diff --git a/goals/G-098-suite-tk-tcllib-critcl.md b/goals/G-098-suite-tk-tcllib-critcl.md
index 96dc4368..b50a1aa1 100644
--- a/goals/G-098-suite-tk-tcllib-critcl.md
+++ b/goals/G-098-suite-tk-tcllib-critcl.md
@@ -233,6 +233,35 @@ user direction 2026-07-20:
   built from _vfscommon before this increment) - unaffected for default-console
   interactive use (collect path is foreign-console only); picks the fix up at the
   next vfscommonupdate + project cycle.
+
+### 2026-07-20 increment 7: kit-hosted runtests fixed ('src' package_mode children) + tally line surfaces file-level failures
+
+- User datapoint: 'runtests.tcl -include-paths modules/punk/console/*** -jobs 16'
+  FAILED under punk91/punk902z/punk905_beta while the tally said 'Failed 0' beside a
+  red FAIL. Reproduced: ALL 7 console files failed at file level with ZERO tests run.
+  Cause: child test processes ('kitexe child_test_runner.tcl ...') boot via plain kit
+  script dispatch, which preloads kit-stamped punk packages (punk::console 0.7.2)
+  before the payload's src paths apply - the suites' pinned 'require punk::console
+  999999.0a1.0-' then version-conflicts and the child exits 1. runtests already
+  self-warned about exactly this ('prefer a native tclsh').
+- FIX: runtests detects a PUNK kit host (kit container heuristics AND ::punkboot
+  namespace - the punk_main.tcl boot marker) and launches children with the kit's
+  'src' package_mode ('kitexe src child_test_runner.tcl ...'), so children boot the
+  project's src dev modules (probe: punk::console 999999.0a1.0 provided, dev require
+  satisfied, argv/argv0 forwarding intact). Non-punk kit containers (e.g the suite's
+  tclsh90szip.exe - zipfs app mount, no punk boot) keep the old warning and get NO
+  extra arg (a plain tclsh would treat 'src' as the script to run).
+  runtests_run_child_process gains a required exemodeargs param (tpool replication
+  keeps working via info args/body).
+- TALLY: file-level failures (load/setup errors, child process failures) are not
+  test results, so the human tally could show 'Failed 0' on a FAIL run. The tally
+  line now appends 'Testfiles-failed N' (fail-coloured) whenever files failed:
+  'Total 0 Passed 0 Skipped 0 Failed 0 Testfiles-failed 1'. RUNTESTS_RESULT already
+  carried files_failed - unchanged.
+- VERIFICATION: console suites 71/71 PASS under punk905_beta, punk91, punk902z (all
+  previously 7 files failed / 0 run), native Tcl903 and suite tclsh90s unchanged
+  71/71 (no modeargs, no notes), tclsh90szip takes the non-punk warning path and
+  passes; tally demo via throwaway error-at-load file shows Testfiles-failed 1.
 - (superseded note kept for history below: the clone store subsequently moved from
   the suite-owned _build location to the machine-level ~/.punkshell/fossils - see
   increment 1 and the suite README for current truth)
diff --git a/src/tests/runtests.tcl b/src/tests/runtests.tcl
index 97d76a88..a57398f5 100644
--- a/src/tests/runtests.tcl
+++ b/src/tests/runtests.tcl
@@ -321,12 +321,14 @@ proc runtests_write_child_payload {payloadfile test_tmlist test_auto_path ifneed
     close $fd
 }
 
-proc runtests_run_child_process {exe bootstrap payloadfile testfile outfile errfile childtmpdir} {
+proc runtests_run_child_process {exe exemodeargs bootstrap payloadfile testfile outfile errfile childtmpdir} {
     #Run one test file in a child process, capturing stdout/stderr to files. Deliberately no
     #shellrun/shellfilter capture on the parent side: file capture avoids the parent-stdin/pipe
     #machinery, and -jobs parallel scheduling reuses the same mechanism (this proc is
     #replicated verbatim into tpool worker threads via info args/info body - keep it free of
     #package dependencies and namespace/global state, and keep every argument required).
+    #exemodeargs: extra argv between exe and bootstrap ({} normally; {src} under a punk kit
+    #so the child boots the project's src dev modules instead of kit-stamped packages).
     #childtmpdir overrides the child's tcltest -tmpdir when nonempty (mandatory per child
     #under -jobs so concurrent makeFile/makeDirectory helpers cannot collide); "" keeps the
     #shared -tmpdir carried in the payload options.
@@ -360,7 +362,7 @@ proc runtests_run_child_process {exe bootstrap payloadfile testfile outfile errf
         #errors in early -jobs runs, 2026-07-19). With autopurge off each pid is purged
         #explicitly after its status is read.
         tcl::process autopurge false
-        if {[catch {exec -- $exe $bootstrap $payloadfile $testfile $childtmpdir < $nulldev > $outfile 2> $errfile &} spawnresult errdict]} {
+        if {[catch {exec -- $exe {*}$exemodeargs $bootstrap $payloadfile $testfile $childtmpdir < $nulldev > $outfile 2> $errfile &} spawnresult errdict]} {
             #launch failure - no usable test run
             return [dict create error $spawnresult errorCode [dict get $errdict -errorcode] errorInfo [dict get $errdict -errorinfo]]
         }
@@ -392,7 +394,7 @@ proc runtests_run_child_process {exe bootstrap payloadfile testfile outfile errf
         #blocking fallback for runtimes without tcl::process (tcl 8.6): correct sequentially;
         #concurrent use from -jobs workers re-convoys on Windows (documented in
         #src/tests/AGENTS.md)
-        if {[catch {exec -- $exe $bootstrap $payloadfile $testfile $childtmpdir < $nulldev > $outfile 2> $errfile} emsg errdict]} {
+        if {[catch {exec -- $exe {*}$exemodeargs $bootstrap $payloadfile $testfile $childtmpdir < $nulldev > $outfile 2> $errfile} emsg errdict]} {
             set ecode [dict get $errdict -errorcode]
             if {[lindex $ecode 0] eq "CHILDSTATUS"} {
                 set exitcode [lindex $ecode 2]
@@ -887,8 +889,19 @@ if {!$report_json_only} {
 #tcltest options) so children select the same unbuilt dev modules as the singleproc testinterp.
 set runtests_workdir ""
 if {!$singleproc} {
+    set child_exe_modeargs [list]
     if {[llength $kit_lib_bases]} {
-        puts stderr "WARNING: -singleproc 0 under a kit executable: child processes boot via the kit's script dispatch with kit-stamped punk packages already loaded, which can shadow the src dev modules under test. Prefer a native tclsh for multi-process runs."
+        if {[namespace exists ::punkboot]} {
+            #punk kit (punk_main.tcl boot): plain script dispatch boots kit-stamped punk
+            #packages into the child (e.g punk::console 0.7.2) BEFORE the payload's src
+            #paths apply, so suite requires pinned 999999.0a1.0- hit version conflicts.
+            #The kit's 'src' package_mode boots children on the project's src dev modules
+            #instead - matching what the payload selects (G-098 kit-hosted runs 2026-07-20).
+            set child_exe_modeargs [list src]
+            puts stderr "NOTE: punk kit executable - child test processes launch with the kit's 'src' package_mode so src dev modules boot (not kit-stamped packages)."
+        } else {
+            puts stderr "WARNING: -singleproc 0 under a non-punk kit executable: child processes boot with the kit's bundled packages which can shadow the src dev modules under test. Prefer a native tclsh for multi-process runs."
+        }
     }
     set child_bootstrap [file join $test_base testsupport child_test_runner.tcl]
     if {![file exists $child_bootstrap]} {
@@ -1045,7 +1058,7 @@ if {$jobs_mode} {
         set c_err [file join $runtests_workdir child_stderr_$i.txt]
         set c_tmp [file join $childtmp_base childtmp_$i]
         file mkdir $c_tmp
-        set jid [tpool::post $pool [list runtests_run_child_process $thisexecutable $child_bootstrap $child_payloadfile $tfabs $c_out $c_err $c_tmp]]
+        set jid [tpool::post $pool [list runtests_run_child_process $thisexecutable $child_exe_modeargs $child_bootstrap $child_payloadfile $tfabs $c_out $c_err $c_tmp]]
         dict set jobmap $jid $tf
     }
     set pending [dict keys $jobmap]
@@ -1077,7 +1090,7 @@ if {$jobs_mode} {
         set c_err [file join $runtests_workdir child_stderr_$i.txt]
         set c_tmp [file join $childtmp_base childtmp_$i]
         file mkdir $c_tmp
-        set jobresult [runtests_run_child_process $thisexecutable $child_bootstrap $child_payloadfile $tfabs $c_out $c_err $c_tmp]
+        set jobresult [runtests_run_child_process $thisexecutable $child_exe_modeargs $child_bootstrap $child_payloadfile $tfabs $c_out $c_err $c_tmp]
         if {$report_detailed_markdown} {
             puts stdout "serial completed: $tf"
             flush stdout
@@ -1183,7 +1196,7 @@ foreach testfile_relative $testfiles {
             #file-collected event happened at collection time
             set result $runtests_job_results($testfile_relative)
         } else {
-            set result [runtests_run_child_process $thisexecutable $child_bootstrap $child_payloadfile $testfile $child_outfile $child_errfile ""]
+            set result [runtests_run_child_process $thisexecutable $child_exe_modeargs $child_bootstrap $child_payloadfile $testfile $child_outfile $child_errfile ""]
             if {$runtests_udptee_target ne ""} {
                 #relay the child's captured output to the watch target (file granularity -
                 #children do not stream live; see src/tests/AGENTS.md)
@@ -1196,7 +1209,7 @@ foreach testfile_relative $testfiles {
             }
         }
         if {$report_detailed_markdown} {
-            puts stdout "executed  $thisexecutable testsupport/child_test_runner.tcl $testfile_relative  "
+            puts stdout "executed  $thisexecutable[expr {[llength $child_exe_modeargs] ? " $child_exe_modeargs" : ""}] testsupport/child_test_runner.tcl $testfile_relative  "
         }
         flush stdout
     }
@@ -1508,7 +1521,13 @@ if {!$report_json_only} {
     } else {
         set tally_passed [runtests_clr pass $tally_passed]
     }
-    puts stdout "Total [dict get $tallydict total] $tally_passed Skipped [dict get $tallydict skipped] $tally_failed  "
+    set tally_line "Total [dict get $tallydict total] $tally_passed Skipped [dict get $tallydict skipped] $tally_failed"
+    if {[llength [dict get $tallydict files_with_fails]]} {
+        #file-level failures (load/setup errors, child process failures) are not test
+        #results - surface them here so a red FAIL can't sit beside 'Failed 0' unexplained
+        append tally_line " " [runtests_clr fail "Testfiles-failed [llength [dict get $tallydict files_with_fails]]"]
+    }
+    puts stdout "$tally_line  "
     puts stdout ""
 }