diff --git a/.sf/PROJECT.md b/.sf/PROJECT.md
index 1d552785c..c0ec229d8 100644
--- a/.sf/PROJECT.md
+++ b/.sf/PROJECT.md
@@ -10,13 +10,16 @@ The autonomous loop should never sit silently stuck. Every halt must be communic
 
 ## Current State
 
-The SF autonomous loop identifies terminal states (action: "stop") in its dispatch rules, but the loop simply ceases execution without proactive notification. Stuck detection exists for cycles (sliding-window) but not for persistent "stop" states.
+- S01 complete: HaltWatchdog detects forced 'stop' state and emits 'stuck' signal after threshold.
+- S02 complete: Durable BLOCKING_NOTICE persists to .sf/notifications.jsonl with defensive initialization hardened.
+- Remaining: S03 (self-feedback), S04 (remediation dispatcher), S05 (auto-defer confidence), S06 (E2E integration).
 
 ## Architecture / Key Patterns
 
 - **Auto-Loop**: `src/resources/extensions/sf/auto/loop.js` manages iteration and phase dispatch.
 - **Dispatch Rules**: `src/resources/extensions/sf/uok/auto-dispatch.js` determines the next action based on milestone/slice state.
 - **Self-Feedback**: `src/resources/extensions/sf/self-feedback.js` provides the registry for anomalous behavior.
+- **Notification Store**: `src/resources/extensions/sf/notification-store.js` persists notifications to `.sf/notifications.jsonl` (fail-open, idempotent init).
 
 ## Capability Contract
 
@@ -24,4 +27,9 @@ See `.sf/REQUIREMENTS.md` for the explicit capability contract, requirement stat
 
 ## Milestone Sequence
 
-- [ ] M003: Autonomous Self-Healing and Escalation — Implement loop watchdog, notification plumbing, and validation-recovery policies.
+- [x] M003/S01: Idle Halt Detection — Loop watchdog detects persistent stop states.
+- [x] M003/S02: Escalation Plumbing — Durable notifications land in `.sf/notifications.jsonl`.
+- [ ] M003/S03: Halt Self-Feedback — Structured SELF-FEEDBACK.md entries after halt.
+- [ ] M003/S04: Remediation Dispatcher — Auto-dispatch remediation slices on needs-attention.
+- [ ] M003/S05: Auto-Defer Confidence — Low-confidence findings auto-deferred.
+- [ ] M003/S06: End-to-End Integration — Full self-healing flow in headless run.