diff --git a/AGENTS.md b/AGENTS.md
index df356e0..d622243 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -23,7 +23,9 @@ fgj issue list --json --state open | jq '[.[] | select(.labels[].name == "State/
 Rules:
 
 - Never start work on an issue without `State/Ready`
-- Switch `State/Ready` → `State/InProgress` as your **first action** when picking up an issue — before reading any code:
+- When working via the agent loop: `State/Ready` → `State/InProgress` is set automatically
+  by `agent_loop.py` before the agent starts — do **not** set it yourself.
+- When working manually: switch to `State/InProgress` as your **first action**:
   ```bash
   fgj issue edit <NUMBER> --remove-label "State/Ready" --add-label "State/InProgress"
   ```
diff --git a/scripts/test_agent_loop.py b/scripts/test_agent_loop.py
index 4821d4d..409bb97 100644
--- a/scripts/test_agent_loop.py
+++ b/scripts/test_agent_loop.py
@@ -158,7 +158,7 @@ class TestMain(unittest.TestCase):
              patch("agent_loop._set_labels", side_effect=fake_set_labels), \
              patch("agent_loop._start_agent", side_effect=fake_start_agent), \
              patch("agent_loop._write_state"):
-            result = agent_loop.main()
+            result = agent_loop._run_loop()
 
         self.assertEqual(result, 0)
         labels_idx = next(
@@ -184,7 +184,7 @@ class TestMain(unittest.TestCase):
              patch("agent_loop._set_labels", side_effect=fake_set_labels), \
              patch("agent_loop._start_agent", return_value=99), \
              patch("agent_loop._write_state"):
-            agent_loop.main()
+            agent_loop._run_loop()
 
         self.assertIn(agent_loop.LABEL_IN_PROGRESS, captured.get("add", []))
         self.assertIn(agent_loop.LABEL_READY, captured.get("remove", []))
@@ -196,7 +196,7 @@ class TestMain(unittest.TestCase):
              patch("agent_loop._ready_issues", return_value=[]), \
              patch("agent_loop._set_labels") as mock_labels, \
              patch("agent_loop._start_agent") as mock_start:
-            result = agent_loop.main()
+            result = agent_loop._run_loop()
 
         self.assertEqual(result, 0)
         mock_labels.assert_not_called()