diff --git a/packages/core/src/scheduler/scheduler.test.ts b/packages/core/src/scheduler/scheduler.test.ts
index f909a11d23..dd26ba4c03 100644
--- a/packages/core/src/scheduler/scheduler.test.ts
+++ b/packages/core/src/scheduler/scheduler.test.ts
@@ -973,6 +973,10 @@ describe('Scheduler (Orchestrator)', () => {
         CoreToolCallStatus.Cancelled,
         'User denied execution.',
       );
+      expect(mockStateManager.setOutcome).toHaveBeenCalledWith(
+        'call-1',
+        ToolConfirmationOutcome.Cancel,
+      );
       expect(mockStateManager.cancelAllQueued).toHaveBeenCalledWith(
         'User cancelled operation',
       );
diff --git a/packages/core/src/scheduler/scheduler.ts b/packages/core/src/scheduler/scheduler.ts
index d71381eb33..deb28d33a5 100644
--- a/packages/core/src/scheduler/scheduler.ts
+++ b/packages/core/src/scheduler/scheduler.ts
@@ -487,15 +487,17 @@ export class Scheduler {
       });
       outcome = result.outcome;
       lastDetails = result.lastDetails;
-    } else {
-      this.state.setOutcome(callId, ToolConfirmationOutcome.ProceedOnce);
     }
 
+    this.state.setOutcome(callId, outcome);
+
     // Handle Policy Updates
-    await updatePolicy(toolCall.tool, outcome, lastDetails, {
-      config: this.config,
-      messageBus: this.messageBus,
-    });
+    if (decision === PolicyDecision.ASK_USER && outcome) {
+      await updatePolicy(toolCall.tool, outcome, lastDetails, {
+        config: this.config,
+        messageBus: this.messageBus,
+      });
+    }
 
     // Handle cancellation (cascades to entire batch)
     if (outcome === ToolConfirmationOutcome.Cancel) {