Coordinate retry attempts with backend permits

docs/internal/capacity.md

@@ -67,6 +67,11 @@ limited call acquires an active permit, invokes the next client, and defers
 permit release so ordinary returns and panic unwinding both restore capacity.
 Preparation and validation never hold an active permit.
 
+The manager's `Acquire` operation owns that active-permit acquisition and
+returns an idempotent release function. The existing wrapper delegates to it;
+the internal generation coordinator uses the same operation around individual
+attempts. There is one queue and one active limit per limited backend pool.
+
 When all active permits are occupied, calls join a mutex-protected FIFO waiter
 list. Releasing a permit transfers it directly to the oldest remaining waiter
 before making it generally available. Pools do not order work relative to

docs/internal/generation.md

@@ -0,0 +1,27 @@
+# Internal Generation Coordination
+
+`internal/generation` coordinates one model-generation request through the
+existing engine-local [capacity manager](capacity.md) and the
+[built-in HTTP client](llm.md). The current engine still uses the existing
+capacity wrapper; engine assembly moves to this coordinator when public retry
+configuration is wired.
+
+The coordinator has explicit built-in and injected-client constructors. The
+built-in path prepares the provider request once, then acquires and releases an
+active backend permit around each actual HTTP attempt. Only HTTP 429, 500, 502,
+503, and 504 can lead to another attempt. The injected-client path acquires a
+permit and invokes its client once, regardless of the internal retry budget.
+The runner continues to own the logical execution's admission lease.
+
+Retry waits hold no active permit. The local delay uses equal jitter between
+half and all of a capped exponential base, beginning at 500 milliseconds and
+capping at 8 seconds. A valid provider not-before time can extend that delay;
+the caller context interrupts it. The next attempt reacquires the ordinary
+FIFO permit. Preparation failures dispatch nothing. When a positive retry
+budget ends with eligible failures, the internal exhaustion error retains the
+final cause and actual dispatched-attempt count.
+
+Focused coordinator tests use controlled transport and wait functions. They
+cover eligibility, exhaustion, cancellation, backoff, request freezing, permit
+release, and the injected-client path. The capacity manager tests own permit
+acquisition and idempotent release.

docs/internal/overview.md

@@ -19,6 +19,7 @@ contributor workflow and validation.
 | `internal/capacity` | Owns engine-local bounded execution admission and FIFO model-generation permits for limited backend IDs, including cancellation-safe waiter removal and client wrapping. | [Internal capacity management](capacity.md) |
 | `internal/domain` | Defines internal framework values for requests, artifacts, prompt definitions, profiles, execution targets, rendering, generation, and validation, and owns source-neutral invariants for shared execution settings, OpenAI-compatible base endpoints, session identifiers, and output contracts. Source parsing, required fields, other source-specific normalization, defaulting, and boundary-specific error classification remain with their callers. | [Domain declarations](../../internal/domain/domain.go), [endpoint invariant](../../internal/domain/endpoint.go) |
 | `internal/engine` | Assembles external catalogs, Promptkit-owned profiles, repositories, registry, capacity, collaborators, repairer, and the one use-case runner for each engine instance. | [Engine assembly](../../internal/engine/engine.go), [internal sources](sources.md#profiles-and-built-ins), [internal runner](runner.md) |
+| `internal/generation` | Coordinates frozen built-in HTTP attempts and one-shot injected calls through active backend permits, including bounded status retries and cancellable backoff; engine assembly has not switched to it yet. | [Internal generation coordination](generation.md) |
 | `internal/defaults` | Defines application-neutral framework constants and constructs the default execution target. It contains no CLI, server, or inbound HTTP limits. | [Framework defaults](../../internal/defaults/defaults.go) |
 | `internal/filecatalog` | Provides deterministic YAML discovery and path helpers for operating-system filesystems and `fs.FS` sources. | [File catalog](../../internal/filecatalog/catalog.go) |
 | `internal/jsonvalue` | Validates and deeply copies bounded JSON-compatible extra-parameter and prepared-schema trees while preserving supported concrete value types and rejecting cycles or excessive depth and work. | [JSON values](../../internal/jsonvalue/jsonvalue.go) |

docs/roadmap/implementation.md

@@ -279,6 +279,8 @@ next call. All existing wire tests must pass. Commit this refactoring separately
 
 ## Stage 4 — Implement The Internal Retry And Capacity Coordinator
 
+**Completed:** 2026-09-23.
+
 Create `internal/generation`, depending on domain, llm, and capacity. It implements
 the existing `llm.Client` consumed by the runner and repairer. For built-in
 generation it prepares once through Stage 3, then loops over capacity-controlled