diff --git a/src/cli/cli-error.ts b/src/cli/cli-error.ts
index 975fb2fd17e..af4fa1b241b 100644
--- a/src/cli/cli-error.ts
+++ b/src/cli/cli-error.ts
@@ -8,6 +8,7 @@ import { worktreeSelectorRecovery } from './worktree-selector-recovery'
 import { ambiguousWorkspaceChoices, selectorAmbiguityRecovery } from './selector-ambiguity-recovery'
 import type { RuntimeRpcFailure } from './runtime-client'
 import { RuntimeClientError, RuntimeRpcFailureError } from './runtime/types'
+import { readableWslDistroCliRefusal } from './wsl-distro-cli-refusal'
 
 export type CliErrorContext = {
   commandPath?: readonly string[]
@@ -66,7 +67,9 @@ export function cliErrorCode(error: unknown): string | undefined {
 }
 
 export function formatCliError(error: unknown, context: CliErrorContext = {}): string {
-  const message = error instanceof Error ? error.message : String(error)
+  const message = readableWslDistroCliRefusal(
+    error instanceof Error ? error.message : String(error)
+  )
   const selector = contextRecovery(cliErrorCode(error), context)
   const workspaceChoices =
     error instanceof RuntimeClientError &&
diff --git a/src/cli/wsl-distro-cli-refusal.test.ts b/src/cli/wsl-distro-cli-refusal.test.ts
new file mode 100644
index 00000000000..900aa794235
--- /dev/null
+++ b/src/cli/wsl-distro-cli-refusal.test.ts
@@ -0,0 +1,35 @@
+import { describe, expect, it } from 'vitest'
+import { formatCliError } from './cli-error'
+import { RuntimeClientError } from './runtime/types'
+import { readableWslDistroCliRefusal } from './wsl-distro-cli-refusal'
+
+describe('readableWslDistroCliRefusal', () => {
+  it("names the distro in an older server's raw hold code", () => {
+    expect(readableWslDistroCliRefusal('terminal_held_wsl_distro_stopped:Ubuntu')).toBe(
+      "The WSL distro Ubuntu is stopped, so Orca didn't start this terminal. Start the distro, then try again."
+    )
+  })
+
+  it.each(['\\\\wsl.localhost\\Ubuntu\\home\\me\\notes', '\\\\wsl$\\Ubuntu\\home\\me\\notes'])(
+    'names the distro behind an unavailable WSL folder (%s)',
+    (path) => {
+      expect(readableWslDistroCliRefusal(`folder_workspace_path_unavailable:${path}`)).toBe(
+        `Orca couldn't reach ${path}. The WSL distro Ubuntu may be stopped, and Orca doesn't start a stopped distro for this. Start Ubuntu (for example, open a terminal in it), then try again.`
+      )
+    }
+  )
+
+  it('leaves other refusals as they were', () => {
+    for (const message of ['folder_workspace_path_unavailable:/srv/notes', 'terminal_not_found']) {
+      expect(readableWslDistroCliRefusal(message)).toBe(message)
+    }
+  })
+
+  it('reads in the human CLI error output', () => {
+    const error = new RuntimeClientError(
+      'runtime_error',
+      'folder_workspace_path_unavailable:\\\\wsl.localhost\\Debian\\w'
+    )
+    expect(formatCliError(error)).toContain('The WSL distro Debian may be stopped')
+  })
+})
diff --git a/src/cli/wsl-distro-cli-refusal.ts b/src/cli/wsl-distro-cli-refusal.ts
new file mode 100644
index 00000000000..cfdd17abffe
--- /dev/null
+++ b/src/cli/wsl-distro-cli-refusal.ts
@@ -0,0 +1,22 @@
+import { readableWslDistroHoldText } from '../shared/wsl-distro-stopped-hold'
+import { parseWslUncPath } from '../shared/wsl-paths'
+
+const FOLDER_UNAVAILABLE_PREFIX = 'folder_workspace_path_unavailable:'
+
+/**
+ * A refusal over a WSL distro, named: older servers send the raw hold code, and a folder on a
+ * distro Orca won't start in the background reads only as "path unavailable".
+ */
+export function readableWslDistroCliRefusal(message: string): string {
+  const held = readableWslDistroHoldText(message)
+  if (held !== message) {
+    return held
+  }
+  const start = message.indexOf(FOLDER_UNAVAILABLE_PREFIX)
+  const path = start === -1 ? '' : message.slice(start + FOLDER_UNAVAILABLE_PREFIX.length).trim()
+  const distro = parseWslUncPath(path)?.distro
+  if (!distro) {
+    return message
+  }
+  return `${message.slice(0, start)}Orca couldn't reach ${path}. The WSL distro ${distro} may be stopped, and Orca doesn't start a stopped distro for this. Start ${distro} (for example, open a terminal in it), then try again.`
+}
diff --git a/src/renderer/src/components/terminal-pane/TerminalErrorToast.tsx b/src/renderer/src/components/terminal-pane/TerminalErrorToast.tsx
index b8f76771b62..804ff45e79b 100644
--- a/src/renderer/src/components/terminal-pane/TerminalErrorToast.tsx
+++ b/src/renderer/src/components/terminal-pane/TerminalErrorToast.tsx
@@ -1,9 +1,8 @@
 import { useEffect, useState } from 'react'
 import { unwrapHostRefusalIpcLines } from './terminal-error-ipc-unwrap'
 import { translate } from '@/i18n/i18n'
-import { resolveClientEnvironmentFooter } from '@/lib/client-environment-info'
 import {
-  humanizeFolderWorkspacePathError,
+  humanizeFolderWorkspacePathErrors,
   isFolderWorkspacePathError
 } from '@/lib/folder-workspace-path-status'
 import { Button } from '@/components/ui/button'
@@ -13,9 +12,11 @@ import {
   stripClientEnvironmentFooter
 } from '../../../../shared/client-environment-info'
 import {
+  failedSpawnEnvironmentFooter,
   localizeTerminalSpawnHints,
   withoutTerminalSpawnIssueRequest
 } from './terminal-spawn-error-display'
+import { isWslDistroHoldText, localizeWslDistroHoldText } from '@/lib/wsl-distro-hold-copy'
 import {
   describeSshSignInRequiredTerminalError,
   isSshSignInRequiredTerminalError
@@ -142,11 +143,6 @@ function isFolderWorkspacePathOnlyError(error: string): boolean {
   return lines.length > 0 && lines.every(isFolderWorkspacePathError)
 }
 
-// Why: a moved or deleted folder is the user's to fix, so it gets actionable copy, not an issue link.
-function humanizeFolderWorkspacePathErrors(error: string): string {
-  return error.split('\n').map(humanizeFolderWorkspacePathError).join('\n')
-}
-
 /** An SSH host state (reconnecting, or waiting for the user to sign in), not a bug to report. */
 function isSshHostStateTerminalError(error: string): boolean {
   return isSshSignInRequiredTerminalError(error) || isSshReconnectOwnedTerminalError(error)
@@ -157,7 +153,8 @@ export function humanizeTerminalError(error: string, agentId?: string | null): s
   if (isSshSignInRequiredTerminalError(error)) {
     return describeSshSignInRequiredTerminalError(error)
   }
-  const unwrapped = unwrapHostRefusalIpcLines(error)
+  // Hosts send a held start as its code (older) or English sentence (newer); either reads in the user's language.
+  const unwrapped = localizeWslDistroHoldText(unwrapHostRefusalIpcLines(error))
   let humanized = humanizeFolderWorkspacePathErrors(
     localizeTerminalSpawnHints(agentLaunchErrorText(unwrapped, agentId) ?? unwrapped)
   )
@@ -255,7 +252,8 @@ export function TerminalErrorToast({
     !showDaemonRestart &&
     !isAgentLaunchOnlyError(error) &&
     !isExplainedTerminalError(error) &&
-    !isFolderWorkspacePathOnlyError(error)
+    !isFolderWorkspacePathOnlyError(error) &&
+    !isWslDistroHoldText(error)
   const humanizedError = humanizeTerminalError(error, agentId)
   // Why: the toast appends its own linked request, so the host's plain-text one would repeat it.
   const displayError = showIssueLink
@@ -279,7 +277,7 @@ export function TerminalErrorToast({
       return
     }
     let cancelled = false
-    void resolveClientEnvironmentFooter().then((footer) => {
+    void failedSpawnEnvironmentFooter(displayError).then((footer) => {
       if (!cancelled) {
         setEnvironmentFooter({ error: displayError, footer })
       }
diff --git a/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.test.ts b/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.test.ts
index 5e7420561cb..b68aae6afbf 100644
--- a/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.test.ts
+++ b/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.test.ts
@@ -156,4 +156,41 @@ describe('waitsForMainPaneStart', () => {
     })
     expect(pane.deps.onPtyErrorRef?.current).not.toHaveBeenCalled()
   })
+
+  it('shows the Start card when the refusal carries the readable sentence, not the code', async () => {
+    const { showPaneStartFailure } = await import('./main-pane-start-wait')
+    const { wslDistroStoppedHoldStore } = await import('../wsl-distro-stopped-hold-state')
+    const pane = session()
+
+    showPaneStartFailure(
+      pane,
+      "The WSL distro Debian is stopped, so Orca didn't start this terminal. Start the distro, then try again."
+    )
+
+    expect(wslDistroStoppedHoldStore.getState().panes[PANE_KEY]).toMatchObject({
+      distro: 'Debian',
+      state: 'stopped'
+    })
+    expect(pane.deps.onPtyErrorRef?.current).not.toHaveBeenCalled()
+  })
+
+  it.each([
+    ['terminal_held_wsl_distro_stopped:Ubuntu'],
+    [
+      "The WSL distro Ubuntu is stopped, so Orca didn't start this terminal. Start the distro, then try again."
+    ]
+  ])(
+    "names the distro on a paired host's held pane instead of the raw code (%s)",
+    async (reason) => {
+      const { showPaneStartFailure } = await import('./main-pane-start-wait')
+      const pane = { ...session(), runtimeEnvironmentId: 'env-1' }
+
+      showPaneStartFailure(pane, reason)
+
+      expect(pane.deps.onPtyErrorRef?.current).toHaveBeenCalledWith(
+        1,
+        "The WSL distro Ubuntu is stopped, so Orca didn't start this terminal. Start the distro, then try again."
+      )
+    }
+  )
 })
diff --git a/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.ts b/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.ts
index 0900b762f69..1459313b00e 100644
--- a/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.ts
+++ b/src/renderer/src/components/terminal-pane/pty-connection/main-pane-start-wait.ts
@@ -6,7 +6,10 @@ import { recordPtyConnectDiagnostic } from './pty-connect-limits'
 import type { PaneStartStatus } from '../../../../../shared/workspace-layout/workspace-layout-published'
 import type { ConnectPanePtySession } from './connect-pane-pty-session'
 import { resolveTerminalTabId } from './terminal-tab-id'
-import { parseWslDistroHold } from '../../../../../shared/wsl-distro-stopped-hold'
+import {
+  findWslDistroHoldInText,
+  wslDistroHoldUserMessage
+} from '../../../../../shared/wsl-distro-stopped-hold'
 import { holdPaneForStoppedWslDistro } from '../wsl-distro-stopped-hold-state'
 import { callRuntimeRpc } from '@/runtime/runtime-rpc-client'
 
@@ -110,7 +113,8 @@ export function showPaneStartFailure(
   session: ConnectPanePtySession,
   reason: string | undefined
 ): void {
-  const hold = reason ? parseWslDistroHold(reason) : null
+  // Main publishes the code; an RPC refusal carries the sentence instead.
+  const hold = reason ? (findWslDistroHoldInText(reason)?.hold ?? null) : null
   if (hold && !session.disposed && !session.runtimeEnvironmentId) {
     // Main held background work on a stopped (or unchecked) distro: the card's Start asks main to start it.
     const state = useAppStore.getState()
@@ -132,7 +136,10 @@ export function showPaneStartFailure(
   if (!session.disposed) {
     session.deps.onPtyErrorRef?.current?.(
       session.pane.id,
-      `The terminal could not start: ${reason ?? 'unknown error'}`
+      // A paired host's held pane has no local Start: the sentence, which the banner localizes.
+      hold
+        ? wslDistroHoldUserMessage(hold)
+        : `The terminal could not start: ${reason ?? 'unknown error'}`
     )
   }
 }
diff --git a/src/renderer/src/components/terminal-pane/terminal-error-toast-wsl-hold.test.ts b/src/renderer/src/components/terminal-pane/terminal-error-toast-wsl-hold.test.ts
new file mode 100644
index 00000000000..dc2c7cea329
--- /dev/null
+++ b/src/renderer/src/components/terminal-pane/terminal-error-toast-wsl-hold.test.ts
@@ -0,0 +1,82 @@
+// @vitest-environment happy-dom
+
+import React from 'react'
+import { cleanup, render, waitFor } from '@testing-library/react'
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
+
+const environmentMocks = vi.hoisted(() => ({ resolveFooter: vi.fn() }))
+
+vi.mock('@/lib/client-environment-info', () => ({
+  resolveClientEnvironmentFooter: environmentMocks.resolveFooter
+}))
+
+import { TerminalErrorToast, humanizeTerminalError } from './TerminalErrorToast'
+
+const STOPPED_SENTENCE =
+  "The WSL distro Ubuntu is stopped, so Orca didn't start this terminal. Start the distro, then try again."
+
+beforeEach(() => {
+  environmentMocks.resolveFooter.mockReset()
+  environmentMocks.resolveFooter.mockImplementation(async (overrides: { shell?: string } = {}) =>
+    ['---', 'Orca: 1.0.0', 'OS: win32 10.0 (x64)', `Shell: ${overrides.shell ?? 'cmd.exe'}`].join(
+      '\n'
+    )
+  )
+})
+
+afterEach(() => {
+  cleanup()
+})
+
+describe('a held WSL terminal in the error banner', () => {
+  it.each([
+    ['terminal_held_wsl_distro_stopped:Ubuntu'],
+    ["Error invoking remote method 'pty:spawn': Error: terminal_held_wsl_distro_stopped:Ubuntu"],
+    ['Failed to create the startup terminal for C:\\w: terminal_held_wsl_distro_stopped:Ubuntu']
+  ])('names the distro instead of the raw code (%s)', (error) => {
+    const humanized = humanizeTerminalError(error)
+    expect(humanized).toContain(STOPPED_SENTENCE)
+    expect(humanized).not.toContain('terminal_held_wsl_distro')
+  })
+
+  it('reads an unchecked distro as unverifiable, not stopped', () => {
+    expect(humanizeTerminalError('terminal_held_wsl_distro_unverifiable:Debian')).toBe(
+      "Orca couldn't check whether the WSL distro Debian is running, so it didn't start this terminal. Start the distro, then try again."
+    )
+  })
+
+  it('does not ask the user to file an issue for a held terminal', () => {
+    const view = render(
+      React.createElement(TerminalErrorToast, {
+        error: 'terminal_held_wsl_distro_stopped:Ubuntu',
+        onDismiss: vi.fn()
+      })
+    )
+    expect(view.container.textContent).toContain(STOPPED_SENTENCE)
+    expect(view.container.textContent).not.toContain('file an issue')
+  })
+})
+
+describe('the error banner footer', () => {
+  it('reports the shell whose spawn failed, not the default shell', async () => {
+    const view = render(
+      React.createElement(TerminalErrorToast, {
+        error:
+          'Daemon failed to spawn shell "C:\\WINDOWS\\system32\\wsl.exe" with cwd "C:\\Users\\me": spawn failed',
+        onDismiss: vi.fn()
+      })
+    )
+    await waitFor(() =>
+      expect(view.container.textContent).toContain('Shell: C:\\WINDOWS\\system32\\wsl.exe')
+    )
+    expect(view.container.textContent).not.toContain('Shell: cmd.exe')
+  })
+
+  it('keeps the default shell when the error names none', async () => {
+    const view = render(
+      React.createElement(TerminalErrorToast, { error: 'Paste failed.', onDismiss: vi.fn() })
+    )
+    await waitFor(() => expect(view.container.textContent).toContain('Shell: cmd.exe'))
+    expect(environmentMocks.resolveFooter).toHaveBeenCalledWith({})
+  })
+})
diff --git a/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.test.ts b/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.test.ts
index e61504a2d71..abc8b3c7e8f 100644
--- a/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.test.ts
+++ b/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.test.ts
@@ -18,6 +18,7 @@ vi.mock('@/i18n/i18n', () => ({
 }))
 
 import {
+  failedSpawnShell,
   localizeTerminalSpawnHints,
   withoutTerminalSpawnIssueRequest
 } from './terminal-spawn-error-display'
@@ -48,3 +49,15 @@ describe('withoutTerminalSpawnIssueRequest', () => {
     expect(withoutTerminalSpawnIssueRequest(error)).toBe(error)
   })
 })
+
+describe('failedSpawnShell', () => {
+  it('reads the shell from daemon and local spawn failures', () => {
+    expect(
+      failedSpawnShell(
+        'Daemon failed to spawn shell "C:\\Windows\\System32\\wsl.exe" with cwd "C:\\"'
+      )
+    ).toBe('C:\\Windows\\System32\\wsl.exe')
+    expect(failedSpawnShell(RAW)).toBe('/bin/zsh')
+    expect(failedSpawnShell('Paste failed.')).toBeNull()
+  })
+})
diff --git a/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.ts b/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.ts
index 33682a95233..311bf4e0919 100644
--- a/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.ts
+++ b/src/renderer/src/components/terminal-pane/terminal-spawn-error-display.ts
@@ -1,4 +1,5 @@
 import { translate } from '@/i18n/i18n'
+import { resolveClientEnvironmentFooter } from '@/lib/client-environment-info'
 import {
   LEGACY_PTY_ALLOCATION_HINT,
   LEGACY_TERMINAL_PROCESS_LIMIT_HINT,
@@ -43,3 +44,16 @@ export function withoutTerminalSpawnIssueRequest(error: string): string {
     )
     .join('\n')
 }
+
+const FAILED_SPAWN_SHELL = /failed to spawn shell "([^"\r\n]+)"/i
+
+/** The shell a failed spawn names, which the footer reports instead of the client's default shell. */
+export function failedSpawnShell(error: string): string | null {
+  return FAILED_SPAWN_SHELL.exec(error)?.[1] ?? null
+}
+
+/** The client environment footer, naming the failed spawn's own shell (wsl.exe, say) over the default one. */
+export function failedSpawnEnvironmentFooter(error: string): Promise<string> {
+  const shell = failedSpawnShell(error)
+  return resolveClientEnvironmentFooter(shell ? { shell } : {})
+}
diff --git a/src/renderer/src/lib/client-environment-info.ts b/src/renderer/src/lib/client-environment-info.ts
index 1749e6d1ac5..fda7a1a295b 100644
--- a/src/renderer/src/lib/client-environment-info.ts
+++ b/src/renderer/src/lib/client-environment-info.ts
@@ -32,8 +32,10 @@ function resolveFallbackPlatform(): NodeJS.Platform | 'unknown' {
   }
 }
 
-export async function resolveClientEnvironmentFooter(): Promise<string> {
-  return formatClientEnvironmentFooter(await resolveClientEnvironmentInfo())
+export async function resolveClientEnvironmentFooter(
+  overrides: { shell?: string } = {}
+): Promise<string> {
+  return formatClientEnvironmentFooter({ ...(await resolveClientEnvironmentInfo()), ...overrides })
 }
 
 async function resolveAppVersion(): Promise<string> {
diff --git a/src/renderer/src/lib/folder-workspace-path-status.ts b/src/renderer/src/lib/folder-workspace-path-status.ts
index 86b9cab2793..aec5a3dde48 100644
--- a/src/renderer/src/lib/folder-workspace-path-status.ts
+++ b/src/renderer/src/lib/folder-workspace-path-status.ts
@@ -171,6 +171,11 @@ export function humanizeFolderWorkspacePathError(message: string): string {
     : message
 }
 
+// Why: a moved or deleted folder is the user's to fix, so it gets actionable copy, not an issue link.
+export function humanizeFolderWorkspacePathErrors(error: string): string {
+  return error.split('\n').map(humanizeFolderWorkspacePathError).join('\n')
+}
+
 export function formatFolderWorkspaceCreateError(error: unknown): {
   title: string
   description: string
diff --git a/src/renderer/src/lib/wsl-distro-hold-copy.ts b/src/renderer/src/lib/wsl-distro-hold-copy.ts
index 41669f11f8f..6ebbdfcaf67 100644
--- a/src/renderer/src/lib/wsl-distro-hold-copy.ts
+++ b/src/renderer/src/lib/wsl-distro-hold-copy.ts
@@ -26,3 +26,8 @@ export function localizeWslDistroHoldText(text: string): string {
   const found = findWslDistroHoldInText(text)
   return found ? text.split(found.matched).join(localizedWslDistroHoldMessage(found.hold)) : text
 }
+
+/** Whether text names a held terminal, in either form. */
+export function isWslDistroHoldText(text: string): boolean {
+  return findWslDistroHoldInText(text) !== null
+}