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## Why An explicit denial from a workspace inference hook should stop the request, including retries and compaction model fallback. ## What changed Recognize `inference_hook_denied` provider errors and preserve the provider's message, with a fallback when none is supplied. Expose the distinct `inferenceHookDenied` error through the app-server protocol and generated schemas and SDK types. Treat the denial as non-retryable during turns, compaction, and guardian review. ## Testing Add coverage for terminal denials over HTTP, SSE, and WebSocket, error serialization and persistence in `thread/read`, and compaction failures that preserve token usage and history without retrying or falling back to another model. GitOrigin-RevId: 2ebd480f01e52f4e6bd3db8a0f92d5814d18ccb1