Both per-target replication methods assign the optimistic Completed status to rinfo before building put options, and the Err branch of replication_put_object_options returned rinfo unchanged. Since #5633 made the source encryption classification case-insensitive, managed SSE sources are rejected at this gate, and the rejection was reported as successful replication: the source object was marked COMPLETED, ObjectReplicationComplete was emitted, and nothing existed on the target.
Set replication_status = Failed (and record the error in the replicate_object branch) so the composite status, the OperationFailedReplication event, and MRF retries reflect the fail-closed outcome. This restores the contract pinned by test_bucket_replication_sse_kms_failure_contract, which timed out in the e2e-replication-nightly runs on 2026-08-03 and 2026-08-04.
Zhengchao An
327fdd5fc2