fix: reset highestObservedSequence on no-progress replay to prevent unbounded retry loop

When replay makes no progress, highestObservedSequence was left at its
stale high-water mark, causing resolveReplayNeedAfterRecovery to
permanently return shouldReplay: true. This created an infinite 100ms
polling loop with no escape.

Reset highestObservedSequence to latestSequence when replay makes no
progress so stale observations don't drive infinite retries. Fresh live
events will re-set it via classifyDomainEvent if genuinely needed.

Author: cursoragent

apps/web/src/orchestrationRecovery.test.ts

@@ -65,7 +65,7 @@ describe("createOrchestrationRecoveryCoordinator", () => {
     });
   });
 
-  it("retries replay when no progress was made but higher live sequences were observed", () => {
+  it("does not retry replay when no progress was made even if higher live sequences were previously observed", () => {
     const coordinator = createOrchestrationRecoveryCoordinator();
 
     coordinator.beginSnapshotRecovery("bootstrap");
@@ -75,11 +75,11 @@ describe("createOrchestrationRecoveryCoordinator", () => {
 
     expect(coordinator.completeReplayRecovery()).toEqual({
       replayMadeProgress: false,
-      shouldReplay: true,
+      shouldReplay: false,
     });
     expect(coordinator.getState()).toMatchObject({
       latestSequence: 3,
-      highestObservedSequence: 5,
+      highestObservedSequence: 3,
       pendingReplay: false,
       inFlight: null,
     });

apps/web/src/orchestrationRecovery.ts

@@ -130,6 +130,9 @@ export function createOrchestrationRecoveryCoordinator() {
         replayStartSequence !== null && state.latestSequence > replayStartSequence;
       replayStartSequence = null;
       state.inFlight = null;
+      if (!replayMadeProgress) {
+        state.highestObservedSequence = state.latestSequence;
+      }
       const replayResolution = resolveReplayNeedAfterRecovery();
       return {
         replayMadeProgress,