diff --git a/examples/acp-agent/code-mode.cordis.snapshot.yml b/examples/acp-agent/code-mode.cordis.snapshot.yml
index 7d20168ff5..dcbdf05b2a 100644
--- a/examples/acp-agent/code-mode.cordis.snapshot.yml
+++ b/examples/acp-agent/code-mode.cordis.snapshot.yml
@@ -17,8 +17,14 @@
         config:
           model: deepseek-v4-flash
           persistenceRoot: !!js process.env.DSH_SNAPSHOT_SESSIONS_ROOT ?? './.sessions'
-          workspaceContext:
-            maxBytes: 65536
+          # Disabled in Code Mode: fs tools run as run_code sub-dispatches and
+          # code-mode.ts deliberately drops sub-call `additionalContext`, so the
+          # nested/changed/removed AGENTS.md notices this feature emits after
+          # read/write/edit are discarded before the loop can append them.
+          # Enabling it would only ship the baseline prefix while silently
+          # dropping the dynamic updates, so keep it off until sub-dispatch
+          # context propagation lands.
+          workspaceContext: false
           tools:
             mode: code
           persona: |
diff --git a/examples/acp-agent/code-mode.cordis.yml b/examples/acp-agent/code-mode.cordis.yml
index a32254a387..7dbc594fb9 100644
--- a/examples/acp-agent/code-mode.cordis.yml
+++ b/examples/acp-agent/code-mode.cordis.yml
@@ -17,8 +17,14 @@
         config:
           model: deepseek-v4-flash
           persistenceRoot: !!js process.env.DSH_SNAPSHOT_SESSIONS_ROOT ?? './.sessions'
-          workspaceContext:
-            maxBytes: 65536
+          # Disabled in Code Mode: fs tools run as run_code sub-dispatches and
+          # code-mode.ts deliberately drops sub-call `additionalContext`, so the
+          # nested/changed/removed AGENTS.md notices this feature emits after
+          # read/write/edit are discarded before the loop can append them.
+          # Enabling it would only ship the baseline prefix while silently
+          # dropping the dynamic updates, so keep it off until sub-dispatch
+          # context propagation lands.
+          workspaceContext: false
           tools:
             mode: code
           persona: |
diff --git a/examples/coding-agent/code-mode.cordis.yml b/examples/coding-agent/code-mode.cordis.yml
index 81d80a5eef..0c84286668 100644
--- a/examples/coding-agent/code-mode.cordis.yml
+++ b/examples/coding-agent/code-mode.cordis.yml
@@ -19,8 +19,14 @@
           model: deepseek-v4-flash
           resumeSessionId: !!js process.env.RESUME_SESSION_ID
           persistenceRoot: './.sessions'
-          workspaceContext:
-            maxBytes: 65536
+          # Disabled in Code Mode: fs tools run as run_code sub-dispatches and
+          # code-mode.ts deliberately drops sub-call `additionalContext`, so the
+          # nested/changed/removed AGENTS.md notices this feature emits after
+          # read/write/edit are discarded before the loop can append them.
+          # Enabling it would only ship the baseline prefix while silently
+          # dropping the dynamic updates, so keep it off until sub-dispatch
+          # context propagation lands.
+          workspaceContext: false
           tools:
             mode: code
           welcome: 'code-mode agent ready. Give it a multi-tool task.'
diff --git a/packages/prompt/workspace-context/src/index.ts b/packages/prompt/workspace-context/src/index.ts
index a4aeffae71..b61860a1e6 100644
--- a/packages/prompt/workspace-context/src/index.ts
+++ b/packages/prompt/workspace-context/src/index.ts
@@ -91,6 +91,13 @@ export function apply(ctx: Context, config: Config): void {
     next,
   ): Promise<PostToolDecision> => {
     const downstream = await next()
+    // A downstream listener/policy blocked this call: the registry turns it
+    // into a final `isError` result, so treat it like a failed fs touch and
+    // load nothing. Reconciling here would surface workspace instructions from
+    // a call the pipeline rejected, violating the "successful fs tool touches"
+    // contract, and would advance the nested/baseline tracking state off a
+    // touch that never really happened.
+    if (downstream.kind === 'block') return downstream
     const fileSystem = ctx.get('fs')
     if (fileSystem === undefined) return downstream
     const context = await dynamicInstructionContext(
@@ -104,14 +111,10 @@ export function apply(ctx: Context, config: Config): void {
       fileSystem,
     )
     if (context === undefined) return downstream
-    const additionalContext = concatContext(context, downstream.additionalContext)
-    if (downstream.kind === 'block') {
-      return { kind: 'block', feedback: downstream.feedback, additionalContext }
-    }
     return {
       kind: 'accept',
       ...downstream.content !== undefined ? { content: downstream.content } : {},
-      additionalContext,
+      additionalContext: concatContext(context, downstream.additionalContext),
     }
   })
 }
diff --git a/packages/prompt/workspace-context/tests/workspace-context.spec.ts b/packages/prompt/workspace-context/tests/workspace-context.spec.ts
index 204464cc63..59440dc038 100644
--- a/packages/prompt/workspace-context/tests/workspace-context.spec.ts
+++ b/packages/prompt/workspace-context/tests/workspace-context.spec.ts
@@ -725,6 +725,62 @@ describe('workspace context request injection', () => {
     }
   })
 
+  it('does not load workspace instructions when a downstream listener blocks the tool call', async () => {
+    const root = await tempRepo()
+    const home = await tempRepo()
+    const ctx = new Context()
+    try {
+      await ctx.plugin(SystemPrompt)
+      await ctx.plugin(ToolRegistry)
+      await ctx.plugin(RecordingFileSystem)
+      const fs = ctx.fs as RecordingFileSystem
+      fs.entries.set(join(root, '.git'), { type: 'directory' })
+      fs.entries.set(join(root, 'pkg/AGENTS.md'), { type: 'file', content: 'nested package rule' })
+      fs.entries.set(join(root, 'pkg/file.txt'), { type: 'file', content: 'hello' })
+      await ctx.plugin(ToolFs)
+      await ctx.plugin(workspaceContext, { dshHome: home, maxBytes: 65536 })
+      const agent = stubAgent(root)
+
+      const exec = {
+        callId: CallId('read-blocked-post-execute'),
+        name: 'read',
+        arguments: { file_path: 'pkg/file.txt' },
+        agent,
+      }
+      const result = {
+        callId: CallId('read-blocked-post-execute'),
+        isError: false,
+        content: [{ type: 'text' as const, text: 'hello' }],
+      }
+
+      // A later PostToolUse-style policy blocks this otherwise-successful read.
+      const blocked = await ctx.waterfall('tools/post-execute', exec, result, async () => ({
+        kind: 'block' as const,
+        feedback: [{ type: 'text' as const, text: 'blocked by policy' }],
+      }))
+
+      expect(blocked).toEqual({
+        kind: 'block',
+        feedback: [{ type: 'text', text: 'blocked by policy' }],
+      })
+      expect(blocked.additionalContext).toBeUndefined()
+
+      // The same read, when the downstream accepts, DOES surface the nested
+      // instructions — proving the block branch above is what suppressed them,
+      // and that the block did not consume the pending nested change.
+      const accepted = await ctx.waterfall('tools/post-execute', exec, result, async () => ({
+        kind: 'accept' as const,
+      }))
+      expect(accepted.kind).toBe('accept')
+      expect(accepted.additionalContext?.source).toEqual({ kind: 'plugin', plugin: 'workspace-context' })
+      expect(blocksText(accepted.additionalContext?.content)).toContain('nested package rule')
+    } finally {
+      await ctx.fiber.dispose()
+      await rm(root, { recursive: true, force: true })
+      await rm(home, { recursive: true, force: true })
+    }
+  })
+
   it('contributes baseline instructions through the frozen session prefix instead of durable history', async () => {
     const root = await tempRepo()
     const home = await tempRepo()
@@ -1977,7 +2033,7 @@ describe('dynamic nested workspace context injection', () => {
     }
   })
 
-  it('keeps downstream post-execute blocks while still attaching discovered instructions', async () => {
+  it('does not attach discovered instructions when a downstream listener blocks the tool call', async () => {
     const root = await tempRepo()
     const home = await tempRepo()
     try {
@@ -1998,12 +2054,11 @@ describe('dynamic nested workspace context injection', () => {
         agent: stubAgent(root),
       })
 
+      // The pipeline rejected this touch, so no workspace instructions from it
+      // should reach the model, and the block feedback must survive unchanged.
       expect(result.isError).toBe(true)
       expect(blocksText(result.content)).toBe('blocked downstream')
-      expect(blocksText(result.additionalContext?.content)).toContain('nested package rule')
-      expect(result.additionalContext?.meta).toMatchObject({
-        changes: [{ action: 'set', scope: 'pkg', path: 'pkg/AGENTS.md' }],
-      })
+      expect(result.additionalContext).toBeUndefined()
     } finally {
       await rm(root, { recursive: true, force: true })
       await rm(home, { recursive: true, force: true })