diff --git a/.agents/phases/todo/138_markdown_blockquotes/00_phase.md b/.agents/phases/complete/138_markdown_blockquotes/00_phase.md
similarity index 100%
rename from .agents/phases/todo/138_markdown_blockquotes/00_phase.md
rename to .agents/phases/complete/138_markdown_blockquotes/00_phase.md
diff --git a/.agents/phases/todo/138_markdown_blockquotes/01_blockquote_pass.md b/.agents/phases/complete/138_markdown_blockquotes/01_blockquote_pass.md
similarity index 100%
rename from .agents/phases/todo/138_markdown_blockquotes/01_blockquote_pass.md
rename to .agents/phases/complete/138_markdown_blockquotes/01_blockquote_pass.md
diff --git a/.agents/phases/todo/138_markdown_blockquotes/02_blockquote_css.md b/.agents/phases/complete/138_markdown_blockquotes/02_blockquote_css.md
similarity index 100%
rename from .agents/phases/todo/138_markdown_blockquotes/02_blockquote_css.md
rename to .agents/phases/complete/138_markdown_blockquotes/02_blockquote_css.md
diff --git a/.agents/phases/todo/138_markdown_blockquotes/03_unit_and_e2e.md b/.agents/phases/complete/138_markdown_blockquotes/03_unit_and_e2e.md
similarity index 100%
rename from .agents/phases/todo/138_markdown_blockquotes/03_unit_and_e2e.md
rename to .agents/phases/complete/138_markdown_blockquotes/03_unit_and_e2e.md
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.err b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.err
new file mode 100644
index 0000000..e69de29
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.md b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.md
new file mode 100644
index 0000000..4f49248
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.md
@@ -0,0 +1,9 @@
+**Phase 138 final verification pass — all green, no defects found.**
+
+- Verified: blockquote pass in `frontend/assets/markdown.js` (step 2b, between escape+inline and paragraphs), guard extended to `|blockquote`, docstring updated; `.md-quote` CSS (left border + padding + `--ink-soft`, no fill, palette vars only, contrast comments, user-bubble override); unit pins + node behavior; dedicated E2E (chat / viewer / restore); mock `QUOTE_TRIGGER`/`QUOTE_ANSWER`; fixture `tests/fixtures/quote_docs/`. Thinking block confirmed on the same shared renderer (app.js L2025/L3095).
+- `uv run pytest tests/e2e/test_markdown_blockquotes.py -v --no-cov` → 3 passed (isolation)
+- `uv run pytest --cov=app --cov-report=term-missing` → 3268 passed, 9 skipped; TOTAL **99%** (>90%)
+- `uv run ruff check . && uv run pyright` → All checks passed; 0 errors
+- Criteria: quotes render in chat/viewer/restore ✅ (E2E) + thinking ✅ (shared renderer + unscoped AA CSS); `>>` collapses, fence/table `>` untouched ✅ (unit+e2e); non-quote byte-identical ✅ (exact fixture; phase-44/renderer suites pass **unedited**, confirmed by empty `git diff --stat`)
+- No deviations; commit + phase-dir move left to the harness per pipeline rules (working tree clean of stray changes — only phase-138 diffs present)
+- Next pending phase: **139_read_range_tool_lines**
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.validate b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.validate
new file mode 100644
index 0000000..5ebbbc4
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__00_phase.a1.validate
@@ -0,0 +1,117 @@
+........................................................................ [  2%]
+........................................................................ [  4%]
+........................................................................ [  6%]
+........................................................................ [  8%]
+........................................................................ [ 10%]
+........................................................................ [ 13%]
+........................................................................ [ 15%]
+........................................................................ [ 17%]
+........................................................................ [ 19%]
+........................................................................ [ 21%]
+........................................................................ [ 24%]
+........................................................................ [ 26%]
+........................................................................ [ 28%]
+........................................................................ [ 30%]
+........................................................................ [ 32%]
+........................................................................ [ 35%]
+........................................................................ [ 37%]
+........................................................................ [ 39%]
+........................................................................ [ 41%]
+........................................................................ [ 43%]
+........................................................................ [ 46%]
+........................................................................ [ 48%]
+........................................................................ [ 50%]
+........................................................................ [ 52%]
+...........................................................s.....sss...s [ 54%]
+s....................................................................... [ 57%]
+........................................................................ [ 59%]
+........................................................................ [ 61%]
+........................................................................ [ 63%]
+........................................................................ [ 65%]
+........................................................................ [ 68%]
+........................................................................ [ 70%]
+........................................................................ [ 72%]
+........................................................................ [ 74%]
+........................................................................ [ 76%]
+........................................................................ [ 79%]
+........................................................................ [ 81%]
+........................................................................ [ 83%]
+........................................................................ [ 85%]
+........................................................................ [ 87%]
+........................................................................ [ 90%]
+........................................................................ [ 92%]
+........................................................................ [ 94%]
+....................................................................sss. [ 96%]
+........................................................................ [ 98%]
+.....................................                                    [100%]
+=============================== warnings summary ===============================
+.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1
+  /var/home/ducoterra/Projects/Personal/brain-of-reese/.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1: StarletteDeprecationWarning: Using `httpx` with `starlette.testclient` is deprecated; install `httpx2` instead.
+    from starlette.testclient import TestClient as TestClient  # noqa
+
+-- Docs: https://docs.pytest.org/en/stable/how-to/capture-warnings.html
+================================ tests coverage ================================
+_______________ coverage: platform linux, python 3.14.7-final-0 ________________
+
+Name                           Stmts   Miss  Cover
+--------------------------------------------------
+app/__init__.py                    1      0   100%
+app/api/__init__.py                0      0   100%
+app/api/auth.py                   52      0   100%
+app/api/chat.py                  268      1    99%
+app/api/chat_images.py            50      0   100%
+app/api/chats.py                 110      0   100%
+app/api/config.py                 13      0   100%
+app/api/doc_drafts.py             99      0   100%
+app/api/docs.py                  179      1    99%
+app/api/git_sources.py           259      0   100%
+app/api/health.py                 10      0   100%
+app/api/steering.py               42      0   100%
+app/api/suggestions.py            33      0   100%
+app/api/sync.py                  183      0   100%
+app/api/tokens.py                 40      0   100%
+app/api/ui_settings.py            55      0   100%
+app/config.py                    256      0   100%
+app/core/__init__.py               0      0   100%
+app/core/auth.py                  45      0   100%
+app/core/caching.py              124      0   100%
+app/core/debugging.py             29      2    93%
+app/core/docs_push.py             39      0   100%
+app/core/errors.py                 5      0   100%
+app/core/logging.py               13      0   100%
+app/core/rate_limit.py            44      0   100%
+app/core/security_headers.py      20      0   100%
+app/core/theming.py               38      0   100%
+app/core/tokens.py                44      0   100%
+app/db.py                         22      0   100%
+app/main.py                       68      0   100%
+app/models.py                    133      0   100%
+app/rag/__init__.py                0      0   100%
+app/rag/agent.py                 412      1    99%
+app/rag/archive_upload.py        134      0   100%
+app/rag/chunker.py               220      4    98%
+app/rag/doc_dates.py              18      0   100%
+app/rag/folder_summaries.py      134      0   100%
+app/rag/git_sources.py            56      0   100%
+app/rag/importer.py              671      9    99%
+app/rag/llm.py                   246      1    99%
+app/rag/md_images.py              63      0   100%
+app/rag/overview.py               71      0   100%
+app/rag/pdf.py                   119      0   100%
+app/rag/prompts.py               154      0   100%
+app/rag/retriever.py             248      3    99%
+app/rag/scaffolding.py            55      0   100%
+app/rag/source_removal.py         41      0   100%
+app/rag/sources_meta.py           16      0   100%
+app/rag/suggestions.py            27      0   100%
+app/rag/summarizer.py             49      0   100%
+app/schemas.py                   422      0   100%
+--------------------------------------------------
+TOTAL                           5430     22    99%
+coverage gate: app/ 99% (>90%) OK
+All checks passed!
+0 errors, 0 warnings, 0 informations
+WARNING: there is a new pyright version available (v1.1.411 -> v1.1.414).
+Please install the new version or set PYRIGHT_PYTHON_FORCE_VERSION to `latest`
+
+validation OK
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.err b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.err
new file mode 100644
index 0000000..e69de29
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.md b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.md
new file mode 100644
index 0000000..c7ff6bd
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.md
@@ -0,0 +1,14 @@
+Task complete. All completion criteria verified.
+
+**Report — phase 138, task 01 (blockquote pass)**
+
+- `frontend/assets/markdown.js`: new step-2b pass between `inline(escapeHtml(text))` and the paragraph pass — maximal run of consecutive `^\s*(?:&gt;)+ ?` lines → one `<blockquote class="md-quote">`, marker run + one optional space stripped per member, members joined with `<br>`, blank line terminates the group
+- Step-3 paragraph guard extended to `/^<(h\d|ul|ol|pre|li|blockquote)/`; module docstring + step-2b comment document pass order (fences → tables → escape+inline → blockquotes → paragraphs → restore), the group rule, and the in-quote structure limit
+- Node repro: `renderMarkdown("> a\n> b")` → `<blockquote class="md-quote">a<br>b</blockquote>` (exact); `> quoted` no longer emits literal `&gt;`
+- Byte-identity: 14-case non-quote corpus (paragraph, lists, headings, table, fence, XSS, blanks) renders byte-identical to pre-task baseline; fences/tables keep precedence (verified under node)
+- `uv run pytest` — exit 0, no failures (unit + integration, renderer-dependent suites unedited)
+- `uv run pytest --cov=app --cov-report=term-missing` — TOTAL **99%** (>90% gate)
+- `uv run ruff check .` — All checks passed; `uv run pyright` — 0 errors, 0 warnings
+- Notable: the task's regex shorthand `&gt;+ ?` binds `+` to the semicolon and would not collapse nested `>>` (breaks locked A1) — implemented as `(?:&gt;)+` to honor the intent; nested collapse, blank-termination, XSS-inert, and inline-in-quote all verified under node
+- No test files added (unit pins live in task 03's `tests/unit/test_markdown_blockquotes.py` per the task); only `markdown.js` modified, left uncommitted
+- Next pending task: `02_blockquote_css.md`
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.validate b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.validate
new file mode 100644
index 0000000..556eccd
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__01_blockquote_pass.a1.validate
@@ -0,0 +1,117 @@
+........................................................................ [  2%]
+........................................................................ [  4%]
+........................................................................ [  6%]
+........................................................................ [  8%]
+........................................................................ [ 11%]
+........................................................................ [ 13%]
+........................................................................ [ 15%]
+........................................................................ [ 17%]
+........................................................................ [ 19%]
+........................................................................ [ 22%]
+........................................................................ [ 24%]
+........................................................................ [ 26%]
+........................................................................ [ 28%]
+........................................................................ [ 30%]
+........................................................................ [ 33%]
+........................................................................ [ 35%]
+........................................................................ [ 37%]
+........................................................................ [ 39%]
+........................................................................ [ 41%]
+........................................................................ [ 44%]
+........................................................................ [ 46%]
+........................................................................ [ 48%]
+........................................................................ [ 50%]
+........................................................................ [ 52%]
+......................................................s.....sss...ss.... [ 55%]
+........................................................................ [ 57%]
+........................................................................ [ 59%]
+........................................................................ [ 61%]
+........................................................................ [ 63%]
+........................................................................ [ 66%]
+........................................................................ [ 68%]
+........................................................................ [ 70%]
+........................................................................ [ 72%]
+........................................................................ [ 74%]
+........................................................................ [ 77%]
+........................................................................ [ 79%]
+........................................................................ [ 81%]
+........................................................................ [ 83%]
+........................................................................ [ 85%]
+........................................................................ [ 88%]
+........................................................................ [ 90%]
+........................................................................ [ 92%]
+........................................................................ [ 94%]
+...............................................................sss...... [ 96%]
+........................................................................ [ 99%]
+................................                                         [100%]
+=============================== warnings summary ===============================
+.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1
+  /var/home/ducoterra/Projects/Personal/brain-of-reese/.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1: StarletteDeprecationWarning: Using `httpx` with `starlette.testclient` is deprecated; install `httpx2` instead.
+    from starlette.testclient import TestClient as TestClient  # noqa
+
+-- Docs: https://docs.pytest.org/en/stable/how-to/capture-warnings.html
+================================ tests coverage ================================
+_______________ coverage: platform linux, python 3.14.7-final-0 ________________
+
+Name                           Stmts   Miss  Cover
+--------------------------------------------------
+app/__init__.py                    1      0   100%
+app/api/__init__.py                0      0   100%
+app/api/auth.py                   52      0   100%
+app/api/chat.py                  268      1    99%
+app/api/chat_images.py            50      0   100%
+app/api/chats.py                 110      0   100%
+app/api/config.py                 13      0   100%
+app/api/doc_drafts.py             99      0   100%
+app/api/docs.py                  179      1    99%
+app/api/git_sources.py           259      0   100%
+app/api/health.py                 10      0   100%
+app/api/steering.py               42      0   100%
+app/api/suggestions.py            33      0   100%
+app/api/sync.py                  183      0   100%
+app/api/tokens.py                 40      0   100%
+app/api/ui_settings.py            55      0   100%
+app/config.py                    256      0   100%
+app/core/__init__.py               0      0   100%
+app/core/auth.py                  45      0   100%
+app/core/caching.py              124      0   100%
+app/core/debugging.py             29      2    93%
+app/core/docs_push.py             39      0   100%
+app/core/errors.py                 5      0   100%
+app/core/logging.py               13      0   100%
+app/core/rate_limit.py            44      0   100%
+app/core/security_headers.py      20      0   100%
+app/core/theming.py               38      0   100%
+app/core/tokens.py                44      0   100%
+app/db.py                         22      0   100%
+app/main.py                       68      0   100%
+app/models.py                    133      0   100%
+app/rag/__init__.py                0      0   100%
+app/rag/agent.py                 412      1    99%
+app/rag/archive_upload.py        134      0   100%
+app/rag/chunker.py               220      4    98%
+app/rag/doc_dates.py              18      0   100%
+app/rag/folder_summaries.py      134      0   100%
+app/rag/git_sources.py            56      0   100%
+app/rag/importer.py              671      9    99%
+app/rag/llm.py                   246      1    99%
+app/rag/md_images.py              63      0   100%
+app/rag/overview.py               71      0   100%
+app/rag/pdf.py                   119      0   100%
+app/rag/prompts.py               154      0   100%
+app/rag/retriever.py             248      3    99%
+app/rag/scaffolding.py            55      0   100%
+app/rag/source_removal.py         41      0   100%
+app/rag/sources_meta.py           16      0   100%
+app/rag/suggestions.py            27      0   100%
+app/rag/summarizer.py             49      0   100%
+app/schemas.py                   422      0   100%
+--------------------------------------------------
+TOTAL                           5430     22    99%
+coverage gate: app/ 99% (>90%) OK
+All checks passed!
+0 errors, 0 warnings, 0 informations
+WARNING: there is a new pyright version available (v1.1.411 -> v1.1.414).
+Please install the new version or set PYRIGHT_PYTHON_FORCE_VERSION to `latest`
+
+validation OK
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.err b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.err
new file mode 100644
index 0000000..e69de29
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.md b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.md
new file mode 100644
index 0000000..a671f5e
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.md
@@ -0,0 +1,22 @@
+All green. Task 02 complete.
+
+## Report — Task 02: `.md-quote` styling (theme-safe, WCAG AA)
+
+**Implemented**
+- `.md-quote` rule in `frontend/assets/styles.css` at the phase-44 `.md-table` anchor: `border-left: 3px solid var(--brand-ink)` (9.9:1 on `--surface`), `padding: 0.25rem 0.75rem`, `margin: 0.5rem 0`, `color: var(--ink-soft)` with the 8.2:1-on-`--surface` contrast comment; no background fill (A2), palette vars only, no hex outside `:root` (verified programmatically)
+- Scoped override `.msg.user .bubble .md-quote { color: var(--bg) }` (5.2:1 on `--brand`) — user questions run through `renderMarkdown` (app.js:2002) on the `--brand` fill where `--ink-soft` is 1.6:1 (AA failure)
+
+**Verification (live browser, real `styles.css` + `markdown.js`)**
+- Computed contrast in all four contexts: brain bubble 8.22:1, user bubble 5.35:1, thinking block 8.22:1, doc viewer 8.22:1 — all ≥4.5:1; screenshot confirms visually distinct quote in every context
+- Deflected bubble (`--accent-bg`) also holds: 6.9:1
+
+**Test / lint / coverage**
+- `uv run pytest --cov=app --cov-report=term-missing` → 3263 passed, 9 skipped; TOTAL **99%** (>90% ✓)
+- `uv run ruff check .` → clean; `uv run pyright` → 0 errors
+- `uv run pytest tests/e2e/test_markdown_tables.py -v --no-cov` → 6 passed (phase-44 renderer-dependent E2E green unedited)
+
+**Notable decision**
+- User-bubble override added now (not awaiting task-03 E2E): the clash is provable by contrast math and WCAG 2.1 AA is a binding AGENTS.md rule 5 requirement
+
+**Next pending task**
+- `.agents/phases/todo/138_markdown_blockquotes/03_unit_and_e2e.md`
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.validate b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.validate
new file mode 100644
index 0000000..556eccd
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__02_blockquote_css.a1.validate
@@ -0,0 +1,117 @@
+........................................................................ [  2%]
+........................................................................ [  4%]
+........................................................................ [  6%]
+........................................................................ [  8%]
+........................................................................ [ 11%]
+........................................................................ [ 13%]
+........................................................................ [ 15%]
+........................................................................ [ 17%]
+........................................................................ [ 19%]
+........................................................................ [ 22%]
+........................................................................ [ 24%]
+........................................................................ [ 26%]
+........................................................................ [ 28%]
+........................................................................ [ 30%]
+........................................................................ [ 33%]
+........................................................................ [ 35%]
+........................................................................ [ 37%]
+........................................................................ [ 39%]
+........................................................................ [ 41%]
+........................................................................ [ 44%]
+........................................................................ [ 46%]
+........................................................................ [ 48%]
+........................................................................ [ 50%]
+........................................................................ [ 52%]
+......................................................s.....sss...ss.... [ 55%]
+........................................................................ [ 57%]
+........................................................................ [ 59%]
+........................................................................ [ 61%]
+........................................................................ [ 63%]
+........................................................................ [ 66%]
+........................................................................ [ 68%]
+........................................................................ [ 70%]
+........................................................................ [ 72%]
+........................................................................ [ 74%]
+........................................................................ [ 77%]
+........................................................................ [ 79%]
+........................................................................ [ 81%]
+........................................................................ [ 83%]
+........................................................................ [ 85%]
+........................................................................ [ 88%]
+........................................................................ [ 90%]
+........................................................................ [ 92%]
+........................................................................ [ 94%]
+...............................................................sss...... [ 96%]
+........................................................................ [ 99%]
+................................                                         [100%]
+=============================== warnings summary ===============================
+.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1
+  /var/home/ducoterra/Projects/Personal/brain-of-reese/.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1: StarletteDeprecationWarning: Using `httpx` with `starlette.testclient` is deprecated; install `httpx2` instead.
+    from starlette.testclient import TestClient as TestClient  # noqa
+
+-- Docs: https://docs.pytest.org/en/stable/how-to/capture-warnings.html
+================================ tests coverage ================================
+_______________ coverage: platform linux, python 3.14.7-final-0 ________________
+
+Name                           Stmts   Miss  Cover
+--------------------------------------------------
+app/__init__.py                    1      0   100%
+app/api/__init__.py                0      0   100%
+app/api/auth.py                   52      0   100%
+app/api/chat.py                  268      1    99%
+app/api/chat_images.py            50      0   100%
+app/api/chats.py                 110      0   100%
+app/api/config.py                 13      0   100%
+app/api/doc_drafts.py             99      0   100%
+app/api/docs.py                  179      1    99%
+app/api/git_sources.py           259      0   100%
+app/api/health.py                 10      0   100%
+app/api/steering.py               42      0   100%
+app/api/suggestions.py            33      0   100%
+app/api/sync.py                  183      0   100%
+app/api/tokens.py                 40      0   100%
+app/api/ui_settings.py            55      0   100%
+app/config.py                    256      0   100%
+app/core/__init__.py               0      0   100%
+app/core/auth.py                  45      0   100%
+app/core/caching.py              124      0   100%
+app/core/debugging.py             29      2    93%
+app/core/docs_push.py             39      0   100%
+app/core/errors.py                 5      0   100%
+app/core/logging.py               13      0   100%
+app/core/rate_limit.py            44      0   100%
+app/core/security_headers.py      20      0   100%
+app/core/theming.py               38      0   100%
+app/core/tokens.py                44      0   100%
+app/db.py                         22      0   100%
+app/main.py                       68      0   100%
+app/models.py                    133      0   100%
+app/rag/__init__.py                0      0   100%
+app/rag/agent.py                 412      1    99%
+app/rag/archive_upload.py        134      0   100%
+app/rag/chunker.py               220      4    98%
+app/rag/doc_dates.py              18      0   100%
+app/rag/folder_summaries.py      134      0   100%
+app/rag/git_sources.py            56      0   100%
+app/rag/importer.py              671      9    99%
+app/rag/llm.py                   246      1    99%
+app/rag/md_images.py              63      0   100%
+app/rag/overview.py               71      0   100%
+app/rag/pdf.py                   119      0   100%
+app/rag/prompts.py               154      0   100%
+app/rag/retriever.py             248      3    99%
+app/rag/scaffolding.py            55      0   100%
+app/rag/source_removal.py         41      0   100%
+app/rag/sources_meta.py           16      0   100%
+app/rag/suggestions.py            27      0   100%
+app/rag/summarizer.py             49      0   100%
+app/schemas.py                   422      0   100%
+--------------------------------------------------
+TOTAL                           5430     22    99%
+coverage gate: app/ 99% (>90%) OK
+All checks passed!
+0 errors, 0 warnings, 0 informations
+WARNING: there is a new pyright version available (v1.1.411 -> v1.1.414).
+Please install the new version or set PYRIGHT_PYTHON_FORCE_VERSION to `latest`
+
+validation OK
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.err b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.err
new file mode 100644
index 0000000..e69de29
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.md b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.md
new file mode 100644
index 0000000..b97f063
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.md
@@ -0,0 +1,17 @@
+Everything is green. Final report:
+
+**Phase 138, task 03 — unit pins, node behavior, dedicated E2E — complete**
+
+Implemented:
+- `tests/unit/test_markdown_blockquotes.py` — source pins (pass order: after `inline(escapeHtml(text))`, before paragraph split; guard includes `blockquote`; exact `<blockquote class="md-quote">` marker; group rule test+strip literals; `.md-quote` CSS references `:root` palette vars only + contrast-ratio note) and a node behavior check: single line, 3-line `<br>` group, `>>`/`>>>` collapse, blank-line termination, inert `<script>` XSS, fence-wins, table-cell `>` untouched, inline-in-quote, and non-quote input byte-identical to the pre-phase renderer (fixture string generated from `git show HEAD` and checked into the test).
+- `tests/e2e/test_markdown_blockquotes.py` — dedicated Playwright suite (mock-only, isolated): (a) chat — 4 `blockquote.md-quote` with no literal `>` at block start, inert XSS, fence/table precedence, non-deflected; (b) viewer — Sources drill-down opens `quote_docs/homelab/quotes.md`, modal renders `blockquote.md-quote`, fenced `>` stays code; (c) restore — `page.reload()` re-renders via the same renderer and keeps every blockquote.
+- `tests/e2e/mock_llm.py` — `QUOTE_TRIGGER` ("show me the blockquote", verified disjoint from all triggers/questions/fixtures) + byte-stable `QUOTE_ANSWER` + docstring bullet (phase-44 pattern).
+- `tests/fixtures/quote_docs/homelab/quotes.md` — dedicated fixture tree (like phase-68 `search_docs`) so the shared 13-doc fixture count pinned by ~30 other suites is untouched.
+
+Results:
+- `uv run pytest tests/unit/test_markdown_blockquotes.py -v` → 5 passed (node available, behavior check ran)
+- `uv run pytest tests/e2e/test_markdown_blockquotes.py -v --no-cov` → 3 passed, in isolation
+- `uv run pytest` → 3268 passed, 9 skipped; `--cov=app` TOTAL **99%** (>90%)
+- `uv run ruff check . && uv run pyright` → clean (0 errors, 0 warnings)
+
+Decisions: used the search-suite precedent (dedicated fixture dir) instead of adding to `tests/fixtures/docs/`, which would have broken the `added == 13` pins in ~30 other E2E suites. No defects found in prior work. No commits made (harness handles the atomic commit). Next pending: task files 04–05 in phase 139/140 (`todo/` — none within phase 138; its dir is complete pending the harness gate).
diff --git a/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.validate b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.validate
new file mode 100644
index 0000000..5ebbbc4
--- /dev/null
+++ b/.agents/reports/138_markdown_blockquotes/138_markdown_blockquotes__03_unit_and_e2e.a1.validate
@@ -0,0 +1,117 @@
+........................................................................ [  2%]
+........................................................................ [  4%]
+........................................................................ [  6%]
+........................................................................ [  8%]
+........................................................................ [ 10%]
+........................................................................ [ 13%]
+........................................................................ [ 15%]
+........................................................................ [ 17%]
+........................................................................ [ 19%]
+........................................................................ [ 21%]
+........................................................................ [ 24%]
+........................................................................ [ 26%]
+........................................................................ [ 28%]
+........................................................................ [ 30%]
+........................................................................ [ 32%]
+........................................................................ [ 35%]
+........................................................................ [ 37%]
+........................................................................ [ 39%]
+........................................................................ [ 41%]
+........................................................................ [ 43%]
+........................................................................ [ 46%]
+........................................................................ [ 48%]
+........................................................................ [ 50%]
+........................................................................ [ 52%]
+...........................................................s.....sss...s [ 54%]
+s....................................................................... [ 57%]
+........................................................................ [ 59%]
+........................................................................ [ 61%]
+........................................................................ [ 63%]
+........................................................................ [ 65%]
+........................................................................ [ 68%]
+........................................................................ [ 70%]
+........................................................................ [ 72%]
+........................................................................ [ 74%]
+........................................................................ [ 76%]
+........................................................................ [ 79%]
+........................................................................ [ 81%]
+........................................................................ [ 83%]
+........................................................................ [ 85%]
+........................................................................ [ 87%]
+........................................................................ [ 90%]
+........................................................................ [ 92%]
+........................................................................ [ 94%]
+....................................................................sss. [ 96%]
+........................................................................ [ 98%]
+.....................................                                    [100%]
+=============================== warnings summary ===============================
+.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1
+  /var/home/ducoterra/Projects/Personal/brain-of-reese/.venv/lib64/python3.14/site-packages/fastapi/testclient.py:1: StarletteDeprecationWarning: Using `httpx` with `starlette.testclient` is deprecated; install `httpx2` instead.
+    from starlette.testclient import TestClient as TestClient  # noqa
+
+-- Docs: https://docs.pytest.org/en/stable/how-to/capture-warnings.html
+================================ tests coverage ================================
+_______________ coverage: platform linux, python 3.14.7-final-0 ________________
+
+Name                           Stmts   Miss  Cover
+--------------------------------------------------
+app/__init__.py                    1      0   100%
+app/api/__init__.py                0      0   100%
+app/api/auth.py                   52      0   100%
+app/api/chat.py                  268      1    99%
+app/api/chat_images.py            50      0   100%
+app/api/chats.py                 110      0   100%
+app/api/config.py                 13      0   100%
+app/api/doc_drafts.py             99      0   100%
+app/api/docs.py                  179      1    99%
+app/api/git_sources.py           259      0   100%
+app/api/health.py                 10      0   100%
+app/api/steering.py               42      0   100%
+app/api/suggestions.py            33      0   100%
+app/api/sync.py                  183      0   100%
+app/api/tokens.py                 40      0   100%
+app/api/ui_settings.py            55      0   100%
+app/config.py                    256      0   100%
+app/core/__init__.py               0      0   100%
+app/core/auth.py                  45      0   100%
+app/core/caching.py              124      0   100%
+app/core/debugging.py             29      2    93%
+app/core/docs_push.py             39      0   100%
+app/core/errors.py                 5      0   100%
+app/core/logging.py               13      0   100%
+app/core/rate_limit.py            44      0   100%
+app/core/security_headers.py      20      0   100%
+app/core/theming.py               38      0   100%
+app/core/tokens.py                44      0   100%
+app/db.py                         22      0   100%
+app/main.py                       68      0   100%
+app/models.py                    133      0   100%
+app/rag/__init__.py                0      0   100%
+app/rag/agent.py                 412      1    99%
+app/rag/archive_upload.py        134      0   100%
+app/rag/chunker.py               220      4    98%
+app/rag/doc_dates.py              18      0   100%
+app/rag/folder_summaries.py      134      0   100%
+app/rag/git_sources.py            56      0   100%
+app/rag/importer.py              671      9    99%
+app/rag/llm.py                   246      1    99%
+app/rag/md_images.py              63      0   100%
+app/rag/overview.py               71      0   100%
+app/rag/pdf.py                   119      0   100%
+app/rag/prompts.py               154      0   100%
+app/rag/retriever.py             248      3    99%
+app/rag/scaffolding.py            55      0   100%
+app/rag/source_removal.py         41      0   100%
+app/rag/sources_meta.py           16      0   100%
+app/rag/suggestions.py            27      0   100%
+app/rag/summarizer.py             49      0   100%
+app/schemas.py                   422      0   100%
+--------------------------------------------------
+TOTAL                           5430     22    99%
+coverage gate: app/ 99% (>90%) OK
+All checks passed!
+0 errors, 0 warnings, 0 informations
+WARNING: there is a new pyright version available (v1.1.411 -> v1.1.414).
+Please install the new version or set PYRIGHT_PYTHON_FORCE_VERSION to `latest`
+
+validation OK
diff --git a/frontend/assets/markdown.js b/frontend/assets/markdown.js
index b931653..426fe9d 100644
--- a/frontend/assets/markdown.js
+++ b/frontend/assets/markdown.js
@@ -16,6 +16,22 @@
  * and restores it alongside the code blocks in the final step. Fences
  * win over tables (they are protected first), and everything that is
  * not a pipe table renders byte-identically to the original app.js copy.
+ *
+ * Phase 138 (2026-09-30, TODO.md L3) added the blockquote pass between
+ * step 2 (escape+inline) and step 3 (paragraphs): the maximal run of
+ * consecutive &gt;-prefixed lines becomes ONE
+ * <blockquote class="md-quote"> with the members joined with <br>.
+ * The pass order is now fences → tables → escape+inline → blockquotes
+ * → paragraphs → restore. Group rule: a BLANK line terminates the
+ * group (a re-quoted line starts a new <blockquote>), and nested
+ * >> / >>> collapses to a single level (locked A1). Documented limit:
+ * a markdown STRUCTURE line inside a quote (a "- list" / "# heading")
+ * renders as plain text — the inline chain ran first, so its
+ * line-start transforms never see the post-strip text; inline
+ * code/strong/em still work. Fences and tables keep their precedence:
+ * a > inside a code fence never reaches the pass (step 1 placeholder),
+ * and a > in a table cell is restored in step 4. Everything without a
+ * quote line renders byte-identically to the pre-phase renderer.
  */
 
 function escapeHtml(s) {
@@ -123,13 +139,46 @@ function renderMarkdown(md) {
   // 2. Escape everything else, then apply the inline + block transforms.
   text = inline(escapeHtml(text));
 
+  // 2b. Blockquotes (phase 138, 2026-09-30, TODO.md L3). Runs AFTER
+  // the escape+inline step — a quote line now starts with the escaped
+  // marker &gt;, and inline code/strong/em already work inside quotes
+  // for free (this pass never re-transforms) — and BEFORE the
+  // paragraph pass, which the extended step-3 guard leaves alone. The
+  // maximal run of consecutive lines matching ^\s*(?:&gt;)+ ? is ONE
+  // <blockquote class="md-quote">: the leading (?:&gt;)+ run plus ONE
+  // optional space is stripped from each member (nested >> / >>>
+  // collapses to a single level — locked A1), members are joined with
+  // <br> (the paragraph convention), and a BLANK line terminates the
+  // group (a re-quoted line starts a new <blockquote>). Documented
+  // limit: a "- list" / "# heading" line INSIDE a quote renders as
+  // plain text — the inline chain ran first. Fences (step 1) and
+  // tables (step 1b) keep their precedence: a > inside a fence never
+  // reaches this pass, and a > in a table cell is restored in step 4.
+  const quoteLines = text.split("\n");
+  const quoted = [];
+  let qpos = 0;
+  while (qpos < quoteLines.length) {
+    if (!/^\s*(?:&gt;)+ ?/.test(quoteLines[qpos])) {
+      quoted.push(quoteLines[qpos]);
+      qpos += 1;
+      continue;
+    }
+    const members = [];
+    while (qpos < quoteLines.length && /^\s*(?:&gt;)+ ?/.test(quoteLines[qpos])) {
+      members.push(quoteLines[qpos].replace(/^\s*(?:&gt;)+ ?/, ""));
+      qpos += 1;
+    }
+    quoted.push(`<blockquote class="md-quote">${members.join("<br>")}</blockquote>`);
+  }
+  text = quoted.join("\n");
+
   // 3. Paragraphs (double newline separated).
   text = text
     .split(/\n{2,}/)
     .map((block) => {
       const b = block.trim();
       if (!b) return "";
-      if (/^<(h\d|ul|ol|pre|li)/.test(b)) return b;
+      if (/^<(h\d|ul|ol|pre|li|blockquote)/.test(b)) return b;
       return `<p>${b.replace(/\n/g, "<br>")}</p>`;
     })
     .join("");
diff --git a/frontend/assets/styles.css b/frontend/assets/styles.css
index d6e97ce..00fa8e1 100644
--- a/frontend/assets/styles.css
+++ b/frontend/assets/styles.css
@@ -541,6 +541,37 @@ body::before {
 .md-table th, .md-table td { border: 1px solid var(--line); padding: 0.4rem 0.6rem; text-align: left; vertical-align: top; }
 .md-table thead th { background: var(--surface); color: var(--ink); }
 
+/* Markdown blockquotes (phase 138, 2026-09-30, TODO L3): the shared
+   renderer (markdown.js step 2b) turns a run of "> "-prefixed lines
+   into <blockquote class="md-quote"> — ONE rule set serves all three
+   rendering contexts (the chat .bubble, the details.thinking
+   scratchpad, the document viewer's .doc-md): every one sits on the
+   --surface canvas (the deflected bubble's --accent-bg holds too —
+   ink-soft there is 6.9:1), so a single AA pairing covers them all.
+   A visible-but-restrained left border + padding + a muted ink — NO
+   background fill (locked A2). Palette vars only (the :root-drift
+   test parses the built-ins from this file — no hex literal here):
+   border-left  --brand-ink — 9.9:1 on --surface, the rose accent bar
+                (--line would be invisible: 1.14:1 on the surface;
+                plain --brand vanishes on the user bubble, 1:1);
+   color        --ink-soft  — 8.2:1 on --surface, the same AA pairing
+                              the --ink-soft :root comment documents.
+   Static content — no animation (nothing for prefers-reduced-motion
+   to still). */
+.md-quote {
+  border-left: 3px solid var(--brand-ink);
+  padding: 0.25rem 0.75rem;
+  margin: 0.5rem 0;
+  color: var(--ink-soft);
+}
+/* The USER bubble also runs the question through the shared renderer
+   (app.js addMessage), on the --brand fill with --bg text: --ink-soft
+   there is 1.6:1 — an AA failure — so the quote keeps the bubble's
+   own dark ink, 5.2:1 on --brand (the :root --bg pairing). The
+   --brand-ink bar holds 1.9:1 against the fill — still visible, the
+   quote stays distinct. */
+.msg.user .bubble .md-quote { color: var(--bg); }
+
 .msg.user { justify-content: flex-end; }
 .msg.user .msg-body { align-items: flex-end; }
 .msg.user .bubble {
diff --git a/tests/e2e/mock_llm.py b/tests/e2e/mock_llm.py
index 2d7d9ce..a56e344 100644
--- a/tests/e2e/mock_llm.py
+++ b/tests/e2e/mock_llm.py
@@ -382,6 +382,19 @@ Implements just enough of the aipi surface:
     ``SUMMARY_MODE``), so a marker question always gets the table
     answer; the E2E asks it against an on-topic fixture (HIGH gate) and
     asserts non-deflection.
+  - user message containing ``show me the blockquote`` (phase 138,
+    markdown blockquotes, TODO.md L3) -> the fixed quote answer
+    (``QUOTE_ANSWER``): a single-line quote, a 3-line quote group, a
+    nested ``>>`` collapse line, an ``<script>`` XSS probe quote, a
+    ``>`` inside a code fence, a ``>`` in a table cell, and a plain
+    closing line — byte-stable, so the story E2E can assert the four
+    rendered ``<blockquote class="md-quote">`` shapes, the inert XSS
+    line, the untouched fence and table-cell ``>``, and the restore
+    path's byte-identical re-render. Checked BEFORE the
+    ``DEFLECT_MODE`` branch (a deflection prompt never carries the
+    marker, same reasoning as ``SUMMARY_MODE``), so a marker question
+    always gets the quote answer; the E2E asks it against an on-topic
+    fixture (HIGH gate) and asserts non-deflection.
   - user message containing ``echo my history``
     (``HISTORY_TRIGGER``, phase 74, TODO L4 — chat history with prior
     thinking reaches the LLM) -> the deterministic HISTORY ECHO, derived
@@ -955,6 +968,43 @@ TABLE_ANSWER = (
     "| value-one | value-two | value-three | value-four | value-five |"
 )
 
+#: Phase 138 (markdown blockquotes, TODO.md L3): a user message
+#: containing this substring (case-insensitive) gets the fixed quote
+#: answer (``QUOTE_ANSWER`` below) — the renderer's whole blockquote
+#: contract in one byte-stable answer (see the module docstring).
+#: Existing E2E questions do not contain the phrase, so every other
+#: suite is unaffected.
+QUOTE_TRIGGER = "show me the blockquote"
+
+#: The fixed quote answer (phase 138) — byte-stable on purpose: the
+#: story E2E asserts the four rendered <blockquote class="md-quote">
+#: shapes (single line, 3-line group, nested collapse, XSS probe),
+#: the untouched fence line and table cell, and the plain closing
+#: line (the stream-completion marker — it lands last).
+QUOTE_ANSWER = (
+    "Here's the shape, in quotes:\n"
+    "\n"
+    "> a short single-line quote\n"
+    "\n"
+    "> the first line\n"
+    "> the second line\n"
+    "> the third line\n"
+    "\n"
+    ">> nested quotes collapse to one level\n"
+    "\n"
+    "> <script>alert(1)</script>\n"
+    "\n"
+    "```\n"
+    "> inside a fence stays fence content\n"
+    "```\n"
+    "\n"
+    "| Cell |\n"
+    "|---|\n"
+    "| > x stays a cell |\n"
+    "\n"
+    "And the quote ends here — a plain closing line."
+)
+
 # ---------------------------------------------------------------------------
 # Phase 67 (LLM retry, TODO.md L3): deterministic failure injection
 # ---------------------------------------------------------------------------
@@ -2720,6 +2770,16 @@ def compose_answer(body: dict[str, Any]) -> str:
         # against an on-topic fixture, where the gate is HIGH, and
         # asserts non-deflection as part of the table test.
         answer = TABLE_ANSWER
+    elif QUOTE_TRIGGER in user.lower():
+        # Markdown blockquotes (phase 138, TODO.md L3): the story E2E's
+        # deterministic quote answer — the renderer's blockquote
+        # contract in one byte-stable stream (single-line quote,
+        # 3-line group, nested collapse, the <script> XSS probe, the
+        # fence-protected >, the table-cell >, the plain close).
+        # Checked BEFORE the DEFLECT_MODE branch, like TABLE_TRIGGER:
+        # the marker lives in the user message, so a marker question
+        # always gets the quote answer whatever the gate says.
+        answer = QUOTE_ANSWER
     elif HISTORY_TRIGGER in user.lower():
         # Phase 74 (TODO L4, chat history): the deterministic history
         # echo — proves on the wire that the client's prior turns (and
diff --git a/tests/e2e/test_markdown_blockquotes.py b/tests/e2e/test_markdown_blockquotes.py
new file mode 100644
index 0000000..2a94382
--- /dev/null
+++ b/tests/e2e/test_markdown_blockquotes.py
@@ -0,0 +1,271 @@
+"""Phase 138 E2E (Playwright): markdown blockquotes in the shared renderer.
+
+Source: ``TODO.md`` L3 — "Markdown formatted ">" quotes aren't rendering"
+Run in isolation (DB must be up: ``podman compose up -d db``):
+
+    uv run pytest tests/e2e/test_markdown_blockquotes.py -v --no-cov
+
+Seeding reuses the real importer against the phase-138 fixture
+directory ``tests/fixtures/quote_docs/`` with the deterministic mock
+embeddings. A dedicated tree (like phase 68's ``search_docs``) — the
+shared 13-doc fixture set's import count is pinned by many other
+suites and must not move. The mock's ``QUOTE_TRIGGER``
+(``show me the blockquote``, phase 138 task 03) returns the byte-stable
+quote answer: a single-line quote, a 3-line group, a nested ``>>``
+collapse, an ``<script>`` XSS probe, a ``>`` inside a fence, a ``>``
+in a table cell, and a plain closing line. The fixture
+``homelab/quotes.md`` (a 2-line quote block, a re-quoted line after a
+blank line, and a ``>`` line inside a fence) is the viewer subject —
+the document viewer is database-only, so the imported row is enough.
+
+Test → story mapping (Playwright Mapping Rule):
+1. ``test_chat_quote_renders`` — the brain bubble carries FOUR
+   ``blockquote.md-quote`` (single line, 3-line group with <br>
+   joins, nested collapse, inert XSS line) with no literal ``>`` at
+   any block's start; the fenced ``>`` stays code and the table-cell
+   ``>`` stays cell text (fences/tables keep their precedence); the
+   turn is NOT deflected (the honesty-gate interplay is part of the
+   contract).
+2. ``test_viewer_quote_renders`` — the fixture's quote block opens
+   from the Sources table (admin) in the modal and renders
+   ``blockquote.md-quote`` (shared renderer); the fenced ``>`` line
+   stays ``<pre><code>``.
+3. ``test_restore_keeps_blockquote`` — a reload restores the
+   conversation (the localStorage restore path re-runs the shared
+   renderer, app.js ``addMessage``) and the restored brain bubble
+   keeps every ``blockquote.md-quote``.
+"""
+from __future__ import annotations
+
+import asyncio
+from pathlib import Path
+from threading import Thread
+from typing import Any
+
+from playwright.sync_api import Page, expect
+from sqlalchemy import text
+
+from app.config import Settings
+from app.db import SessionLocal
+from app.rag.importer import ImportSummary, import_sources
+from app.rag.llm import LLMClient
+from e2e.auth_helpers import login
+
+REPO = Path(__file__).resolve().parents[2]
+FIXTURES = REPO / "tests" / "fixtures" / "quote_docs"
+
+#: Carries the mock's ``QUOTE_TRIGGER`` ("show me the blockquote") and
+#: is on-topic (the fixture doc answers it — token-overlap cosine
+#: ≈0.5 against the mock embeddings, so the turn is HIGH and the
+#: suite can assert non-deflection).
+QUESTION = "Show me the blockquote from my homelab backup notes?"
+QUOTE_PATH = "homelab/quotes.md"
+QUOTE_TITLE = "Homelab Backup Blockquote Notes"
+#: The byte-stable answer's plain closing line (the stream-completion
+#: marker — it lands last).
+ANSWER_END = "a plain closing line"
+#: The four rendered blockquote texts, in order (the XSS line renders
+#: as its escaped tag TEXT — visible, inert).
+QUOTED_TEXTS = [
+    "a short single-line quote",
+    "the first line\nthe second line\nthe third line",
+    "nested quotes collapse to one level",
+    "<script>alert(1)</script>",
+]
+FENCE_LINE = "> inside a fence stays fence content"
+CELL_TEXT = "> x stays a cell"
+
+
+async def _import_fixtures(mock_port: int) -> ImportSummary:
+    kwargs: dict[str, Any] = {"_env_file": None, "llm_base_url": f"http://127.0.0.1:{mock_port}/v1"}
+    settings = Settings(**kwargs)  # pyright: ignore[reportCallIssue]
+    return await import_sources([FIXTURES], LLMClient(settings))
+
+
+def _run_in_thread(coro: Any) -> Any:
+    """Run a coroutine on a worker thread.
+
+    Playwright's sync API keeps an asyncio loop running on the test
+    thread, so ``asyncio.run`` cannot be called directly from a test
+    body (the established house helper).
+    """
+    box: dict[str, Any] = {}
+
+    def runner() -> None:
+        try:
+            box["value"] = asyncio.run(coro)
+        except BaseException as e:  # noqa: BLE001 — re-raised on the test thread
+            box["error"] = e
+
+    t = Thread(target=runner)
+    t.start()
+    t.join()
+    if "error" in box:
+        raise box["error"]
+    return box["value"]
+
+
+def _reset_db(mock_port: int) -> ImportSummary:
+    """Truncate the KB (+ the global prompt-state rows), then re-import
+    the phase-138 fixture (one document)."""
+    with SessionLocal() as db:
+        db.execute(
+            text("TRUNCATE chunks, documents, query_log, steering_notes, kb_overview")
+        )
+        db.commit()
+    summary = _run_in_thread(_import_fixtures(mock_port))
+    assert summary is not None and summary.added == 1, summary
+    return summary
+
+
+def _ask_quote_answer(page: Page, app_url: str) -> Any:
+    """Drive the trigger question and return the brain bubble once the
+    whole byte-stable quote answer has streamed in (the plain closing
+    line lands last)."""
+    login(page, app_url, next="/")  # phase 79: chat is require_user-gated
+    page.fill("#message-input", QUESTION)
+    page.click("#send-btn")
+    bubble = page.locator(".msg.brain .bubble").first
+    bubble.wait_for(state="visible", timeout=30_000)
+    expect(bubble).to_contain_text(ANSWER_END, timeout=30_000)
+    # Non-deflection is part of the quote contract (honesty gate
+    # interplay, like phase 44's table answer).
+    expect(page.locator(".msg.brain.is-deflected")).to_have_count(0)
+    return bubble
+
+
+def _assert_blockquotes(bubble: Any, texts: list[str]) -> None:
+    """The shared assertion: exactly len(texts) blockquote.md-quote
+    elements with those innerTexts, in order, and no literal quote
+    marker (the escaped &gt;) at any block's start — the bug from
+    TODO.md L3."""
+    blocks = bubble.locator("blockquote.md-quote")
+    expect(blocks).to_have_count(len(texts))
+    for i, quoted in enumerate(texts):
+        inner = blocks.nth(i).inner_text()
+        assert inner == quoted, f"block {i}: {inner!r} != {quoted!r}"
+        assert not inner.startswith(">"), (
+            f"block {i} still starts with a literal quote marker: {inner!r}"
+        )
+    # no nested blockquote (locked A1: >> collapses to one level)
+    expect(bubble.locator("blockquote.md-quote blockquote")).to_have_count(0)
+
+
+# ---------------------------------------------------------------------------
+# 1. Chat: the "> " lines render as semantic blockquotes
+# ---------------------------------------------------------------------------
+
+
+def test_chat_quote_renders(
+    page: Page, app_url: str, mock_llm: int, db_ready: None
+) -> None:
+    _reset_db(mock_llm)
+    page.set_default_timeout(30_000)
+    bubble = _ask_quote_answer(page, app_url)
+
+    # The four quote shapes of the byte-stable answer — the single
+    # line, the 3-line group (<br> joins), the nested collapse, and the
+    # inert XSS line (its escaped tag is VISIBLE text).
+    _assert_blockquotes(bubble, QUOTED_TEXTS)
+
+    # The XSS probe stayed inert: no live <script> anywhere in the
+    # bubble, and the escaped form is what the DOM carries.
+    expect(bubble.locator("script")).to_have_count(0)
+    xss_html = bubble.locator("blockquote.md-quote").nth(3).inner_html()
+    assert "&lt;script&gt;alert(1)&lt;/script&gt;" in xss_html, (
+        "the XSS line must carry the escaped form in the DOM"
+    )
+
+    # Fences keep their precedence: the > line inside the fence stays
+    # <pre><code> content (raw text), never a blockquote (the count
+    # above already excludes it).
+    pre = bubble.locator("pre code")
+    expect(pre).to_have_count(1)
+    assert FENCE_LINE in pre.inner_text(), "the fenced > line must stay raw fence content"
+
+    # Tables keep their precedence: the > in the cell is cell text.
+    table = bubble.locator("table.md-table")
+    expect(table).to_have_count(1)
+    expect(table.locator("td")).to_have_count(1)
+    assert table.locator("td").inner_text() == CELL_TEXT
+    expect(table.locator("blockquote")).to_have_count(0)
+
+    # Grounded (the answer is the mock's non-deflected quote branch)
+    # and ZERO citation chips: the turn read nothing (phase 119,
+    # LOCKED A1).
+    expect(page.locator(".msg.brain .source-chip")).to_have_count(0)
+
+
+# ---------------------------------------------------------------------------
+# 2. Shared renderer: the viewer/modal renders the fixture's quotes
+# ---------------------------------------------------------------------------
+
+
+def test_viewer_quote_renders(
+    page: Page, app_url: str, mock_llm: int, db_ready: None
+) -> None:
+    _reset_db(mock_llm)
+    page.set_default_timeout(30_000)
+
+    # Admin → Sources → the quotes.md row → same-page document modal.
+    # Phase 97: the catalog is the drill-down tree — the row lives at
+    # its folder level (``quote_docs`` → ``homelab``).
+    login(page, app_url)  # phase 16: the Sources catalog is admin-only
+    for name in ("quote_docs", "homelab"):  # the fixture's source + folder
+        page.click(f'#folders-tbody a.folder-link:text-is("{name}")')
+    row = page.locator("#docs-tbody tr", has_text=QUOTE_PATH)
+    expect(row).to_have_count(1)
+    row.locator("td:nth-child(2) a.doc-link").click()
+    expect(page.locator(".doc-modal")).to_be_visible()
+    expect(page.locator("#doc-modal-title")).to_have_text(QUOTE_TITLE)
+
+    # The same <blockquote class="md-quote"> shape the chat bubble
+    # gets — the shared renderer serves the viewer too: the 2-line
+    # block (<br> joins) and the re-quoted single line after the blank
+    # line (the group-termination rule, live in a real document).
+    content = page.locator("#doc-modal-content")
+    _assert_blockquotes(
+        content,
+        [
+            "Backups run nightly at 02:00 and the restore window is 30 minutes.\n"
+            "The offsite copy is the only copy that counts.",
+            "Short blockquotes stay on one line.",
+        ],
+    )
+
+    # The fixture's fenced > line is code, never a blockquote (the
+    # count above already excludes it).
+    pre = content.locator("pre code")
+    expect(pre).to_have_count(1)
+    assert "the shell prompt is not a markdown quote" in pre.inner_text()
+
+
+# ---------------------------------------------------------------------------
+# 3. Restore: a reload re-renders the saved conversation through the
+#    same shared renderer and keeps the blockquotes
+# ---------------------------------------------------------------------------
+
+
+def test_restore_keeps_blockquote(
+    page: Page, app_url: str, mock_llm: int, db_ready: None
+) -> None:
+    _reset_db(mock_llm)
+    page.set_default_timeout(30_000)
+    _ask_quote_answer(page, app_url)
+
+    # Reload — the same context keeps its localStorage; the phase-14
+    # restore path re-runs the shared renderer over the persisted RAW
+    # text (app.js addMessage), so the blockquotes must come back.
+    page.reload()
+    expect(page.locator("#empty-state")).to_be_hidden()
+    bubble = page.locator(".msg.brain .bubble").first
+    bubble.wait_for(state="visible", timeout=30_000)
+    expect(bubble).to_contain_text(ANSWER_END, timeout=30_000)
+    expect(page.locator(".msg.brain.is-deflected")).to_have_count(0)
+
+    # The restored bubble keeps every blockquote (same texts, same
+    # order — the restore runs the SAME renderer).
+    _assert_blockquotes(bubble, QUOTED_TEXTS)
+    expect(bubble.locator("script")).to_have_count(0)
+    expect(bubble.locator("pre code")).to_have_count(1)
+    expect(bubble.locator("table.md-table")).to_have_count(1)
diff --git a/tests/fixtures/quote_docs/homelab/quotes.md b/tests/fixtures/quote_docs/homelab/quotes.md
new file mode 100644
index 0000000..e13270e
--- /dev/null
+++ b/tests/fixtures/quote_docs/homelab/quotes.md
@@ -0,0 +1,17 @@
+# Homelab Backup Blockquote Notes
+
+The homelab backup notes keep their most important lines as markdown
+blockquotes, so the backup runbook quotes them verbatim.
+
+> Backups run nightly at 02:00 and the restore window is 30 minutes.
+> The offsite copy is the only copy that counts.
+
+A style note for the backup team:
+
+> Short blockquotes stay on one line.
+
+```bash
+> the shell prompt is not a markdown quote
+```
+
+The end of the backup blockquote notes.
diff --git a/tests/unit/test_markdown_blockquotes.py b/tests/unit/test_markdown_blockquotes.py
new file mode 100644
index 0000000..47ae30a
--- /dev/null
+++ b/tests/unit/test_markdown_blockquotes.py
@@ -0,0 +1,271 @@
+"""Unit: the shared renderer's markdown blockquote pass (phase 138, task 01).
+
+Browser behavior is E2E-covered by ``tests/e2e/test_markdown_blockquotes.py``
+(task 03); here we pin the source-level contract — the pass ordering
+(fences → tables → escape+inline → blockquotes → paragraphs → restore),
+the group rule (maximal run of ``&gt;``-prefixed lines; blank line
+terminates; nested collapses — locked A1), the exact output marker, the
+extended paragraph guard, and the ``.md-quote`` CSS rule (palette vars
+only — task 02's pin) — so a silent regression is caught without a
+browser (the established frontend pattern). A small node-driven
+behavioral check (skipped when node is unavailable, like the phase-44
+table check) proves the story acceptance shapes: single-line quote,
+multi-line group, nested collapse, XSS quote inert, fence-wins,
+table-cell untouched, blank-line termination, and non-quote input
+byte-identical to the pre-phase renderer (fixture string checked into
+the test, per the phase-44 shape).
+"""
+from __future__ import annotations
+
+import json
+import re
+import shutil
+import subprocess
+from pathlib import Path
+
+import pytest
+
+FRONTEND = Path(__file__).resolve().parents[2] / "frontend"
+ASSETS = FRONTEND / "assets"
+MARKDOWN_JS = ASSETS / "markdown.js"
+STYLES_CSS = ASSETS / "styles.css"
+
+HAVE_NODE = shutil.which("node") is not None
+
+MARKER = '<blockquote class="md-quote">'
+
+#: The non-quote input (a paragraph + list + a pipe table) and its
+#: byte-EXACT pre-phase renderer output (the fixture string checked
+#: into the test, per the phase-44 shape) — the byte-identity contract
+#: (phase 138 design): anything without a quote line renders exactly
+#: as it did before the blockquote pass existed. (The blank line before
+#: the list is absorbed by the pre-existing ``^\\s*[-*] `` list rule —
+#: the fixture pins that too.)
+NO_QUOTE_INPUT = (
+    "A plain paragraph about the homelab.\n"
+    "\n"
+    "- item one\n"
+    "- item two\n"
+    "\n"
+    "| Col A | Col B |\n"
+    "|---|---|\n"
+    "| 1 | 2 |"
+)
+NO_QUOTE_PRE_PHASE_OUTPUT = (
+    "<p>A plain paragraph about the homelab.<br>"
+    "<ul><li>item one</li><br><li>item two</li></ul></p>"
+    '<p><div class="md-table-wrap">\n'
+    '<table class="md-table">\n'
+    '<thead><tr><th scope="col">Col A</th><th scope="col">Col B</th></tr></thead>\n'
+    "<tbody><tr><td>1</td><td>2</td></tr></tbody>\n"
+    "</table>\n</div></p>"
+)
+
+
+def _text(path: Path) -> str:
+    assert path.is_file(), f"missing frontend file: {path}"
+    return path.read_text(encoding="utf-8")
+
+
+def _run_node(script: str) -> str:
+    proc = subprocess.run(["node", "-e", script], capture_output=True, text=True, timeout=60)
+    assert proc.returncode == 0, f"node failed: {proc.stderr}"
+    return proc.stdout
+
+
+# ---------- markdown.js: the blockquote pass (step 2b) ----------
+
+
+def test_blockquote_pass_runs_after_inline_and_before_paragraphs() -> None:
+    """The pass order is fences → tables → escape+inline → blockquotes
+    → paragraphs → restore (phase 138 design). The blockquote pass sits
+    between step 2 (``inline(escapeHtml(text))`` — after it, a quote
+    line starts with the escaped ``&gt;`` marker) and step 3 (the
+    paragraph split), so inline code/strong/em already work inside
+    quotes for free and the paragraph guard leaves the block alone."""
+    js = _text(MARKDOWN_JS)
+    inline_step = "text = inline(escapeHtml(text));"
+    quote_pass = 'const quoteLines = text.split("\\n");'
+    para_split = "split(/\\n{2,}/)"
+    assert inline_step in js, "step 2 still escapes+inlines the whole text"
+    assert quote_pass in js, "the blockquote pass splits the text into lines"
+    assert js.find(inline_step) < js.find(quote_pass), (
+        "the blockquote pass must run AFTER the escape+inline step "
+        "(a quote line only starts with &gt; once escaped)"
+    )
+    assert js.find(quote_pass) < js.find(para_split), (
+        "the blockquote pass must run BEFORE the paragraph split"
+    )
+
+
+def test_paragraph_guard_includes_blockquote() -> None:
+    """The step-3 block-element guard extends to
+    ``/^<(h\\d|ul|ol|pre|li|blockquote)/`` so the paragraph pass leaves
+    the emitted <blockquote> alone (no <p> wrap) — the pre-phase guard
+    (without blockquote) must be gone."""
+    js = _text(MARKDOWN_JS)
+    assert r"/^<(h\d|ul|ol|pre|li|blockquote)/" in js, (
+        "the step-3 guard must include blockquote"
+    )
+    assert r"/^<(h\d|ul|ol|pre|li)/" not in js, (
+        "the pre-phase guard (without blockquote) must be replaced"
+    )
+
+
+def test_blockquote_marker_and_group_rule() -> None:
+    """The exact output marker string and the group rule: the maximal
+    run of consecutive lines matching ``^\\s*(?:&gt;)+ ?`` (leading
+    whitespace allowed, the nested ``>>``/``>>>`` run allowed, ONE
+    optional space after the run) is ONE
+    ``<blockquote class="md-quote">`` — the marker run + one optional
+    space is stripped from each member, members join with ``<br>``
+    (the paragraph convention)."""
+    js = _text(MARKDOWN_JS)
+    assert MARKER in js, "the exact marker string must be emitted"
+    group_rule = r"^\s*(?:&gt;)+ ?"
+    assert js.count(group_rule) >= 2, (
+        "the group rule ^\\s*(?:&gt;)+ ? must both TEST and STRIP "
+        "(one occurrence in the test, one in the strip replace)"
+    )
+    assert re.search(r'members\.join\("<br>"\)', js), (
+        "group members must be joined with <br>"
+    )
+    # the strip replaces the leading run (+ one optional space) — the
+    # nested >> collapses to one level (locked A1)
+    assert r'replace(/^\s*(?:&gt;)+ ?/, "")' in js, (
+        "the strip must remove the &gt; run plus ONE optional space"
+    )
+
+
+def test_md_quote_css_references_palette_vars_only() -> None:
+    """Task 02's pin: the ``.md-quote`` rule (and the user-bubble
+    override, if present) reference :root palette vars ONLY — no
+    hex/rgb/hsl color literal (the :root-drift unit test parses the
+    built-ins from this file, so a literal here would be a second
+    source of truth), and the rule block carries a >=4.5:1 contrast
+    note per the house comment convention."""
+    css = _text(STYLES_CSS)
+    root = re.search(r":root\s*\{", css)
+    assert root, "styles.css must define :root"
+    root_body = css[root.end() : css.find("}", root.end())]
+    palette = set(re.findall(r"(--[a-z0-9-]+)\s*:", root_body))
+    assert palette, "the :root palette must declare variables"
+
+    rule_bodies = re.findall(r"(?<![-\w])\.md-quote\s*\{([^}]*)\}", css)
+    assert rule_bodies, "styles.css must define .md-quote"
+    for body in rule_bodies:
+        refs = re.findall(r"var\((--[a-z0-9-]+)\)", body)
+        assert refs, ".md-quote must reference palette vars"
+        for ref in refs:
+            assert ref in palette, f"{ref} is not a :root palette var"
+        assert not re.search(r"#[0-9a-fA-F]{3,8}\b", body), (
+            "no hex color literal in .md-quote"
+        )
+        assert "rgb(" not in body and "hsl(" not in body, (
+            "no rgb()/hsl() color literal in .md-quote"
+        )
+
+    # the contrast note (house convention, cf. --ink-soft's
+    # "8.2:1 on --surface"): the comment block immediately above the
+    # rule carries a ratio
+    rule_pos = css.find(".md-quote {")
+    assert rule_pos != -1
+    comment_start = css.rfind("/*", 0, rule_pos)
+    comment_block = css[comment_start:rule_pos]
+    assert re.search(r"\d+(?:\.\d+)?\s*:\s*1", comment_block), (
+        "the .md-quote rule must carry a contrast-ratio note"
+    )
+
+
+# ---------- behavior (node): the story's acceptance shapes ----------
+
+
+@pytest.mark.skipif(not HAVE_NODE, reason="node not available")
+def test_blockquote_renders_semantic_xss_safe_and_precedence_holds() -> None:
+    """The story shapes executed under node: (1) a single-line quote
+    renders ONE <blockquote class="md-quote"> with no literal &gt;
+    (the bug, TODO.md L3); (2) a 3-line group is ONE blockquote with
+    <br> joins; (3) nested >> / >>> collapses to one level (locked A1);
+    (4) a blank line terminates the group (two blockquotes); (5) an
+    <script> in a quote is escaped — inert text, no live tag; (6) a >
+    inside a code fence stays fence content (step 1 protects first);
+    (7) a > in a table cell stays cell text (step 1b protects, step 4
+    restores after the pass); (8) a quote line still carries inline
+    code/strong/em (the inline chain ran first); (9) non-quote input
+    (paragraph + list + table) renders byte-identical to the
+    pre-phase renderer (the checked-in fixture string)."""
+    js = _text(MARKDOWN_JS)
+    cases: dict[str, tuple[str, list[str], list[str], str | None]] = {
+        # name: (input, must_contain, must_not, exact_output_or_None)
+        "single": (
+            "> quoted",
+            [],
+            [],
+            MARKER + "quoted</blockquote>",
+        ),
+        "group": (
+            "> a\n> b\n> c",
+            [],
+            [],
+            MARKER + "a<br>b<br>c</blockquote>",
+        ),
+        "nested": (
+            ">> nested\n>>> deeper",
+            [],
+            ["<blockquote class=\"md-quote\"><blockquote"],
+            MARKER + "nested<br>deeper</blockquote>",
+        ),
+        "blank_terminates": (
+            "> one\n\n> two",
+            [],
+            [],
+            MARKER + "one</blockquote>" + MARKER + "two</blockquote>",
+        ),
+        "xss": (
+            "> <script>alert(1)</script>",
+            [],
+            ["<script>"],
+            MARKER + "&lt;script&gt;alert(1)&lt;/script&gt;</blockquote>",
+        ),
+        "fence": (
+            "```\n> x\n```",
+            [],
+            ["<blockquote"],
+            "<p><pre><code>&gt; x</code></pre></p>",
+        ),
+        "cell": (
+            "| a |\n|---|\n| > x |",
+            ["<td>&gt; x</td>"],
+            ["<blockquote"],
+            None,
+        ),
+        "inline": (
+            "> **bold** and `code`",
+            [],
+            [],
+            MARKER + "<strong>bold</strong> and <code>code</code></blockquote>",
+        ),
+        "noquote": (
+            NO_QUOTE_INPUT,
+            [],
+            ["<blockquote"],
+            NO_QUOTE_PRE_PHASE_OUTPUT,
+        ),
+    }
+    driver = (
+        js
+        + "\nconst out = {}; "
+        + "".join(
+            f"out.{name} = renderMarkdown({value!r}); " for name, (value, _, _, _) in cases.items()
+        )
+        + "console.log(JSON.stringify(out));"
+    )
+    results = json.loads(_run_node(driver))
+    for name, (_, must_contain, must_not, exact) in cases.items():
+        html = results[name]
+        if exact is not None:
+            assert html == exact, f"{name}: {html!r} != pre-phase/contract shape {exact!r}"
+        for marker in must_contain:
+            assert marker in html, f"{name}: missing {marker!r} in {html!r}"
+        for marker in must_not:
+            assert marker not in html, f"{name}: unexpected {marker!r} in {html!r}"