diff --git a/server/src/__tests__/workspace-cleanup-retained-local-dir.test.ts b/server/src/__tests__/workspace-cleanup-retained-local-dir.test.ts
new file mode 100644
index 00000000000..eb417517e60
--- /dev/null
+++ b/server/src/__tests__/workspace-cleanup-retained-local-dir.test.ts
@@ -0,0 +1,33 @@
+import fs from "node:fs/promises";
+import os from "node:os";
+import path from "node:path";
+import { afterEach, describe, expect, it } from "vitest";
+import { cleanupExecutionWorkspaceArtifacts } from "../services/workspace-runtime.ts";
+
+const dirs: string[] = [];
+afterEach(async () => { await Promise.all(dirs.splice(0).map(dir => fs.rm(dir, { recursive: true, force: true }))); });
+
+async function localWorkspace(createdByRuntime: boolean) {
+  const root = await fs.mkdtemp(path.join(os.tmpdir(), "paperclip-retained-dir-")); dirs.push(root);
+  const cwd = path.join(root, "task-directory");
+  await fs.mkdir(cwd); await fs.writeFile(path.join(cwd, "website-fixture.txt"), "saved\n");
+  return { cwd, workspace: { id: "workspace-1", companyId: "company-1", cwd, providerType: "local_fs", providerRef: null,
+    branchName: null, repoUrl: null, baseRef: null, projectId: null, projectWorkspaceId: null, sourceIssueId: "issue-1",
+    metadata: { createdByRuntime } } };
+}
+
+describe("closing a local workspace directory", () => {
+  it("reports a retained directory the runtime did not create as cleaned and keeps its files", async () => {
+    const { cwd, workspace } = await localWorkspace(false);
+    const cleanup = await cleanupExecutionWorkspaceArtifacts({ workspace });
+    expect(cleanup).toMatchObject({ cleaned: true, warnings: [] });
+    await expect(fs.readFile(path.join(cwd, "website-fixture.txt"), "utf8")).resolves.toBe("saved\n");
+  });
+
+  it("still removes a runtime-created directory", async () => {
+    const { cwd, workspace } = await localWorkspace(true);
+    const cleanup = await cleanupExecutionWorkspaceArtifacts({ workspace });
+    expect(cleanup.cleaned).toBe(true);
+    await expect(fs.stat(cwd)).rejects.toThrow();
+  });
+});
diff --git a/server/src/services/workspace-runtime.ts b/server/src/services/workspace-runtime.ts
index fc7196c75b7..518f0898dfc 100644
--- a/server/src/services/workspace-runtime.ts
+++ b/server/src/services/workspace-runtime.ts
@@ -4590,8 +4590,13 @@ export async function cleanupExecutionWorkspaceArtifacts(input: {
     }
   }
 
+  // A local directory the runtime did not create is never removed here (operator-owned or
+  // retained, such as an isolated task directory). Closing such a record has nothing left to
+  // clean, so its surviving directory is the intended outcome, not a failed cleanup.
+  const retainedByDesign = input.workspace.providerType === "local_fs" && !createdByRuntime;
   const cleaned =
     !workspacePath ||
+    retainedByDesign ||
     !(await directoryExists(workspacePath));
   if (cleaned) warnings.push(...await releaseNestedRepositoryWorktrees(nestedWorktrees));