diff --git a/.console/log.md b/.console/log.md
index b34dee8..c9c7080 100644
--- a/.console/log.md
+++ b/.console/log.md
@@ -1,5 +1,13 @@
 # Log
 
+## 2026-07-06 — fix: watcher pane reads the PseudoOperator state path
+
+OC's loop migrated to the shared engine (Track B, OC #428): controller state
+moved from logs/local/loop_controller_state.json to
+tools/loop/state/controller_state.json. Field shape is compatible
+(runnable_backend / backend_cooldowns / backend_limit_kinds /
+sleeping_until_utc all emitted by the engine as of CL #35).
+
 ## 2026-06-16 — Opt into CAP1 enforcement (context_bootstrap)
 
 Added `audit.capabilities.enforce: true` so Custodian's CAP1 verifies the
diff --git a/src/operator_console/watcher_status_pane.py b/src/operator_console/watcher_status_pane.py
index 970513b..21da09d 100644
--- a/src/operator_console/watcher_status_pane.py
+++ b/src/operator_console/watcher_status_pane.py
@@ -29,7 +29,8 @@
 _OC_ROOT    = Path.home() / "Documents" / "GitHub" / "OperationsCenter"
 _WATCH_DIR  = _OC_ROOT / "logs" / "local" / "watch-all"
 _STATE_DIR  = _OC_ROOT / "state"
-_CONTROLLER_STATE_PATH = _OC_ROOT / "logs" / "local" / "loop_controller_state.json"
+# PseudoOperator engine (Track B): loop state moved to tools/loop/state/.
+_CONTROLLER_STATE_PATH = _OC_ROOT / "tools" / "loop" / "state" / "controller_state.json"
 _QUEUE_DIR  = Path.home() / ".console" / "queue"
 _PROFILES_DIR = Path(__file__).resolve().parent.parent.parent / "config" / "profiles"