diff --git a/tests/e2e/config/wdio.conf.ts b/tests/e2e/config/wdio.conf.ts
index 9c8d56f6..762596fa 100644
--- a/tests/e2e/config/wdio.conf.ts
+++ b/tests/e2e/config/wdio.conf.ts
@@ -219,7 +219,8 @@ export const config: Options.Testrunner = {
 
   /** After test: capture screenshot on failure. */
   afterTest: async function (test, context, { error, passed }) {
-    if (!passed) {
+    const isRealFailure = !passed && !!error;
+    if (isRealFailure) {
       const timestamp = new Date().toISOString().replace(/[:.]/g, '-');
       const screenshotName = `failure-${test.title.replace(/\s+/g, '_')}-${timestamp}.png`;
       
diff --git a/tests/e2e/config/wdio.conf_l0.ts b/tests/e2e/config/wdio.conf_l0.ts
index 6dd3aade..26b8a760 100644
--- a/tests/e2e/config/wdio.conf_l0.ts
+++ b/tests/e2e/config/wdio.conf_l0.ts
@@ -229,7 +229,8 @@ export const config: Options.Testrunner = {
 
   /** After test: capture screenshot on failure. */
   afterTest: async function (test, context, { error, passed }) {
-    if (!passed) {
+    const isRealFailure = !passed && !!error;
+    if (isRealFailure) {
       const timestamp = new Date().toISOString().replace(/[:.]/g, '-');
       const screenshotName = `failure-${test.title.replace(/\s+/g, '_')}-${timestamp}.png`;
       
diff --git a/tests/e2e/config/wdio.conf_l1.ts b/tests/e2e/config/wdio.conf_l1.ts
index 3694b19e..f1370f2f 100644
--- a/tests/e2e/config/wdio.conf_l1.ts
+++ b/tests/e2e/config/wdio.conf_l1.ts
@@ -232,7 +232,8 @@ export const config: Options.Testrunner = {
 
   /** After test: capture screenshot on failure. */
   afterTest: async function (test, context, { error, passed }) {
-    if (!passed) {
+    const isRealFailure = !passed && !!error;
+    if (isRealFailure) {
       const timestamp = new Date().toISOString().replace(/[:.]/g, '-');
       const screenshotName = `failure-${test.title.replace(/\s+/g, '_')}-${timestamp}.png`;
       
diff --git a/tests/e2e/specs/l0-open-settings.spec.ts b/tests/e2e/specs/l0-open-settings.spec.ts
index c7962147..d04a7b70 100644
--- a/tests/e2e/specs/l0-open-settings.spec.ts
+++ b/tests/e2e/specs/l0-open-settings.spec.ts
@@ -5,6 +5,7 @@
 
 import { browser, expect, $ } from '@wdio/globals';
 import { openWorkspace } from '../helpers/workspace-helper';
+import { saveStepScreenshot } from '../helpers/screenshot-utils';
 
 describe('L0 Settings Panel', () => {
   let hasWorkspace = false;
@@ -25,6 +26,9 @@ describe('L0 Settings Panel', () => {
 
       console.log('[L0] Workspace opened:', hasWorkspace);
       expect(hasWorkspace).toBe(true);
+      if (hasWorkspace) {
+        await saveStepScreenshot('l0-settings-workspace-ready');
+      }
     });
   });
 
@@ -44,6 +48,7 @@ describe('L0 Settings Panel', () => {
       // Click to open menu
       await moreBtn.click();
       await browser.pause(500);
+      await saveStepScreenshot('l0-settings-menu-opened');
 
       // Find settings menu item
       const menuItems = await $$('.bitfun-nav-panel__footer-menu-item');
@@ -104,6 +109,9 @@ describe('L0 Settings Panel', () => {
 
       console.log('[L0] Settings scene opened:', sceneExists);
       expect(sceneExists).toBe(true);
+      if (sceneExists) {
+        await saveStepScreenshot('l0-settings-panel-opened');
+      }
     });
   });
 
diff --git a/tests/e2e/specs/l0-open-workspace.spec.ts b/tests/e2e/specs/l0-open-workspace.spec.ts
index 6f10c87f..2a6c16f0 100644
--- a/tests/e2e/specs/l0-open-workspace.spec.ts
+++ b/tests/e2e/specs/l0-open-workspace.spec.ts
@@ -5,6 +5,7 @@
 
 import { browser, expect, $ } from '@wdio/globals';
 import { openWorkspace } from '../helpers/workspace-helper';
+import { saveStepScreenshot } from '../helpers/screenshot-utils';
 
 describe('L0 Workspace Opening', () => {
   let hasWorkspace = false;
@@ -16,6 +17,7 @@ describe('L0 Workspace Opening', () => {
       const title = await browser.getTitle();
       console.log('[L0] App title:', title);
       expect(title).toBeDefined();
+      await saveStepScreenshot('l0-workspace-app-started');
     });
 
     it('should have valid DOM structure', async () => {
@@ -34,6 +36,9 @@ describe('L0 Workspace Opening', () => {
 
       console.log('[L0] Workspace opened:', hasWorkspace);
       expect(hasWorkspace).toBe(true);
+      if (hasWorkspace) {
+        await saveStepScreenshot('l0-workspace-opened');
+      }
     });
 
     it('should have workspace UI elements', async () => {
@@ -44,6 +49,7 @@ describe('L0 Workspace Opening', () => {
 
       console.log('[L0] Chat input exists:', hasChatInput);
       expect(hasChatInput).toBe(true);
+      await saveStepScreenshot('l0-workspace-chat-ready');
     });
   });
 
diff --git a/tests/e2e/specs/l1-chat-input.spec.ts b/tests/e2e/specs/l1-chat-input.spec.ts
index 10122dd0..55bc4c92 100644
--- a/tests/e2e/specs/l1-chat-input.spec.ts
+++ b/tests/e2e/specs/l1-chat-input.spec.ts
@@ -8,7 +8,7 @@ import { ChatPage } from '../page-objects/ChatPage';
 import { ChatInput } from '../page-objects/components/ChatInput';
 import { Header } from '../page-objects/components/Header';
 import { StartupPage } from '../page-objects/StartupPage';
-import { saveScreenshot, saveFailureScreenshot } from '../helpers/screenshot-utils';
+import { saveScreenshot, saveFailureScreenshot, saveStepScreenshot } from '../helpers/screenshot-utils';
 
 describe('L1 Chat Input Validation', () => {
   let chatPage: ChatPage;
@@ -57,6 +57,10 @@ describe('L1 Chat Input Validation', () => {
         console.log('[L1] Recent workspace opened successfully');
       }
     }
+
+    if (hasWorkspace) {
+      await saveStepScreenshot('l1-chat-input-workspace-ready');
+    }
   });
 
   describe('Input visibility and accessibility', () => {
@@ -82,6 +86,7 @@ describe('L1 Chat Input Validation', () => {
       const isVisible = await chatInput.isVisible();
       expect(isVisible).toBe(true);
       console.log('[L1] Chat input component loaded');
+      await saveStepScreenshot('l1-chat-input-visible');
     });
 
     it('should have placeholder text', async function () {
@@ -132,6 +137,7 @@ describe('L1 Chat Input Validation', () => {
       expect(value).toContain('Line 2');
       expect(value).toContain('Line 3');
       console.log('[L1] Multiline input works');
+      await saveStepScreenshot('l1-chat-input-multiline');
     });
 
     it('should clear input', async function () {
@@ -240,6 +246,7 @@ describe('L1 Chat Input Validation', () => {
       const valueAfter = await chatInput.getValue();
       expect(valueAfter).toBe('');
       console.log('[L1] Input cleared after send');
+      await saveStepScreenshot('l1-chat-input-message-sent');
     });
 
     it('should not send empty message', async function () {
@@ -311,6 +318,7 @@ describe('L1 Chat Input Validation', () => {
       // Main test: input is still functional
       expect(typeof clearedValue).toBe('string');
       console.log('[L1] Rapid sending handled - input still functional');
+      await saveStepScreenshot('l1-chat-input-rapid-send-complete');
     });
   });
 
diff --git a/tests/e2e/specs/l1-editor.spec.ts b/tests/e2e/specs/l1-editor.spec.ts
index 244e6e6b..8f560712 100644
--- a/tests/e2e/specs/l1-editor.spec.ts
+++ b/tests/e2e/specs/l1-editor.spec.ts
@@ -6,7 +6,7 @@
 import { browser, expect, $ } from '@wdio/globals';
 import { Header } from '../page-objects/components/Header';
 import { StartupPage } from '../page-objects/StartupPage';
-import { saveScreenshot, saveFailureScreenshot } from '../helpers/screenshot-utils';
+import { saveScreenshot, saveFailureScreenshot, saveStepScreenshot } from '../helpers/screenshot-utils';
 import { ensureWorkspaceOpen } from '../helpers/workspace-utils';
 
 describe('L1 Editor', () => {
@@ -28,6 +28,8 @@ describe('L1 Editor', () => {
 
     if (!hasWorkspace) {
       console.log('[L1] No workspace available - tests will be skipped');
+    } else {
+      await saveStepScreenshot('l1-editor-workspace-ready');
     }
   });
 
@@ -56,6 +58,7 @@ describe('L1 Editor', () => {
         if (exists) {
           console.log(`[L1] Editor found: ${selector}`);
           editorFound = true;
+          await saveStepScreenshot('l1-editor-visible');
           break;
         }
       }
@@ -215,12 +218,14 @@ describe('L1 Editor', () => {
       await browser.pause(300);
 
       console.log('[L1] Switched to second tab');
+      await saveStepScreenshot('l1-editor-second-tab');
 
       // Click first tab
       await tabs[0].click();
       await browser.pause(300);
 
       console.log('[L1] Switched back to first tab');
+      await saveStepScreenshot('l1-editor-first-tab');
       expect(tabs.length).toBeGreaterThanOrEqual(2);
     });
 
diff --git a/tests/e2e/specs/l1-file-tree.spec.ts b/tests/e2e/specs/l1-file-tree.spec.ts
index 6a81bca3..540d9c81 100644
--- a/tests/e2e/specs/l1-file-tree.spec.ts
+++ b/tests/e2e/specs/l1-file-tree.spec.ts
@@ -6,7 +6,7 @@
 import { browser, expect, $ } from '@wdio/globals';
 import { Header } from '../page-objects/components/Header';
 import { StartupPage } from '../page-objects/StartupPage';
-import { saveScreenshot, saveFailureScreenshot } from '../helpers/screenshot-utils';
+import { saveScreenshot, saveFailureScreenshot, saveStepScreenshot } from '../helpers/screenshot-utils';
 
 describe('L1 File Tree', () => {
   let header: Header;
@@ -50,6 +50,10 @@ describe('L1 File Tree', () => {
         hasWorkspace = true;
         console.log('[L1] Recent workspace opened successfully');
       }
+
+      if (hasWorkspace) {
+        await saveStepScreenshot('l1-file-tree-workspace-ready');
+      }
     }
 
     // Navigate to file tree view
@@ -80,6 +84,7 @@ describe('L1 File Tree', () => {
               await navItem.click();
               await browser.pause(1500); // Wait for view to switch
               console.log('[L1] Navigated to Files view');
+              await saveStepScreenshot('l1-file-tree-files-view');
               navigated = true;
               break;
             } catch (clickError) {
@@ -289,6 +294,7 @@ describe('L1 File Tree', () => {
           // Verify the expand state actually changed
           expect(afterExpanded).not.toBe(beforeExpanded);
           console.log('[L1] Directory expand/collapse state changed successfully');
+          await saveStepScreenshot('l1-file-tree-directory-toggled');
           break;
         }
       }
@@ -323,6 +329,7 @@ describe('L1 File Tree', () => {
 
         const isSelected = await content.getAttribute('class');
         console.log('[L1] File selected, classes:', isSelected?.includes('selected'));
+        await saveStepScreenshot('l1-file-tree-file-selected');
       }
 
       expect(filePath).toBeDefined();
diff --git a/tests/e2e/specs/l1-navigation.spec.ts b/tests/e2e/specs/l1-navigation.spec.ts
index 6e2c3e2d..1a21eace 100644
--- a/tests/e2e/specs/l1-navigation.spec.ts
+++ b/tests/e2e/specs/l1-navigation.spec.ts
@@ -9,6 +9,36 @@ import { StartupPage } from '../page-objects/StartupPage';
 import { saveScreenshot, saveFailureScreenshot } from '../helpers/screenshot-utils';
 import { ensureWorkspaceOpen } from '../helpers/workspace-utils';
 
+const NAV_ENTRY_SELECTORS = [
+  '.bitfun-nav-panel__item',
+  '.bitfun-nav-panel__item-slot',
+  '.bitfun-nav-panel__workspace-item-name-btn',
+  '.bitfun-nav-panel__inline-item',
+  '.bitfun-nav-panel__workspace-create-main',
+  '.bitfun-nav-panel__toolbox-entry',
+];
+
+async function getNavigationEntryCounts(): Promise<Record<string, number>> {
+  const counts: Record<string, number> = {};
+
+  for (const selector of NAV_ENTRY_SELECTORS) {
+    counts[selector] = (await browser.$$(selector)).length;
+  }
+
+  return counts;
+}
+
+async function getNavigationEntries() {
+  const entries = [];
+
+  for (const selector of NAV_ENTRY_SELECTORS) {
+    const matched = await browser.$$(selector);
+    entries.push(...matched);
+  }
+
+  return entries;
+}
+
 describe('L1 Navigation', () => {
   let header: Header;
   let startupPage: StartupPage;
@@ -51,9 +81,11 @@ describe('L1 Navigation', () => {
         return;
       }
 
-      const navItems = await browser.$$('.bitfun-nav-panel__item');
-      console.log('[L1] Navigation items count:', navItems.length);
-      expect(navItems.length).toBeGreaterThan(0);
+      const counts = await getNavigationEntryCounts();
+      const totalEntries = Object.values(counts).reduce((sum, count) => sum + count, 0);
+
+      console.log('[L1] Navigation entry counts:', counts);
+      expect(totalEntries).toBeGreaterThan(0);
     });
 
     it('should have navigation sections', async function () {
@@ -75,15 +107,32 @@ describe('L1 Navigation', () => {
         return;
       }
 
-      const navItems = await browser.$$('.bitfun-nav-panel__item');
+      const navItems = await getNavigationEntries();
       if (navItems.length === 0) {
         console.log('[L1] No nav items to click');
         this.skip();
         return;
       }
 
-      const firstItem = navItems[0];
-      const isClickable = await firstItem.isClickable();
+      let firstClickable = null;
+      for (const item of navItems) {
+        try {
+          if (await item.isClickable()) {
+            firstClickable = item;
+            break;
+          }
+        } catch (error) {
+          // Try the next candidate.
+        }
+      }
+
+      if (!firstClickable) {
+        console.log('[L1] Navigation entries exist but none are clickable');
+        this.skip();
+        return;
+      }
+
+      const isClickable = await firstClickable.isClickable();
       expect(isClickable).toBe(true);
       console.log('[L1] First navigation item is clickable');
     });
@@ -121,7 +170,7 @@ describe('L1 Navigation', () => {
         return;
       }
 
-      const activeItems = await browser.$$('.bitfun-nav-panel__item.is-active');
+      const activeItems = await browser.$$('.bitfun-nav-panel__item.is-active, .bitfun-nav-panel__inline-item.is-active, .bitfun-nav-panel__toolbox-entry.is-active');
       const activeCount = activeItems.length;
       console.log('[L1] Active navigation items:', activeCount);
 
@@ -142,7 +191,7 @@ describe('L1 Navigation', () => {
       }
 
       // Get initial active item
-      const initialActive = await browser.$$('.bitfun-nav-panel__item.is-active');
+      const initialActive = await browser.$$('.bitfun-nav-panel__item.is-active, .bitfun-nav-panel__inline-item.is-active, .bitfun-nav-panel__toolbox-entry.is-active');
       const initialActiveCount = initialActive.length;
       console.log('[L1] Initial active items:', initialActiveCount);
 
@@ -180,7 +229,7 @@ describe('L1 Navigation', () => {
       }
 
       // Check for active state (don't fail if state doesn't change)
-      const afterActive = await browser.$$('.bitfun-nav-panel__item.is-active');
+      const afterActive = await browser.$$('.bitfun-nav-panel__item.is-active, .bitfun-nav-panel__inline-item.is-active, .bitfun-nav-panel__toolbox-entry.is-active');
       console.log('[L1] Active items after click:', afterActive.length);
 
       // Verify active state detection completed