diff --git a/LOTUS_BUGS.md b/LOTUS_BUGS.md
index dab4b7f6f..855c1c5db 100644
--- a/LOTUS_BUGS.md
+++ b/LOTUS_BUGS.md
@@ -28,6 +28,7 @@ Implemented and gate-green; confirm each per `LOTUS_TESTING.md`, then delete the
 | #10  | Composer not hidden by keyboard (`100dvh`)               | `src/index.css`                                      | E4    |
 | #12  | PiP mute badge attribution (you vs. all-muted)           | `CallEmbedProvider.tsx`                              | G1    |
 | N96  | Call-recovery overlay single "Back" button               | `call/CallView.tsx`                                  | A7    |
+| N95  | AFK-monitor mic released on mute (OS indicator clears)   | `hooks/useAfkAutoMute.ts`                            | L1    |
 | EC   | EC iframe load watchdog + self-heal + recovery UI        | `plugins/call/CallEmbed.ts`, `CallView.tsx`          | A7    |
 | Gal  | MediaGallery lazy-decrypt (true virtualization deferred) | `room/MediaGallery.tsx`                              | H1    |
 | a11y | aria-labels: edit-history / reaction / thread / reply    | `message/*` (`FallbackContent`, `Reaction`, `Reply`) | I     |
@@ -38,7 +39,6 @@ Implemented and gate-green; confirm each per `LOTUS_TESTING.md`, then delete the
 
 ### Calls / Audio
 
-- **N95 — AFK auto-mute keeps the hardware mic active while muted.** `useAfkAutoMute.ts` holds its own `getUserMedia` stream independent of EC's; muting in the UI doesn't stop those tracks, so the OS recording indicator stays lit. Fix: stop the `MediaStream` tracks on mute, re-request on unmute. (Repro: `LOTUS_TESTING.md` L1.)
 - **N127 — ML denoise shim is never injected in `vite dev`.** The `lotusDenoise` plugin injects only on `closeBundle` (build), so ML noise suppression is silently inactive during local dev. Add a dev-mode injection (`configureServer` / `transformIndexHtml`). Dev-only impact.
 
 ### Security & Privacy
diff --git a/LOTUS_TESTING.md b/LOTUS_TESTING.md
index 530a255a9..24ffd0011 100644
--- a/LOTUS_TESTING.md
+++ b/LOTUS_TESTING.md
@@ -342,22 +342,18 @@ Trigger a desktop/browser notification for a new message.
 
 ---
 
-## L. Open bugs flagged by audit — reproduction needed before fix
+## L. Fixed — verify
 
-### L1. AFK auto-mute keeps the OS microphone indicator lit (N95) — 👥 live call
+### L1. AFK auto-mute releases the OS microphone indicator on mute (N95) — 👥 live call
 
-**Context:** `useAfkAutoMute.ts` calls `getUserMedia({ audio: true })` independently of Element Call's managed stream. When you mute in the Lotus UI, the LiveKit mic inside EC's iframe is muted via the widget API — but the separate `MediaStream` held by the AFK hook keeps its tracks running. The OS-level recording indicator (green dot on macOS, mic icon on Windows/Linux) therefore stays lit while your mic is muted.
+**Context (now FIXED):** `useAfkAutoMute.ts` opened its own `getUserMedia` level-monitor capture for the whole call, so the OS recording indicator (green dot on macOS, mic icon on Windows/Linux) stayed lit even when muted. The capture is now gated on the reactive mic-on state — it runs only while unmuted, so muting releases the stream.
 
-**To reproduce:**
+**To verify:**
 
 1. Enable **AFK auto-mute** in Settings → Calls and **join a call**.
-2. Manually **mute your mic** using the call controls.
-3. Check the **OS recording indicator** (macOS: green dot top-right of menu bar; Windows: mic icon in taskbar).
-
-**Expected (current broken behavior):** the OS recording indicator stays on even though your Lotus mic shows muted.
-**Expected after fix:** the indicator should clear when you mute and re-appear when you unmute.
-
-> **Note:** This is an **open bug** — no fix has been applied yet. Reproduce and confirm the symptom first. The fix involves stopping `MediaStream` tracks on mute and re-requesting `getUserMedia` on unmute (see LOTUS_BUGS.md N95 for full details). Once fixed, re-run this check to verify the indicator clears.
+2. Manually **mute your mic** using the call controls → the **OS recording indicator should clear** within ~a second.
+3. **Unmute** → the indicator should re-appear (capture re-acquired).
+4. Also confirm AFK still works end-to-end: stay unmuted and silent past the configured timeout → mic auto-mutes with the "muted after inactivity" toast, and the indicator clears.
 
 ---