diff --git a/packages/kilo-vscode/tests/unit/agent-project-progress.test.ts b/packages/kilo-vscode/tests/unit/agent-project-progress.test.ts
index 0caddba5c5..e4906e9879 100644
--- a/packages/kilo-vscode/tests/unit/agent-project-progress.test.ts
+++ b/packages/kilo-vscode/tests/unit/agent-project-progress.test.ts
@@ -1,6 +1,11 @@
 import { describe, expect, it } from "bun:test"
 import { createProjectStore } from "../../webview-ui/agent-manager/project/store"
-import { clearMultiVersionBusy, markMultiVersionBusy } from "../../webview-ui/agent-manager/project/progress"
+import {
+  clearFailedDelete,
+  clearMultiVersionBusy,
+  markMultiVersionBusy,
+} from "../../webview-ui/agent-manager/project/progress"
+import { createProjectRegistry } from "../../webview-ui/agent-manager/project/registry"
 
 const state = (projectId: string) => ({
   type: "agentManager.state" as const,
@@ -20,6 +25,31 @@ const state = (projectId: string) => ({
 })
 
 describe("multi-project progress state", () => {
+  it.each([undefined, "b"])("clears failed deletion only for the resolved project %s", (projectId) => {
+    const registry = createProjectRegistry({ persisted: {}, activeId: () => "a" })
+    for (const id of ["a", "b"]) {
+      registry.ensure(id).setBusy(
+        new Map([
+          ["same", { reason: "deleting" as const }],
+          ["other", { reason: "deleting" as const }],
+        ]),
+      )
+    }
+
+    const store = registry.ensure(projectId ?? "a")
+    const peer = registry.ensure(projectId ? "a" : "b")
+    clearFailedDelete({ type: "error", message: "failed", code: "unrelated", projectId, worktreeId: "same" }, registry)
+    expect(store.busy().has("same")).toBe(true)
+    clearFailedDelete(
+      { type: "error", message: "failed", code: "agentManager.worktreeDeleteFailed", projectId, worktreeId: "same" },
+      registry,
+    )
+
+    expect(store.busy().has("same")).toBe(false)
+    expect(peer.busy().has("same")).toBe(true)
+    expect(store.busy().has("other")).toBe(true)
+  })
+
   it("updates only the owning project's grouped worktrees", () => {
     const first = createProjectStore("a")
     const second = createProjectStore("b")
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
index b5cf7e7d05..5fa343c217 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
@@ -104,7 +104,7 @@ import {
   setReviewOpen,
 } from "./project/review-state"
 import { applyRunStatus } from "./project/run-status"
-import { clearMultiVersionBusy, markMultiVersionBusy } from "./project/progress"
+import { clearFailedDelete, clearMultiVersionBusy, markMultiVersionBusy } from "./project/progress"
 import {
   createSessionRestore,
   createTabMemory,
@@ -1386,10 +1386,7 @@ const AgentManagerContent: Component = () => {
     })
 
     const unsub = vscode.onMessage((msg) => {
-      if (msg.type === "error" && msg.code === "agentManager.worktreeDeleteFailed" && msg.worktreeId) {
-        const store = msg.projectId ? registry.ensure(msg.projectId) : registry.active()
-        store.setBusy((prev) => new Map([...prev].filter(([id]) => id !== msg.worktreeId)))
-      }
+      clearFailedDelete(msg, registry)
       if (msg.type === "agentManager.repoInfo") {
         const info = msg as AgentManagerRepoInfoMessage
         setRepoBranch(info.branch)
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/project/progress.ts b/packages/kilo-vscode/webview-ui/agent-manager/project/progress.ts
index 0a626885c7..02b22cc01f 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/project/progress.ts
+++ b/packages/kilo-vscode/webview-ui/agent-manager/project/progress.ts
@@ -1,4 +1,14 @@
 import type { ProjectStore } from "./store"
+import type { ExtensionMessage } from "../../src/types/messages"
+
+export function clearFailedDelete(
+  msg: ExtensionMessage,
+  stores: { ensure: (id: string) => ProjectStore; active: () => ProjectStore },
+): void {
+  if (msg.type !== "error" || msg.code !== "agentManager.worktreeDeleteFailed" || !msg.worktreeId) return
+  const store = msg.projectId ? stores.ensure(msg.projectId) : stores.active()
+  store.setBusy((prev) => new Map([...prev].filter(([id]) => id !== msg.worktreeId)))
+}
 
 /** Clear setup indicators for every worktree in one multi-version group. */
 export function clearMultiVersionBusy(store: ProjectStore, groupId: string): void {