Failed attempts that are retried no longer count as failures in the menu's "N failed in the last hour" warning, or in recent errors. In the session that showed the warning, 60 attempts in an hour were 502s that the retry got through, with no effect on the panel. If the last attempt fails, that one is the failure, so each failed request still counts once.
Retried attempts are counted as retried instead: in the host stats (retried, lastHourRetried), in a retry column in --diagnostics, and as "retried": true on fetch-log lines.
Tested by a stats test (a 502 that recovers and one that doesn't), and end to end against a local server that answers 502, then 200.
🤖 Generated with Claude Code