fix: localise update reasoning state

components/reasoning-workspace.jsx

@@ -636,20 +636,13 @@ export default function ReasoningWorkspace({
           variant="initial"
         />
       )}
-      {updateStatus === "loading" && (
-        <LoadingOverlay
-          elapsed={updateElapsed}
-          currentMessage={updateMsg}
-          variant="update"
-        />
-      )}
 
-      {/* ── Provider unavailable recovery ──────────────── */}
+      {/* ── Provider unavailable recovery (always visible) ───────────── */}
       {isProviderUnavailable && (
         <ProviderUnavailableCard onRestart={onRestart} />
       )}
 
-      {/* ── Malformed response recovery ────────────────── */}
+      {/* ── Malformed response recovery (always visible) ──────────────── */}
       {isMalformedResponse && (
         <MalformedResponseCard onRestart={onRestart} />
       )}
@@ -675,15 +668,19 @@ export default function ReasoningWorkspace({
           {/* ── Investigation summary card ─────────────── */}
           <InvestigationSummaryPanel graph={graph} selectedQuestion={selectedQ} result={result} updateStatus={updateStatus} />
 
-          {/* ── Active investigation: question + form (top priority) ─ */}
-          {canAnswer && (
+          {/* ── Active investigation context (always visible while question exists) ─ */}
+          {hasSelectedQuestion && (
             <>
               <CurrentInvestigationCard selectedQuestion={selectedQ} graph={graph} />
+            </>
+          )}
 
-              {/* Post-update acknowledgement */}
-              {updateStatus === "success" && <UpdateAcknowledgement updateResult={result} />}
+          {/* Post-update acknowledgement — only after success, never during loading */}
+          {updateStatus === "success" && !isUpdating && <UpdateAcknowledgement updateResult={result} />}
 
-              {/* Response form */}
+          {/* ── Response area (replaced by loading / error during reasoning) ─ */}
+          {!isUpdating ? (
+            canAnswer && (
               <form onSubmit={handleUpdateCaptureAndSubmit} className="space-y-4 rounded-lg border border-gray-200 bg-white p-5">
                 <div>
                   <label htmlFor="rw-answer" className="mb-2 block text-sm font-medium text-gray-700">
@@ -701,25 +698,32 @@ export default function ReasoningWorkspace({
                 </div>
                 <div className="flex items-center justify-between">
                   <p className="text-xs text-gray-400">
-                    {updateStatus === "loading" ? "Updating..." : "One update turn only in this prototype."}
+                    One update turn only in this prototype.
                   </p>
                   <button
                     type="submit"
-                    disabled={updateStatus === "loading" || !answer.trim()}
+                    disabled={!answer.trim()}
                     className="rounded-lg bg-blue-700 px-5 py-2 text-sm font-medium text-white transition hover:bg-blue-600 disabled:cursor-not-allowed disabled:opacity-40"
                   >
-                    {updateStatus === "loading" ? "Updating..." : "Update situation"}
+                    Update situation
                   </button>
                 </div>
               </form>
-            </>
+            )
+          ) : (
+            /* ── Local update loading card (replaces response panel) ─ */}
+            <LoadingOverlay
+              elapsed={updateElapsed}
+              currentMessage={updateMsg}
+              variant="update"
+            />
           )}
 
-          {/* ── Terminal state: outcome card (no active question) ─ */}
-          {status === "success" && !hasSelectedQuestion && graph && genuineCompletion && (
+          {/* ── Terminal state: outcome card — hidden during update loading ─ */}
+          {!isUpdating && status === "success" && !hasSelectedQuestion && graph && genuineCompletion && (
             <CompletionCard summary={resolveCurrentSummary(propUnderstanding || graph?.currentSummary || result?.updatedSituationGraph?.currentSummary)} />
           )}
-          {status === "success" && !hasSelectedQuestion && graph && !genuineCompletion && (
+          {!isUpdating && status === "success" && !hasSelectedQuestion && graph && !genuineCompletion && (
             <EvidenceLimitCard summary={resolveCurrentSummary(propUnderstanding || graph?.currentSummary || result?.updatedSituationGraph?.currentSummary)} />
           )}
 
@@ -753,7 +757,7 @@ export default function ReasoningWorkspace({
               Error: {result.error}
             </div>
           )}
-          {updateStatus === "error" && result?.updateError && (
+          {updateStatus === "error" && !isProviderUnavailable && !isMalformedResponse && result?.updateError && (
             <div className="rounded-lg border border-red-300 bg-red-50 px-4 py-3 text-sm text-red-700">
               Update error: {result.updateError.error || JSON.stringify(result.updateError)}
             </div>

components/scenario-form.jsx

@@ -443,7 +443,7 @@ export default function ScenarioForm() {
       )}
 
       {/* ── Main result workspace ─────────────────────── */}
-      {(status === "success" || status === "error") && updateStatus !== "loading" && (
+      {(status === "success" || status === "error") && (
         <ReasoningWorkspace
           scenario={scenario}
           status={status}
@@ -475,16 +475,6 @@ export default function ScenarioForm() {
         />
       )}
 
-      {/* ── Update loading (reasoning mode) ─────────── */}
-      {updateStatus === "loading" && status === "success" && (
-        <LoadingOverlay
-          isLoading={true}
-          elapsed={updateElapsed}
-          currentMessage={updateMsg}
-          variant="update"
-        />
-      )}
-
       {/* ── Continue later banner when session was restored ── */}
       {status === "success" && result?.updatedAt && (
         <ContinueLaterBanner onRestart={() => { clearSession(); setStatus("idle"); setResult(null); setAnswer(""); setUpdateStatus("idle"); setCurrentUnderstanding(null); }} />