diff --git a/actions/setup/js/create_discussion_fallback.test.cjs b/actions/setup/js/create_discussion_fallback.test.cjs
index 81cb74af8da..1f6a181b1b5 100644
--- a/actions/setup/js/create_discussion_fallback.test.cjs
+++ b/actions/setup/js/create_discussion_fallback.test.cjs
@@ -4,7 +4,6 @@ import { createRequire } from "module";
 
 const require = createRequire(import.meta.url);
 const { main: createDiscussionMain } = require("./create_discussion.cjs");
-const { resetIssuesToAssignCopilot } = require("./create_issue.cjs");
 
 describe("create_discussion fallback with close_older_discussions", () => {
   let mockGithub;
@@ -17,9 +16,6 @@ describe("create_discussion fallback with close_older_discussions", () => {
     // Save original environment
     originalEnv = { ...process.env };
 
-    // Reset copilot assignment tracking
-    resetIssuesToAssignCopilot();
-
     // Mock GitHub API
     mockGithub = {
       rest: {
@@ -259,8 +255,6 @@ describe("create_discussion double-posting prevention", () => {
   beforeEach(() => {
     originalEnv = { ...process.env };
 
-    resetIssuesToAssignCopilot();
-
     // Base mock — each test overrides graphql as needed.
     mockGithub = {
       rest: {
diff --git a/actions/setup/js/create_issue.cjs b/actions/setup/js/create_issue.cjs
index ed66c1f0250..637b41a989a 100644
--- a/actions/setup/js/create_issue.cjs
+++ b/actions/setup/js/create_issue.cjs
@@ -1,36 +1,6 @@
 // @ts-check
 /// <reference types="@actions/github-script" />
 
-/**
- * Module-level storage retained for backward compatibility with the
- * `assign_copilot_to_created_issues` step. The create_issue handler now assigns
- * copilot inline immediately after issue creation (via assign_agent_helpers.cjs),
- * so this list is never populated during normal operation and the downstream step
- * is a no-op. It is exposed via getIssuesToAssignCopilot/resetIssuesToAssignCopilot
- * for unit tests.
- * @type {Array<string>}
- */
-let issuesToAssignCopilotGlobal = [];
-
-/**
- * Get the list of issues that need copilot assignment.
- * Returns a defensive copy so callers cannot accidentally mutate global state.
- * In practice this list is always empty because assignment is now done inline.
- * @returns {Array<string>} Copy of the "repo:number" strings array
- */
-function getIssuesToAssignCopilot() {
-  return [...issuesToAssignCopilotGlobal];
-}
-
-/**
- * Reset the list of issues that need copilot assignment.
- * Clears the internal array in-place. Previously returned snapshots (copies)
- * are not affected. Used for testing.
- */
-function resetIssuesToAssignCopilot() {
-  issuesToAssignCopilotGlobal.length = 0;
-}
-
 const { sanitizeLabelContent } = require("./sanitize_label_content.cjs");
 const { sanitizeTitle, applyTitlePrefix } = require("./sanitize_title.cjs");
 const { sanitizeContent } = require("./sanitize_content.cjs");
@@ -322,15 +292,6 @@ async function main(config = {}) {
    * @returns {Promise<Object>} Result with success/error status and issue details
    */
   return async function handleCreateIssue(message, resolvedTemporaryIds) {
-    // Check if we've hit the max limit
-    if (processedCount >= maxCount) {
-      core.warning(`Skipping create_issue: max count of ${maxCount} reached`);
-      return {
-        success: false,
-        error: `Max count of ${maxCount} reached`,
-      };
-    }
-
     // Merge external resolved temp IDs with our local map
     if (resolvedTemporaryIds) {
       for (const [tempId, resolved] of Object.entries(resolvedTemporaryIds)) {
@@ -529,11 +490,22 @@ async function main(config = {}) {
     bodyLines.push("");
     const body = bodyLines.join("\n").trim();
 
+    // Reserve a max-count slot synchronously before any async pre-creation work.
+    // There is no await between check and increment, so concurrent invocations
+    // cannot interleave between these two operations.
+    if (processedCount >= maxCount) {
+      core.warning(`Skipping create_issue: max count of ${maxCount} reached`);
+      return {
+        success: false,
+        error: `Max count of ${maxCount} reached`,
+      };
+    }
+    processedCount++;
+
     // Group-by-day check: if enabled, search for an existing open issue created today.
     // When found, post the new content as a comment on the existing issue instead of
     // creating a duplicate. This groups multiple same-day runs into a single issue.
-    // The max-count slot is NOT consumed when posting as a comment (processedCount is
-    // only incremented below, just before actual issue creation).
+    // The reserved max-count slot is released when posting as a comment.
     if (groupByDayEnabled && (closeOlderKey || workflowId)) {
       const today = new Date().toISOString().split("T")[0]; // YYYY-MM-DD (UTC)
       try {
@@ -554,6 +526,9 @@ async function main(config = {}) {
           core.info(`Group-by-day: found open issue #${todayIssue.number} created today (${today}) — posting new content as a comment`);
           const comment = await addIssueComment(githubClient, repoParts.owner, repoParts.repo, todayIssue.number, body);
           core.info(`Posted content as comment ${comment.html_url} on issue #${todayIssue.number}`);
+          // No issue was created (content was grouped into a comment), so free
+          // the reserved slot for subsequent create_issue calls.
+          processedCount--;
           return {
             success: true,
             grouped: true,
@@ -568,10 +543,6 @@ async function main(config = {}) {
       }
     }
 
-    // Increment processed count only when we are about to create an issue
-    // (group-by-day comment paths return above without consuming a slot)
-    processedCount++;
-
     core.info(`Creating issue in ${qualifiedItemRepo} with title: ${title}`);
     core.info(`Labels: ${labels.join(", ")}`);
     if (assignees.length > 0) {
@@ -815,4 +786,4 @@ async function main(config = {}) {
   };
 }
 
-module.exports = { main, createParentIssueTemplate, searchForExistingParent, getSubIssueCount, getIssuesToAssignCopilot, resetIssuesToAssignCopilot };
+module.exports = { main, createParentIssueTemplate, searchForExistingParent, getSubIssueCount };
diff --git a/actions/setup/js/create_issue.test.cjs b/actions/setup/js/create_issue.test.cjs
index d936961fb19..fb46e536c80 100644
--- a/actions/setup/js/create_issue.test.cjs
+++ b/actions/setup/js/create_issue.test.cjs
@@ -2,7 +2,7 @@ import { describe, it, expect, beforeEach, afterEach, vi } from "vitest";
 import { createRequire } from "module";
 
 const require = createRequire(import.meta.url);
-const { main, getIssuesToAssignCopilot, resetIssuesToAssignCopilot } = require("./create_issue.cjs");
+const { main } = require("./create_issue.cjs");
 
 describe("create_issue", () => {
   let mockGithub;
@@ -15,9 +15,6 @@ describe("create_issue", () => {
     // Save original environment
     originalEnv = { ...process.env };
 
-    // Reset copilot assignment tracking
-    resetIssuesToAssignCopilot();
-
     // Mock GitHub API
     mockGithub = {
       rest: {
@@ -257,33 +254,6 @@ describe("create_issue", () => {
 
       // Verify graphql was called three times (findAgent, getIssueDetails, assignAgentToIssue)
       expect(mockGithub.graphql).toHaveBeenCalledTimes(3);
-      // Global queue should remain empty (assignment done directly, not queued)
-      expect(getIssuesToAssignCopilot()).toHaveLength(0);
-    });
-  });
-
-  describe("global state safety", () => {
-    it("getIssuesToAssignCopilot returns a copy, not the live reference", () => {
-      const snapshot = getIssuesToAssignCopilot();
-      const lengthBefore = snapshot.length;
-
-      // Mutating the returned copy must NOT affect internal state
-      snapshot.push("external:999");
-      expect(getIssuesToAssignCopilot().length).toBe(lengthBefore);
-    });
-
-    it("resetIssuesToAssignCopilot clears internal state but does not affect held snapshots", () => {
-      const snapshot = getIssuesToAssignCopilot();
-
-      // Make the held copy observably different from internal state
-      snapshot.push("external:999");
-
-      resetIssuesToAssignCopilot();
-
-      // Fresh reads reflect cleared internal state
-      expect(getIssuesToAssignCopilot()).toHaveLength(0);
-      // Previously returned snapshots remain unchanged because getter returns a copy
-      expect(snapshot).toEqual(expect.arrayContaining(["external:999"]));
     });
   });
 
@@ -300,6 +270,24 @@ describe("create_issue", () => {
       expect(result3.success).toBe(false);
       expect(result3.error).toContain("Max count of 2 reached");
     });
+
+    it("should respect max count limit under concurrent calls with group-by-day pre-check", async () => {
+      const handler = await main({
+        max: 1,
+        group_by_day: true,
+        close_older_key: "concurrency-key",
+      });
+
+      const [result1, result2] = await Promise.all([handler({ title: "Issue 1" }), handler({ title: "Issue 2" })]);
+      const results = [result1, result2];
+      const successes = results.filter(result => result.success);
+      const failures = results.filter(result => !result.success);
+
+      expect(successes).toHaveLength(1);
+      expect(failures).toHaveLength(1);
+      expect(failures[0].error).toContain("Max count of 1 reached");
+      expect(mockGithub.rest.issues.create).toHaveBeenCalledTimes(1);
+    });
   });
 
   describe("title prefix", () => {
diff --git a/actions/setup/js/safe_output_handler_manager.cjs b/actions/setup/js/safe_output_handler_manager.cjs
index 1aa5cd9c504..93f376c9bc7 100644
--- a/actions/setup/js/safe_output_handler_manager.cjs
+++ b/actions/setup/js/safe_output_handler_manager.cjs
@@ -16,7 +16,6 @@ const { hasUnresolvedTemporaryIds, replaceTemporaryIdReferences, replaceArtifact
 const { generateMissingInfoSections } = require("./missing_info_formatter.cjs");
 const { setCollectedMissings } = require("./missing_messages_helper.cjs");
 const { writeSafeOutputSummaries } = require("./safe_output_summary.cjs");
-const { getIssuesToAssignCopilot } = require("./create_issue.cjs");
 const { getAssignToAgentAssigned, getAssignToAgentErrors, getAssignToAgentErrorCount, writeAssignToAgentSummary } = require("./assign_to_agent.cjs");
 const { getCreateAgentSessionNumber, getCreateAgentSessionUrl, writeCreateAgentSessionSummary } = require("./create_agent_session.cjs");
 const { createReviewBuffer } = require("./pr_review_buffer.cjs");
@@ -1048,11 +1047,6 @@ async function main() {
   try {
     core.info("Safe Output Handler Manager starting...");
 
-    // Reset create_issue handler's global state to ensure clean state for this run
-    // This prevents stale data accumulation if the module is reused
-    const { resetIssuesToAssignCopilot } = require("./create_issue.cjs");
-    resetIssuesToAssignCopilot();
-
     // Load configuration
     const config = loadConfig();
     core.debug(`Configuration: ${JSON.stringify(Object.keys(config))}`);
@@ -1224,16 +1218,6 @@ async function main() {
     // Export processed count for consistency with project handler
     core.setOutput("processed_count", successCount);
 
-    // Export issues that need copilot assignment (if any)
-    const issuesToAssignCopilot = getIssuesToAssignCopilot();
-    if (issuesToAssignCopilot.length > 0) {
-      const issuesToAssignStr = issuesToAssignCopilot.join(",");
-      core.setOutput("issues_to_assign_copilot", issuesToAssignStr);
-      core.info(`Exported ${issuesToAssignCopilot.length} issue(s) for copilot assignment: ${issuesToAssignStr}`);
-    } else {
-      core.setOutput("issues_to_assign_copilot", "");
-    }
-
     // Export assign_to_agent outputs when the handler was loaded
     if (messageHandlers.has("assign_to_agent")) {
       const assignToAgentAssigned = getAssignToAgentAssigned();