diff --git a/src/resources/extensions/gsd/auto-dispatch.ts b/src/resources/extensions/gsd/auto-dispatch.ts
index ccc3921e6..6c738df9e 100644
--- a/src/resources/extensions/gsd/auto-dispatch.ts
+++ b/src/resources/extensions/gsd/auto-dispatch.ts
@@ -693,6 +693,10 @@ export const DISPATCH_RULES: DispatchRule[] = [
             if (validationPath) {
               const validationContent = await loadFile(validationPath);
               if (validationContent) {
+                // Allow completion when validation was intentionally skipped by
+                // preference/budget profile (#3399, #3344).
+                const skippedByPreference = /skip(?:ped)?[\s\-]+(?:by|per|due to)\s+(?:preference|budget|profile)/i.test(validationContent);
+
                 // Accept either the structured template format (table with MET/N/A/SATISFIED)
                 // or prose evidence patterns the validation agent may emit.
                 const structuredMatch =
@@ -700,7 +704,7 @@ export const DISPATCH_RULES: DispatchRule[] = [
                   (validationContent.includes("MET") || validationContent.includes("N/A") || validationContent.includes("SATISFIED"));
                 const proseMatch =
                   /[Oo]perational[\s\S]{0,500}?(?:✅|pass|verified|confirmed|met|complete|true|yes|addressed|covered|satisfied|partially|n\/a|not[\s-]+applicable)/i.test(validationContent);
-                const hasOperationalCheck = structuredMatch || proseMatch;
+                const hasOperationalCheck = skippedByPreference || structuredMatch || proseMatch;
                 if (!hasOperationalCheck) {
                   return {
                     action: "stop" as const,
diff --git a/src/resources/extensions/gsd/tests/skipped-validation-completion.test.ts b/src/resources/extensions/gsd/tests/skipped-validation-completion.test.ts
new file mode 100644
index 000000000..927eb3a57
--- /dev/null
+++ b/src/resources/extensions/gsd/tests/skipped-validation-completion.test.ts
@@ -0,0 +1,39 @@
+/**
+ * Regression test for #3698 — allow milestone completion when validation
+ * was skipped by preference
+ *
+ * When validation is skipped due to user preference (e.g. budget profile),
+ * auto-dispatch should recognize the "skipped by preference" pattern and
+ * allow completion instead of treating it as a missing validation.
+ */
+
+import { describe, test } from 'node:test';
+import assert from 'node:assert/strict';
+import { readFileSync } from 'node:fs';
+import { fileURLToPath } from 'node:url';
+import { dirname, join } from 'node:path';
+
+const __filename = fileURLToPath(import.meta.url);
+const __dirname = dirname(__filename);
+
+const autoDispatchSrc = readFileSync(
+  join(__dirname, '..', 'auto-dispatch.ts'),
+  'utf-8',
+);
+
+describe('skipped validation completion (#3698)', () => {
+  test('skippedByPreference regex detection exists', () => {
+    assert.match(autoDispatchSrc, /skippedByPreference/,
+      'skippedByPreference variable should exist in auto-dispatch.ts');
+  });
+
+  test('regex matches skip-by-preference patterns', () => {
+    assert.match(autoDispatchSrc, /skip\(\?:ped\)\?\[\\s\\-\]\+\(\?:by\|per\|due to\)/,
+      'should have regex matching "skipped by/per/due to" patterns');
+  });
+
+  test('skippedByPreference feeds into operational check', () => {
+    assert.match(autoDispatchSrc, /hasOperationalCheck\s*=\s*skippedByPreference/,
+      'skippedByPreference should be part of hasOperationalCheck');
+  });
+});