diff --git a/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts b/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
index 09db8d3227..9c67a03b3a 100644
--- a/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
+++ b/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
@@ -395,6 +395,7 @@ export class AgentManagerProvider implements Disposable {
         this.panelSessions.clear()
         void ctx.sessions.abortSessions(ids).catch((err) => this.log("Failed to abort sessions on panel close:", err))
         this.statsPoller.stop()
+        this.projectPollers.dispose()
         this.prBridge.poller.stop()
         this.diffs.stop()
         this.activeSessionId = undefined
@@ -450,12 +451,14 @@ export class AgentManagerProvider implements Disposable {
 
   /** Initialize an expanded background project and push its state (no panel wiring). */
   private initExpanded(ctx: ProjectContext): void {
-    void initContextState(ctx, (...args) => this.log(...args)).then((result) => {
-      if (!result.current) return
-      registerProjectSessions(ctx, this.panel?.sessions)
-      this.pushState(ctx)
-      this.projectPollers.sync(this.contexts)
-    })
+    void initContextState(ctx, (...args) => this.log(...args))
+      .then((result) => {
+        if (!result.current) return
+        registerProjectSessions(ctx, this.panel?.sessions)
+        this.pushState(ctx)
+        this.projectPollers.sync(this.contexts)
+      })
+      .catch((err) => this.log("Failed to initialize expanded project:", err))
   }
 
   // Message interceptor
diff --git a/packages/kilo-vscode/src/agent-manager/project/contexts.ts b/packages/kilo-vscode/src/agent-manager/project/contexts.ts
index ddc2914f83..95a16d7050 100644
--- a/packages/kilo-vscode/src/agent-manager/project/contexts.ts
+++ b/packages/kilo-vscode/src/agent-manager/project/contexts.ts
@@ -141,8 +141,12 @@ export class ProjectContexts {
   }
 
   isExpanded(id: string): boolean {
-    this.rememberExpansion(id, false)
-    return this.expansion.get(id) === true
+    const value = this.expansion.get(id)
+    if (value !== undefined) return value
+    const stored = this.opts.registry.expanded?.(id)
+    if (stored !== undefined) return stored
+    const root = this.opts.workspaceRoot()
+    return root !== undefined && projectIdFor(canonicalizePath(root)) === id
   }
 
   /** Make a project the active context and expand it. Returns undefined when not allowed. */
@@ -244,16 +248,17 @@ export class ProjectContexts {
     const id = ctx?.id ?? stored!.id
     const root = ctx?.root ?? stored!.root
     const pinned = ctx?.pinned ?? false
+    const missing = ctx ? ctx.missing() : !(this.opts.deps.exists ?? fs.existsSync)(root)
     return {
       id,
       root,
       label: stored?.label || path.basename(root) || root,
       pinned,
       active: this.isActive(id),
-      expanded: this.isExpanded(id),
+      expanded: !missing && this.isExpanded(id),
       initialized: ctx?.loaded ?? false,
       trusted: pinned || (stored?.trusted ?? false),
-      missing: ctx ? ctx.missing() : !(this.opts.deps.exists ?? fs.existsSync)(root),
+      missing,
     }
   }
 
diff --git a/packages/kilo-vscode/src/agent-manager/project/messages.ts b/packages/kilo-vscode/src/agent-manager/project/messages.ts
index 28e4c3bde8..4349f709c4 100644
--- a/packages/kilo-vscode/src/agent-manager/project/messages.ts
+++ b/packages/kilo-vscode/src/agent-manager/project/messages.ts
@@ -196,8 +196,8 @@ async function setExpanded(id: string, expanded: boolean, deps: ProjectMessageDe
   }
   await deps.registry.setExpanded(id, expanded)
   if (expanded) {
-    deps.contexts.expand(id)
-    deps.expand(ctx)
+    const next = deps.contexts.expand(id)
+    if (next) deps.expand(next)
   }
   if (!expanded) deps.contexts.collapse(id)
   deps.push()
diff --git a/packages/kilo-vscode/tests/unit/agent-project-contexts.test.ts b/packages/kilo-vscode/tests/unit/agent-project-contexts.test.ts
index 126c0ca546..9c8b6239e9 100644
--- a/packages/kilo-vscode/tests/unit/agent-project-contexts.test.ts
+++ b/packages/kilo-vscode/tests/unit/agent-project-contexts.test.ts
@@ -210,6 +210,12 @@ describe("ProjectContexts", () => {
     expect(list[1]!.initialized).toBe(false)
   })
 
+  it("keeps the pinned project expanded before active state is initialized", () => {
+    const { contexts } = setup({ workspace: WORKSPACE })
+
+    expect(contexts.isExpanded(PINNED)).toBe(true)
+  })
+
   it("hydrates persisted project expansion without initializing the project", () => {
     const extra = stored("prj-extra", true)
     const { contexts } = setup({
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/ProjectsSection.tsx b/packages/kilo-vscode/webview-ui/agent-manager/ProjectsSection.tsx
index 55dfd4f5aa..5dbe5f7147 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/ProjectsSection.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/ProjectsSection.tsx
@@ -96,7 +96,7 @@ export const ProjectsSection: Component<ProjectsSectionProps> = (props) => (
                   }
                   const expanded = !project().expanded
                   props.onExpand(project().id, expanded)
-                  if (!project().active && project().trusted) props.onSelect(project().id)
+                  if (!project().active && project().trusted && !project().missing) props.onSelect(project().id)
                 }}
               />
               <Show when={project().expanded}>
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/SectionHeader.tsx b/packages/kilo-vscode/webview-ui/agent-manager/SectionHeader.tsx
index 475c8192e4..3bcd0ecbce 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/SectionHeader.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/SectionHeader.tsx
@@ -31,16 +31,23 @@ const SectionHeader: Component<Props> = (props) => {
   const { t } = useLanguage()
   const [renaming, setRenaming] = createSignal(false)
   const [value, setValue] = createSignal("")
+  let cancelled = false
 
   const border = () => colorCss(props.section.color) ?? "var(--vscode-panel-border)"
 
   const startRename = () => {
+    cancelled = false
     setValue(props.section.name)
     setRenaming(true)
   }
 
   const commit = () => {
+    if (cancelled) {
+      cancelled = false
+      return
+    }
     const trimmed = value().trim()
+    cancelled = true
     setRenaming(false)
     props.onRenameEnd?.()
     if (trimmed && trimmed !== props.section.name) {
@@ -49,6 +56,7 @@ const SectionHeader: Component<Props> = (props) => {
   }
 
   const cancel = () => {
+    cancelled = true
     setRenaming(false)
     props.onRenameEnd?.()
   }
@@ -83,6 +91,7 @@ const SectionHeader: Component<Props> = (props) => {
                       if (e.key === "Enter") commit()
                       if (e.key === "Escape") cancel()
                     }}
+                    onBlur={commit}
                     onClick={(e) => e.stopPropagation()}
                     ref={(el) =>
                       requestAnimationFrame(() =>
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/SidebarSectionHeader.tsx b/packages/kilo-vscode/webview-ui/agent-manager/SidebarSectionHeader.tsx
index aefcd95ffd..ebbc69446c 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/SidebarSectionHeader.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/SidebarSectionHeader.tsx
@@ -14,31 +14,30 @@ interface Props {
 
 /** Shared layout for sidebar headings with a fixed leading control column. */
 export const SidebarSectionHeader: Component<Props> = (props) => {
-  const keydown = (event: KeyboardEvent) => {
-    if (!props.onToggle || event.target !== event.currentTarget) return
-    if (event.key !== "Enter" && event.key !== " ") return
-    event.preventDefault()
-    props.onToggle()
-  }
-
   return (
     <div
-      class={`am-sidebar-header${props.class ? ` ${props.class}` : ""}`}
-      role={props.onToggle ? "button" : undefined}
-      tabIndex={props.onToggle ? 0 : undefined}
-      aria-expanded={props.onToggle ? props.expanded : undefined}
-      aria-label={props.ariaLabel}
+      class={`am-sidebar-header${props.onToggle ? " am-sidebar-header-toggleable" : ""}${props.class ? ` ${props.class}` : ""}`}
       title={props.title}
       onClick={(event) => {
         if (event.button === 0) props.onToggle?.()
       }}
-      onKeyDown={keydown}
     >
       <div class="am-sidebar-header-main">
         <Show when={props.onToggle}>
-          <span class="am-sidebar-header-chevron" aria-hidden="true">
-            <Icon name={props.expanded ? "chevron-down" : "chevron-right"} size="small" />
-          </span>
+          <button
+            class="am-sidebar-header-toggle"
+            type="button"
+            aria-expanded={props.expanded}
+            aria-label={props.ariaLabel}
+            onClick={(event) => {
+              event.stopPropagation()
+              props.onToggle?.()
+            }}
+          >
+            <span class="am-sidebar-header-chevron" aria-hidden="true">
+              <Icon name={props.expanded ? "chevron-down" : "chevron-right"} size="small" />
+            </span>
+          </button>
         </Show>
         <div class="am-sidebar-header-label">{props.label}</div>
       </div>
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/UnassignedSessionsSection.tsx b/packages/kilo-vscode/webview-ui/agent-manager/UnassignedSessionsSection.tsx
index 22aae23187..625780bc1c 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/UnassignedSessionsSection.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/UnassignedSessionsSection.tsx
@@ -33,6 +33,7 @@ export const UnassignedSessionsSection: Component<Props> = (props) => {
       <SidebarSectionHeader
         class="am-section-header am-section-toggle"
         expanded={!props.collapsed()}
+        ariaLabel={t("agentManager.section.sessions")}
         label={<span class="am-section-label">{t("agentManager.section.sessions")}</span>}
         onToggle={props.onToggle}
       />
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/agent-manager.css b/packages/kilo-vscode/webview-ui/agent-manager/agent-manager.css
index c1f150256f..a94cf39d14 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/agent-manager.css
+++ b/packages/kilo-vscode/webview-ui/agent-manager/agent-manager.css
@@ -190,7 +190,7 @@ html[data-theme="kilo-vscode"]
   box-sizing: border-box;
 }
 
-.am-sidebar-header[role="button"] {
+.am-sidebar-header-toggleable {
   cursor: pointer;
   user-select: none;
 }
@@ -213,6 +213,26 @@ html[data-theme="kilo-vscode"]
   color: var(--text-weak);
 }
 
+.am-sidebar-header-toggle {
+  display: flex;
+  align-items: center;
+  justify-content: center;
+  width: 16px;
+  height: 16px;
+  flex-shrink: 0;
+  padding: 0;
+  color: inherit;
+  background: none;
+  border: 0;
+  border-radius: var(--radius-sm);
+  cursor: pointer;
+}
+
+.am-sidebar-header-toggle:hover {
+  color: var(--text-base);
+  background: var(--surface-inset-base-hover);
+}
+
 .am-sidebar-header-label {
   display: flex;
   align-items: center;
@@ -244,6 +264,9 @@ html[data-theme="kilo-vscode"]
 }
 
 .am-section-header {
+  display: flex;
+  align-items: center;
+  justify-content: space-between;
   padding: 4px 8px 2px;
 }
 
diff --git a/packages/kilo-vscode/webview-ui/src/stories/agent-manager.stories.tsx b/packages/kilo-vscode/webview-ui/src/stories/agent-manager.stories.tsx
index 9ebef0f876..2ce729af07 100644
--- a/packages/kilo-vscode/webview-ui/src/stories/agent-manager.stories.tsx
+++ b/packages/kilo-vscode/webview-ui/src/stories/agent-manager.stories.tsx
@@ -16,6 +16,7 @@ import { SessionContext } from "../context/session"
 import { ServerContext } from "../context/server"
 import { WorktreeModeProvider } from "../context/worktree-mode"
 import { SidebarSearchMenu } from "../../agent-manager/SidebarSearchMenu"
+import { SidebarSectionHeader } from "../../agent-manager/SidebarSectionHeader"
 import { SidebarToggleButton } from "../../agent-manager/SidebarToggleButton"
 import { SideTerminalPanel, createTerminalState } from "../../agent-manager/terminal"
 import { LOCAL } from "../../agent-manager/navigate"
@@ -1162,27 +1163,30 @@ export const SidebarSearchOpen: Story = {
     return (
       <StoryProviders noPadding>
         <div style={{ "min-height": "430px", padding: "16px", background: "var(--surface-base)" }}>
-          <div class="am-section-header">
-            <span class="am-section-label">WORKTREES</span>
-            <div class="am-section-actions">
-              <SidebarSearchMenu
-                items={() => sidebarSearchItems}
-                keybind="⌘F"
-                current={() => sidebarSearchItems.find((item) => item.key === selected())}
-                labels={{
-                  search: "Search worktrees and sessions",
-                  scope: "Searches the local workspace, local sessions, worktrees, and their sessions",
-                  contexts: "LOCAL & WORKTREES",
-                  sessions: "SESSIONS",
-                  waiting: "Wait",
-                  retry: "Retry",
-                }}
-                onSelect={(item) => setSelected(item.key)}
-                defaultOpen
-                portal={false}
-              />
-            </div>
-          </div>
+          <SidebarSectionHeader
+            class="am-section-header"
+            label={<span class="am-section-label">WORKTREES</span>}
+            actions={
+              <div class="am-section-actions">
+                <SidebarSearchMenu
+                  items={() => sidebarSearchItems}
+                  keybind="⌘F"
+                  current={() => sidebarSearchItems.find((item) => item.key === selected())}
+                  labels={{
+                    search: "Search worktrees and sessions",
+                    scope: "Searches the local workspace, local sessions, worktrees, and their sessions",
+                    contexts: "LOCAL & WORKTREES",
+                    sessions: "SESSIONS",
+                    waiting: "Wait",
+                    retry: "Retry",
+                  }}
+                  onSelect={(item) => setSelected(item.key)}
+                  defaultOpen
+                  portal={false}
+                />
+              </div>
+            }
+          />
           <output class="sr-only" data-slot="sidebar-search-selection">
             {selected()}
           </output>