docs: record physical-GPU integration mechanism and refresh project status

- add docs/03-architecture/08-physical-gpu-integration.md: interfaces that
  exist, mechanism options A-E, chosen path (module-owned GPU driven through
  its real GSP firmware), sharing policy, decision record
- update 06-host-module-and-hybrid-model, 02-practical-challenges, system
  overview, known-knowns, docs/README reading order and CUDA-side docs to
  match
- correct stale engine-topology/COPY14 blocker claims across the tree
- add STATE-CURRENT.md as the dated public status snapshot

2 files changed, 11 insertions, 12 deletions

diff --git a/docs/05-operations/01-performance-correctness-security.md b/docs/05-operations/01-performance-correctness-security.md
index 583d6c8..3a2c6b4 100644
--- a/docs/05-operations/01-performance-correctness-security.md
+++ b/docs/05-operations/01-performance-correctness-security.md
@@ -17,11 +17,12 @@ Rung 4  SUSTAINED         workloads run for hours; faults/errors recoverable
 Rung 5  MULTI-TENANT      N VMs, isolation + fairness + no cross-talk
 ```
 
-**Current rung (2026-09-23):** Rung 1 is green; **Rung 2 is NOT green.**
-`cuInit`/`cuDeviceGet` succeed, but `cuCtxCreate` returns `rc=999`
-(`CUDA_ERROR_UNKNOWN`) because the emulated engine list lacks the async copy
-engine (`COPY14`); `cuMemAlloc` is not reached and teardown of the failed
-context still oopses in the guest kernel. Before Rung 3 is claimed, the
+**Current rung (2026-09-29):** Rung 1 is green; **Rung 2 is in progress.**
+`cuInit`/`cuDeviceGet` succeed, and the client reaches `cuCtxCreate`, which
+currently ends in a forced `rc=999` on a completion wait (engine inventory
+complete; completion translation in progress); `cuMemAlloc` is not reached yet
+and failed-context teardown has oopsed in the guest kernel in earlier runs.
+Before Rung 3 is claimed, the
 **reply-fidelity gate** applies: a control whose reply fields the driver
 consumes is not implemented until the reply is coherent (status-only →
 coherent zeroed params → coherent values for consumed fields → exact values) —
diff --git a/docs/05-operations/02-debugging-and-maintenance-workflows.md b/docs/05-operations/02-debugging-and-maintenance-workflows.md
index 52cee94..801cda6 100644
--- a/docs/05-operations/02-debugging-and-maintenance-workflows.md
+++ b/docs/05-operations/02-debugging-and-maintenance-workflows.md
@@ -136,13 +136,11 @@ userspace/cuda/tools/callwalk.py <elf-index>/callgraph.tsv callers 0xNNNNNN
 * **A/B harness**: `tools/cuda-ab/` runs one deterministic CUDA workload on
   bare metal and in the guest and diffs the stable result lines.
 
-**Known current bugs (2026-09-23)**: `cuCtxCreate` returns `rc=999`
-(`CUDA_ERROR_UNKNOWN`) because the emulated engine list is missing the async
-copy engine `COPY14`; the guest kernel oopses in
-`uvm_pmm_devmem_page_to_va_space` on teardown of the failed context; and
-control `0x2080012b` (560-byte params, issued immediately before context
-creation) is answered with a generic SUCCESS whose consumed fields are not yet
-coherent. Start at
+**Current frontier (2026-10-12)**: context creation and the full driver-API
+smoke pass (`ALL OK`, 64-byte payload round-trips); a guest CUDA kernel
+launch is forwarded but the engine does not execute the forwarded launch
+descriptor yet, and green runs are not reproducible on every boot (tracked as
+an open issue in the repository). Start at
 [`../../userspace/cuda/READ-ME-FIRST.md`](../../userspace/cuda/READ-ME-FIRST.md),
 [`../../userspace/cuda/docs/03-driver-and-gpu-interface.md`](../../userspace/cuda/docs/03-driver-and-gpu-interface.md)
 and