diff --git a/.claude/settings.local.json b/.claude/settings.local.json
deleted file mode 100644
index 73c22add..00000000
--- a/.claude/settings.local.json
+++ /dev/null
@@ -1,19 +0,0 @@
-{
-  "permissions": {
-    "allow": [
-      "Bash(golangci-lint run:*)",
-      "Bash(git checkout:*)",
-      "Bash(go build:*)",
-      "Bash(go test:*)",
-      "Bash(npm run build:*)",
-      "Bash(git add:*)",
-      "Bash(git commit:*)",
-      "Bash(git push:*)",
-      "Bash(task generate:*)",
-      "Bash(grep:*)",
-      "Bash(gh pr checks:*)",
-      "Bash(gh api:*)",
-      "Bash(git cherry-pick:*)"
-    ]
-  }
-}
diff --git a/config/components/observability/alerts/activity-alerts.yaml b/config/components/observability/alerts/activity-alerts.yaml
index 02d5928f..6e92b99d 100644
--- a/config/components/observability/alerts/activity-alerts.yaml
+++ b/config/components/observability/alerts/activity-alerts.yaml
@@ -76,6 +76,34 @@ spec:
             description: "Cannot connect to ClickHouse ({{ $value }} errors/sec). Audit log data is inaccessible."
             impact: "Complete service degradation - no data can be retrieved"
 
+        # AuditLogQuery 504 timeout errors
+        - alert: AuditLogQuery504Errors
+          expr: |
+            rate(apiserver_request_total{job="activity-apiserver",code="504",resource="auditlogqueries"}[5m]) > 0.01
+          for: 5m
+          labels:
+            severity: warning
+            component: activity-apiserver
+            sli: availability
+          annotations:
+            summary: "Audit log queries returning timeout errors"
+            description: "{{ $value }} 504 errors/sec on auditlogqueries. Queries are timing out."
+            impact: "Users experiencing failed audit log queries"
+
+        # ClickHouse query row iteration errors
+        - alert: ClickHouseQueryIterationErrors
+          expr: |
+            rate(activity_clickhouse_query_errors_total{error_type="iteration"}[5m]) > 0.5
+          for: 5m
+          labels:
+            severity: warning
+            component: activity-apiserver
+            sli: availability
+          annotations:
+            summary: "ClickHouse query row iteration errors"
+            description: "{{ $value }} iteration errors/sec. May indicate client disconnects or ClickHouse issues."
+            impact: "Some queries failing during result streaming"
+
     # =========================================================================
     # Data Pipeline Health - Ensures Fresh Data
     # =========================================================================
@@ -85,7 +113,7 @@ spec:
         # Data Freshness SLI - Critical for audit compliance
         - alert: ActivityDataPipelineStalled
           expr: |
-            rate(vector_events_out_total{component_id="clickhouse"}[5m]) == 0
+            sum(rate(vector_events_out_total{component_type="clickhouse"}[5m])) == 0
           for: 15m
           labels:
             severity: critical
@@ -96,6 +124,20 @@ spec:
             description: "No new audit events are being stored in ClickHouse. Data is becoming stale."
             impact: "Users querying outdated audit data - compliance risk"
 
+        # NATS Consumer Lag - Early warning before backlog becomes critical
+        - alert: NATSConsumerLagHigh
+          expr: |
+            nats_jetstream_consumer_num_pending{stream="AUDIT_EVENTS",consumer=~"clickhouse-ingest.*"} > 5000
+          for: 5m
+          labels:
+            severity: warning
+            component: nats
+            sli: data_freshness
+          annotations:
+            summary: "Audit event consumer backlog growing"
+            description: "{{ $value }} messages pending in AUDIT_EVENTS stream. Events not reaching ClickHouse."
+            impact: "Audit log queries may return incomplete results"
+
         # NATS Consumer Lag - Leading indicator of pipeline issues
         - alert: ActivityPipelineBacklogCritical
           expr: |
@@ -110,6 +152,22 @@ spec:
             description: "{{ $value }} audit events pending. Risk of data loss if retention exceeded."
             impact: "Large delay in audit event availability - potential data loss"
 
+        # Vector write pipeline stopped while still receiving from NATS
+        - alert: VectorClickHouseWritesStopped
+          expr: |
+            sum(rate(vector_component_sent_events_total{component_type="clickhouse",namespace="activity-system"}[15m])) == 0
+            AND
+            sum(rate(vector_component_received_events_total{component_type="nats",namespace="activity-system"}[15m])) > 0
+          for: 15m
+          labels:
+            severity: warning
+            component: vector-aggregator
+            sli: data_freshness
+          annotations:
+            summary: "Vector receiving events but not writing to ClickHouse"
+            description: "Vector NATS sources are receiving data but ClickHouse sinks have zero output for 15+ minutes."
+            impact: "Audit events not being stored — queries returning stale data"
+
         # Event Exporter Availability
         - alert: EventExporterDown
           expr: up{job="k8s-event-exporter"} == 0
diff --git a/config/components/observability/alerts/dlq-alerts.yaml b/config/components/observability/alerts/dlq-alerts.yaml
index ac5b0fbd..35be49b5 100644
--- a/config/components/observability/alerts/dlq-alerts.yaml
+++ b/config/components/observability/alerts/dlq-alerts.yaml
@@ -61,6 +61,21 @@ spec:
             impact: "Events failing persistently - policy or cluster issue preventing recovery"
             runbook_url: "https://github.com/datum-cloud/activity/blob/main/docs/runbooks/dlq/dlq-high-retry-count.md"
 
+        # DLQ slow-leak - low-rate but persistent failures
+        - alert: DLQSlowLeak
+          expr: |
+            increase(activity_processor_dlq_events_published_total[6h]) > 10
+          for: 1h
+          labels:
+            severity: warning
+            component: activity-processor
+            team: platform-sre
+          annotations:
+            summary: "DLQ receiving events at a slow but steady rate"
+            description: "{{ $value }} events sent to DLQ in the last 6 hours. A policy may be failing for specific event shapes."
+            impact: "Some activities silently not being generated"
+            runbook_url: "https://github.com/datum-cloud/activity/blob/main/docs/runbooks/dlq/dlq-growth.md"
+
     # =========================================================================
     # DLQ Retry Effectiveness
     # =========================================================================