diff --git a/docs/plans/2026-05-11-templates-folder-hierarchy.md b/docs/plans/2026-05-11-templates-folder-hierarchy.md
index 1bd5bd11..a3b4d32b 100644
--- a/docs/plans/2026-05-11-templates-folder-hierarchy.md
+++ b/docs/plans/2026-05-11-templates-folder-hierarchy.md
@@ -2180,6 +2180,15 @@ Expected: image rebuilds, 5-container cluster starts.
 
 **Step 3: Manual smoke checklist**
 
+> **RETIRED 2026-08-01 — never run; unrunnable as written and superseded by delivered coverage.**
+> Two steps (drag a template onto "Dev"; drag "Dev" onto "Sub") reference folder drag-drop, which was
+> **permanently deferred** by the M9 decision (menu-based reorder shipped instead — see the deferred-work
+> register's Resolved row 18), so the checklist cannot pass as written. The remaining behaviors are
+> covered by the CentralUI bUnit suites (folder CRUD/context menus/cycle guard/TreeView reveal +
+> sessionStorage expansion) delivered through M9/M10, and the management folder commands gained full CLI
+> parity on 2026-08-01 (`template folder list|create|rename|move|reorder|delete`, commit `88638d77`).
+> Do not run or refresh this checklist.
+
 Open http://localhost:9000/design/templates (login `multi-role` / `password`). Verify:
 
 - [ ] Existing templates appear at root (no folder).