diff --git a/.scratch/distributed-gguf-runtime/issues/040-add-node-side-native-worker-supervision.md b/.scratch/distributed-gguf-runtime/issues/040-add-node-side-native-worker-supervision.md
index e184a1e..42ca082 100644
--- a/.scratch/distributed-gguf-runtime/issues/040-add-node-side-native-worker-supervision.md
+++ b/.scratch/distributed-gguf-runtime/issues/040-add-node-side-native-worker-supervision.md
@@ -1,7 +1,7 @@
 <!-- GENERATED FROM prd.json — DO NOT EDIT AS AN INDEPENDENT SOURCE. prd.json IS AUTHORITATIVE. -->
 # DGR-040: Add node-side native worker supervision
 
-- **Status / triage:** specification only; `ready-for-agent`; `passes: false`
+- **Status / triage:** completed; `passes: true`
 - **Execution mode:** `AFK`
 - **Milestone:** `M2`
 - **Dependencies:** `DGR-033`, `DGR-037`
@@ -18,11 +18,11 @@ Fresh Ralph session: read `.scratch/distributed-gguf-runtime/RALPH-CONTEXT.md`,
 
 ## Acceptance criteria
 
-- [ ] Supervision owns process startup, readiness, log capture, graceful shutdown, and bounded forced termination.
-- [ ] Startup verifies worker binary, artifact identity, recipe, and range before registration.
-- [ ] Crashes or health loss make the capability unavailable without corrupting the Transformers backend.
-- [ ] Tests use the fake worker and deterministic crash injection.
-- [ ] Applicable shared quality gates in `prd.json` pass, and the evidence handoff records exact commands/results, changed files, limitations, and dependency handoff.
+- [x] Supervision owns process startup, readiness, log capture, graceful shutdown, and bounded forced termination.
+- [x] Startup verifies worker binary, artifact identity, recipe, and range before registration.
+- [x] Crashes or health loss make the capability unavailable without corrupting the Transformers backend.
+- [x] Tests use the fake worker and deterministic crash injection.
+- [x] Applicable shared quality gates in `prd.json` pass, and the evidence handoff records exact commands/results, changed files, limitations, and dependency handoff.
 
 ## Shared quality gates
 
@@ -36,4 +36,4 @@ Fresh Ralph session: read `.scratch/distributed-gguf-runtime/RALPH-CONTEXT.md`,
 
 ## Evidence handoff
 
-Write and verify `.scratch/distributed-gguf-runtime/evidence/DGR-040/README.md`. Until every criterion and applicable gate has real evidence, this story remains `passes: false`. Legacy evidence is provenance only, not completion credit.
+Verified evidence: `.scratch/distributed-gguf-runtime/evidence/DGR-040/README.md`. Legacy evidence remains provenance only and grants no implementation completion credit.
diff --git a/.scratch/distributed-gguf-runtime/prd.json b/.scratch/distributed-gguf-runtime/prd.json
index 27bfafd..6e037c8 100644
--- a/.scratch/distributed-gguf-runtime/prd.json
+++ b/.scratch/distributed-gguf-runtime/prd.json
@@ -1196,14 +1196,15 @@
         "Tests use the fake worker and deterministic crash injection.",
         "Applicable shared quality gates in `prd.json` pass, and the evidence handoff records exact commands/results, changed files, limitations, and dependency handoff."
       ],
-      "passes": false,
+      "passes": true,
       "notes": "Generated source issue: .scratch/distributed-gguf-runtime/issues/040-add-node-side-native-worker-supervision.md; prd.json is authoritative.",
       "blocks": [
         "DGR-041",
         "DGR-042",
         "DGR-055",
         "DGR-058"
-      ]
+      ],
+      "completionNotes": "Completed by agent"
     },
     {
       "id": "DGR-041",