Function resolve_wait 

pub fn resolve_wait(
    observation: &WaitObservation,
    request: &WaitRequest,
) -> Option<WaitDecision>

Decide whether this observation ends the wait.

A wait answers for one turn, so only the turn’s own fate ends it. In particular a session that is carrying an error from some earlier, unrelated action is not a reason to fail the turn the caller asked about: the session error badge has no expiry, and reporting it here made every later wait on that session return error while the turn ran on perfectly well.

The rules run in order, and the order is the point:

1. A stopped, stopping, or failed session ends the wait as stopped.
2. A launch failure or failed initialization is reported before a turn.
3. Otherwise the wait has a target turn: the caller’s explicit turn_id, else the turn a create-with-prompt call submitted, else “the newest one”, which additionally requires the session to be idle with an empty queue — with queued prompts, “idle” alone would return an earlier prompt’s outcome.
4. A capacity outcome with a retry armed is not an ending: the worker will submit the retry itself, so the wait keeps waiting.

A turn that really did fail still reports error: a rejected or interrupted turn, and an unrecognized stop reason, all come back through the turn record in rule 3.