diff --git a/src/conductor/providers/copilot.py b/src/conductor/providers/copilot.py
index d1368c7..12cbef7 100644
--- a/src/conductor/providers/copilot.py
+++ b/src/conductor/providers/copilot.py
@@ -163,6 +163,20 @@ def __init__(
         self._interrupted_session: Any = None
         self._abort_supported: bool | None = None
 
+    @staticmethod
+    def _default_permission_handler(
+        request: dict[str, Any],
+        invocation: dict[str, str],
+    ) -> dict[str, Any]:
+        """Default permission handler that approves all requests.
+
+        SDK v0.1.28+ requires a permission handler on session creation.
+        In orchestration mode, we approve all tool permissions since the
+        workflow author controls which tools are available to each agent.
+        """
+        logger.debug("auto-approved permission request: %s", request)
+        return {"kind": "approved"}
+
     async def execute(
         self,
         agent: AgentDef,
@@ -411,6 +425,7 @@ async def _execute_sdk_call(
             # Build session config with MCP servers from workflow configuration
             session_config: dict[str, Any] = {
                 "model": model,
+                "on_permission_request": self._default_permission_handler,
             }
 
             # Add temperature if configured
@@ -426,7 +441,10 @@ async def _execute_sdk_call(
             resume_sid = self._resume_session_ids.get(agent.name)
             if resume_sid is not None:
                 try:
-                    session = await self._client.resume_session(resume_sid)
+                    session = await self._client.resume_session(
+                        resume_sid,
+                        {"on_permission_request": self._default_permission_handler},
+                    )
                     logger.info(f"Resumed Copilot session {resume_sid} for agent '{agent.name}'")
                 except Exception as exc:
                     logger.warning(
@@ -621,6 +639,18 @@ def on_event(event: Any) -> None:
             nonlocal response_content, error_message
             event_type = event.type.value if hasattr(event.type, "value") else str(event.type)
 
+            # Log every SDK event for debugging stalls (visible via --log-file)
+            if logger.isEnabledFor(logging.DEBUG):
+                tool_info = ""
+                if (
+                    event_type == "tool.execution_start"
+                    and hasattr(event, "data")
+                    and event.data is not None
+                ):
+                    tn = getattr(event.data, "tool_name", None) or getattr(event.data, "name", "?")
+                    tool_info = f" tool={tn}"
+                logger.debug("sdk_event: %s%s", event_type, tool_info)
+
             # Update last activity on EVERY event (this is key for idle detection!)
             last_activity_ref[0] = event_type
             last_activity_ref[2] = time.monotonic()
@@ -1267,6 +1297,11 @@ async def _wait_with_idle_detection(
         idle_timeout = self._idle_recovery_config.idle_timeout_seconds
 
         while True:
+            # Check if done was already set (avoids race where session.idle
+            # arrived between a previous done.clear() and the next wait).
+            if done.is_set():
+                return
+
             try:
                 # Wait for done with idle timeout
                 await asyncio.wait_for(
@@ -1288,7 +1323,11 @@ async def _wait_with_idle_detection(
                     # just hasn't finished yet. Reset recovery counter (new task)
                     # and keep waiting.
                     recovery_attempts = 0
-                    done.clear()
+                    # Only clear if done hasn't been set in the meantime
+                    # (prevents race where session.idle arrives right as we
+                    # check time_since_last_event).
+                    if not done.is_set():
+                        done.clear()
                     continue
 
                 # Genuinely idle — no events for the full timeout period
@@ -1321,9 +1360,10 @@ async def _wait_with_idle_detection(
                 recovery_prompt = self._build_recovery_prompt(last_event_type, last_tool_call)
                 await session.send({"prompt": recovery_prompt})
 
-                # Reset the done event to wait again
-                # (it may have been set by a previous partial response)
-                done.clear()
+                # Reset the done event to wait again — but only if it hasn't
+                # been set since the recovery prompt was sent.
+                if not done.is_set():
+                    done.clear()
 
     async def _ensure_client_started(self) -> None:
         """Ensure the Copilot client is started."""
diff --git a/tests/test_providers/test_copilot_resume.py b/tests/test_providers/test_copilot_resume.py
index 94cbc5d..a7132b0 100644
--- a/tests/test_providers/test_copilot_resume.py
+++ b/tests/test_providers/test_copilot_resume.py
@@ -161,7 +161,10 @@ async def _fake_send(msg: Any) -> None:
         ):
             await provider.execute(agent, {}, "Continue research")
 
-        mock_client.resume_session.assert_called_once_with(resumed_sid)
+        mock_client.resume_session.assert_called_once_with(
+            resumed_sid,
+            {"on_permission_request": CopilotProvider._default_permission_handler},
+        )
         mock_client.create_session.assert_not_called()
 
     @pytest.mark.asyncio
@@ -201,7 +204,10 @@ async def _fake_send(msg: Any) -> None:
         ):
             await provider.execute(agent, {}, "Continue research")
 
-        mock_client.resume_session.assert_called_once_with("stale-sid")
+        mock_client.resume_session.assert_called_once_with(
+            "stale-sid",
+            {"on_permission_request": CopilotProvider._default_permission_handler},
+        )
         mock_client.create_session.assert_called_once()
         # Session ID should now reflect the new session
         assert provider.get_session_ids()["researcher"] == "sess-new"