chore: update claude-code-base-action to v0.0.31

feat: add fallback_model input to enable automatic model fallback (#228 )
- Add fallback_model input to action.yml matching claude-code-base-action - Pass fallback_model through to the base action - Document the new input in README.md inputs table - Enables automatic fallback when primary model is unavailable 🤖 Generated with [Claude Code](https://claude.ai/code) Co-authored-by: Claude <noreply@anthropic.com>
2026-01-23 06:54:13 +08:00 · 2025-07-03 21:42:32 +00:00 · 2025-07-03 11:09:10 -07:00 · 2025-07-03 10:59:12 -07:00 · 2025-07-03 09:18:28 -07:00 · 2025-07-03 04:27:02 +00:00
34 changed files with 1981 additions and 68 deletions
--- a/.github/workflows/claude-review.yml
+++ b/.github/workflows/claude-review.yml
@@ -29,4 +29,4 @@ jobs:

            Be constructive and specific in your feedback. Give inline comments where applicable.
          anthropic_api_key: ${{ secrets.ANTHROPIC_API_KEY }}
-          allowed_tools: "mcp__github__add_pull_request_review_comment"
+          allowed_tools: "mcp__github__create_pending_pull_request_review,mcp__github__add_pull_request_review_comment_to_pending_review,mcp__github__submit_pending_pull_request_review,mcp__github__get_pull_request_diff"
--- a/.github/workflows/issue-triage.yml
+++ b/.github/workflows/issue-triage.yml
@@ -32,7 +32,7 @@ jobs:
                  "--rm",
                  "-e",
                  "GITHUB_PERSONAL_ACCESS_TOKEN",
-                  "ghcr.io/github/github-mcp-server:sha-7aced2b"
+                  "ghcr.io/github/github-mcp-server:sha-6d69797"
                ],
                "env": {
                  "GITHUB_PERSONAL_ACCESS_TOKEN": "${{ secrets.GITHUB_TOKEN }}"
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -0,0 +1,138 @@
+name: Create Release
+
+on:
+  workflow_dispatch:
+    inputs:
+      dry_run:
+        description: "Dry run (only show what would be created)"
+        required: false
+        type: boolean
+        default: false
+
+jobs:
+  create-release:
+    runs-on: ubuntu-latest
+    permissions:
+      contents: write
+    outputs:
+      next_version: ${{ steps.next_version.outputs.next_version }}
+    steps:
+      - name: Checkout code
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+
+      - name: Get latest tag
+        id: get_latest_tag
+        run: |
+          # Get only version tags (v + number pattern)
+          latest_tag=$(git tag -l 'v[0-9]*' | sort -V | tail -1 || echo "v0.0.0")
+          if [ -z "$latest_tag" ]; then
+            latest_tag="v0.0.0"
+          fi
+          echo "latest_tag=$latest_tag" >> $GITHUB_OUTPUT
+          echo "Latest tag: $latest_tag"
+
+      - name: Calculate next version
+        id: next_version
+        run: |
+          latest_tag="${{ steps.get_latest_tag.outputs.latest_tag }}"
+          # Remove 'v' prefix and split by dots
+          version=${latest_tag#v}
+          IFS='.' read -ra VERSION_PARTS <<< "$version"
+
+          # Increment patch version
+          major=${VERSION_PARTS[0]:-0}
+          minor=${VERSION_PARTS[1]:-0}
+          patch=${VERSION_PARTS[2]:-0}
+          patch=$((patch + 1))
+
+          next_version="v${major}.${minor}.${patch}"
+          echo "next_version=$next_version" >> $GITHUB_OUTPUT
+          echo "Next version: $next_version"
+
+      - name: Display dry run info
+        if: ${{ inputs.dry_run }}
+        run: |
+          echo "🔍 DRY RUN MODE"
+          echo "Would create tag: ${{ steps.next_version.outputs.next_version }}"
+          echo "From commit: ${{ github.sha }}"
+          echo "Previous tag: ${{ steps.get_latest_tag.outputs.latest_tag }}"
+
+      - name: Create and push tag
+        if: ${{ !inputs.dry_run }}
+        run: |
+          next_version="${{ steps.next_version.outputs.next_version }}"
+          git config user.name "github-actions[bot]"
+          git config user.email "github-actions[bot]@users.noreply.github.com"
+
+          git tag -a "$next_version" -m "Release $next_version"
+          git push origin "$next_version"
+
+      - name: Create Release
+        if: ${{ !inputs.dry_run }}
+        env:
+          GH_TOKEN: ${{ github.token }}
+        run: |
+          next_version="${{ steps.next_version.outputs.next_version }}"
+
+          gh release create "$next_version" \
+            --title "$next_version" \
+            --generate-notes \
+            --latest=false # We want to keep beta as the latest
+
+  update-beta-tag:
+    needs: create-release
+    if: ${{ !inputs.dry_run }}
+    runs-on: ubuntu-latest
+    permissions:
+      contents: write
+    steps:
+      - name: Checkout code
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+
+      - name: Update beta tag
+        run: |
+          # Get the latest version tag
+          VERSION=$(git tag -l 'v[0-9]*' | sort -V | tail -1)
+
+          # Update the beta tag to point to this release
+          git config user.name "github-actions[bot]"
+          git config user.email "github-actions[bot]@users.noreply.github.com"
+          git tag -fa beta -m "Update beta tag to ${VERSION}"
+          git push origin beta --force
+
+      - name: Update beta release to be latest
+        env:
+          GH_TOKEN: ${{ github.token }}
+        run: |
+          # Update beta release to be marked as latest
+          gh release edit beta --latest
+
+  update-major-tag:
+    needs: create-release
+    if: ${{ !inputs.dry_run }}
+    runs-on: ubuntu-latest
+    permissions:
+      contents: write
+    steps:
+      - name: Checkout code
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+
+      - name: Update major version tag
+        run: |
+          next_version="${{ needs.create-release.outputs.next_version }}"
+          # Extract major version (e.g., v0 from v0.0.20)
+          major_version=$(echo "$next_version" | cut -d. -f1)
+
+          # Update the major version tag to point to this release
+          git config user.name "github-actions[bot]"
+          git config user.email "github-actions[bot]@users.noreply.github.com"
+          git tag -fa "$major_version" -m "Update $major_version tag to $next_version"
+          git push origin "$major_version" --force
+
+          echo "Updated $major_version tag to point to $next_version"
--- a/.prettierignore
+++ b/.prettierignore
@@ -0,0 +1,2 @@
+# Test fixtures should not be formatted to preserve exact output matching
+test/fixtures/
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -50,20 +50,6 @@ Thank you for your interest in contributing to Claude Code Action! This document
   bun test
   ```

-2. **Integration Tests** (using GitHub Actions locally):
-
-   ```bash
-   ./test-local.sh
-   ```
-
-   This script:
-
-   - Installs `act` if not present (requires Homebrew on macOS)
-   - Runs the GitHub Action workflow locally using Docker
-   - Requires your `ANTHROPIC_API_KEY` to be set
-
-   On Apple Silicon Macs, the script automatically adds the `--container-architecture linux/amd64` flag to avoid compatibility issues.
-
 ## Pull Request Process

 1. Create a new branch from `main`:
@@ -103,13 +89,7 @@ Thank you for your interest in contributing to Claude Code Action! This document

 When modifying the action:

-1. Test locally with the test script:
-
-   ```bash
-   ./test-local.sh
-   ```
-
-2. Test in a real GitHub Actions workflow by:
+1. Test in a real GitHub Actions workflow by:
   - Creating a test repository
   - Using your branch as the action source:
     ```yaml
--- a/FAQ.md
+++ b/FAQ.md
@@ -12,6 +12,10 @@ The `github-actions` user cannot trigger subsequent GitHub Actions workflows. Th

 Only users with **write permissions** to the repository can trigger Claude. This is a security feature to prevent unauthorized use. Make sure the user commenting has at least write access to the repository.

+### Why can't I assign @claude to an issue on my repository?
+
+If you're in a public repository, you should be able to assign to Claude without issue. If it's a private organization repository, you can only assign to users in your own organization, which Claude isn't. In this case, you'll need to make a custom user in that case.
+
 ### Why am I getting OIDC authentication errors?

 If you're using the default GitHub App authentication, you must add the `id-token: write` permission to your workflow:
--- a/README.md
+++ b/README.md
@@ -49,7 +49,7 @@ on:
  pull_request_review_comment:
    types: [created]
  issues:
-    types: [opened, assigned]
+    types: [opened, assigned, labeled]
  pull_request_review:
    types: [submitted]

@@ -65,11 +65,15 @@ jobs:
          # trigger_phrase: "/claude"
          # Optional: add assignee trigger for issues
          # assignee_trigger: "claude"
+          # Optional: add label trigger for issues
+          # label_trigger: "claude"
          # Optional: add custom environment variables (YAML format)
          # claude_env: |
          #   NODE_ENV: test
          #   DEBUG: true
          #   API_URL: https://api.example.com
+          # Optional: limit the number of conversation turns
+          # max_turns: "5"
 ```

 ## Inputs
@@ -78,9 +82,13 @@ jobs:
 | --------------------- | -------------------------------------------------------------------------------------------------------------------- | -------- | --------- |
 | `anthropic_api_key`   | Anthropic API key (required for direct API, not needed for Bedrock/Vertex)                                           | No\*     | -         |
 | `direct_prompt`       | Direct prompt for Claude to execute automatically without needing a trigger (for automated workflows)                | No       | -         |
+| `base_branch`         | The base branch to use for creating new branches (e.g., 'main', 'develop')                                           | No       | -         |
+| `max_turns`           | Maximum number of conversation turns Claude can take (limits back-and-forth exchanges)                               | No       | -         |
 | `timeout_minutes`     | Timeout in minutes for execution                                                                                     | No       | `30`      |
+| `use_sticky_comment`  | Use just one comment to deliver PR comments (only applies for pull_request event workflows)                          | No       | `false`   |
 | `github_token`        | GitHub token for Claude to operate with. **Only include this if you're connecting a custom GitHub app of your own!** | No       | -         |
 | `model`               | Model to use (provider-specific format required for Bedrock/Vertex)                                                  | No       | -         |
+| `fallback_model`      | Enable automatic fallback to specified model when primary model is unavailable                                       | No       | -         |
 | `anthropic_model`     | **DEPRECATED**: Use `model` instead. Kept for backward compatibility.                                                | No       | -         |
 | `use_bedrock`         | Use Amazon Bedrock with OIDC authentication instead of direct Anthropic API                                          | No       | `false`   |
 | `use_vertex`          | Use Google Vertex AI with OIDC authentication instead of direct Anthropic API                                        | No       | `false`   |
@@ -89,7 +97,9 @@ jobs:
 | `custom_instructions` | Additional custom instructions to include in the prompt for Claude                                                   | No       | ""        |
 | `mcp_config`          | Additional MCP configuration (JSON string) that merges with the built-in GitHub MCP servers                          | No       | ""        |
 | `assignee_trigger`    | The assignee username that triggers the action (e.g. @claude). Only used for issue assignment                        | No       | -         |
+| `label_trigger`       | The label name that triggers the action when applied to an issue (e.g. "claude")                                     | No       | -         |
 | `trigger_phrase`      | The trigger phrase to look for in comments, issue/PR bodies, and issue titles                                        | No       | `@claude` |
+| `branch_prefix`       | The prefix to use for Claude branches (defaults to 'claude/', use 'claude-' for dash format)                         | No       | `claude/` |
 | `claude_env`          | Custom environment variables to pass to Claude Code execution (YAML format)                                          | No       | ""        |

 \*Required when using direct Anthropic API (default and when not using Bedrock or Vertex)
@@ -146,6 +156,40 @@ For MCP servers that require sensitive information like API keys or tokens, use
    # ... other inputs
 ```

+#### Using Python MCP Servers with uv
+
+For Python-based MCP servers managed with `uv`, you need to specify the directory containing your server:
+
+```yaml
+- uses: anthropics/claude-code-action@beta
+  with:
+    anthropic_api_key: ${{ secrets.ANTHROPIC_API_KEY }}
+    mcp_config: |
+      {
+        "mcpServers": {
+          "my-python-server": {
+            "type": "stdio",
+            "command": "uv",
+            "args": [
+              "--directory",
+              "${{ github.workspace }}/path/to/server/",
+              "run",
+              "server_file.py"
+            ]
+          }
+        }
+      }
+    allowed_tools: "my-python-server__<tool_name>" # Replace <tool_name> with your server's tool names
+    # ... other inputs
+```
+
+For example, if your Python MCP server is at `mcp_servers/weather.py`, you would use:
+
+```yaml
+"args":
+  ["--directory", "${{ github.workspace }}/mcp_servers/", "run", "weather.py"]
+```
+
 **Important**:

 - Always use GitHub Secrets (`${{ secrets.SECRET_NAME }}`) for sensitive values like API keys, tokens, or passwords. Never hardcode secrets directly in the workflow file.
@@ -311,6 +355,24 @@ You can pass custom environment variables to Claude Code execution using the `cl

 The `claude_env` input accepts YAML format where each line defines a key-value pair. These environment variables will be available to Claude Code during execution, allowing it to run tests, build processes, or other commands that depend on specific environment configurations.

+### Limiting Conversation Turns
+
+You can use the `max_turns` parameter to limit the number of back-and-forth exchanges Claude can have during task execution. This is useful for:
+
+- Controlling costs by preventing runaway conversations
+- Setting time boundaries for automated workflows
+- Ensuring predictable behavior in CI/CD pipelines
+
+```yaml
+- uses: anthropics/claude-code-action@beta
+  with:
+    anthropic_api_key: ${{ secrets.ANTHROPIC_API_KEY }}
+    max_turns: "5" # Limit to 5 conversation turns
+    # ... other inputs
+```
+
+When the turn limit is reached, Claude will stop execution gracefully. Choose a value that gives Claude enough turns to complete typical tasks while preventing excessive usage.
+
 ### Custom Tools

 By default, Claude only has access to:
@@ -326,8 +388,15 @@ Claude does **not** have access to execute arbitrary Bash commands by default. I
 ```yaml
 - uses: anthropics/claude-code-action@beta
  with:
-    allowed_tools: "Bash(npm install),Bash(npm run test),Edit,Replace,NotebookEditCell"
-    disallowed_tools: "TaskOutput,KillTask"
+    allowed_tools: |
+      Bash(npm install)
+      Bash(npm run test)
+      Edit
+      Replace
+      NotebookEditCell
+    disallowed_tools: |
+      TaskOutput
+      KillTask
    # ... other inputs
 ```

--- a/ROADMAP.md
+++ b/ROADMAP.md
@@ -0,0 +1,20 @@
+# Claude Code GitHub Action Roadmap
+
+Thank you for trying out the beta of our GitHub Action! This document outlines our path to `v1.0`. Items are not necessarily in priority order.
+
+## Path to 1.0
+
+- **Ability to see GitHub Action CI results** - This will enable Claude to look at CI failures and make updates to PRs to fix test failures, lint errors, and the like.
+- **Cross-repo support** - Enable Claude to work across multiple repositories in a single session
+- **Ability to modify workflow files** - Let Claude update GitHub Actions workflows and other CI configuration files
+- **Support for workflow_dispatch and repository_dispatch events** - Dispatch Claude on events triggered via API from other workflows or from other services
+- **Ability to disable commit signing** - Option to turn off GPG signing for environments where it's not required. This will enable Claude to use normal `git` bash commands for committing. This will likely become the default behavior once added.
+- **Better code review behavior** - Support inline comments on specific lines, provide higher quality reviews with more actionable feedback
+- **Support triggering @claude from bot users** - Allow automation and bot accounts to invoke Claude
+- **Customizable base prompts** - Full control over Claude's initial context with template variables like `$PR_COMMENTS`, `$PR_FILES`, etc. Users can replace our default prompt entirely while still accessing key contextual data
+
+---
+
+**Note:** This roadmap represents our current vision for reaching `v1.0` and is subject to change based on user feedback and development priorities.
+
+We welcome feedback on these planned features! If you're interested in contributing to any of these features, please open an issue to discuss implementation details with us. We're also open to suggestions for new features not listed here.
--- a/action.yml
+++ b/action.yml
@@ -12,9 +12,17 @@ inputs:
  assignee_trigger:
    description: "The assignee username that triggers the action (e.g. @claude)"
    required: false
+  label_trigger:
+    description: "The label that triggers the action (e.g. claude)"
+    required: false
+    default: "claude"
  base_branch:
    description: "The branch to use as the base/source when creating new branches (defaults to repository default branch)"
    required: false
+  branch_prefix:
+    description: "The prefix to use for Claude branches (defaults to 'claude/', use 'claude-' for dash format)"
+    required: false
+    default: "claude/"

  # Claude Code configuration
  model:
@@ -23,6 +31,9 @@ inputs:
  anthropic_model:
    description: "DEPRECATED: Use 'model' instead. Model to use (provider-specific format required for Bedrock/Vertex)"
    required: false
+  fallback_model:
+    description: "Enable automatic fallback to specified model when primary model is unavailable"
+    required: false
  allowed_tools:
    description: "Additional tools for Claude to use (the base GitHub tools will always be included)"
    required: false
@@ -62,10 +73,18 @@ inputs:
    required: false
    default: "false"

+  max_turns:
+    description: "Maximum number of conversation turns"
+    required: false
+    default: ""
  timeout_minutes:
    description: "Timeout in minutes for execution"
    required: false
    default: "30"
+  use_sticky_comment:
+    description: "Use just one comment to deliver issue/PR comments"
+    required: false
+    default: "false"

 outputs:
  execution_file:
@@ -94,24 +113,30 @@ runs:
      env:
        TRIGGER_PHRASE: ${{ inputs.trigger_phrase }}
        ASSIGNEE_TRIGGER: ${{ inputs.assignee_trigger }}
+        LABEL_TRIGGER: ${{ inputs.label_trigger }}
        BASE_BRANCH: ${{ inputs.base_branch }}
+        BRANCH_PREFIX: ${{ inputs.branch_prefix }}
        ALLOWED_TOOLS: ${{ inputs.allowed_tools }}
+        DISALLOWED_TOOLS: ${{ inputs.disallowed_tools }}
        CUSTOM_INSTRUCTIONS: ${{ inputs.custom_instructions }}
        DIRECT_PROMPT: ${{ inputs.direct_prompt }}
        MCP_CONFIG: ${{ inputs.mcp_config }}
        OVERRIDE_GITHUB_TOKEN: ${{ inputs.github_token }}
        GITHUB_RUN_ID: ${{ github.run_id }}
+        USE_STICKY_COMMENT: ${{ inputs.use_sticky_comment }}

    - name: Run Claude Code
      id: claude-code
      if: steps.prepare.outputs.contains_trigger == 'true'
-      uses: anthropics/claude-code-base-action@9e4e150978667888ba2108a2ee63a79bf9cfbe06 # v0.0.10
+      uses: anthropics/claude-code-base-action@a835717b36becf75584224421f4094aae288cad7 # v0.0.31
      with:
        prompt_file: ${{ runner.temp }}/claude-prompts/claude-prompt.txt
        allowed_tools: ${{ env.ALLOWED_TOOLS }}
        disallowed_tools: ${{ env.DISALLOWED_TOOLS }}
        timeout_minutes: ${{ inputs.timeout_minutes }}
+        max_turns: ${{ inputs.max_turns }}
        model: ${{ inputs.model || inputs.anthropic_model }}
+        fallback_model: ${{ inputs.fallback_model }}
        mcp_config: ${{ steps.prepare.outputs.mcp_config }}
        use_bedrock: ${{ inputs.use_bedrock }}
        use_vertex: ${{ inputs.use_vertex }}
@@ -164,15 +189,24 @@ runs:
        TRIGGER_USERNAME: ${{ github.event.comment.user.login || github.event.issue.user.login || github.event.pull_request.user.login || github.event.sender.login || github.triggering_actor || github.actor || '' }}
        PREPARE_SUCCESS: ${{ steps.prepare.outcome == 'success' }}
        PREPARE_ERROR: ${{ steps.prepare.outputs.prepare_error || '' }}
+        USE_STICKY_COMMENT: ${{ inputs.use_sticky_comment }}

    - name: Display Claude Code Report
      if: steps.prepare.outputs.contains_trigger == 'true' && steps.claude-code.outputs.execution_file != ''
      shell: bash
      run: |
-        echo "## Claude Code Report" >> $GITHUB_STEP_SUMMARY
-        echo '```json' >> $GITHUB_STEP_SUMMARY
-        cat "${{ steps.claude-code.outputs.execution_file }}" >> $GITHUB_STEP_SUMMARY
-        echo '```' >> $GITHUB_STEP_SUMMARY
+        # Try to format the turns, but if it fails, dump the raw JSON
+        if bun run ${{ github.action_path }}/src/entrypoints/format-turns.ts "${{ steps.claude-code.outputs.execution_file }}" >> $GITHUB_STEP_SUMMARY 2>/dev/null; then
+          echo "Successfully formatted Claude Code report"
+        else
+          echo "## Claude Code Report (Raw Output)" >> $GITHUB_STEP_SUMMARY
+          echo "" >> $GITHUB_STEP_SUMMARY
+          echo "Failed to format output (please report). Here's the raw JSON:" >> $GITHUB_STEP_SUMMARY
+          echo "" >> $GITHUB_STEP_SUMMARY
+          echo '```json' >> $GITHUB_STEP_SUMMARY
+          cat "${{ steps.claude-code.outputs.execution_file }}" >> $GITHUB_STEP_SUMMARY
+          echo '```' >> $GITHUB_STEP_SUMMARY
+        fi

    - name: Revoke app token
      if: always() && inputs.github_token == ''
--- a/bun.lock
+++ b/bun.lock
@@ -2,7 +2,7 @@
  "lockfileVersion": 1,
  "workspaces": {
    "": {
-      "name": "claude-pr-action",
+      "name": "@anthropic-ai/claude-code-action",
      "dependencies": {
        "@actions/core": "^1.10.1",
        "@actions/github": "^6.0.1",
--- a/examples/claude-auto-review.yml
+++ b/examples/claude-auto-review.yml
@@ -35,4 +35,4 @@ jobs:

            Provide constructive feedback with specific suggestions for improvement.
            Use inline comments to highlight specific areas of concern.
-          # allowed_tools: "mcp__github__add_pull_request_review_comment"
+          # allowed_tools: "mcp__github__create_pending_pull_request_review,mcp__github__add_pull_request_review_comment_to_pending_review,mcp__github__submit_pending_pull_request_review,mcp__github__get_pull_request_diff"
--- a/package.json
+++ b/package.json
@@ -1,5 +1,5 @@
 {
-  "name": "claude-pr-action",
+  "name": "@anthropic-ai/claude-code-action",
  "version": "1.0.0",
  "private": true,
  "scripts": {
--- a/src/create-prompt/index.ts
+++ b/src/create-prompt/index.ts
@@ -24,6 +24,7 @@ export type { CommonFields, PreparedContext } from "./types";

 const BASE_ALLOWED_TOOLS = [
  "Edit",
+  "MultiEdit",
  "Glob",
  "Grep",
  "LS",
@@ -80,6 +81,7 @@ export function prepareContext(
  const eventAction = context.eventAction;
  const triggerPhrase = context.inputs.triggerPhrase || "@claude";
  const assigneeTrigger = context.inputs.assigneeTrigger;
+  const labelTrigger = context.inputs.labelTrigger;
  const customInstructions = context.inputs.customInstructions;
  const allowedTools = context.inputs.allowedTools;
  const disallowedTools = context.inputs.disallowedTools;
@@ -241,7 +243,7 @@ export function prepareContext(
      }

      if (eventAction === "assigned") {
-        if (!assigneeTrigger) {
+        if (!assigneeTrigger && !directPrompt) {
          throw new Error(
            "ASSIGNEE_TRIGGER is required for issue assigned event",
          );
@@ -253,7 +255,20 @@ export function prepareContext(
          issueNumber,
          baseBranch,
          claudeBranch,
-          assigneeTrigger,
+          ...(assigneeTrigger && { assigneeTrigger }),
+        };
+      } else if (eventAction === "labeled") {
+        if (!labelTrigger) {
+          throw new Error("LABEL_TRIGGER is required for issue labeled event");
+        }
+        eventData = {
+          eventName: "issues",
+          eventAction: "labeled",
+          isPR: false,
+          issueNumber,
+          baseBranch,
+          claudeBranch,
+          labelTrigger,
        };
      } else if (eventAction === "opened") {
        eventData = {
@@ -327,10 +342,17 @@ export function getEventTypeAndContext(envVars: PreparedContext): {
          eventType: "ISSUE_CREATED",
          triggerContext: `new issue with '${envVars.triggerPhrase}' in body`,
        };
+      } else if (eventData.eventAction === "labeled") {
+        return {
+          eventType: "ISSUE_LABELED",
+          triggerContext: `issue labeled with '${eventData.labelTrigger}'`,
+        };
      }
      return {
        eventType: "ISSUE_ASSIGNED",
-        triggerContext: `issue assigned to '${eventData.assigneeTrigger}'`,
+        triggerContext: eventData.assigneeTrigger
+          ? `issue assigned to '${eventData.assigneeTrigger}'`
+          : `issue assigned event`,
      };

    case "pull_request":
@@ -417,6 +439,7 @@ ${
 }
 <claude_comment_id>${context.claudeCommentId}</claude_comment_id>
 <trigger_username>${context.triggerUsername ?? "Unknown"}</trigger_username>
+<trigger_display_name>${githubData.triggerDisplayName ?? context.triggerUsername ?? "Unknown"}</trigger_display_name>
 <trigger_phrase>${context.triggerPhrase}</trigger_phrase>
 ${
  (eventData.eventName === "issue_comment" ||
@@ -463,6 +486,7 @@ Follow these steps:
   - Analyze the pre-fetched data provided above.
   - For ISSUE_CREATED: Read the issue body to find the request after the trigger phrase.
   - For ISSUE_ASSIGNED: Read the entire issue body to understand the task.
+   - For ISSUE_LABELED: Read the entire issue body to understand the task.
 ${eventData.eventName === "issue_comment" || eventData.eventName === "pull_request_review_comment" || eventData.eventName === "pull_request_review" ? `   - For comment/review events: Your instructions are in the <trigger_comment> tag above.` : ""}
 ${context.directPrompt ? `   - DIRECT INSTRUCTION: A direct instruction was provided and is shown in the <direct_prompt> tag above. This is not from any GitHub comment but a direct instruction to execute.` : ""}
   - IMPORTANT: Only the comment/issue containing '${context.triggerPhrase}' has your instructions.
@@ -502,12 +526,14 @@ ${context.directPrompt ? `   - DIRECT INSTRUCTION: A direct instruction was prov
          ? `
      - Push directly using mcp__github_file_ops__commit_files to the existing branch (works for both new and existing files).
      - Use mcp__github_file_ops__commit_files to commit files atomically in a single commit (supports single or multiple files).
-      - When pushing changes with this tool and TRIGGER_USERNAME is not "Unknown", include a "Co-authored-by: ${context.triggerUsername} <${context.triggerUsername}@users.noreply.github.com>" line in the commit message.`
+      - When pushing changes with this tool and the trigger user is not "Unknown", include a Co-authored-by trailer in the commit message.
+      - Use: "Co-authored-by: ${githubData.triggerDisplayName ?? context.triggerUsername} <${context.triggerUsername}@users.noreply.github.com>"`
          : `
      - You are already on the correct branch (${eventData.claudeBranch || "the PR branch"}). Do not create a new branch.
      - Push changes directly to the current branch using mcp__github_file_ops__commit_files (works for both new and existing files)
      - Use mcp__github_file_ops__commit_files to commit files atomically in a single commit (supports single or multiple files).
-      - When pushing changes and TRIGGER_USERNAME is not "Unknown", include a "Co-authored-by: ${context.triggerUsername} <${context.triggerUsername}@users.noreply.github.com>" line in the commit message.
+      - When pushing changes and the trigger user is not "Unknown", include a Co-authored-by trailer in the commit message.
+      - Use: "Co-authored-by: ${githubData.triggerDisplayName ?? context.triggerUsername} <${context.triggerUsername}@users.noreply.github.com>"
      ${
        eventData.claudeBranch
          ? `- Provide a URL to create a PR manually in this format:
--- a/src/create-prompt/types.ts
+++ b/src/create-prompt/types.ts
@@ -65,7 +65,17 @@ type IssueAssignedEvent = {
  issueNumber: string;
  baseBranch: string;
  claudeBranch: string;
-  assigneeTrigger: string;
+  assigneeTrigger?: string;
+};
+
+type IssueLabeledEvent = {
+  eventName: "issues";
+  eventAction: "labeled";
+  isPR: false;
+  issueNumber: string;
+  baseBranch: string;
+  claudeBranch: string;
+  labelTrigger: string;
 };

 type PullRequestEvent = {
@@ -85,6 +95,7 @@ export type EventData =
  | IssueCommentEvent
  | IssueOpenedEvent
  | IssueAssignedEvent
+  | IssueLabeledEvent
  | PullRequestEvent;

 // Combined type with separate eventData field
--- a/src/entrypoints/format-turns.ts
+++ b/src/entrypoints/format-turns.ts
@@ -0,0 +1,461 @@
+#!/usr/bin/env bun
+
+import { readFileSync, existsSync } from "fs";
+import { exit } from "process";
+
+export interface ToolUse {
+  type: string;
+  name?: string;
+  input?: Record<string, any>;
+  id?: string;
+}
+
+export interface ToolResult {
+  type: string;
+  tool_use_id?: string;
+  content?: any;
+  is_error?: boolean;
+}
+
+export interface ContentItem {
+  type: string;
+  text?: string;
+  tool_use_id?: string;
+  content?: any;
+  is_error?: boolean;
+  name?: string;
+  input?: Record<string, any>;
+  id?: string;
+}
+
+export interface Message {
+  content: ContentItem[];
+  usage?: {
+    input_tokens?: number;
+    output_tokens?: number;
+  };
+}
+
+export interface Turn {
+  type: string;
+  subtype?: string;
+  message?: Message;
+  tools?: any[];
+  cost_usd?: number;
+  duration_ms?: number;
+  result?: string;
+}
+
+export interface GroupedContent {
+  type: string;
+  tools_count?: number;
+  data?: Turn;
+  text_parts?: string[];
+  tool_calls?: { tool_use: ToolUse; tool_result?: ToolResult }[];
+  usage?: Record<string, number>;
+}
+
+export function detectContentType(content: any): string {
+  const contentStr = String(content).trim();
+
+  // Check for JSON
+  if (contentStr.startsWith("{") && contentStr.endsWith("}")) {
+    try {
+      JSON.parse(contentStr);
+      return "json";
+    } catch {
+      // Fall through
+    }
+  }
+
+  if (contentStr.startsWith("[") && contentStr.endsWith("]")) {
+    try {
+      JSON.parse(contentStr);
+      return "json";
+    } catch {
+      // Fall through
+    }
+  }
+
+  // Check for code-like content
+  const codeKeywords = [
+    "def ",
+    "class ",
+    "import ",
+    "from ",
+    "function ",
+    "const ",
+    "let ",
+    "var ",
+  ];
+  if (codeKeywords.some((keyword) => contentStr.includes(keyword))) {
+    if (
+      contentStr.includes("def ") ||
+      contentStr.includes("import ") ||
+      contentStr.includes("from ")
+    ) {
+      return "python";
+    } else if (
+      ["function ", "const ", "let ", "var ", "=>"].some((js) =>
+        contentStr.includes(js),
+      )
+    ) {
+      return "javascript";
+    } else {
+      return "python"; // default for code
+    }
+  }
+
+  // Check for shell/bash output
+  const shellIndicators = ["ls -", "cd ", "mkdir ", "rm ", "$ ", "# "];
+  if (
+    contentStr.startsWith("/") ||
+    contentStr.includes("Error:") ||
+    contentStr.startsWith("total ") ||
+    shellIndicators.some((indicator) => contentStr.includes(indicator))
+  ) {
+    return "bash";
+  }
+
+  // Check for diff format
+  if (
+    contentStr.startsWith("@@") ||
+    contentStr.includes("+++ ") ||
+    contentStr.includes("--- ")
+  ) {
+    return "diff";
+  }
+
+  // Check for HTML/XML
+  if (contentStr.startsWith("<") && contentStr.endsWith(">")) {
+    return "html";
+  }
+
+  // Check for markdown
+  const mdIndicators = ["# ", "## ", "### ", "- ", "* ", "```"];
+  if (mdIndicators.some((indicator) => contentStr.includes(indicator))) {
+    return "markdown";
+  }
+
+  // Default to plain text
+  return "text";
+}
+
+export function formatResultContent(content: any): string {
+  if (!content) {
+    return "*(No output)*\n\n";
+  }
+
+  let contentStr: string;
+
+  // Check if content is a list with "type": "text" structure
+  try {
+    let parsedContent: any;
+    if (typeof content === "string") {
+      parsedContent = JSON.parse(content);
+    } else {
+      parsedContent = content;
+    }
+
+    if (
+      Array.isArray(parsedContent) &&
+      parsedContent.length > 0 &&
+      typeof parsedContent[0] === "object" &&
+      parsedContent[0]?.type === "text"
+    ) {
+      // Extract the text field from the first item
+      contentStr = parsedContent[0]?.text || "";
+    } else {
+      contentStr = String(content).trim();
+    }
+  } catch {
+    contentStr = String(content).trim();
+  }
+
+  // Truncate very long results
+  if (contentStr.length > 3000) {
+    contentStr = contentStr.substring(0, 2997) + "...";
+  }
+
+  // Detect content type
+  const contentType = detectContentType(contentStr);
+
+  // Handle JSON content specially - pretty print it
+  if (contentType === "json") {
+    try {
+      // Try to parse and pretty print JSON
+      const parsed = JSON.parse(contentStr);
+      contentStr = JSON.stringify(parsed, null, 2);
+    } catch {
+      // Keep original if parsing fails
+    }
+  }
+
+  // Format with appropriate syntax highlighting
+  if (
+    contentType === "text" &&
+    contentStr.length < 100 &&
+    !contentStr.includes("\n")
+  ) {
+    // Short text results don't need code blocks
+    return `**→** ${contentStr}\n\n`;
+  } else {
+    return `**Result:**\n\`\`\`${contentType}\n${contentStr}\n\`\`\`\n\n`;
+  }
+}
+
+export function formatToolWithResult(
+  toolUse: ToolUse,
+  toolResult?: ToolResult,
+): string {
+  const toolName = toolUse.name || "unknown_tool";
+  const toolInput = toolUse.input || {};
+
+  let result = `### 🔧 \`${toolName}\`\n\n`;
+
+  // Add parameters if they exist and are not empty
+  if (Object.keys(toolInput).length > 0) {
+    result += "**Parameters:**\n```json\n";
+    result += JSON.stringify(toolInput, null, 2);
+    result += "\n```\n\n";
+  }
+
+  // Add result if available
+  if (toolResult) {
+    const content = toolResult.content || "";
+    const isError = toolResult.is_error || false;
+
+    if (isError) {
+      result += `❌ **Error:** \`${content}\`\n\n`;
+    } else {
+      result += formatResultContent(content);
+    }
+  }
+
+  return result;
+}
+
+export function groupTurnsNaturally(data: Turn[]): GroupedContent[] {
+  const groupedContent: GroupedContent[] = [];
+  const toolResultsMap = new Map<string, ToolResult>();
+
+  // First pass: collect all tool results by tool_use_id
+  for (const turn of data) {
+    if (turn.type === "user") {
+      const content = turn.message?.content || [];
+      for (const item of content) {
+        if (item.type === "tool_result" && item.tool_use_id) {
+          toolResultsMap.set(item.tool_use_id, {
+            type: item.type,
+            tool_use_id: item.tool_use_id,
+            content: item.content,
+            is_error: item.is_error,
+          });
+        }
+      }
+    }
+  }
+
+  // Second pass: process turns and group naturally
+  for (const turn of data) {
+    const turnType = turn.type || "unknown";
+
+    if (turnType === "system") {
+      const subtype = turn.subtype || "";
+      if (subtype === "init") {
+        const tools = turn.tools || [];
+        groupedContent.push({
+          type: "system_init",
+          tools_count: tools.length,
+        });
+      } else {
+        groupedContent.push({
+          type: "system_other",
+          data: turn,
+        });
+      }
+    } else if (turnType === "assistant") {
+      const message = turn.message || { content: [] };
+      const content = message.content || [];
+      const usage = message.usage || {};
+
+      // Process content items
+      const textParts: string[] = [];
+      const toolCalls: { tool_use: ToolUse; tool_result?: ToolResult }[] = [];
+
+      for (const item of content) {
+        const itemType = item.type || "";
+
+        if (itemType === "text") {
+          textParts.push(item.text || "");
+        } else if (itemType === "tool_use") {
+          const toolUseId = item.id;
+          const toolResult = toolUseId
+            ? toolResultsMap.get(toolUseId)
+            : undefined;
+          toolCalls.push({
+            tool_use: {
+              type: item.type,
+              name: item.name,
+              input: item.input,
+              id: item.id,
+            },
+            tool_result: toolResult,
+          });
+        }
+      }
+
+      if (textParts.length > 0 || toolCalls.length > 0) {
+        groupedContent.push({
+          type: "assistant_action",
+          text_parts: textParts,
+          tool_calls: toolCalls,
+          usage: usage,
+        });
+      }
+    } else if (turnType === "user") {
+      // Handle user messages that aren't tool results
+      const message = turn.message || { content: [] };
+      const content = message.content || [];
+      const textParts: string[] = [];
+
+      for (const item of content) {
+        if (item.type === "text") {
+          textParts.push(item.text || "");
+        }
+      }
+
+      if (textParts.length > 0) {
+        groupedContent.push({
+          type: "user_message",
+          text_parts: textParts,
+        });
+      }
+    } else if (turnType === "result") {
+      groupedContent.push({
+        type: "final_result",
+        data: turn,
+      });
+    }
+  }
+
+  return groupedContent;
+}
+
+export function formatGroupedContent(groupedContent: GroupedContent[]): string {
+  let markdown = "## Claude Code Report\n\n";
+
+  for (const item of groupedContent) {
+    const itemType = item.type;
+
+    if (itemType === "system_init") {
+      markdown += `## 🚀 System Initialization\n\n**Available Tools:** ${item.tools_count} tools loaded\n\n---\n\n`;
+    } else if (itemType === "system_other") {
+      markdown += `## ⚙️ System Message\n\n${JSON.stringify(item.data, null, 2)}\n\n---\n\n`;
+    } else if (itemType === "assistant_action") {
+      // Add text content first (if any) - no header needed
+      for (const text of item.text_parts || []) {
+        if (text.trim()) {
+          markdown += `${text}\n\n`;
+        }
+      }
+
+      // Add tool calls with their results
+      for (const toolCall of item.tool_calls || []) {
+        markdown += formatToolWithResult(
+          toolCall.tool_use,
+          toolCall.tool_result,
+        );
+      }
+
+      // Add usage info if available
+      const usage = item.usage || {};
+      if (Object.keys(usage).length > 0) {
+        const inputTokens = usage.input_tokens || 0;
+        const outputTokens = usage.output_tokens || 0;
+        markdown += `*Token usage: ${inputTokens} input, ${outputTokens} output*\n\n`;
+      }
+
+      // Only add separator if this section had content
+      if (
+        (item.text_parts && item.text_parts.length > 0) ||
+        (item.tool_calls && item.tool_calls.length > 0)
+      ) {
+        markdown += "---\n\n";
+      }
+    } else if (itemType === "user_message") {
+      markdown += "## 👤 User\n\n";
+      for (const text of item.text_parts || []) {
+        if (text.trim()) {
+          markdown += `${text}\n\n`;
+        }
+      }
+      markdown += "---\n\n";
+    } else if (itemType === "final_result") {
+      const data = item.data || {};
+      const cost = (data as any).cost_usd || 0;
+      const duration = (data as any).duration_ms || 0;
+      const resultText = (data as any).result || "";
+
+      markdown += "## ✅ Final Result\n\n";
+      if (resultText) {
+        markdown += `${resultText}\n\n`;
+      }
+      markdown += `**Cost:** $${cost.toFixed(4)} | **Duration:** ${(duration / 1000).toFixed(1)}s\n\n`;
+    }
+  }
+
+  return markdown;
+}
+
+export function formatTurnsFromData(data: Turn[]): string {
+  // Group turns naturally
+  const groupedContent = groupTurnsNaturally(data);
+
+  // Generate markdown
+  const markdown = formatGroupedContent(groupedContent);
+
+  return markdown;
+}
+
+function main(): void {
+  // Get the JSON file path from command line arguments
+  const args = process.argv.slice(2);
+  if (args.length === 0) {
+    console.error("Usage: format-turns.ts <json-file>");
+    exit(1);
+  }
+
+  const jsonFile = args[0];
+  if (!jsonFile) {
+    console.error("Error: No JSON file provided");
+    exit(1);
+  }
+
+  if (!existsSync(jsonFile)) {
+    console.error(`Error: ${jsonFile} not found`);
+    exit(1);
+  }
+
+  try {
+    // Read the JSON file
+    const fileContent = readFileSync(jsonFile, "utf-8");
+    const data: Turn[] = JSON.parse(fileContent);
+
+    // Group turns naturally
+    const groupedContent = groupTurnsNaturally(data);
+
+    // Generate markdown
+    const markdown = formatGroupedContent(groupedContent);
+
+    // Print to stdout (so it can be captured by shell)
+    console.log(markdown);
+  } catch (error) {
+    console.error(`Error processing file: ${error}`);
+    exit(1);
+  }
+}
+
+if (import.meta.main) {
+  main();
+}
--- a/src/entrypoints/prepare.ts
+++ b/src/entrypoints/prepare.ts
@@ -59,6 +59,7 @@ async function run() {
      repository: `${context.repository.owner}/${context.repository.repo}`,
      prNumber: context.entityNumber.toString(),
      isPR: context.isPR,
+      triggerUsername: context.actor,
    });

    // Step 8: Setup branch
--- a/src/github/api/queries/github.ts
+++ b/src/github/api/queries/github.ts
@@ -104,3 +104,11 @@ export const ISSUE_QUERY = `
    }
  }
 `;
+
+export const USER_QUERY = `
+  query($login: String!) {
+    user(login: $login) {
+      name
+    }
+  }
+`;
--- a/src/github/context.ts
+++ b/src/github/context.ts
@@ -1,6 +1,7 @@
 import * as github from "@actions/github";
 import type {
  IssuesEvent,
+  IssuesAssignedEvent,
  IssueCommentEvent,
  PullRequestEvent,
  PullRequestReviewEvent,
@@ -28,11 +29,14 @@ export type ParsedGitHubContext = {
  inputs: {
    triggerPhrase: string;
    assigneeTrigger: string;
+    labelTrigger: string;
    allowedTools: string[];
    disallowedTools: string[];
    customInstructions: string;
    directPrompt: string;
    baseBranch?: string;
+    branchPrefix: string;
+    useStickyComment: boolean;
  };
 };

@@ -52,17 +56,14 @@ export function parseGitHubContext(): ParsedGitHubContext {
    inputs: {
      triggerPhrase: process.env.TRIGGER_PHRASE ?? "@claude",
      assigneeTrigger: process.env.ASSIGNEE_TRIGGER ?? "",
-      allowedTools: (process.env.ALLOWED_TOOLS ?? "")
-        .split(",")
-        .map((tool) => tool.trim())
-        .filter((tool) => tool.length > 0),
-      disallowedTools: (process.env.DISALLOWED_TOOLS ?? "")
-        .split(",")
-        .map((tool) => tool.trim())
-        .filter((tool) => tool.length > 0),
+      labelTrigger: process.env.LABEL_TRIGGER ?? "",
+      allowedTools: parseMultilineInput(process.env.ALLOWED_TOOLS ?? ""),
+      disallowedTools: parseMultilineInput(process.env.DISALLOWED_TOOLS ?? ""),
      customInstructions: process.env.CUSTOM_INSTRUCTIONS ?? "",
      directPrompt: process.env.DIRECT_PROMPT ?? "",
      baseBranch: process.env.BASE_BRANCH,
+      branchPrefix: process.env.BRANCH_PREFIX ?? "claude/",
+      useStickyComment: process.env.USE_STICKY_COMMENT === "true",
    },
  };

@@ -116,6 +117,14 @@ export function parseGitHubContext(): ParsedGitHubContext {
  }
 }

+export function parseMultilineInput(s: string): string[] {
+  return s
+    .split(/,|[\n\r]+/)
+    .map((tool) => tool.replace(/#.+$/, ""))
+    .map((tool) => tool.trim())
+    .filter((tool) => tool.length > 0);
+}
+
 export function isIssuesEvent(
  context: ParsedGitHubContext,
 ): context is ParsedGitHubContext & { payload: IssuesEvent } {
@@ -145,3 +154,9 @@ export function isPullRequestReviewCommentEvent(
 ): context is ParsedGitHubContext & { payload: PullRequestReviewCommentEvent } {
  return context.eventName === "pull_request_review_comment";
 }
+
+export function isIssuesAssignedEvent(
+  context: ParsedGitHubContext,
+): context is ParsedGitHubContext & { payload: IssuesAssignedEvent } {
+  return isIssuesEvent(context) && context.eventAction === "assigned";
+}
--- a/src/github/data/fetcher.ts
+++ b/src/github/data/fetcher.ts
@@ -1,6 +1,6 @@
 import { execSync } from "child_process";
 import type { Octokits } from "../api/client";
-import { ISSUE_QUERY, PR_QUERY } from "../api/queries/github";
+import { ISSUE_QUERY, PR_QUERY, USER_QUERY } from "../api/queries/github";
 import type {
  GitHubComment,
  GitHubFile,
@@ -18,6 +18,7 @@ type FetchDataParams = {
  repository: string;
  prNumber: string;
  isPR: boolean;
+  triggerUsername?: string;
 };

 export type GitHubFileWithSHA = GitHubFile & {
@@ -31,6 +32,7 @@ export type FetchDataResult = {
  changedFilesWithSHA: GitHubFileWithSHA[];
  reviewData: { nodes: GitHubReview[] } | null;
  imageUrlMap: Map<string, string>;
+  triggerDisplayName?: string | null;
 };

 export async function fetchGitHubData({
@@ -38,6 +40,7 @@ export async function fetchGitHubData({
  repository,
  prNumber,
  isPR,
+  triggerUsername,
 }: FetchDataParams): Promise<FetchDataResult> {
  const [owner, repo] = repository.split("/");
  if (!owner || !repo) {
@@ -191,6 +194,12 @@ export async function fetchGitHubData({
    allComments,
  );

+  // Fetch trigger user display name if username is provided
+  let triggerDisplayName: string | null | undefined;
+  if (triggerUsername) {
+    triggerDisplayName = await fetchUserDisplayName(octokits, triggerUsername);
+  }
+
  return {
    contextData,
    comments,
@@ -198,5 +207,27 @@ export async function fetchGitHubData({
    changedFilesWithSHA,
    reviewData,
    imageUrlMap,
+    triggerDisplayName,
  };
 }
+
+export type UserQueryResponse = {
+  user: {
+    name: string | null;
+  };
+};
+
+export async function fetchUserDisplayName(
+  octokits: Octokits,
+  login: string,
+): Promise<string | null> {
+  try {
+    const result = await octokits.graphql<UserQueryResponse>(USER_QUERY, {
+      login,
+    });
+    return result.user.name;
+  } catch (error) {
+    console.warn(`Failed to fetch user display name for ${login}:`, error);
+    return null;
+  }
+}
--- a/src/github/operations/branch.ts
+++ b/src/github/operations/branch.ts
@@ -26,7 +26,7 @@ export async function setupBranch(
 ): Promise<BranchInfo> {
  const { owner, repo } = context.repository;
  const entityNumber = context.entityNumber;
-  const { baseBranch } = context.inputs;
+  const { baseBranch, branchPrefix } = context.inputs;
  const isPR = context.isPR;

  if (isPR) {
@@ -45,9 +45,16 @@ export async function setupBranch(

      const branchName = prData.headRefName;

-      // Execute git commands to checkout PR branch (shallow fetch for performance)
-      // Fetch the branch with a depth of 20 to avoid fetching too much history, while still allowing for some context
-      await $`git fetch origin --depth=20 ${branchName}`;
+      // Determine optimal fetch depth based on PR commit count, with a minimum of 20
+      const commitCount = prData.commits.totalCount;
+      const fetchDepth = Math.max(commitCount, 20);
+
+      console.log(
+        `PR #${entityNumber}: ${commitCount} commits, using fetch depth ${fetchDepth}`,
+      );
+
+      // Execute git commands to checkout PR branch (dynamic depth based on PR size)
+      await $`git fetch origin --depth=${fetchDepth} ${branchName}`;
      await $`git checkout ${branchName}`;

      console.log(`Successfully checked out PR branch for PR #${entityNumber}`);
@@ -90,7 +97,7 @@ export async function setupBranch(
    .split("T")
    .join("_");

-  const newBranch = `claude/${entityType}-${entityNumber}-${timestamp}`;
+  const newBranch = `${branchPrefix}${entityType}-${entityNumber}-${timestamp}`;

  try {
    // Get the SHA of the source branch
--- a/src/github/operations/comments/create-initial.ts
+++ b/src/github/operations/comments/create-initial.ts
@@ -9,6 +9,7 @@ import { appendFileSync } from "fs";
 import { createJobRunLink, createCommentBody } from "./common";
 import {
  isPullRequestReviewCommentEvent,
+  isPullRequestEvent,
  type ParsedGitHubContext,
 } from "../../context";
 import type { Octokit } from "@octokit/rest";
@@ -25,8 +26,39 @@ export async function createInitialComment(
  try {
    let response;

-    // Only use createReplyForReviewComment if it's a PR review comment AND we have a comment_id
-    if (isPullRequestReviewCommentEvent(context)) {
+    if (
+      context.inputs.useStickyComment &&
+      context.isPR &&
+      isPullRequestEvent(context)
+    ) {
+      const comments = await octokit.rest.issues.listComments({
+        owner,
+        repo,
+        issue_number: context.entityNumber,
+      });
+      const existingComment = comments.data.find(
+        (comment) =>
+          comment.user?.login.indexOf("claude[bot]") !== -1 ||
+          comment.body === initialBody,
+      );
+      if (existingComment) {
+        response = await octokit.rest.issues.updateComment({
+          owner,
+          repo,
+          comment_id: existingComment.id,
+          body: initialBody,
+        });
+      } else {
+        // Create new comment if no existing one found
+        response = await octokit.rest.issues.createComment({
+          owner,
+          repo,
+          issue_number: context.entityNumber,
+          body: initialBody,
+        });
+      }
+    } else if (isPullRequestReviewCommentEvent(context)) {
+      // Only use createReplyForReviewComment if it's a PR review comment AND we have a comment_id
      response = await octokit.rest.pulls.createReplyForReviewComment({
        owner,
        repo,
--- a/src/github/types.ts
+++ b/src/github/types.ts
@@ -1,6 +1,7 @@
 // Types for GitHub GraphQL query responses
 export type GitHubAuthor = {
  login: string;
+  name?: string;
 };

 export type GitHubComment = {
--- a/src/github/validation/trigger.ts
+++ b/src/github/validation/trigger.ts
@@ -3,6 +3,7 @@
 import * as core from "@actions/core";
 import {
  isIssuesEvent,
+  isIssuesAssignedEvent,
  isIssueCommentEvent,
  isPullRequestEvent,
  isPullRequestReviewEvent,
@@ -12,7 +13,7 @@ import type { ParsedGitHubContext } from "../context";

 export function checkContainsTrigger(context: ParsedGitHubContext): boolean {
  const {
-    inputs: { assigneeTrigger, triggerPhrase, directPrompt },
+    inputs: { assigneeTrigger, labelTrigger, triggerPhrase, directPrompt },
  } = context;

  // If direct prompt is provided, always trigger
@@ -22,10 +23,10 @@ export function checkContainsTrigger(context: ParsedGitHubContext): boolean {
  }

  // Check for assignee trigger
-  if (isIssuesEvent(context) && context.eventAction === "assigned") {
+  if (isIssuesAssignedEvent(context)) {
    // Remove @ symbol from assignee_trigger if present
    let triggerUser = assigneeTrigger.replace(/^@/, "");
-    const assigneeUsername = context.payload.issue.assignee?.login || "";
+    const assigneeUsername = context.payload.assignee?.login || "";

    if (triggerUser && assigneeUsername === triggerUser) {
      console.log(`Issue assigned to trigger user '${triggerUser}'`);
@@ -33,6 +34,16 @@ export function checkContainsTrigger(context: ParsedGitHubContext): boolean {
    }
  }

+  // Check for label trigger
+  if (isIssuesEvent(context) && context.eventAction === "labeled") {
+    const labelName = (context.payload as any).label?.name || "";
+
+    if (labelTrigger && labelName === labelTrigger) {
+      console.log(`Issue labeled with trigger label '${labelTrigger}'`);
+      return true;
+    }
+  }
+
  // Check for issue body and title trigger on issue creation
  if (isIssuesEvent(context) && context.eventAction === "opened") {
    const issueBody = context.payload.issue.body || "";
--- a/src/mcp/github-file-ops-server.ts
+++ b/src/mcp/github-file-ops-server.ts
@@ -125,13 +125,58 @@ server.tool(
            ? filePath
            : join(REPO_DIR, filePath);

-          const content = await readFile(fullPath, "utf-8");
-          return {
-            path: filePath,
-            mode: "100644",
-            type: "blob",
-            content: content,
-          };
+          // Check if file is binary (images, etc.)
+          const isBinaryFile =
+            /\.(png|jpg|jpeg|gif|webp|ico|pdf|zip|tar|gz|exe|bin|woff|woff2|ttf|eot)$/i.test(
+              filePath,
+            );
+
+          if (isBinaryFile) {
+            // For binary files, create a blob first using the Blobs API
+            const binaryContent = await readFile(fullPath);
+
+            // Create blob using Blobs API (supports encoding parameter)
+            const blobUrl = `${GITHUB_API_URL}/repos/${owner}/${repo}/git/blobs`;
+            const blobResponse = await fetch(blobUrl, {
+              method: "POST",
+              headers: {
+                Accept: "application/vnd.github+json",
+                Authorization: `Bearer ${githubToken}`,
+                "X-GitHub-Api-Version": "2022-11-28",
+                "Content-Type": "application/json",
+              },
+              body: JSON.stringify({
+                content: binaryContent.toString("base64"),
+                encoding: "base64",
+              }),
+            });
+
+            if (!blobResponse.ok) {
+              const errorText = await blobResponse.text();
+              throw new Error(
+                `Failed to create blob for ${filePath}: ${blobResponse.status} - ${errorText}`,
+              );
+            }
+
+            const blobData = (await blobResponse.json()) as { sha: string };
+
+            // Return tree entry with blob SHA
+            return {
+              path: filePath,
+              mode: "100644",
+              type: "blob",
+              sha: blobData.sha,
+            };
+          } else {
+            // For text files, include content directly in tree
+            const content = await readFile(fullPath, "utf-8");
+            return {
+              path: filePath,
+              mode: "100644",
+              type: "blob",
+              content: content,
+            };
+          }
        }),
      );

@@ -466,6 +511,7 @@ server.tool(

      const octokit = new Octokit({
        auth: githubToken,
+        baseUrl: GITHUB_API_URL,
      });

      const isPullRequestReviewComment =
--- a/src/mcp/install-mcp-server.ts
+++ b/src/mcp/install-mcp-server.ts
@@ -1,4 +1,5 @@
 import * as core from "@actions/core";
+import { GITHUB_API_URL } from "../github/api/config";

 type PrepareConfigParams = {
  githubToken: string;
@@ -46,6 +47,7 @@ export async function prepareMcpConfig(
            ...(claudeCommentId && { CLAUDE_COMMENT_ID: claudeCommentId }),
            GITHUB_EVENT_NAME: process.env.GITHUB_EVENT_NAME || "",
            IS_PR: process.env.IS_PR || "false",
+            GITHUB_API_URL: GITHUB_API_URL,
          },
        },
      },
@@ -60,7 +62,7 @@ export async function prepareMcpConfig(
          "--rm",
          "-e",
          "GITHUB_PERSONAL_ACCESS_TOKEN",
-          "ghcr.io/github/github-mcp-server:sha-e9f748f", // https://github.com/github/github-mcp-server/releases/tag/v0.4.0
+          "ghcr.io/github/github-mcp-server:sha-6d69797", // https://github.com/github/github-mcp-server/releases/tag/v0.5.0
        ],
        env: {
          GITHUB_PERSONAL_ACCESS_TOKEN: githubToken,
--- a/test/create-prompt.test.ts
+++ b/test/create-prompt.test.ts
@@ -226,6 +226,33 @@ describe("generatePrompt", () => {
    );
  });

+  test("should generate prompt for issue labeled event", () => {
+    const envVars: PreparedContext = {
+      repository: "owner/repo",
+      claudeCommentId: "12345",
+      triggerPhrase: "@claude",
+      eventData: {
+        eventName: "issues",
+        eventAction: "labeled",
+        isPR: false,
+        issueNumber: "888",
+        baseBranch: "main",
+        claudeBranch: "claude/issue-888-20240101_120000",
+        labelTrigger: "claude-task",
+      },
+    };
+
+    const prompt = generatePrompt(envVars, mockGitHubData);
+
+    expect(prompt).toContain("<event_type>ISSUE_LABELED</event_type>");
+    expect(prompt).toContain(
+      "<trigger_context>issue labeled with 'claude-task'</trigger_context>",
+    );
+    expect(prompt).toContain(
+      "[Create a PR](https://github.com/owner/repo/compare/main",
+    );
+  });
+
  test("should include direct prompt when provided", () => {
    const envVars: PreparedContext = {
      repository: "owner/repo",
@@ -316,7 +343,7 @@ describe("generatePrompt", () => {

    expect(prompt).toContain("<trigger_username>johndoe</trigger_username>");
    expect(prompt).toContain(
-      "Co-authored-by: johndoe <johndoe@users.noreply.github.com>",
+      'Use: "Co-authored-by: johndoe <johndoe@users.noreply.github.com>"',
    );
  });

@@ -614,6 +641,51 @@ describe("getEventTypeAndContext", () => {
    expect(result.eventType).toBe("ISSUE_ASSIGNED");
    expect(result.triggerContext).toBe("issue assigned to 'claude-bot'");
  });
+
+  test("should return correct type and context for issue labeled", () => {
+    const envVars: PreparedContext = {
+      repository: "owner/repo",
+      claudeCommentId: "12345",
+      triggerPhrase: "@claude",
+      eventData: {
+        eventName: "issues",
+        eventAction: "labeled",
+        isPR: false,
+        issueNumber: "888",
+        baseBranch: "main",
+        claudeBranch: "claude/issue-888-20240101_120000",
+        labelTrigger: "claude-task",
+      },
+    };
+
+    const result = getEventTypeAndContext(envVars);
+
+    expect(result.eventType).toBe("ISSUE_LABELED");
+    expect(result.triggerContext).toBe("issue labeled with 'claude-task'");
+  });
+
+  test("should return correct type and context for issue assigned without assigneeTrigger", () => {
+    const envVars: PreparedContext = {
+      repository: "owner/repo",
+      claudeCommentId: "12345",
+      triggerPhrase: "@claude",
+      directPrompt: "Please assess this issue",
+      eventData: {
+        eventName: "issues",
+        eventAction: "assigned",
+        isPR: false,
+        issueNumber: "999",
+        baseBranch: "main",
+        claudeBranch: "claude/issue-999-20240101_120000",
+        // No assigneeTrigger when using directPrompt
+      },
+    };
+
+    const result = getEventTypeAndContext(envVars);
+
+    expect(result.eventType).toBe("ISSUE_ASSIGNED");
+    expect(result.triggerContext).toBe("issue assigned event");
+  });
 });

 describe("buildAllowedToolsString", () => {
--- a/test/fixtures/sample-turns-expected-output.md
+++ b/test/fixtures/sample-turns-expected-output.md
@@ -0,0 +1,95 @@
+## Claude Code Report
+
+## 🚀 System Initialization
+
+**Available Tools:** 8 tools loaded
+
+---
+
+I'll help you with this task. Let me start by examining the file to understand what needs to be changed.
+
+### 🔧 `Read`
+
+**Parameters:**
+```json
+{
+  "file_path": "/path/to/sample/file.py"
+}
+```
+
+**Result:**
+```python
+def example_function():
+    print("Debug message")  # This should be removed
+    return "Hello World"
+
+if __name__ == "__main__":
+    result = example_function()
+    print(result)
+```
+
+*Token usage: 100 input, 75 output*
+
+---
+
+I can see the debug print statement that needs to be removed. Let me fix this by editing the file.
+
+### 🔧 `Edit`
+
+**Parameters:**
+```json
+{
+  "file_path": "/path/to/sample/file.py",
+  "old_string": "def example_function():\n    print(\"Debug message\")  # This should be removed\n    return \"Hello World\"",
+  "new_string": "def example_function():\n    return \"Hello World\""
+}
+```
+
+**→** File successfully edited. The debug print statement has been removed.
+
+*Token usage: 200 input, 50 output*
+
+---
+
+Perfect! I've successfully removed the debug print statement from the function. Let me now create a pull request comment to document this change.
+
+### 🔧 `mcp__github__add_pull_request_review_comment`
+
+**Parameters:**
+```json
+{
+  "owner": "example-org",
+  "repo": "example-repo",
+  "pull_number": 123,
+  "body": "Removed debug print statement as requested.",
+  "commit_id": "abc123def456",
+  "path": "sample/file.py",
+  "line": 2
+}
+```
+
+**→** Successfully posted review comment to PR #123
+
+*Token usage: 150 input, 80 output*
+
+---
+
+Great! I've successfully completed the requested task:
+
+1. ✅ Located the debug print statement in the file
+2. ✅ Removed the print statement while preserving the function logic
+3. ✅ Added a review comment documenting the change
+
+The debug print statement has been removed as requested by the reviewers.
+
+*Token usage: 180 input, 60 output*
+
+---
+
+## ✅ Final Result
+
+Successfully removed debug print statement from file and added review comment to document the change.
+
+**Cost:** $0.0347 | **Duration:** 18.8s
+
+
--- a/test/fixtures/sample-turns.json
+++ b/test/fixtures/sample-turns.json
@@ -0,0 +1,196 @@
+[
+  {
+    "type": "system",
+    "subtype": "init",
+    "session_id": "sample-session-id",
+    "tools": [
+      "Task",
+      "Bash",
+      "Read",
+      "Edit",
+      "Write",
+      "mcp__github__get_file_contents",
+      "mcp__github__create_or_update_file",
+      "mcp__github__add_pull_request_review_comment"
+    ],
+    "mcp_servers": [
+      {
+        "name": "github",
+        "status": "connected"
+      }
+    ]
+  },
+  {
+    "type": "assistant",
+    "message": {
+      "id": "msg_sample123",
+      "type": "message",
+      "role": "assistant",
+      "model": "claude-test-model",
+      "content": [
+        {
+          "type": "text",
+          "text": "I'll help you with this task. Let me start by examining the file to understand what needs to be changed."
+        },
+        {
+          "type": "tool_use",
+          "id": "tool_call_1",
+          "name": "Read",
+          "input": {
+            "file_path": "/path/to/sample/file.py"
+          }
+        }
+      ],
+      "stop_reason": "tool_use",
+      "stop_sequence": null,
+      "usage": {
+        "input_tokens": 100,
+        "cache_creation_input_tokens": 0,
+        "cache_read_input_tokens": 50,
+        "output_tokens": 75
+      }
+    },
+    "session_id": "sample-session-id"
+  },
+  {
+    "type": "user",
+    "message": {
+      "content": [
+        {
+          "type": "tool_result",
+          "tool_use_id": "tool_call_1",
+          "content": "def example_function():\n    print(\"Debug message\")  # This should be removed\n    return \"Hello World\"\n\nif __name__ == \"__main__\":\n    result = example_function()\n    print(result)",
+          "is_error": false
+        }
+      ]
+    }
+  },
+  {
+    "type": "assistant",
+    "message": {
+      "id": "msg_sample124",
+      "type": "message",
+      "role": "assistant",
+      "model": "claude-test-model",
+      "content": [
+        {
+          "type": "text",
+          "text": "I can see the debug print statement that needs to be removed. Let me fix this by editing the file."
+        },
+        {
+          "type": "tool_use",
+          "id": "tool_call_2",
+          "name": "Edit",
+          "input": {
+            "file_path": "/path/to/sample/file.py",
+            "old_string": "def example_function():\n    print(\"Debug message\")  # This should be removed\n    return \"Hello World\"",
+            "new_string": "def example_function():\n    return \"Hello World\""
+          }
+        }
+      ],
+      "stop_reason": "tool_use",
+      "stop_sequence": null,
+      "usage": {
+        "input_tokens": 200,
+        "cache_creation_input_tokens": 0,
+        "cache_read_input_tokens": 100,
+        "output_tokens": 50
+      }
+    },
+    "session_id": "sample-session-id"
+  },
+  {
+    "type": "user",
+    "message": {
+      "content": [
+        {
+          "type": "tool_result",
+          "tool_use_id": "tool_call_2",
+          "content": "File successfully edited. The debug print statement has been removed.",
+          "is_error": false
+        }
+      ]
+    }
+  },
+  {
+    "type": "assistant",
+    "message": {
+      "id": "msg_sample125",
+      "type": "message",
+      "role": "assistant",
+      "model": "claude-test-model",
+      "content": [
+        {
+          "type": "text",
+          "text": "Perfect! I've successfully removed the debug print statement from the function. Let me now create a pull request comment to document this change."
+        },
+        {
+          "type": "tool_use",
+          "id": "tool_call_3",
+          "name": "mcp__github__add_pull_request_review_comment",
+          "input": {
+            "owner": "example-org",
+            "repo": "example-repo",
+            "pull_number": 123,
+            "body": "Removed debug print statement as requested.",
+            "commit_id": "abc123def456",
+            "path": "sample/file.py",
+            "line": 2
+          }
+        }
+      ],
+      "stop_reason": "tool_use",
+      "stop_sequence": null,
+      "usage": {
+        "input_tokens": 150,
+        "cache_creation_input_tokens": 0,
+        "cache_read_input_tokens": 75,
+        "output_tokens": 80
+      }
+    },
+    "session_id": "sample-session-id"
+  },
+  {
+    "type": "user",
+    "message": {
+      "content": [
+        {
+          "type": "tool_result",
+          "tool_use_id": "tool_call_3",
+          "content": "Successfully posted review comment to PR #123",
+          "is_error": false
+        }
+      ]
+    }
+  },
+  {
+    "type": "assistant",
+    "message": {
+      "id": "msg_sample126",
+      "type": "message",
+      "role": "assistant",
+      "model": "claude-test-model",
+      "content": [
+        {
+          "type": "text",
+          "text": "Great! I've successfully completed the requested task:\n\n1. ✅ Located the debug print statement in the file\n2. ✅ Removed the print statement while preserving the function logic\n3. ✅ Added a review comment documenting the change\n\nThe debug print statement has been removed as requested by the reviewers."
+        }
+      ],
+      "stop_reason": "end_turn",
+      "stop_sequence": null,
+      "usage": {
+        "input_tokens": 180,
+        "cache_creation_input_tokens": 0,
+        "cache_read_input_tokens": 90,
+        "output_tokens": 60
+      }
+    },
+    "session_id": "sample-session-id"
+  },
+  {
+    "type": "result",
+    "cost_usd": 0.0347,
+    "duration_ms": 18750,
+    "result": "Successfully removed debug print statement from file and added review comment to document the change."
+  }
+]
--- a/test/format-turns.test.ts
+++ b/test/format-turns.test.ts
@@ -0,0 +1,439 @@
+import { expect, test, describe } from "bun:test";
+import { readFileSync } from "fs";
+import { join } from "path";
+import {
+  formatTurnsFromData,
+  groupTurnsNaturally,
+  formatGroupedContent,
+  detectContentType,
+  formatResultContent,
+  formatToolWithResult,
+  type Turn,
+  type ToolUse,
+  type ToolResult,
+} from "../src/entrypoints/format-turns";
+
+describe("detectContentType", () => {
+  test("detects JSON objects", () => {
+    expect(detectContentType('{"key": "value"}')).toBe("json");
+    expect(detectContentType('{"number": 42}')).toBe("json");
+  });
+
+  test("detects JSON arrays", () => {
+    expect(detectContentType("[1, 2, 3]")).toBe("json");
+    expect(detectContentType('["a", "b"]')).toBe("json");
+  });
+
+  test("detects Python code", () => {
+    expect(detectContentType("def hello():\n    pass")).toBe("python");
+    expect(detectContentType("import os")).toBe("python");
+    expect(detectContentType("from math import pi")).toBe("python");
+  });
+
+  test("detects JavaScript code", () => {
+    expect(detectContentType("function test() {}")).toBe("javascript");
+    expect(detectContentType("const x = 5")).toBe("javascript");
+    expect(detectContentType("let y = 10")).toBe("javascript");
+    expect(detectContentType("const fn = () => console.log()")).toBe(
+      "javascript",
+    );
+  });
+
+  test("detects bash/shell content", () => {
+    expect(detectContentType("/usr/bin/test")).toBe("bash");
+    expect(detectContentType("Error: command not found")).toBe("bash");
+    expect(detectContentType("ls -la")).toBe("bash");
+    expect(detectContentType("$ echo hello")).toBe("bash");
+  });
+
+  test("detects diff format", () => {
+    expect(detectContentType("@@ -1,3 +1,3 @@")).toBe("diff");
+    expect(detectContentType("+++ file.txt")).toBe("diff");
+    expect(detectContentType("--- file.txt")).toBe("diff");
+  });
+
+  test("detects HTML/XML", () => {
+    expect(detectContentType("<div>hello</div>")).toBe("html");
+    expect(detectContentType("<xml>content</xml>")).toBe("html");
+  });
+
+  test("detects markdown", () => {
+    expect(detectContentType("- List item")).toBe("markdown");
+    expect(detectContentType("* List item")).toBe("markdown");
+    expect(detectContentType("```code```")).toBe("markdown");
+  });
+
+  test("defaults to text", () => {
+    expect(detectContentType("plain text")).toBe("text");
+    expect(detectContentType("just some words")).toBe("text");
+  });
+});
+
+describe("formatResultContent", () => {
+  test("handles empty content", () => {
+    expect(formatResultContent("")).toBe("*(No output)*\n\n");
+    expect(formatResultContent(null)).toBe("*(No output)*\n\n");
+    expect(formatResultContent(undefined)).toBe("*(No output)*\n\n");
+  });
+
+  test("formats short text without code blocks", () => {
+    const result = formatResultContent("success");
+    expect(result).toBe("**→** success\n\n");
+  });
+
+  test("formats long text with code blocks", () => {
+    const longText =
+      "This is a longer piece of text that should be formatted in a code block because it exceeds the short text threshold";
+    const result = formatResultContent(longText);
+    expect(result).toContain("**Result:**");
+    expect(result).toContain("```text");
+    expect(result).toContain(longText);
+  });
+
+  test("pretty prints JSON content", () => {
+    const jsonContent = '{"key": "value", "number": 42}';
+    const result = formatResultContent(jsonContent);
+    expect(result).toContain("```json");
+    expect(result).toContain('"key": "value"');
+    expect(result).toContain('"number": 42');
+  });
+
+  test("truncates very long content", () => {
+    const veryLongContent = "A".repeat(4000);
+    const result = formatResultContent(veryLongContent);
+    expect(result).toContain("...");
+    // Should not contain the full long content
+    expect(result.length).toBeLessThan(veryLongContent.length);
+  });
+
+  test("handles type:text structure", () => {
+    const structuredContent = [{ type: "text", text: "Hello world" }];
+    const result = formatResultContent(JSON.stringify(structuredContent));
+    expect(result).toBe("**→** Hello world\n\n");
+  });
+});
+
+describe("formatToolWithResult", () => {
+  test("formats tool with parameters and result", () => {
+    const toolUse: ToolUse = {
+      type: "tool_use",
+      name: "read_file",
+      input: { file_path: "/path/to/file.txt" },
+      id: "tool_123",
+    };
+
+    const toolResult: ToolResult = {
+      type: "tool_result",
+      tool_use_id: "tool_123",
+      content: "File content here",
+      is_error: false,
+    };
+
+    const result = formatToolWithResult(toolUse, toolResult);
+
+    expect(result).toContain("### 🔧 `read_file`");
+    expect(result).toContain("**Parameters:**");
+    expect(result).toContain('"file_path": "/path/to/file.txt"');
+    expect(result).toContain("**→** File content here");
+  });
+
+  test("formats tool with error result", () => {
+    const toolUse: ToolUse = {
+      type: "tool_use",
+      name: "failing_tool",
+      input: { param: "value" },
+    };
+
+    const toolResult: ToolResult = {
+      type: "tool_result",
+      content: "Permission denied",
+      is_error: true,
+    };
+
+    const result = formatToolWithResult(toolUse, toolResult);
+
+    expect(result).toContain("### 🔧 `failing_tool`");
+    expect(result).toContain("❌ **Error:** `Permission denied`");
+  });
+
+  test("formats tool without parameters", () => {
+    const toolUse: ToolUse = {
+      type: "tool_use",
+      name: "simple_tool",
+    };
+
+    const result = formatToolWithResult(toolUse);
+
+    expect(result).toContain("### 🔧 `simple_tool`");
+    expect(result).not.toContain("**Parameters:**");
+  });
+
+  test("handles unknown tool name", () => {
+    const toolUse: ToolUse = {
+      type: "tool_use",
+    };
+
+    const result = formatToolWithResult(toolUse);
+
+    expect(result).toContain("### 🔧 `unknown_tool`");
+  });
+});
+
+describe("groupTurnsNaturally", () => {
+  test("groups system initialization", () => {
+    const data: Turn[] = [
+      {
+        type: "system",
+        subtype: "init",
+        tools: [{ name: "tool1" }, { name: "tool2" }],
+      },
+    ];
+
+    const result = groupTurnsNaturally(data);
+
+    expect(result).toHaveLength(1);
+    expect(result[0]?.type).toBe("system_init");
+    expect(result[0]?.tools_count).toBe(2);
+  });
+
+  test("groups assistant actions with tool calls", () => {
+    const data: Turn[] = [
+      {
+        type: "assistant",
+        message: {
+          content: [
+            { type: "text", text: "I'll help you" },
+            {
+              type: "tool_use",
+              id: "tool_123",
+              name: "read_file",
+              input: { file_path: "/test.txt" },
+            },
+          ],
+          usage: { input_tokens: 100, output_tokens: 50 },
+        },
+      },
+      {
+        type: "user",
+        message: {
+          content: [
+            {
+              type: "tool_result",
+              tool_use_id: "tool_123",
+              content: "file content",
+              is_error: false,
+            },
+          ],
+        },
+      },
+    ];
+
+    const result = groupTurnsNaturally(data);
+
+    expect(result).toHaveLength(1);
+    expect(result[0]?.type).toBe("assistant_action");
+    expect(result[0]?.text_parts).toEqual(["I'll help you"]);
+    expect(result[0]?.tool_calls).toHaveLength(1);
+    expect(result[0]?.tool_calls?.[0]?.tool_use.name).toBe("read_file");
+    expect(result[0]?.tool_calls?.[0]?.tool_result?.content).toBe(
+      "file content",
+    );
+    expect(result[0]?.usage).toEqual({ input_tokens: 100, output_tokens: 50 });
+  });
+
+  test("groups user messages", () => {
+    const data: Turn[] = [
+      {
+        type: "user",
+        message: {
+          content: [{ type: "text", text: "Please help me" }],
+        },
+      },
+    ];
+
+    const result = groupTurnsNaturally(data);
+
+    expect(result).toHaveLength(1);
+    expect(result[0]?.type).toBe("user_message");
+    expect(result[0]?.text_parts).toEqual(["Please help me"]);
+  });
+
+  test("groups final results", () => {
+    const data: Turn[] = [
+      {
+        type: "result",
+        cost_usd: 0.1234,
+        duration_ms: 5000,
+        result: "Task completed",
+      },
+    ];
+
+    const result = groupTurnsNaturally(data);
+
+    expect(result).toHaveLength(1);
+    expect(result[0]?.type).toBe("final_result");
+    expect(result[0]?.data).toEqual(data[0]!);
+  });
+});
+
+describe("formatGroupedContent", () => {
+  test("formats system initialization", () => {
+    const groupedContent = [
+      {
+        type: "system_init",
+        tools_count: 3,
+      },
+    ];
+
+    const result = formatGroupedContent(groupedContent);
+
+    expect(result).toContain("## Claude Code Report");
+    expect(result).toContain("## 🚀 System Initialization");
+    expect(result).toContain("**Available Tools:** 3 tools loaded");
+  });
+
+  test("formats assistant actions", () => {
+    const groupedContent = [
+      {
+        type: "assistant_action",
+        text_parts: ["I'll help you with that"],
+        tool_calls: [
+          {
+            tool_use: {
+              type: "tool_use",
+              name: "test_tool",
+              input: { param: "value" },
+            },
+            tool_result: {
+              type: "tool_result",
+              content: "result",
+              is_error: false,
+            },
+          },
+        ],
+        usage: { input_tokens: 100, output_tokens: 50 },
+      },
+    ];
+
+    const result = formatGroupedContent(groupedContent);
+
+    expect(result).toContain("I'll help you with that");
+    expect(result).toContain("### 🔧 `test_tool`");
+    expect(result).toContain("*Token usage: 100 input, 50 output*");
+  });
+
+  test("formats user messages", () => {
+    const groupedContent = [
+      {
+        type: "user_message",
+        text_parts: ["Help me please"],
+      },
+    ];
+
+    const result = formatGroupedContent(groupedContent);
+
+    expect(result).toContain("## 👤 User");
+    expect(result).toContain("Help me please");
+  });
+
+  test("formats final results", () => {
+    const groupedContent = [
+      {
+        type: "final_result",
+        data: {
+          type: "result",
+          cost_usd: 0.1234,
+          duration_ms: 5678,
+          result: "Success!",
+        } as Turn,
+      },
+    ];
+
+    const result = formatGroupedContent(groupedContent);
+
+    expect(result).toContain("## ✅ Final Result");
+    expect(result).toContain("Success!");
+    expect(result).toContain("**Cost:** $0.1234");
+    expect(result).toContain("**Duration:** 5.7s");
+  });
+});
+
+describe("formatTurnsFromData", () => {
+  test("handles empty data", () => {
+    const result = formatTurnsFromData([]);
+    expect(result).toBe("## Claude Code Report\n\n");
+  });
+
+  test("formats complete conversation", () => {
+    const data: Turn[] = [
+      {
+        type: "system",
+        subtype: "init",
+        tools: [{ name: "tool1" }],
+      },
+      {
+        type: "assistant",
+        message: {
+          content: [
+            { type: "text", text: "I'll help you" },
+            {
+              type: "tool_use",
+              id: "tool_123",
+              name: "read_file",
+              input: { file_path: "/test.txt" },
+            },
+          ],
+        },
+      },
+      {
+        type: "user",
+        message: {
+          content: [
+            {
+              type: "tool_result",
+              tool_use_id: "tool_123",
+              content: "file content",
+              is_error: false,
+            },
+          ],
+        },
+      },
+      {
+        type: "result",
+        cost_usd: 0.05,
+        duration_ms: 2000,
+        result: "Done",
+      },
+    ];
+
+    const result = formatTurnsFromData(data);
+
+    expect(result).toContain("## Claude Code Report");
+    expect(result).toContain("## 🚀 System Initialization");
+    expect(result).toContain("I'll help you");
+    expect(result).toContain("### 🔧 `read_file`");
+    expect(result).toContain("## ✅ Final Result");
+    expect(result).toContain("Done");
+  });
+});
+
+describe("integration tests", () => {
+  test("formats real conversation data correctly", () => {
+    // Load the sample JSON data
+    const jsonPath = join(__dirname, "fixtures", "sample-turns.json");
+    const expectedPath = join(
+      __dirname,
+      "fixtures",
+      "sample-turns-expected-output.md",
+    );
+
+    const jsonData = JSON.parse(readFileSync(jsonPath, "utf-8"));
+    const expectedOutput = readFileSync(expectedPath, "utf-8").trim();
+
+    // Format the data using our function
+    const actualOutput = formatTurnsFromData(jsonData).trim();
+
+    // Compare the outputs
+    expect(actualOutput).toBe(expectedOutput);
+  });
+});
--- a/test/github/context.test.ts
+++ b/test/github/context.test.ts
@@ -0,0 +1,57 @@
+import { describe, it, expect } from "bun:test";
+import { parseMultilineInput } from "../../src/github/context";
+
+describe("parseMultilineInput", () => {
+  it("should parse a comma-separated string", () => {
+    const input = `Bash(bun install),Bash(bun test:*),Bash(bun typecheck)`;
+    const result = parseMultilineInput(input);
+    expect(result).toEqual([
+      "Bash(bun install)",
+      "Bash(bun test:*)",
+      "Bash(bun typecheck)",
+    ]);
+  });
+
+  it("should parse multiline string", () => {
+    const input = `Bash(bun install)
+Bash(bun test:*)
+Bash(bun typecheck)`;
+    const result = parseMultilineInput(input);
+    expect(result).toEqual([
+      "Bash(bun install)",
+      "Bash(bun test:*)",
+      "Bash(bun typecheck)",
+    ]);
+  });
+
+  it("should parse comma-separated multiline line", () => {
+    const input = `Bash(bun install),Bash(bun test:*)
+Bash(bun typecheck)`;
+    const result = parseMultilineInput(input);
+    expect(result).toEqual([
+      "Bash(bun install)",
+      "Bash(bun test:*)",
+      "Bash(bun typecheck)",
+    ]);
+  });
+
+  it("should ignore comments", () => {
+    const input = `Bash(bun install),
+Bash(bun test:*) # For testing
+# For type checking
+Bash(bun typecheck)
+`;
+    const result = parseMultilineInput(input);
+    expect(result).toEqual([
+      "Bash(bun install)",
+      "Bash(bun test:*)",
+      "Bash(bun typecheck)",
+    ]);
+  });
+
+  it("should parse an empty string", () => {
+    const input = "";
+    const result = parseMultilineInput(input);
+    expect(result).toEqual([]);
+  });
+});
--- a/test/mockContext.ts
+++ b/test/mockContext.ts
@@ -10,6 +10,7 @@ import type {
 const defaultInputs = {
  triggerPhrase: "/claude",
  assigneeTrigger: "",
+  labelTrigger: "",
  anthropicModel: "claude-3-7-sonnet-20250219",
  allowedTools: [] as string[],
  disallowedTools: [] as string[],
@@ -18,6 +19,8 @@ const defaultInputs = {
  useBedrock: false,
  useVertex: false,
  timeoutMinutes: 30,
+  branchPrefix: "claude/",
+  useStickyComment: false,
 };

 const defaultRepository = {
@@ -91,6 +94,12 @@ export const mockIssueAssignedContext: ParsedGitHubContext = {
  actor: "admin-user",
  payload: {
    action: "assigned",
+    assignee: {
+      login: "claude-bot",
+      id: 11111,
+      avatar_url: "https://avatars.githubusercontent.com/u/11111",
+      html_url: "https://github.com/claude-bot",
+    },
    issue: {
      number: 123,
      title: "Feature: Add dark mode support",
@@ -122,6 +131,46 @@ export const mockIssueAssignedContext: ParsedGitHubContext = {
  inputs: { ...defaultInputs, assigneeTrigger: "@claude-bot" },
 };

+export const mockIssueLabeledContext: ParsedGitHubContext = {
+  runId: "1234567890",
+  eventName: "issues",
+  eventAction: "labeled",
+  repository: defaultRepository,
+  actor: "admin-user",
+  payload: {
+    action: "labeled",
+    issue: {
+      number: 1234,
+      title: "Enhancement: Improve search functionality",
+      body: "The current search is too slow and needs optimization",
+      user: {
+        login: "alice-wonder",
+        id: 54321,
+        avatar_url: "https://avatars.githubusercontent.com/u/54321",
+        html_url: "https://github.com/alice-wonder",
+      },
+      assignee: null,
+    },
+    label: {
+      id: 987654321,
+      name: "claude-task",
+      color: "f29513",
+      description: "Label for Claude AI interactions",
+    },
+    repository: {
+      name: "test-repo",
+      full_name: "test-owner/test-repo",
+      private: false,
+      owner: {
+        login: "test-owner",
+      },
+    },
+  } as IssuesEvent,
+  entityNumber: 1234,
+  isPR: false,
+  inputs: { ...defaultInputs, labelTrigger: "claude-task" },
+};
+
 // Issue comment on issue event
 export const mockIssueCommentContext: ParsedGitHubContext = {
  runId: "1234567890",
--- a/test/permissions.test.ts
+++ b/test/permissions.test.ts
@@ -62,10 +62,13 @@ describe("checkWritePermissions", () => {
    inputs: {
      triggerPhrase: "@claude",
      assigneeTrigger: "",
+      labelTrigger: "",
      allowedTools: [],
      disallowedTools: [],
      customInstructions: "",
      directPrompt: "",
+      branchPrefix: "claude/",
+      useStickyComment: false,
    },
  });

--- a/test/prepare-context.test.ts
+++ b/test/prepare-context.test.ts
@@ -219,6 +219,55 @@ describe("parseEnvVarsWithContext", () => {
        ),
      ).toThrow("BASE_BRANCH is required for issues event");
    });
+
+    test("should allow issue assigned event with direct_prompt and no assigneeTrigger", () => {
+      const contextWithDirectPrompt = createMockContext({
+        ...mockIssueAssignedContext,
+        inputs: {
+          ...mockIssueAssignedContext.inputs,
+          assigneeTrigger: "", // No assignee trigger
+          directPrompt: "Please assess this issue", // But direct prompt is provided
+        },
+      });
+
+      const result = prepareContext(
+        contextWithDirectPrompt,
+        "12345",
+        "main",
+        "claude/issue-123-20240101_120000",
+      );
+
+      expect(result.eventData.eventName).toBe("issues");
+      expect(result.eventData.isPR).toBe(false);
+      expect(result.directPrompt).toBe("Please assess this issue");
+      if (
+        result.eventData.eventName === "issues" &&
+        result.eventData.eventAction === "assigned"
+      ) {
+        expect(result.eventData.issueNumber).toBe("123");
+        expect(result.eventData.assigneeTrigger).toBeUndefined();
+      }
+    });
+
+    test("should throw error when neither assigneeTrigger nor directPrompt provided for issue assigned event", () => {
+      const contextWithoutTriggers = createMockContext({
+        ...mockIssueAssignedContext,
+        inputs: {
+          ...mockIssueAssignedContext.inputs,
+          assigneeTrigger: "", // No assignee trigger
+          directPrompt: "", // No direct prompt
+        },
+      });
+
+      expect(() =>
+        prepareContext(
+          contextWithoutTriggers,
+          "12345",
+          "main",
+          "claude/issue-123-20240101_120000",
+        ),
+      ).toThrow("ASSIGNEE_TRIGGER is required for issue assigned event");
+    });
  });

  describe("optional fields", () => {
--- a/test/trigger-validation.test.ts
+++ b/test/trigger-validation.test.ts
@@ -6,6 +6,7 @@ import { describe, it, expect } from "bun:test";
 import {
  createMockContext,
  mockIssueAssignedContext,
+  mockIssueLabeledContext,
  mockIssueCommentContext,
  mockIssueOpenedContext,
  mockPullRequestReviewContext,
@@ -29,10 +30,13 @@ describe("checkContainsTrigger", () => {
        inputs: {
          triggerPhrase: "/claude",
          assigneeTrigger: "",
+          labelTrigger: "",
          directPrompt: "Fix the bug in the login form",
          allowedTools: [],
          disallowedTools: [],
          customInstructions: "",
+          branchPrefix: "claude/",
+          useStickyComment: false,
        },
      });
      expect(checkContainsTrigger(context)).toBe(true);
@@ -55,10 +59,13 @@ describe("checkContainsTrigger", () => {
        inputs: {
          triggerPhrase: "/claude",
          assigneeTrigger: "",
+          labelTrigger: "",
          directPrompt: "",
          allowedTools: [],
          disallowedTools: [],
          customInstructions: "",
+          branchPrefix: "claude/",
+          useStickyComment: false,
        },
      });
      expect(checkContainsTrigger(context)).toBe(false);
@@ -87,6 +94,11 @@ describe("checkContainsTrigger", () => {
        ...mockIssueAssignedContext,
        payload: {
          ...mockIssueAssignedContext.payload,
+          assignee: {
+            ...(mockIssueAssignedContext.payload as IssuesAssignedEvent)
+              .assignee,
+            login: "otherUser",
+          },
          issue: {
            ...(mockIssueAssignedContext.payload as IssuesAssignedEvent).issue,
            assignee: {
@@ -102,6 +114,39 @@ describe("checkContainsTrigger", () => {
    });
  });

+  describe("label trigger", () => {
+    it("should return true when issue is labeled with the trigger label", () => {
+      const context = mockIssueLabeledContext;
+      expect(checkContainsTrigger(context)).toBe(true);
+    });
+
+    it("should return false when issue is labeled with a different label", () => {
+      const context = {
+        ...mockIssueLabeledContext,
+        payload: {
+          ...mockIssueLabeledContext.payload,
+          label: {
+            ...(mockIssueLabeledContext.payload as any).label,
+            name: "bug",
+          },
+        },
+      } as ParsedGitHubContext;
+      expect(checkContainsTrigger(context)).toBe(false);
+    });
+
+    it("should return false for non-labeled events", () => {
+      const context = {
+        ...mockIssueLabeledContext,
+        eventAction: "opened",
+        payload: {
+          ...mockIssueLabeledContext.payload,
+          action: "opened",
+        },
+      } as ParsedGitHubContext;
+      expect(checkContainsTrigger(context)).toBe(false);
+    });
+  });
+
  describe("issue body and title trigger", () => {
    it("should return true when issue body contains trigger phrase", () => {
      const context = mockIssueOpenedContext;
@@ -227,10 +272,13 @@ describe("checkContainsTrigger", () => {
        inputs: {
          triggerPhrase: "@claude",
          assigneeTrigger: "",
+          labelTrigger: "",
          directPrompt: "",
          allowedTools: [],
          disallowedTools: [],
          customInstructions: "",
+          branchPrefix: "claude/",
+          useStickyComment: false,
        },
      });
      expect(checkContainsTrigger(context)).toBe(true);
@@ -254,10 +302,13 @@ describe("checkContainsTrigger", () => {
        inputs: {
          triggerPhrase: "@claude",
          assigneeTrigger: "",
+          labelTrigger: "",
          directPrompt: "",
          allowedTools: [],
          disallowedTools: [],
          customInstructions: "",
+          branchPrefix: "claude/",
+          useStickyComment: false,
        },
      });
      expect(checkContainsTrigger(context)).toBe(true);
@@ -281,10 +332,13 @@ describe("checkContainsTrigger", () => {
        inputs: {
          triggerPhrase: "@claude",
          assigneeTrigger: "",
+          labelTrigger: "",
          directPrompt: "",
          allowedTools: [],
          disallowedTools: [],
          customInstructions: "",
+          branchPrefix: "claude/",
+          useStickyComment: false,
        },
      });
      expect(checkContainsTrigger(context)).toBe(false);