diff --git a/docs/auth-credential-semantics.md b/docs/auth-credential-semantics.md
index 86ac7b911fd4..ef9bbc28d142 100644
--- a/docs/auth-credential-semantics.md
+++ b/docs/auth-credential-semantics.md
@@ -65,9 +65,11 @@ another agent. Only the owning setup operation can test the selected credential.
 After one successful tool-free turn, setup asks whether to activate it. Declining
 or failing the test keeps the saved credential inactive and preserves the current
 connection. Model Setup offers the same saved sign-in for a fresh test without
-another login. Gateway activation waits for config application; a required restart
-keeps the replacement inactive until setup is retried. Ordinary login remains
-immediate. The descriptor retains the selected model and connection settings for retry after
+another login. If applying a replacement fails, recovery restores its inactive
+state before rebuilding the previous connection. Gateway activation waits for
+config application; a required restart keeps the replacement inactive until setup
+is retried. Ordinary login remains immediate. The descriptor retains the selected
+model and connection settings for retry after
 restart, without caching a verification result. This adds no database schema or
 migration; older runtimes do not enforce the inactive state. Before downgrading,
 remove saved inactive replacements or restore the state from before setup.
diff --git a/src/gateway/config-reload.activation.integration.test.ts b/src/gateway/config-reload.activation.integration.test.ts
index 3ece81868f99..5d66f02cdd2e 100644
--- a/src/gateway/config-reload.activation.integration.test.ts
+++ b/src/gateway/config-reload.activation.integration.test.ts
@@ -5,7 +5,9 @@ import fs from "node:fs/promises";
 import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 import { createDeferred } from "../../test/helpers/promise.js";
 import { resolveApiKeyForProfile } from "../agents/auth-profiles/oauth.js";
+import { runtimeAuthProfileRowsCache } from "../agents/auth-profiles/runtime-snapshots.js";
 import { loadAuthProfileStoreWithoutExternalProfiles } from "../agents/auth-profiles/store-runtime.js";
+import * as authProfileStore from "../agents/auth-profiles/store.js";
 import type { AuthProfileCredential } from "../agents/auth-profiles/types.js";
 import {
   prepareModelRuntimeSnapshot,
@@ -220,6 +222,32 @@ describe("setup activation reload ownership", () => {
       const completion = createDeferred<() => Promise<boolean>>();
       const applied = createDeferred<ReturnType<typeof createRuntimeConfigWriteApplication>>();
       let recoveryApplication: ReturnType<typeof createRuntimeConfigWriteApplication> | undefined;
+      // Recovery can capture auth before the config write returns to its rollback caller.
+      const prepareRows = runtimeAuthProfileRowsCache.prepare.bind(runtimeAuthProfileRowsCache);
+      const rowRead = vi
+        .spyOn(runtimeAuthProfileRowsCache, "prepare")
+        .mockImplementation((...args) => {
+          const reader = prepareRows(...args);
+          if (outcome !== "runtime-failed" || !recoveryApplication?.claimed) {
+            return reader;
+          }
+          return {
+            ...reader,
+            async read() {
+              const rows = await reader.read();
+              captureEntered.resolve();
+              await releaseCapture.promise;
+              return rows;
+            },
+          };
+        });
+      const restoreAuth = authProfileStore.restoreAuthProfileStorePersistenceSnapshot;
+      const rollback = vi
+        .spyOn(authProfileStore, "restoreAuthProfileStorePersistenceSnapshot")
+        .mockImplementation((...args) => {
+          restoreAuth(...args);
+          releaseCapture.resolve();
+        });
       try {
         await reloader.ready;
         if (scenario === "superseded") {
@@ -261,9 +289,13 @@ describe("setup activation reload ownership", () => {
               writeOptions,
               transform: (_current, context) => {
                 const undo = captureSetupInferenceFileUndo(context.snapshot, candidate);
-                captureUndo((options) => {
+                captureUndo(async (options) => {
                   recoveryApplication = getRuntimeConfigWriteApplication(options);
-                  return undo(options);
+                  const restored = await undo(options);
+                  if (outcome === "runtime-failed") {
+                    await captureEntered.promise;
+                  }
+                  return restored;
                 });
                 return { nextConfig: candidate };
               },
@@ -419,6 +451,8 @@ describe("setup activation reload ownership", () => {
         try {
           await reloader.stop();
         } finally {
+          rowRead.mockRestore();
+          rollback.mockRestore();
           configFileAdapter.mockRestore();
         }
       }
diff --git a/src/system-agent/setup-inference-transition.ts b/src/system-agent/setup-inference-transition.ts
index 5d35c96c66d7..71fdd07a8eb0 100644
--- a/src/system-agent/setup-inference-transition.ts
+++ b/src/system-agent/setup-inference-transition.ts
@@ -134,10 +134,17 @@ export async function commitSetupInferenceActivation(params: {
       })
     : undefined;
   const restore = async () => {
+    const rollbackCredential = () => {
+      credential?.rollback();
+      credential = undefined;
+    };
     const restoredApplication = application
       ? createRuntimeConfigWriteApplication(continuation, {
           prepare: async (assertCurrent) => {
             assertApplicationCurrent = assertCurrent;
+            assertCurrent();
+            // Recovery must capture auth only after restoring this activation's credential.
+            rollbackCredential();
           },
         })
       : undefined;
@@ -145,7 +152,7 @@ export async function commitSetupInferenceActivation(params: {
       configCommitted && undoConfig
         ? await undoConfig(attachRuntimeConfigWriteApplication({}, restoredApplication))
         : { config: (await params.configTarget.read()).config, written: false };
-    credential?.rollback();
+    rollbackCredential();
     if (restoredApplication && restored.written) {
       if (!restoredApplication.claimed || (await restoredApplication.result) !== "applied") {
         throw new Error(