
+        runtimeLog.warn(`Failed to sync auto-summarize automation:\n${detail}`);
       }
     };
     store.on("settings:updated", onAutoSummarizeSettingsChange);