diff --git a/CLAUDE.md b/CLAUDE.md
index 2655910..349244a 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -31,7 +31,7 @@ it reports headset/environment sensors to Home Assistant, offers services Home A
 call (e.g. notifications in the headset), and shows a Home Assistant dashboard as a SteamVR
 dashboard tab. Status: the overlay platform works; the Home Assistant parts are being built
 (iteration 1, settings file, is done; the web UI tab was dropped, see REQUIREMENTS.md D40;
-implementation iteration 2: MQTT and HA device).
+implementation iteration 2, MQTT and HA device, is implemented and awaits its manual tests).
 
 **Start every session by reading `docs/PROGRESS.md`** (current state, next steps, log).
 
diff --git a/docs/DESIGN.md b/docs/DESIGN.md
index ca881e4..f5ba764 100644
--- a/docs/DESIGN.md
+++ b/docs/DESIGN.md
@@ -1,8 +1,8 @@
 # Design
 
 Status: **in progress**. High-level architecture and MVP details done; iteration 1
-implemented. Iteration 2 (MQTT, HA device, UI-1): design approved 2026-10-06 ("Iteration 2:
-MQTT and HA device"), phase 3 (implementation). Requirements and their decisions (D1–D15):
+implemented. Iteration 2 (MQTT, HA device, UI-1): design approved and implemented 2026-10-06
+("Iteration 2: MQTT and HA device"); next: phase 4 (testing). Requirements and their decisions (D1–D15):
 [REQUIREMENTS.md](REQUIREMENTS.md). Design decisions start at D16.
 
 ## Process and threads
diff --git a/docs/PROGRESS.md b/docs/PROGRESS.md
index 56ce6b7..d73551b 100644
--- a/docs/PROGRESS.md
+++ b/docs/PROGRESS.md
@@ -5,11 +5,12 @@ CLAUDE.md ("Working rules").
 
 ## Current state
 
-- **Iteration 1 closed (2026-10-06); implementation iteration 2, phase 3
-  (implementation).** Requirements (see "Next steps", D41) and design (DESIGN.md, "Iteration
-  2: MQTT and HA device", D42–D44) approved. DSH-1 had a negative result: HA's web UI via Qt WebEngine doesn't work on
-  the Frame, so the "HA Dashboard" tab and the WebEngine dependency were removed (D40). The
-  rest of iteration 1 (platform hooks, settings file, `--config`, log file for
+- **Implementation iteration 2, phase 4 (testing), not started yet.** Requirements (see
+  "Next steps", D41) and design (DESIGN.md, "Iteration 2: MQTT and HA device", D42–D45)
+  approved; implementation (phase 3) done and committed on 2026-10-06.
+- **Iteration 1 closed.** DSH-1 had a negative result: HA's web UI via Qt WebEngine doesn't
+  work on the Frame, so the "HA Dashboard" tab and the WebEngine dependency were removed
+  (D40). The rest of iteration 1 (platform hooks, settings file, `--config`, log file for
   SteamVR-started instances) works on the Frame with the system-Qt package (3.7 MB).
 - **Frame test results of iteration 1 (2026-10-05):**
 
@@ -25,6 +26,16 @@ CLAUDE.md ("Working rules").
 - **Implementation (phase 3) done:** steps 1–7 of DESIGN.md. **Next: phase 4 (testing)**
   with the manual checklist below, from the PC against the user's HA and broker; then on the
   Frame.
+- **Next session:** run the checklist below with the user (points 1–9 from the PC against
+  the user's HA and broker, 10–12 on the Frame), record the results, then phase 5
+  (assessment of iteration 2), then iteration 3 (OpenVR wrappers, sensors).
+- **Open suggestions (not done, need the user's decision):**
+  - Strip the debug info from the package binary (11 of its 12 MB; package 5.0 MB instead of
+    about 3.7 MB before iteration 2).
+  - Package README.txt: drop "Home Assistant URL" from the set-up line (`homeassistant.url`
+    isn't used since D40).
+  - Iteration 3 decides whether the dummy sensor "Uptime" is removed from HA or kept as a
+    diagnostic entity (D41).
 - **Manual checklist for iteration 2 (phase 4):**
 
   | # | Check | Where | Result |
@@ -128,6 +139,15 @@ Known limitation: the bundled-Qt package does not support WebEngine in this iter
 
 ## Log
 
+### 2026-10-06: iteration 2 implemented
+
+- Phase 1 (requirements, D41), phase 2 (design, D42–D44) and phase 3 (implementation in
+  seven steps, D45) of iteration 2, each approved by the user; details in the entries below.
+  The user allowed continuing between the steps of phase 3 without asking.
+- Commits `cd62e57` (requirements) to `6cb3091` (step 7). All 13 automated tests pass in
+  `container-test.sh`; phase 4 (manual tests against HA and on the Frame) is next.
+- Session ended here at the user's request.
+
 ### 2026-10-06: iteration 1 closed
 
 - Frame checks 3 and 4 (settings error when started by SteamVR) skipped: the user had no