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The per-session FileReadGate was never requested and broke the cost savings loop — subsequent reads in the same session silently bypassed the timeline, hiding newly created observations. Now the timeline fires on every read that has observations, using the hook contract's permissionDecision: "deny" with the timeline as the reason (exit 0 + JSON) instead of exit code 2 + stderr. - Delete FileReadGate.ts entirely - Remove /api/file-context/gate endpoint from DataRoutes - Switch handler from exit code 2 to permissionDecision: "deny" - Restore permissionDecision fields to HookResult - Eliminate one HTTP round-trip per read (no gate check needed) Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>