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- Created comprehensive documentation for local-first strategy - Developed task routing system for intelligent provider selection - Built dependency monitoring for local and external AI services - Documented current external AI dependencies and risks - Provided graceful degradation paths for service failures - Created implementation roadmap and acceptance criteria Key components: ✓ Task classification matrix (local vs external capability) ✓ TaskRouter class for intelligent routing based on priority ✓ DependencyMonitor for real-time service availability ✓ Graceful degradation paths (3 levels) ✓ Documentation and runbooks for failure scenarios Addresses issue #483 recommendations: ✓ Documented which tasks require external AI vs. can run locally ✓ Ensured Ollama + llama.cpp + Hermes 4 can handle core tasks ✓ Built graceful degradation path if external agents become unavailable ✓ Created monitoring and alerting for dependency failures