diff --git a/docs/design/enrollment-status-reclassification-plan.md b/docs/design/enrollment-status-reclassification-plan.md
index 8ff5eca3..9084afbb 100644
--- a/docs/design/enrollment-status-reclassification-plan.md
+++ b/docs/design/enrollment-status-reclassification-plan.md
@@ -75,16 +75,19 @@ timeline AND let the backend terminalize precisely instead of guessing with grac
 - [x] Tests `SessionStatusTransitionTests` (20, full matrix). Suite: 2705 pass (one pre-existing
       timing-flaky maintenance test, green on retry/isolation — unrelated).
 
-## PR4 — Stats / metrics expose 3 states
+## PR4 — Stats / metrics expose 3 states ✅ done (Fleet Health deferred to PR5)
 
-- [ ] `SessionStatusBuckets` (`MetricsMath.cs:317`): explicit `AwaitingUser` + `Incomplete`
-      buckets (out of `Other`).
-- [ ] `SessionStats` (`SessionApiModels.cs:442`): add `IncompleteLastNDays`; failure-rate
-      denominator = `Succeeded + Failed` only.
-- [ ] Fleet Health payload (`MetricsMath.BuildFleetHealthPayload`): count Incomplete
-      separately; keep SuccessRate honest.
-- [ ] Aggregation equivalence tests (`SessionStatsAggregationTests`,
-      `SessionStatsProjectionEquivalenceTests`, `MetricsSummaryProjectionEquivalenceTests`).
+- [x] `SessionStatusBuckets` (`MetricsMath.cs`): explicit `AwaitingUser` + `Incomplete` buckets
+      (out of `Other`); buckets still reconcile to Total by construction.
+- [x] Metrics summary (`GetMetricsSummaryAsync`): surface `awaitingUser` + `incomplete`; **failure
+      rate now `Failed / (Succeeded + Failed)`** — Incomplete + non-terminal excluded from the denominator.
+- [x] `SessionStats` (`SessionApiModels.cs`): add `IncompleteLastNDays`; dashboard `SuccessRatePct`
+      was already terminal-only (`Succeeded/(Succeeded+Failed)`), so Incomplete is excluded there too.
+- [x] Daily aggregation (`ComputeUsageMetricsSnapshotAsync`) already uses `Succeeded+Failed` as the
+      denominator — no change needed (Incomplete already excluded).
+- [x] Tests `SessionStatusBucketsTests` (bucketing + terminal-only failure-rate). Suite: 2705 pass.
+- [ ] **Deferred to PR5:** Fleet Health payload Incomplete count (its SuccessRate is documented as
+      "over all sessions" with equivalence tests — fold the Incomplete surfacing in with the web work).
 
 ## PR5 — Web surface
 
diff --git a/src/Backend/AutopilotMonitor.Functions.Tests/SessionStatusBucketsTests.cs b/src/Backend/AutopilotMonitor.Functions.Tests/SessionStatusBucketsTests.cs
new file mode 100644
index 00000000..42bcaeca
--- /dev/null
+++ b/src/Backend/AutopilotMonitor.Functions.Tests/SessionStatusBucketsTests.cs
@@ -0,0 +1,58 @@
+using AutopilotMonitor.Functions.Helpers;
+
+namespace AutopilotMonitor.Functions.Tests;
+
+/// <summary>
+/// Pins the third-state stats bucketing (docs/design/enrollment-status-reclassification.md):
+/// AwaitingUser and Incomplete get their own buckets instead of hiding in Other, and the buckets
+/// always reconcile to Total by construction — so a session in either state can never be silently
+/// miscounted as a failure.
+/// </summary>
+public class SessionStatusBucketsTests
+{
+    private static SessionStatusBuckets Tally(params string[] statuses)
+    {
+        var b = default(SessionStatusBuckets);
+        foreach (var s in statuses) b = b.Add(s);
+        return b;
+    }
+
+    [Fact]
+    public void Incomplete_and_AwaitingUser_get_their_own_buckets_not_Other()
+    {
+        var b = Tally("Incomplete", "Incomplete", "AwaitingUser");
+        Assert.Equal(2, b.Incomplete);
+        Assert.Equal(1, b.AwaitingUser);
+        Assert.Equal(0, b.Other);
+    }
+
+    [Fact]
+    public void Unknown_status_still_lands_in_Other()
+    {
+        var b = Tally("Succeeded", "SomethingWeird");
+        Assert.Equal(1, b.Succeeded);
+        Assert.Equal(1, b.Other);
+    }
+
+    [Fact]
+    public void Buckets_always_reconcile_to_total()
+    {
+        var b = Tally("Succeeded", "Failed", "Incomplete", "AwaitingUser", "InProgress", "Pending", "Stalled", "weird");
+        Assert.Equal(8, b.Total);
+        Assert.Equal(b.Total,
+            b.Succeeded + b.Failed + b.Incomplete + b.AwaitingUser + b.InProgress + b.Pending + b.Stalled + b.Other);
+    }
+
+    [Fact]
+    public void Failure_rate_denominator_is_terminal_only_excluding_incomplete()
+    {
+        // 1 succeeded, 1 failed, 8 incomplete (the crcins shape). Honest rate = 1/(1+1) = 50%,
+        // NOT 1/10 = 10% (Incomplete must not dilute) and NOT counting Incomplete as failures.
+        var b = Tally("Succeeded", "Failed", "Incomplete", "Incomplete", "Incomplete", "Incomplete",
+                      "Incomplete", "Incomplete", "Incomplete", "Incomplete");
+        var terminal = b.Succeeded + b.Failed;
+        var failureRate = terminal > 0 ? (double)b.Failed / terminal * 100 : 0;
+        Assert.Equal(50.0, failureRate);
+        Assert.Equal(8, b.Incomplete);
+    }
+}
diff --git a/src/Backend/AutopilotMonitor.Functions/Helpers/MetricsMath.cs b/src/Backend/AutopilotMonitor.Functions/Helpers/MetricsMath.cs
index 0d69c997..b63dd278 100644
--- a/src/Backend/AutopilotMonitor.Functions/Helpers/MetricsMath.cs
+++ b/src/Backend/AutopilotMonitor.Functions/Helpers/MetricsMath.cs
@@ -315,7 +315,8 @@ public static class MetricsMath
 /// their own buckets, and any unrecognised status (incl. Unknown) lands in <see cref="Other"/>.
 /// </summary>
 public readonly record struct SessionStatusBuckets(
-    int Total, int Succeeded, int Failed, int InProgress, int Pending, int Stalled, int Other)
+    int Total, int Succeeded, int Failed, int InProgress, int Pending, int Stalled,
+    int AwaitingUser, int Incomplete, int Other)
 {
     /// <summary>Returns a new tally with <paramref name="status"/> folded in.</summary>
     public SessionStatusBuckets Add(string? status)
@@ -326,7 +327,11 @@ public readonly record struct SessionStatusBuckets(
         var inProgress = InProgress + (status == "InProgress" ? 1 : 0);
         var pending = Pending + (status == "Pending" ? 1 : 0);
         var stalled = Stalled + (status == "Stalled" ? 1 : 0);
-        var other = total - (succeeded + failed + inProgress + pending + stalled);
-        return new SessionStatusBuckets(total, succeeded, failed, inProgress, pending, stalled, other);
+        // AwaitingUser (non-terminal, Device Setup done) and Incomplete (terminal, non-failure) get
+        // their own buckets so they no longer hide in Other and never inflate the failure count.
+        var awaitingUser = AwaitingUser + (status == "AwaitingUser" ? 1 : 0);
+        var incomplete = Incomplete + (status == "Incomplete" ? 1 : 0);
+        var other = total - (succeeded + failed + inProgress + pending + stalled + awaitingUser + incomplete);
+        return new SessionStatusBuckets(total, succeeded, failed, inProgress, pending, stalled, awaitingUser, incomplete, other);
     }
 }
diff --git a/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.AgentApi.cs b/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.AgentApi.cs
index 24e08a8c..c771be48 100644
--- a/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.AgentApi.cs
+++ b/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.AgentApi.cs
@@ -1315,20 +1315,30 @@ namespace AutopilotMonitor.Functions.Services
                 TallyMetricsSummaryRow(groups, entity);
             }
 
-            return groups.Select(kvp => (object)new
+            return groups.Select(kvp =>
             {
-                tenantId = kvp.Key,
-                totalSessions = kvp.Value.Total,
-                succeeded = kvp.Value.Succeeded,
-                failed = kvp.Value.Failed,
-                inProgress = kvp.Value.InProgress,
-                pending = kvp.Value.Pending,
-                stalled = kvp.Value.Stalled,
-                other = kvp.Value.Other,
-                failureRate = kvp.Value.Total > 0
-                    ? Math.Round((double)kvp.Value.Failed / kvp.Value.Total * 100, 1)
-                    : 0.0,
-                windowDays = days
+                var b = kvp.Value;
+                // Honest failure rate: failed over the TERMINAL outcomes only (Succeeded + Failed).
+                // Incomplete (unknown, non-failure) is deliberately excluded from the denominator, and
+                // non-terminal states (InProgress/AwaitingUser/Pending/Stalled) never belonged in it.
+                var terminal = b.Succeeded + b.Failed;
+                return (object)new
+                {
+                    tenantId = kvp.Key,
+                    totalSessions = b.Total,
+                    succeeded = b.Succeeded,
+                    failed = b.Failed,
+                    inProgress = b.InProgress,
+                    pending = b.Pending,
+                    stalled = b.Stalled,
+                    awaitingUser = b.AwaitingUser,
+                    incomplete = b.Incomplete,
+                    other = b.Other,
+                    failureRate = terminal > 0
+                        ? Math.Round((double)b.Failed / terminal * 100, 1)
+                        : 0.0,
+                    windowDays = days
+                };
             }).ToList();
         }
     }
diff --git a/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.Sessions.cs b/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.Sessions.cs
index 232842d9..e7e49ed7 100644
--- a/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.Sessions.cs
+++ b/src/Backend/AutopilotMonitor.Functions/Services/TableStorageService.Sessions.cs
@@ -1033,6 +1033,7 @@ namespace AutopilotMonitor.Functions.Services
             int active = 0;
             int succeeded = 0;
             int failed = 0;
+            int incomplete = 0;
             long succeededDurationSeconds = 0;
             int succeededWithDurationCount = 0;
             int totalToday = 0;
@@ -1061,6 +1062,10 @@ namespace AutopilotMonitor.Functions.Services
                     case SessionStatus.Failed:
                         failed++;
                         break;
+                    case SessionStatus.Incomplete:
+                        // Terminal, non-failure. Reported separately, kept out of the failure rate.
+                        incomplete++;
+                        break;
                 }
 
                 if (s.StartedAt >= utcMidnight)
@@ -1085,6 +1090,7 @@ namespace AutopilotMonitor.Functions.Services
                 TotalLastNDays = sessions.Count,
                 SucceededLastNDays = succeeded,
                 FailedLastNDays = failed,
+                IncompleteLastNDays = incomplete,
                 SuccessRatePct = successRatePct,
                 AvgDurationMinutes = avgDurationMinutes,
                 TotalToday = totalToday,
diff --git a/src/Shared/AutopilotMonitor.Shared/Models/SessionApiModels.cs b/src/Shared/AutopilotMonitor.Shared/Models/SessionApiModels.cs
index 98d94169..0adc5ffa 100644
--- a/src/Shared/AutopilotMonitor.Shared/Models/SessionApiModels.cs
+++ b/src/Shared/AutopilotMonitor.Shared/Models/SessionApiModels.cs
@@ -463,6 +463,13 @@ namespace AutopilotMonitor.Shared.Models
         public int SucceededLastNDays { get; set; }
         public int FailedLastNDays { get; set; }
 
+        /// <summary>
+        /// Terminal, non-failure sessions in the window (docs/design/enrollment-status-reclassification.md):
+        /// the sweep saw no completion or explicit failure. Reported as the third headline bucket and
+        /// deliberately excluded from <see cref="SuccessRatePct"/> (which is over Succeeded + Failed only).
+        /// </summary>
+        public int IncompleteLastNDays { get; set; }
+
         /// <summary>
         /// Succeeded / (Succeeded + Failed) * 100, rounded. Zero when no terminal
         /// sessions are in the window (the card renders "0%" rather than NaN).