diff --git a/.story_kit/work/4_merge/269_story_file_references_in_web_ui_chat_input.md b/.story_kit/work/4_merge/269_story_file_references_in_web_ui_chat_input.md
index 23363e6..ad879cf 100644
--- a/.story_kit/work/4_merge/269_story_file_references_in_web_ui_chat_input.md
+++ b/.story_kit/work/4_merge/269_story_file_references_in_web_ui_chat_input.md
@@ -1,6 +1,6 @@
 ---
 name: "@ file references in web UI chat input"
-merge_failure: "Rename/rename conflict on story file: master moved it to 4_merge/ while the feature branch has it in 2_current/. The auto-resolver cannot handle rename/rename conflicts. The story file needs to be resolved manually (likely by accepting the 4_merge/ location on master and removing the 2_current/ version from the feature branch), then re-triggering the merge."
+merge_failure: "Squash-merge produced an empty diff. The feature branch's code changes (commits 2a01069, 4f890fc) are already present in master — only .story_kit/ pipeline files differ. The code was likely merged via a prior merge operation. Human intervention needed to determine whether to accept the story as-is or investigate how the code reached master."
 ---
 
 # Story 269: @ file references in web UI chat input