diff --git a/.github/workflows/smoke-claude-on-copilot.lock.yml b/.github/workflows/smoke-claude-on-copilot.lock.yml
index 3afd09a0d35..8a25e6c66d0 100644
--- a/.github/workflows/smoke-claude-on-copilot.lock.yml
+++ b/.github/workflows/smoke-claude-on-copilot.lock.yml
@@ -1379,8 +1379,7 @@ jobs:
     needs:
       - activation
       - agent
-    if: >
-      always() && needs.agent.result != 'skipped' && (needs.agent.outputs.output_types != '' || needs.agent.outputs.has_patch == 'true')
+    if: always() && needs.agent.result != 'skipped'
     runs-on: ubuntu-latest
     permissions:
       contents: read
diff --git a/actions/setup/js/validate_memory_files.cjs b/actions/setup/js/validate_memory_files.cjs
index 1043b749b79..194faeb5bf4 100644
--- a/actions/setup/js/validate_memory_files.cjs
+++ b/actions/setup/js/validate_memory_files.cjs
@@ -20,9 +20,7 @@ const path = require("path");
  * @returns {ValidationResult} Validation result with list of invalid files
  */
 function validateMemoryFiles(memoryDir, memoryType = "cache", allowedExtensions) {
-  const allowAll = !allowedExtensions?.length;
-
-  if (allowAll) {
+  if (!allowedExtensions?.length) {
     core.info(`All file extensions are allowed in ${memoryType}-memory directory`);
     return { valid: true, invalidFiles: [] };
   }
@@ -33,6 +31,7 @@ function validateMemoryFiles(memoryDir, memoryType = "cache", allowedExtensions)
   }
 
   const extensions = new Set(allowedExtensions.map(ext => ext.trim().toLowerCase()));
+  /** @type {string[]} */
   const invalidFiles = [];
 
   /**
@@ -50,9 +49,7 @@ function validateMemoryFiles(memoryDir, memoryType = "cache", allowedExtensions)
       if (entry.isDirectory()) {
         // Skip .git directory — it is git metadata used for integrity branching
         // and contains files with no extension (e.g. HEAD, ORIG_HEAD, packed-refs).
-        if (entry.name === ".git") {
-          continue;
-        }
+        if (entry.name === ".git") continue;
         scanDirectory(fullPath, relativeFilePath);
       } else if (entry.isFile()) {
         const ext = path.extname(entry.name).toLowerCase();
diff --git a/actions/setup/js/validate_memory_files.test.cjs b/actions/setup/js/validate_memory_files.test.cjs
index 093ba883789..a3943a153e3 100644
--- a/actions/setup/js/validate_memory_files.test.cjs
+++ b/actions/setup/js/validate_memory_files.test.cjs
@@ -1,18 +1,18 @@
 // @ts-check
 
-import { describe, it, expect, beforeEach, afterEach } from "vitest";
+import { describe, it, expect, beforeEach, afterEach, vi } from "vitest";
 import fs from "fs";
 import path from "path";
 import os from "os";
 
 const { validateMemoryFiles } = require("./validate_memory_files.cjs");
 
-// Mock core globally
+// Mock core globally with vi.fn() so we can assert on calls
 global.core = {
-  info: () => {},
-  error: () => {},
-  warning: () => {},
-  debug: () => {},
+  info: vi.fn(),
+  error: vi.fn(),
+  warning: vi.fn(),
+  debug: vi.fn(),
 };
 
 describe("validateMemoryFiles", () => {
@@ -21,6 +21,7 @@ describe("validateMemoryFiles", () => {
   beforeEach(() => {
     // Create a temporary directory for testing
     tempDir = fs.mkdtempSync(path.join(os.tmpdir(), "validate-memory-test-"));
+    vi.resetAllMocks();
   });
 
   afterEach(() => {
@@ -28,6 +29,7 @@ describe("validateMemoryFiles", () => {
     if (tempDir && fs.existsSync(tempDir)) {
       fs.rmSync(tempDir, { recursive: true, force: true });
     }
+    vi.restoreAllMocks();
   });
 
   it("returns valid for empty directory", () => {
@@ -243,10 +245,50 @@ describe("validateMemoryFiles", () => {
     expect(result.invalidFiles).toEqual([]);
   });
 
-  it("uses repo as memoryType in error messages", () => {
-    fs.writeFileSync(path.join(tempDir, "invalid.log"), "log");
-    const result = validateMemoryFiles(tempDir, "repo", [".txt"]);
+  it("uses 'cache' as the default memoryType", () => {
+    const result = validateMemoryFiles(tempDir);
+    expect(result.valid).toBe(true);
+    expect(global.core.info).toHaveBeenCalledWith(expect.stringContaining("cache-memory"));
+  });
+
+  it("calls core.error with details when files fail custom extension validation", () => {
+    fs.writeFileSync(path.join(tempDir, "bad.log"), "log");
+    const result = validateMemoryFiles(tempDir, "repo", [".json"]);
     expect(result.valid).toBe(false);
-    expect(result.invalidFiles).toEqual(["invalid.log"]);
+    expect(result.invalidFiles).toContain("bad.log");
+    expect(global.core.error).toHaveBeenCalledWith(expect.stringContaining("Found 1 file(s) with invalid extensions in repo-memory:"));
+    expect(global.core.error).toHaveBeenCalledWith(expect.stringContaining("bad.log (extension: .log)"));
+    expect(global.core.error).toHaveBeenCalledWith(expect.stringContaining("Allowed extensions: .json"));
+  });
+
+  it("reports files with no extension as '(no extension)' in error output", () => {
+    fs.writeFileSync(path.join(tempDir, "noext"), "content");
+    const result = validateMemoryFiles(tempDir, "cache", [".json"]);
+    expect(result.valid).toBe(false);
+    expect(result.invalidFiles).toContain("noext");
+    expect(global.core.error).toHaveBeenCalledWith(expect.stringContaining("noext (extension: (no extension))"));
+  });
+
+  it("detects invalid files in deeply nested directories with custom extensions", () => {
+    const level1 = path.join(tempDir, "level1");
+    const level2 = path.join(level1, "level2");
+    fs.mkdirSync(level1);
+    fs.mkdirSync(level2);
+    fs.writeFileSync(path.join(level2, "valid.json"), "{}");
+    fs.writeFileSync(path.join(level2, "invalid.bin"), "binary");
+    const result = validateMemoryFiles(tempDir, "cache", [".json"]);
+    expect(result.valid).toBe(false);
+    expect(result.invalidFiles).toContain(path.join("level1", "level2", "invalid.bin"));
+    expect(result.invalidFiles).not.toContain(path.join("level1", "level2", "valid.json"));
+  });
+
+  it("returns valid=false and empty invalidFiles when directory scan throws", () => {
+    vi.spyOn(fs, "readdirSync").mockImplementationOnce(() => {
+      throw new Error("Permission denied");
+    });
+    const result = validateMemoryFiles(tempDir, "cache", [".json"]);
+    expect(result.valid).toBe(false);
+    expect(result.invalidFiles).toEqual([]);
+    expect(global.core.error).toHaveBeenCalledWith(expect.stringContaining("Failed to scan cache-memory directory: Permission denied"));
   });
 });