docs: consolidate all docs under docs/ — single source of truth

Move issues (01–29) and PRD from .scratch/distributed-inference-network/
into docs/issues/ and docs/. Update ralph_progress.py DEFAULT_PRD path
and rewrite docs/agents/issue-tracker.md to reflect the new layout.

The distributed_inference_network.egg-info/docs/ mirror is a build
artifact already covered by *.egg-info/ in .gitignore — not committed.

Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>

docs/issues/12-real-pytorch-model-backend.md

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+# US-012 — Real PyTorch model backend
+
+Replace stub node inference with actual `transformers` layer execution. A node downloads a HuggingFace SafeTensors model, loads `model.layers[start:end]` into GPU/CPU memory at the declared quantization level, and runs real forward passes. The first-layer node additionally runs `embed_tokens`; the last-layer node additionally runs `model.norm` and `lm_head`.
+
+## Context
+
+Per ADR-0001 (PyTorch over llama.cpp) and the grilling session decisions:
+- Model format: HuggingFace SafeTensors (GGUF rejected — no per-layer hidden state API)
+- Layer extraction: `model.model.layers[start:end]` from a loaded `AutoModelForCausalLM`
+- Quantization: bitsandbytes NF4 / INT8 / bfloat16, declared by node at registration
+- Activation dtype at boundaries: always `bfloat16` regardless of weight quantization
+- First-layer node owns: tokenizer, `model.embed_tokens`, `model.layers[0..k]`
+- Last-layer node owns: `model.layers[N-k..N]`, `model.norm`, `model.lm_head`
+
+Start with a small real model for testing: `openai-community/gpt2` (117M, no special license, SafeTensors available). The production target is 700B+ models — the layer extraction pattern is identical regardless of size.
+
+## Acceptance Criteria
+
+- `packages/node` can be started with `--model-id openai-community/gpt2 --shard-start 0 --shard-end 6` and loads the corresponding transformer blocks
+- Node detects whether it is a head shard (`shard_start == 0`) and loads tokenizer + `model.embed_tokens`
+- Node detects whether it is a tail shard (`shard_end == total_layers`) and loads `model.norm + model.lm_head`
+- A `/forward` request with a text prompt (head node) or binary bfloat16 tensor (mid/tail node) runs a real forward pass and returns binary bfloat16 activations
+- A two-node integration test with GPT-2 sharded across two nodes returns a coherent (non-random, deterministic) text completion
+- Quantization level is read from `--quantization [bfloat16|int8|nf4]` flag; `bfloat16` is default; `int8` and `nf4` use `bitsandbytes.BitsAndBytesConfig`
+- A node with insufficient VRAM for the assigned shard at the declared quantization prints a clear error and exits (no silent OOM)
+- `transformers`, `bitsandbytes`, `safetensors`, and `accelerate` added as dependencies to `packages/node`
+- `python -m pytest` passes (GPT-2 test downloads model once, cached; mark with `@pytest.mark.integration` and skip in CI if no GPU)
+- Commit only this story's changes
+
+## Implementation Notes
+
+```python
+from transformers import AutoModelForCausalLM, AutoTokenizer, BitsAndBytesConfig
+import torch
+
+def load_shard(model_id, start, end, quantization):
+    quant_config = None
+    if quantization == "nf4":
+        quant_config = BitsAndBytesConfig(load_in_4bit=True, bnb_4bit_quant_type="nf4",
+                                          bnb_4bit_compute_dtype=torch.bfloat16)
+    elif quantization == "int8":
+        quant_config = BitsAndBytesConfig(load_in_8bit=True)
+
+    # Load full model metadata without weights, then extract layers
+    model = AutoModelForCausalLM.from_pretrained(
+        model_id,
+        quantization_config=quant_config,
+        device_map="auto",
+        torch_dtype=torch.bfloat16,
+    )
+    layers = model.model.layers[start:end]
+    return model, layers
+```
+
+- `device_map="auto"` handles GPU/CPU offload automatically based on available VRAM
+- For large models, use `low_cpu_mem_usage=True` to avoid doubling peak RAM during load
+- The forward pass for a mid-shard node: `hidden_states = layer(hidden_states)[0]` (most HF models return a tuple, take index 0)
+- Head node forward: `input_ids → embed_tokens → position_embed → layers[0..k] → bfloat16 binary out`
+- Tail node forward: `bfloat16 binary in → layers[N-k..N] → norm → lm_head → argmax/sample → token_id → back to head`
+- Attention mask and position IDs must be forwarded alongside hidden states for models that need them (pack them in additional headers or a small JSON sidecar in the same HTTP request)
+- Keep attention/position passing simple for v1: assume left-padded inputs, pass `attention_mask` as a separate binary blob with header `X-Meshnet-Attn-Mask: <base64-uint8>` (small enough for base64 — it's [B, S] not [B, S, D])