fix: cover the attempt-line verdict through handle_api_error

The retryable kwarg only reached log_api_error_attempt from
turn_api_error.handle_api_error, yet both tests called the helper
directly, so dropping the forwarding line kept the suite green.
Replace the retryable=True direct-call test with one that drives the
production entry (classifier patched to a non-retryable 401) and
asserts 'attempt 1/3, not retryable' on the log and status buffer:
red with the kwarg removed, green with it restored.

Also note why _touch_activity keeps the plain counter: it is a
watchdog liveness label, not chat output.

agent/turn_api_error.py

@@ -136,6 +136,8 @@ def handle_api_error(
 
     retry_count += 1
     elapsed_time = time.time() - api_start_time
+    # Liveness/watchdog label only (never shown in chat), so the classifier's
+    # "not retryable" verdict is named on the logged attempt line below instead.
     agent._touch_activity(f"API error recovery (attempt {retry_count}/{max_retries})")
 
     error_type, error_msg, _provider, _base, _model = log_api_error_attempt(

tests/agent/test_turn_recovery_attempt_line.py

@@ -7,7 +7,8 @@ counter that failed to advance (#73237). The classifier's verdict now rides the
 same line on both surfaces (logger + buffered status trace)."""
 
 import logging
-from unittest.mock import MagicMock
+import time
+from unittest.mock import MagicMock, patch
 
 from agent.turn_recovery import log_api_error_attempt
 
@@ -37,9 +38,30 @@ def test_non_retryable_failure_is_named_on_log_and_status_line(caplog):
     assert "not retryable" in agent._buffer_vprint.call_args_list[0].args[0]
 
 
-def test_retryable_failure_keeps_the_plain_attempt_counter(caplog):
+def test_production_entry_forwards_the_classifier_verdict_to_the_attempt_line(caplog):
+    """``handle_api_error`` must hand ``classified.retryable`` to the log line; a bare
+    ``attempt 1/3`` there is the exact regression #73237 reported."""
+    from types import SimpleNamespace
+
+    from agent.error_classifier import ClassifiedError, FailoverReason
+    from agent.turn_api_error import handle_api_error
+
     agent = _agent()
-    with caplog.at_level(logging.WARNING, logger="agent.conversation_loop"):
-        _call(agent, retryable=True)
-    assert "(attempt 1/3)" in caplog.text
-    assert "not retryable" not in caplog.text
+    agent._interrupt_requested = True  # leave the loop right after the attempt line
+    agent.clear_interrupt.return_value = True
+    verdict = ClassifiedError(reason=FailoverReason.auth, status_code=401, retryable=False)
+    with patch("agent.turn_api_error.classify_api_error", return_value=verdict), patch(
+        "agent.turn_api_error.recover_before_classification", return_value=(False, "sys")
+    ), patch(
+        "agent.turn_api_error.recover_after_classification", return_value=(False, False)
+    ), caplog.at_level(logging.WARNING, logger="agent.conversation_loop"):
+        out = handle_api_error(
+            agent, api_error=RuntimeError("401"), _retry=SimpleNamespace(), thinking_spinner=None,
+            messages=[], api_messages=[], api_kwargs={}, system_message=None,
+            active_system_prompt="sys", conversation_history=[], approx_tokens=10, retry_count=0,
+            max_retries=3, compression_attempts=0, max_compression_attempts=1, api_call_count=1,
+            api_request_id="r", api_start_time=time.time(), effective_task_id=None, turn_id="t",
+        )
+    assert out.action == "break"
+    assert "attempt 1/3, not retryable" in caplog.text
+    assert "not retryable" in agent._buffer_vprint.call_args_list[0].args[0]