diff --git a/src/infra/restart-sentinel-store.ts b/src/infra/restart-sentinel-store.ts
index 2c3843e728c5..0a3881ee49f3 100644
--- a/src/infra/restart-sentinel-store.ts
+++ b/src/infra/restart-sentinel-store.ts
@@ -612,8 +612,8 @@ export function writeUpdateInstallReceiptRowSync(
   rawPayload: RestartSentinelPayload,
 ): RestartSentinel {
   const payload = requireValidPayload(rawPayload);
-  if (payload.kind !== "update" || payload.status !== "ok") {
-    throw new TypeError("Update install receipt requires a successful update payload");
+  if (payload.kind !== "update" || payload.stats?.mode !== "git") {
+    throw new TypeError("Update install receipt requires a git update payload");
   }
   const current = readRestartSentinelRowForKeySync(db, UPDATE_INSTALL_RECEIPT_KEY);
   const currentRevision =
diff --git a/src/infra/restart-sentinel.test.ts b/src/infra/restart-sentinel.test.ts
index a78d7328724c..5dbed929be0a 100644
--- a/src/infra/restart-sentinel.test.ts
+++ b/src/infra/restart-sentinel.test.ts
@@ -52,7 +52,7 @@ import {
   hasRestartSentinel,
   markUpdateRestartSentinelFailure,
   readRestartSentinel,
-  readSuccessfulGitUpdateReceipt,
+  readVerifiedGitUpdateReceipt,
   summarizeRestartSentinel,
   trimLogTail,
   writeRestartSentinel,
@@ -541,7 +541,14 @@ describe("restart sentinel", () => {
     });
   });
 
-  it("persists the verified Git install receipt after restart", async () => {
+  it.each([
+    { name: "successful update", status: "ok", reason: undefined },
+    {
+      name: "failed handoff",
+      status: "error",
+      reason: "managed-service-handoff-failed",
+    },
+  ] as const)("persists the verified Git install receipt after a $name", async (testCase) => {
     await withRestartSentinelStateDir(async () => {
       await withTempDir({ prefix: "openclaw-install-root-" }, async (tempDir) => {
         const installRoot = path.join(tempDir, "checkout");
@@ -551,10 +558,11 @@ describe("restart sentinel", () => {
         const ts = Date.now();
         await writeRestartSentinel({
           kind: "update",
-          status: "ok",
+          status: testCase.status,
           ts,
           stats: {
             mode: "git",
+            ...(testCase.reason ? { reason: testCase.reason } : {}),
             root: installAlias,
             before: { sha: "aaaaaaaa" },
             after: {
@@ -573,7 +581,7 @@ describe("restart sentinel", () => {
         );
         await clearRestartSentinel();
 
-        await expect(readSuccessfulGitUpdateReceipt()).resolves.toEqual({
+        await expect(readVerifiedGitUpdateReceipt()).resolves.toEqual({
           root: await fs.realpath(installRoot),
           sha: "bbbbbbbb",
           upstreamRef: "origin/main",
@@ -604,19 +612,36 @@ describe("restart sentinel", () => {
         process.cwd(),
       );
 
-      await expect(readSuccessfulGitUpdateReceipt()).resolves.toBeNull();
+      await expect(readVerifiedGitUpdateReceipt()).resolves.toBeNull();
     });
   });
 
-  it("rejects a restarted Git revision that does not match the update result", async () => {
+  it.each([
+    {
+      name: "successful update",
+      status: "ok",
+      runningCommit: "cccccccc",
+      beforeSha: undefined,
+      expectedReason: "restart-revision-mismatch",
+    },
+    {
+      name: "error-status update",
+      status: "error",
+      runningCommit: "aaaaaaaa",
+      beforeSha: "aaaaaaaa",
+      expectedReason: "managed-service-handoff-failed",
+    },
+  ] as const)("rejects a $name whose running Git revision does not match", async (testCase) => {
     await withRestartSentinelStateDir(async () => {
       await writeRestartSentinel({
         kind: "update",
-        status: "ok",
+        status: testCase.status,
         ts: Date.now(),
         stats: {
           mode: "git",
           root: process.cwd(),
+          ...(testCase.beforeSha ? { before: { sha: testCase.beforeSha } } : {}),
+          ...(testCase.status === "error" ? { reason: "managed-service-handoff-failed" } : {}),
           after: { sha: "bbbbbbbb", version: "expected-version" },
         },
       });
@@ -624,17 +649,17 @@ describe("restart sentinel", () => {
       await finalizeUpdateRestartSentinelRunningVersion(
         "actual-version",
         process.env,
-        "cccccccc",
+        testCase.runningCommit,
         process.cwd(),
       );
 
       await expect(readRestartSentinel()).resolves.toMatchObject({
         payload: {
           status: "error",
-          stats: { reason: "restart-revision-mismatch" },
+          stats: { reason: testCase.expectedReason },
         },
       });
-      await expect(readSuccessfulGitUpdateReceipt()).resolves.toBeNull();
+      await expect(readVerifiedGitUpdateReceipt()).resolves.toBeNull();
     });
   });
 
@@ -670,7 +695,7 @@ describe("restart sentinel", () => {
             stats: { reason: "restart-root-mismatch" },
           },
         });
-        await expect(readSuccessfulGitUpdateReceipt()).resolves.toBeNull();
+        await expect(readVerifiedGitUpdateReceipt()).resolves.toBeNull();
       });
     });
   });
diff --git a/src/infra/restart-sentinel.ts b/src/infra/restart-sentinel.ts
index 9d48ea466948..451895f855e7 100644
--- a/src/infra/restart-sentinel.ts
+++ b/src/infra/restart-sentinel.ts
@@ -29,7 +29,7 @@ export type {
   RestartSentinelPayload,
 } from "./restart-sentinel-store.js";
 
-export type SuccessfulGitUpdateReceipt = {
+export type VerifiedGitUpdateReceipt = {
   root: string;
   sha: string;
   upstreamRef?: string;
@@ -175,7 +175,10 @@ export async function finalizeUpdateRestartSentinelRunningVersion(
       if (!finalized) {
         return null;
       }
-      if (payload.status === "ok" && verifiesInstallRoot && verifiesGitRevision && changedInstall) {
+      // This receipt records the install fact proven by the running process. Post-install
+      // failures such as managed-service-handoff-failed keep the sentinel in error without
+      // erasing the upstream fallback for campaign-managed detached installs (#121634).
+      if (stats.mode === "git" && verifiesInstallRoot && verifiesGitRevision && changedInstall) {
         writeUpdateInstallReceiptRowSync(db, payload);
       }
       return changed ? finalized : null;
@@ -264,12 +267,13 @@ async function readUpdateInstallReceiptPayload(
   }
 }
 
-function normalizeSuccessfulGitUpdateReceipt(
+function normalizeVerifiedGitUpdateReceipt(
   payload: RestartSentinelPayload | null,
-): SuccessfulGitUpdateReceipt | null {
+): VerifiedGitUpdateReceipt | null {
+  // Receipt rows are only written after the running install verifies root and revision.
+  // An error status records a post-install failure, not an untrusted install.
   if (
     payload?.kind !== "update" ||
-    payload.status !== "ok" ||
     payload.stats?.mode !== "git" ||
     !isPlainRecord(payload.stats.after)
   ) {
@@ -292,10 +296,10 @@ function normalizeSuccessfulGitUpdateReceipt(
   };
 }
 
-export async function readSuccessfulGitUpdateReceipt(
+export async function readVerifiedGitUpdateReceipt(
   env: NodeJS.ProcessEnv = process.env,
-): Promise<SuccessfulGitUpdateReceipt | null> {
-  return normalizeSuccessfulGitUpdateReceipt(await readUpdateInstallReceiptPayload(env));
+): Promise<VerifiedGitUpdateReceipt | null> {
+  return normalizeVerifiedGitUpdateReceipt(await readUpdateInstallReceiptPayload(env));
 }
 
 export async function hasRestartSentinel(env: NodeJS.ProcessEnv = process.env): Promise<boolean> {
diff --git a/src/infra/update-startup.test.ts b/src/infra/update-startup.test.ts
index 3adb25a233d0..28faa198cfc7 100644
--- a/src/infra/update-startup.test.ts
+++ b/src/infra/update-startup.test.ts
@@ -1214,14 +1214,22 @@ describe("update-startup", () => {
     });
   });
 
-  it("continues automatic dev campaigns from receipt-backed detached HEAD", async () => {
+  it.each([
+    { name: "successful install", status: "ok", reason: undefined },
+    {
+      name: "failed handoff",
+      status: "error",
+      reason: "managed-service-handoff-failed",
+    },
+  ] as const)("continues automatic dev campaigns from a $name receipt", async (testCase) => {
     runOpenClawStateWriteTransaction(({ db }) => {
       writeUpdateInstallReceiptRowSync(db, {
         kind: "update",
-        status: "ok",
+        status: testCase.status,
         ts: Date.now() - 60_000,
         stats: {
           mode: "git",
+          ...(testCase.reason ? { reason: testCase.reason } : {}),
           root: "/opt/openclaw",
           after: {
             sha: "current-sha",
diff --git a/src/infra/update-startup.ts b/src/infra/update-startup.ts
index 62c15f880126..6cf38fe5f0df 100644
--- a/src/infra/update-startup.ts
+++ b/src/infra/update-startup.ts
@@ -36,10 +36,7 @@ import {
   getNodeSqliteKysely,
 } from "./kysely-sync.js";
 import { resolveOpenClawPackageRoot } from "./openclaw-root.js";
-import {
-  readSuccessfulGitUpdateReceipt,
-  type SuccessfulGitUpdateReceipt,
-} from "./restart-sentinel.js";
+import { readVerifiedGitUpdateReceipt, type VerifiedGitUpdateReceipt } from "./restart-sentinel.js";
 import {
   resolveGatewayRestartDeferralTimeoutMs,
   scheduleGatewaySigusr1Restart,
@@ -577,7 +574,7 @@ async function resolveStartupInstallStatus(fetchGit: boolean) {
       argv1: process.argv[1],
       cwd: process.cwd(),
     }),
-    readSuccessfulGitUpdateReceipt(),
+    readVerifiedGitUpdateReceipt(),
   ]);
   const gitUpstreamFallback =
     installReceipt?.upstreamRef && root && updateInstallRootsMatch(root, installReceipt.root)
@@ -607,7 +604,7 @@ function gitCommitsMatch(left: string, right: string): boolean {
 
 function resolveGitInstalledAtMs(
   git: NonNullable<UpdateCheckResult["git"]>,
-  installReceipt: SuccessfulGitUpdateReceipt | null,
+  installReceipt: VerifiedGitUpdateReceipt | null,
   root: string | null,
 ): number | undefined {
   return installReceipt &&
@@ -621,7 +618,7 @@ function resolveGitInstalledAtMs(
 
 function resolveGitScheduleStatus(
   update: UpdateCheckResult,
-  installReceipt: SuccessfulGitUpdateReceipt | null,
+  installReceipt: VerifiedGitUpdateReceipt | null,
   root: string | null,
 ): GitScheduleStatus | undefined {
   if (update.installKind !== "git") {
@@ -672,7 +669,7 @@ function withInstallStatus(
   schedule: UpdateScheduleState,
   update: UpdateCheckResult,
   includeGitStatus: boolean,
-  installReceipt: SuccessfulGitUpdateReceipt | null,
+  installReceipt: VerifiedGitUpdateReceipt | null,
   root: string | null,
 ): UpdateScheduleState {
   const git = includeGitStatus ? resolveGitScheduleStatus(update, installReceipt, root) : undefined;