diff --git a/CLAUDE.md b/CLAUDE.md
index 9bebbad8..733f2096 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -108,25 +108,15 @@ movement queries.
 
 ## Current state
 
-**Currently working toward: M1.5 — Indoor world feels right.** Dungeons RENDER +
-are navigable; **login into a dungeon** now loads + places the player and is
-**FPS-steady from the start** (#135 pre-collapse + indoor cell-floor spawn gate,
-`712f17f`+`2c92375`). The dungeon **"red cone"** was an editor-only placement marker
-acdream inherited from WB (retail hides it via distance degrade) — FIXED (#136 `6f81e2c`).
-REMAINING for M1.5: **A7 dungeon lighting** (LightBake Core landed `3b93f91`; per-vertex
-bake integration + the per-pixel torch OVER-blow still open — #79/#93); **#137 dungeon
-collision** (doors / wall openings); **#138 teleport-OUT of a dungeon** loads the outdoor
-world incompletely + position desync (the collapse→EXPAND gap — same machinery as #135).
-M2 (CombatMath) deferred. Detail in ISSUES (#135–#138) + the render/physics digests.
-Recent closes (2026-06-14): #135, #136. Keep this paragraph ≤6 lines + pointers — detail
-in the docs below, NOT here.
-
-**⚠ Reconcile (banner stale as of 2026-06-22):** the active recent work stream has been the
-parallel **D.2b retail-UI track** (inventory window / panels — the inventory empty-slot art
-shipped + was visually confirmed this session; next is container-switching), NOT the M1.5
-dungeon items above. See [`claude-memory/project_d2b_retail_ui.md`] + the handoff
-`docs/research/2026-06-22-container-switching-handoff.md`. Decide in the milestones doc whether
-M1.5 is paused or D.2b retail-UI is its own milestone, then rewrite this banner.
+**Currently working toward: M1.5 — Indoor world feels right** (building/cellar demo
+DONE + gated; REMAINING: **A7 dungeon lighting** #79/#93, **#137 dungeon collision**,
+**#138 teleport-OUT**). Two **user-report-driven parity tracks** interleave with it at
+the issue level (reconciled 2026-07-04 — they are NOT milestones; see the M1.5 note in
+the milestones doc): **D.2b retail UI** (next: container-switching —
+`claude-memory/project_d2b_retail_ui.md`) and the **R5 movement-manager arc**
+(#170/#171 + R5-V3 CLOSED + gated 2026-07-04; next: **R5-V4** capstone —
+`docs/research/2026-07-03-r5-managers/r5-wiring-handoff.md`). M2 (CombatMath)
+deferred. Keep this paragraph ≤6 lines + pointers — detail in the docs below, NOT here.
 
 For canonical state, read in this order:
 - [`docs/plans/2026-05-12-milestones.md`](docs/plans/2026-05-12-milestones.md) — milestone targets + freeze list per milestone
diff --git a/docs/plans/2026-05-12-milestones.md b/docs/plans/2026-05-12-milestones.md
index a536e80d..d31d40d3 100644
--- a/docs/plans/2026-05-12-milestones.md
+++ b/docs/plans/2026-05-12-milestones.md
@@ -225,6 +225,24 @@ synthesis workarounds were removed by A6.P4. Remaining feel-level debt is
 tracked (#116 slide-response, partial Ghidra fix shipped; A7 indoor
 lighting fidelity not yet done — folded forward).
 
+**Interleaved parity tracks (reconciled 2026-07-04 — NOT milestones).** Two
+work streams have run alongside M1.5, both driven by the user's live
+side-by-side-vs-retail sessions, both issue-level per the operating rules
+(observed defects → ISSUES → fix → user gate), and both stay subordinate
+to M1.5 rather than becoming milestones of their own: (1) **D.2b retail
+UI** — inventory window / paperdoll / item interaction shipped and gated;
+next container-switching (`claude-memory/project_d2b_retail_ui.md`);
+(2) **the R5 movement-manager arc** — the retail MovementManager family
+port (TargetManager voyeur system V2, StickyManager/PositionManager V3)
+that closed the #170 chase-slide and #171 pack-melee gates (2026-07-04);
+one capstone slice (R5-V4) remains
+(`docs/research/2026-07-03-r5-managers/r5-wiring-handoff.md`). Rationale:
+rule 1's "one active milestone" governs where NEW scope goes — these
+tracks fix observed retail-parity defects in already-shipped systems,
+which the operating rules have always allowed; declaring them milestones
+would manufacture scope where a tactical ledger (ISSUES + handoffs)
+already carries them.
+
 **Still OPEN in M1.5 — dungeon support (Phase G.3, issue #133).** Dungeons
 don't work: the streaming/load/render/physics pipeline was built entirely
 around outdoor landblocks (terrain + scattered buildings) and has no path