diff --git a/.github/actions/test-failure-detection/action.yml b/.github/actions/test-failure-detection/action.yml
index 3bf0049..4504c4d 100644
--- a/.github/actions/test-failure-detection/action.yml
+++ b/.github/actions/test-failure-detection/action.yml
@@ -122,20 +122,21 @@ runs:
           # Fast single-pass JSON extraction for test failures (< 1s for 10K lines)
           # Filter JSON lines and parse in one pass - eliminates 2-minute hang
           # Note: Line numbers aren't available in Go test JSON output
+          # IMPORTANT: Only detect actual test function failures, not package/suite completion events
           grep '^{' "$json_file" 2>/dev/null | \
-            jq -r 'select(.Action == "fail") |
-              "--- FAIL: \(if (.Test and .Test != null and .Test != "null") then .Test else "unknown" end) (\(.Package))"' \
+            jq -r 'select(.Action == "fail" and .Test != null and .Test != "" and .Test != "null" and (.Test | test("^Test[A-Za-z]"))) |
+              "--- FAIL: \(.Test) (\(.Package))"' \
             2>/dev/null > "$failures_file"
 
           # Create structured test failure entries with unique signatures
-          if grep '^{' "$json_file" 2>/dev/null | jq -r 'select(.Action == "fail")' 2>/dev/null | head -1 | grep -q .; then
+          if grep '^{' "$json_file" 2>/dev/null | jq -r 'select(.Action == "fail" and .Test != null and .Test != "" and .Test != "null" and (.Test | test("^Test[A-Za-z]")))' 2>/dev/null | head -1 | grep -q .; then
             echo "📝 Creating structured test failure entries with enhanced output..."
 
             # First pass: Extract test failure basic info from Action == "fail" entries
             local temp_failures
             temp_failures=$(mktemp)
             grep '^{' "$json_file" 2>/dev/null | \
-              jq -r 'select(.Action == "fail") | {
+              jq -r 'select(.Action == "fail" and .Test != null and .Test != "" and .Test != "null" and (.Test | test("^Test[A-Za-z]"))) | {
                 type: "test",
                 package: .Package,
                 test: (if (.Test and .Test != null and .Test != "null") then .Test else "unknown" end),
diff --git a/.github/workflows/fortress-test-matrix.yml b/.github/workflows/fortress-test-matrix.yml
index 9b9d28f..00e335a 100644
--- a/.github/workflows/fortress-test-matrix.yml
+++ b/.github/workflows/fortress-test-matrix.yml
@@ -254,21 +254,24 @@ jobs:
             source test-failure-functions.sh 2>/dev/null || true
             detect_failures_from_json "test-output.log" "test-failures.txt" || true
 
-            # JSON failure override: Check if JSON contains failures even when exit code is 0
+            # JSON failure override: Check if JSON contains ACTUAL test failures when exit code is 0
             if [[ $TEST_EXIT_CODE -eq 0 ]] && [[ -f test-output.log ]]; then
-              echo "🔍 Checking JSON output for failures despite exit code 0..."
+              echo "🔍 Checking JSON output for actual test failures despite exit code 0..."
 
               # Check for JSON test failure entries or error patterns
               JSON_FAILURES=0
               if grep -q '^{' test-output.log 2>/dev/null; then
-                # Count JSON failure entries (only actual test failures, not log messages)
+                # Count ONLY failed test events, not package/suite failures which are expected
+                # Look for Action="fail" AND Package field AND Test field (indicating actual test failure)
                 JSON_FAILURES=$(grep '^{' test-output.log 2>/dev/null | \
-                  jq -r 'select(.Action == "fail") | .Test' 2>/dev/null | wc -l | xargs || echo "0")
+                  jq -r 'select(.Action == "fail" and .Test != null and .Test != "" and (.Package // "") != "" and (.Test | test("^Test[A-Z]"))) | .Test' 2>/dev/null | wc -l | xargs || echo "0")
 
                 if [[ $JSON_FAILURES -gt 0 ]]; then
-                  echo "⚠️ Found $JSON_FAILURES actual test failures in JSON output"
-                  echo "🔧 Overriding exit code from 0 to 1 due to detected failures"
+                  echo "⚠️ Found $JSON_FAILURES actual failing test functions in JSON output"
+                  echo "🔧 Overriding exit code from 0 to 1 due to detected test failures"
                   TEST_EXIT_CODE=1
+                else
+                  echo "✅ JSON output contains no actual test failures (exit code 0 is correct)"
                 fi
               fi
             fi
diff --git a/.github/workflows/fortress-test-validation.yml b/.github/workflows/fortress-test-validation.yml
index c8b86ea..7714f6d 100644
--- a/.github/workflows/fortress-test-validation.yml
+++ b/.github/workflows/fortress-test-validation.yml
@@ -297,8 +297,8 @@ jobs:
                   # Count test failures - handle both regular test format and fuzz test format
                   LEGACY_TEST_COUNT=$(jq '[.[] | select(.failures) | .failures[]] | length' "$summary_file" 2>/dev/null || echo "0")
 
-                  # Also count entries that are fuzz tests (Type == "test" and no .failures field)
-                  FUZZ_TEST_COUNT=$(jq '[.[] | select(.Type == "test" and (.failures | length) > 0)] | length' "$summary_file" 2>/dev/null || echo "0")
+                  # Also count entries that are fuzz tests (Type == "test" and has .failures field with content)
+                  FUZZ_TEST_COUNT=$(jq '[.[] | select(.Type == "test" and (.failures // [] | length > 0))] | length' "$summary_file" 2>/dev/null || echo "0")
 
                   # Count build failures
                   BUILD_COUNT=$(jq '[.[] | select(.Type == "build")] | length' "$summary_file" 2>/dev/null || echo "0")
@@ -370,7 +370,7 @@ jobs:
 
                   # Count all failure types
                   RECOUNT_TEST=$(jq '[.[] | select(.failures) | .failures[]] | length' "$summary_file" 2>/dev/null || echo "0")
-                  RECOUNT_FUZZ=$(jq '[.[] | select(.Type == "test" and (.failures | length) > 0)] | length' "$summary_file" 2>/dev/null || echo "0")
+                  RECOUNT_FUZZ=$(jq '[.[] | select(.Type == "test" and (.failures // [] | length > 0))] | length' "$summary_file" 2>/dev/null || echo "0")
                   RECOUNT_BUILD=$(jq '[.[] | select(.Type == "build")] | length' "$summary_file" 2>/dev/null || echo "0")
 
                   FILE_FAILURES=$((RECOUNT_TEST + RECOUNT_FUZZ + RECOUNT_BUILD))