diff --git a/.jules/palette.md b/.jules/palette.md
new file mode 100644
index 00000000..1853ae6c
--- /dev/null
+++ b/.jules/palette.md
@@ -0,0 +1,3 @@
+## 2024-05-24 - QuickPick busy state reset
+**Learning:** For VS Code extension `QuickPick` elements, if an interaction (e.g. prompt rendering) is short-circuited or handles a terminal modal action (like a confirmation), `quickPick.busy = false` must be explicitly set before presenting the modal, otherwise it will remain visually stuck in the loading state from a previous search.
+**Action:** Always verify `quickPick.busy` is cleanly reset before rendering standalone prompts or static confirm/cancel lists within the same UI instance.
diff --git a/vscode-extension/src/search-provider.ts b/vscode-extension/src/search-provider.ts
index 21e2b6aa..c2b4bc02 100644
--- a/vscode-extension/src/search-provider.ts
+++ b/vscode-extension/src/search-provider.ts
@@ -510,6 +510,8 @@ export class SearchProvider {
      * Prompt for confirmation before clearing history
      */
     private promptClearHistory(quickPick: vscode.QuickPick<SearchResultItem>): void {
+        quickPick.busy = false;
+
         const confirmItem: SearchResultItem = {
             label: 'Confirm Clear History',
             detail: 'This cannot be undone',