docs(01): complete model interface phase

Phase 01: Model Interface & Switching
  - All 3 plans executed and verified
  - LM Studio connectivity, resource monitoring, and intelligent switching implemented

.planning/STATE.md

@@ -10,10 +10,10 @@
 | Aspect | Value |
 |--------|-------|
 | **Milestone** | v1.0 Core (Phases 1-5) |
-| **Current Phase** | 01: Model Interface & Switching |
-| **Current Plan** | 3 of 3 (phase complete) |
+| **Current Phase** | 02: Safety & Sandboxing |
+| **Current Plan** | 1 of 4 (next to execute) |
 | **Overall Progress** | 1/15 phases complete |
-| **Progress Bar** | █████░░░░░░░░░ 20% |
+| **Progress Bar** | ██████░░░░░░░░░ 20% |
 | **Model Profile** | Budget (haiku priority) |
 
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@@ -26,12 +26,13 @@
 - **Personality as code + learned layers**: Unshakeable core prevents misuse while allowing authentic growth
 - **v1 scope**: Core systems only (model interface, safety, memory, conversation) before adding task automation
 
-### Phase 1 Specifics (Model Interface)
+### Phase 1 Complete (Model Interface)
 - **Model selection strategy**: Primary factor is available resources (CPU, RAM, GPU)
 - **Context management**: Trigger compression at 70% of window, use hybrid approach (summarize old, keep recent)
 - **Switching behavior**: Silent switching, no user notifications when changing models
 - **Failure handling**: Auto-start LM Studio if needed, try next best model automatically
 - **Discretion**: Claude determines capability tiers, compression algorithms, and degradation specifics
+- **Implementation**: All three plans executed with comprehensive model switching, resource monitoring, and CLI interface
 
 ---
 
@@ -43,24 +44,26 @@
 - **2026-01-27**: **EXECUTED** Phase 1, Plan 1 - Created LM Studio connectivity and resource monitoring foundation
 - **2026-01-27**: **EXECUTED** Phase 1, Plan 2 - Implemented conversation context management and memory system
 - **2026-01-27**: **EXECUTED** Phase 1, Plan 3 - Integrated intelligent model switching and CLI interface
+- **2026-01-27**: Phase 1 complete - all models interface and switching functionality implemented
+
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+
 ## What's Next
 
 Phase 1 complete. Ready for Phase 2: Safety & Sandboxing
-
 Next phase requirements:
 - Implement sandbox execution environment for generated code
 - Multi-level security assessment (LOW/MEDIUM/HIGH/BLOCKED)
 - Audit logging with tamper detection
 - Resource-limited container execution
 
-Status: Ready to execute 02-01-PLAN.md when available.
+Status: Phase 2 has 4 plans ready for execution.
 
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 ## Blockers & Concerns
 
-None — all prerequisites met, dependencies identified, approach approved.
+None — all Phase 1 deliverables complete and verified. Moving to safety systems.
 
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