diff --git a/packages/app/e2e/workspace-agent-title-handoff.spec.ts b/packages/app/e2e/workspace-agent-title-handoff.spec.ts
index f4006b134..fa9e922ba 100644
--- a/packages/app/e2e/workspace-agent-title-handoff.spec.ts
+++ b/packages/app/e2e/workspace-agent-title-handoff.spec.ts
@@ -1,5 +1,6 @@
 import { test, expect } from "./fixtures";
 import { expectComposerVisible, submitMessage } from "./helpers/composer";
+import { delayCreatedAgentInitialTailResponse } from "./helpers/agent-timeline-gate";
 import { delayBrowserAgentCreatedStatus } from "./helpers/new-workspace";
 import { seedWorkspace, type SeedDaemonClient } from "./helpers/seed-client";
 import { waitForWorkspaceTabsVisible } from "./helpers/workspace-tabs";
@@ -43,6 +44,49 @@ async function fetchActiveAgentTitle(
 }
 
 test.describe("Workspace agent title handoff", () => {
+  test("does not cover the agent pane while the optimistic create becomes authoritative", async ({
+    page,
+  }) => {
+    test.setTimeout(120_000);
+    await page.setViewportSize({ width: 1440, height: 900 });
+
+    const timelineGate = await delayCreatedAgentInitialTailResponse(page);
+    const workspace = await seedWorkspace({ repoPrefix: "workspace-create-handoff-flash-" });
+
+    try {
+      await page.goto(buildHostWorkspaceRoute(getServerId(), workspace.workspaceId));
+      await waitForWorkspaceTabsVisible(page);
+      await page.getByTestId("workspace-new-agent-tab-inline").click();
+      await expectComposerVisible(page);
+
+      const prompt = "Keep the optimistic agent pane visible during handoff";
+      await submitMessage(page, prompt);
+      const agentId = await timelineGate.waitForCreatedAgent();
+      await timelineGate.waitForDelayedResponse();
+
+      await expect(page.getByTestId(`workspace-tab-agent_${agentId}`).first()).toBeVisible({
+        timeout: 15_000,
+      });
+      await expect(page.getByText(prompt, { exact: true }).first()).toBeVisible();
+      await expect(page.getByTestId("agent-history-overlay")).toHaveCount(0);
+
+      const overlayAppeared = page
+        .getByTestId("agent-history-overlay")
+        .waitFor({ state: "attached", timeout: 2_000 })
+        .then(
+          () => true,
+          () => false,
+        );
+      timelineGate.release();
+      await timelineGate.waitForForwardedResponse();
+
+      expect(await overlayAppeared).toBe(false);
+    } finally {
+      timelineGate.release();
+      await workspace.cleanup();
+    }
+  });
+
   test("shows the prompt tab title and replaces it when the daemon title updates", async ({
     page,
   }) => {
diff --git a/packages/app/src/hooks/use-agent-screen-state-machine.test.ts b/packages/app/src/hooks/use-agent-screen-state-machine.test.ts
index 9b9b3e4f2..5112cce4e 100644
--- a/packages/app/src/hooks/use-agent-screen-state-machine.test.ts
+++ b/packages/app/src/hooks/use-agent-screen-state-machine.test.ts
@@ -209,7 +209,7 @@ describe("deriveAgentScreenViewState", () => {
     expect(sync.ui).toBe("silent");
   });
 
-  it("covers already-hydrated history while a newly visible agent catches up", () => {
+  it("keeps already-hydrated history visible while a newly visible agent catches up", () => {
     const memory = createBaseMemory({
       hasRenderedReady: true,
       lastReadyAgent: createAgent("agent-1"),
@@ -225,7 +225,7 @@ describe("deriveAgentScreenViewState", () => {
     const ready = expectReadyState(result.state);
     const sync = expectCatchingUpSync(ready);
 
-    expect(sync.ui).toBe("overlay");
+    expect(sync.ui).toBe("silent");
   });
 
   it("keeps hydrated history readable after a visibility catch-up error", () => {
diff --git a/packages/app/src/hooks/use-agent-screen-state-machine.ts b/packages/app/src/hooks/use-agent-screen-state-machine.ts
index daf8562f0..b87189b39 100644
--- a/packages/app/src/hooks/use-agent-screen-state-machine.ts
+++ b/packages/app/src/hooks/use-agent-screen-state-machine.ts
@@ -150,13 +150,11 @@ function resolveCatchingUpUi(args: {
   hasOptimisticCreateContinuity: boolean;
   isVisibilityCatchUpPending: boolean;
   hasHydratedHistoryBefore: boolean;
-  needsAuthoritativeSync: boolean;
   hadInitialSyncFailure: boolean;
 }): "overlay" | "silent" {
   if (args.hasOptimisticCreateContinuity) return "silent";
-  if (args.hasHydratedHistoryBefore && args.needsAuthoritativeSync) return "silent";
-  if (args.isVisibilityCatchUpPending) return "overlay";
   if (args.hasHydratedHistoryBefore) return "silent";
+  if (args.isVisibilityCatchUpPending) return "overlay";
   if (args.hadInitialSyncFailure) return "silent";
   return "overlay";
 }
@@ -186,7 +184,6 @@ function resolveAgentScreenSync(args: {
         hasOptimisticCreateContinuity: hasOptimisticCreateContinuity(input),
         isVisibilityCatchUpPending: input.visibilityCatchUpStatus === "pending",
         hasHydratedHistoryBefore: input.hasHydratedHistoryBefore,
-        needsAuthoritativeSync: input.needsAuthoritativeSync,
         hadInitialSyncFailure,
       }),
     };