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## Why Code Mode sessions always used client-side output handling, leaving server truncation settings and observation budgets unused. ## What changed - Honor each session's `output_truncation` setting in the runtime and both host transports, and advertise the bounded-output capability. - Apply `max_output_tokens` independently to execute, wait, and terminate responses in server mode. Keep client mode as the default when the setting is omitted. - Use bounded output collection and rendering in server mode, preserving head and tail output with omission notices. Include script errors in the output budget while retaining failure status and a separate diagnostic capped at 64 KiB. - Estimate audio tokens without the Tokio-dependent cache when rendering bounded output. ## Testing Add runtime and host regression tests for session mode selection, per-request budgets, output overflow, oversized images, zero-token audio output, diagnostic preservation, and termination under output backpressure. GitOrigin-RevId: 3d9661edcdd2dde31526bb92eb83fa0614f0fa88