diff --git a/frontend/src/components/AgentPanel.tsx b/frontend/src/components/AgentPanel.tsx
index e60ca39b..f99647be 100644
--- a/frontend/src/components/AgentPanel.tsx
+++ b/frontend/src/components/AgentPanel.tsx
@@ -471,17 +471,23 @@ export function AgentPanel({ stories }: AgentPanelProps) {
 								>
 									<button
 										type="button"
-										onClick={() =>
+										onClick={() => {
+											const isExpanded =
+												expandedKey?.startsWith(`${story.story_id}:`) ||
+												expandedKey === story.story_id;
 											setExpandedKey(
-												expandedKey?.startsWith(`${story.story_id}:`)
+												isExpanded
 													? null
 													: (storyAgentEntries[0]?.[0] ?? story.story_id),
-											)
-										}
+											);
+										}}
 										onKeyDown={(e) => {
 											if (e.key === "Enter" || e.key === " ") {
+												const isExpanded =
+													expandedKey?.startsWith(`${story.story_id}:`) ||
+													expandedKey === story.story_id;
 												setExpandedKey(
-													expandedKey?.startsWith(`${story.story_id}:`)
+													isExpanded
 														? null
 														: (storyAgentEntries[0]?.[0] ?? story.story_id),
 												);
@@ -494,9 +500,11 @@ export function AgentPanel({ stories }: AgentPanelProps) {
 											cursor: "pointer",
 											fontSize: "0.8em",
 											padding: "0 4px",
-											transform: expandedKey?.startsWith(`${story.story_id}:`)
-												? "rotate(90deg)"
-												: "rotate(0deg)",
+											transform:
+												expandedKey?.startsWith(`${story.story_id}:`) ||
+												expandedKey === story.story_id
+													? "rotate(90deg)"
+													: "rotate(0deg)",
 											transition: "transform 0.15s",
 										}}
 									>
@@ -643,6 +651,21 @@ export function AgentPanel({ stories }: AgentPanelProps) {
 									)}
 								</div>
 
+								{/* Empty state when expanded with no agents */}
+								{expandedKey === story.story_id && storyAgentEntries.length === 0 && (
+									<div
+										style={{
+											borderTop: "1px solid #2a2a2a",
+											padding: "12px",
+											fontSize: "0.8em",
+											color: "#555",
+											textAlign: "center",
+										}}
+									>
+										No agents started. Use the Run button to start an agent.
+									</div>
+								)}
+
 								{/* Expanded detail per agent */}
 								{storyAgentEntries.map(([key, a]) => {
 									if (expandedKey !== key) return null;
diff --git a/frontend/src/components/Chat.tsx b/frontend/src/components/Chat.tsx
index ee73eed8..fffa847b 100644
--- a/frontend/src/components/Chat.tsx
+++ b/frontend/src/components/Chat.tsx
@@ -703,6 +703,9 @@ export function Chat({ projectPath, onCloseProject }: ChatProps) {
 					margin: "0 auto",
 					width: "100%",
 					padding: "12px 24px 0",
+					flexShrink: 1,
+					overflowY: "auto",
+					minHeight: 0,
 				}}
 			>
 				<div
@@ -712,6 +715,8 @@ export function Chat({ projectPath, onCloseProject }: ChatProps) {
 						gap: "12px",
 					}}
 				>
+					<AgentPanel stories={upcomingStories} />
+
 					<ReviewPanel
 						reviewQueue={reviewQueue}
 						isReviewLoading={isReviewLoading}
@@ -754,8 +759,6 @@ export function Chat({ projectPath, onCloseProject }: ChatProps) {
 						lastRefresh={lastUpcomingRefresh}
 						onRefresh={refreshUpcomingStories}
 					/>
-
-					<AgentPanel stories={upcomingStories} />
 				</div>
 			</div>
 
diff --git a/server/src/worktree.rs b/server/src/worktree.rs
index 21edd2a4..75c7f6f7 100644
--- a/server/src/worktree.rs
+++ b/server/src/worktree.rs
@@ -95,6 +95,12 @@ fn create_worktree_sync(
             .map_err(|e| format!("Create worktree dir: {e}"))?;
     }
 
+    // Prune stale worktree references (e.g. directories deleted externally)
+    let _ = Command::new("git")
+        .args(["worktree", "prune"])
+        .current_dir(project_root)
+        .output();
+
     // Try to create branch. If it already exists that's fine.
     let _ = Command::new("git")
         .args(["branch", branch])
@@ -199,6 +205,57 @@ async fn run_teardown_commands(wt_path: &Path, config: &ProjectConfig) -> Result
     Ok(())
 }
 
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use std::fs;
+    use tempfile::TempDir;
+
+    /// Initialise a bare-minimum git repo so worktree operations work.
+    fn init_git_repo(dir: &Path) {
+        Command::new("git")
+            .args(["init"])
+            .current_dir(dir)
+            .output()
+            .expect("git init");
+        Command::new("git")
+            .args(["commit", "--allow-empty", "-m", "init"])
+            .current_dir(dir)
+            .output()
+            .expect("git commit");
+    }
+
+    #[test]
+    fn create_worktree_after_stale_reference() {
+        let tmp = TempDir::new().unwrap();
+        let project_root = tmp.path().join("my-project");
+        fs::create_dir_all(&project_root).unwrap();
+        init_git_repo(&project_root);
+
+        let wt_path = tmp.path().join("my-worktree");
+        let branch = "feature/test-stale";
+
+        // First creation should succeed
+        create_worktree_sync(&project_root, &wt_path, branch).unwrap();
+        assert!(wt_path.exists());
+
+        // Simulate external deletion (e.g., rm -rf by another agent)
+        fs::remove_dir_all(&wt_path).unwrap();
+        assert!(!wt_path.exists());
+
+        // Second creation should succeed despite stale git reference.
+        // Without `git worktree prune`, this fails with "already checked out"
+        // or "already exists".
+        let result = create_worktree_sync(&project_root, &wt_path, branch);
+        assert!(
+            result.is_ok(),
+            "Expected worktree creation to succeed after stale reference, got: {:?}",
+            result.err()
+        );
+        assert!(wt_path.exists());
+    }
+}
+
 async fn run_shell_command(cmd: &str, cwd: &Path) -> Result<(), String> {
     let cmd = cmd.to_string();
     let cwd = cwd.to_path_buf();