1.2.1

• Added support for excludeDefaultComponents: true in custom agent Markdown frontmatter, allowing custom agents to opt out of default prompt sections and built-in tools while preserving post-invocation hooks.
• Improved model API error resilience and diagnostics: transient genai.APIError failures (502, 503, 504, per-minute 429 rate limits, and mid-stream interruptions) automatically retry in-process with exponential backoff while preserving completed tool call outputs, and unrecovered 503 and 429 responses surface clear user-facing error messages.
• Improved MCP and provider tool schema validation to preserve open object schemas (such as {"type": "object"} or explicit additionalProperties: true) instead of rejecting undeclared arguments on schemas that allow them.
• Improved per-turn responsiveness and reduced memory usage when opening large conversations.
• Fixed --continue starting a brand-new conversation when launched from a subdirectory, after a crash, or while another session is open in the same workspace; it now falls back to the most recent non-empty conversation in the current workspace or its parent/child directories.
• Fixed full-screen blank flashes in inline mode when content first pushes to scrollback, at the end of a turn, or when clearing the screen with Ctrl+L.
• Fixed remote companion UIs connected to an interactive CLI session via Remote Control displaying an unauthenticated sign-in screen instead of the active session's signed-in state.
• Fixed the status line reporting the terminal sandbox as disabled when the session was launched with the --sandbox command-line flag.
• Fixed image zoom keys (Ctrl+= and Ctrl+-) and the footer zoom hint appearing in the artifact viewer when a Mermaid diagram is rendered in ASCII mode instead of as a Kitty image.