diff --git a/.planning/STATE.md b/.planning/STATE.md
new file mode 100644
index 00000000..5ba7c6b0
--- /dev/null
+++ b/.planning/STATE.md
@@ -0,0 +1,22 @@
+# STATE.md
+
+## Current Position
+- **Phase:** 07.1-frontend-overhaul
+- **Plan:** 07.1-frontend-overhaul-PLAN.md
+- **Task:** 2 (Completed)
+
+## Progress
+- [x] Task 1: Update Tailwind Configuration
+- [x] Task 2: Implement Global Sharp Edges & Borders
+- [ ] Task 3: Component-Level Overhaul (Buttons & Inputs)
+- [ ] Task 4: StatCard & Data Table Refinement
+- [ ] Task 5: Layout & Viewport Adjustments
+- [ ] Task 6: Final Audit & Rule Alignment
+
+## Decisions
+- Enforced `font-weight: 400 !important` and `text-transform: none !important` globally in `globals.css` to ensure strict compliance with `AI_RULES.md` (Industrial Precision aesthetic).
+- Set `border-radius: 0 !important` and `box-shadow: none !important` globally.
+- Used `Space Grotesk` from Google Fonts.
+
+## Blockers
+- None.
diff --git a/.planning/phases/07.1-frontend-overhaul/PLAN.md b/.planning/phases/07.1-frontend-overhaul/PLAN.md
index bbe87ae8..99f9461f 100644
--- a/.planning/phases/07.1-frontend-overhaul/PLAN.md
+++ b/.planning/phases/07.1-frontend-overhaul/PLAN.md
@@ -49,7 +49,7 @@ autonomous: true
 
 ---
 
-## Task 2: Implement Global Sharp Edges & Borders
+## Task 2: Implement Global Sharp Edges & Borders [COMPLETED]
 
 **Read First:**
 - `DESIGN.md` (Elevation & Depth, Shapes).
diff --git a/DESIGN.2.md b/DESIGN.2.md
deleted file mode 100644
index e69de29b..00000000
diff --git a/backups/ainventory_2026-04-25_12-25-17.tar.gz b/backups/ainventory_2026-04-25_12-25-17.tar.gz
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index 00000000..fbeef4e3
Binary files /dev/null and b/backups/ainventory_2026-04-25_12-25-17.tar.gz differ
diff --git a/dev_docs/SESSION_STATE.md b/dev_docs/SESSION_STATE.md
index e1afc3b8..7f5976bd 100644
--- a/dev_docs/SESSION_STATE.md
+++ b/dev_docs/SESSION_STATE.md
@@ -2,28 +2,31 @@
 
 **Active AI:** Gemini Executor
 **Last Updated:** 2026-04-25
-**Current Version:** v1.14.25
-**Status**: 🟢 PHASE 7.1 TASK 1 COMPLETE
+**Current Version:** v1.14.26
+**Status**: 🟢 PHASE 7.1 TASK 2 COMPLETE
 
 ---
 
-## SESSION EXECUTION SUMMARY — Task 1: Tailwind Update
+## SESSION EXECUTION SUMMARY — Task 2: Global Sharp Edges & Borders
 
-### 1. Tailwind Config (COMPLETE)
-- Updated `frontend/tailwind.config.ts` with "Industrial Precision" palette.
-- Added `Space Grotesk` font family.
-- Aligned font sizes with `DESIGN.md` (14px, 16px, 18px, 24px, 32px, 48px).
-- Defined tiered surface system: `#0A0A0A`, `#121212`, `#1A1A1A`.
+### 1. Global CSS Update (COMPLETE)
+- Updated `frontend/app/globals.css` to enforce `border-radius: 0 !important` globally.
+- Removed all box-shadows globally (`box-shadow: none !important`).
+- Enforced `font-weight: 400 !important` and `text-transform: none !important` to comply with `AI_RULES.md`.
+- Implemented `level-1` and `level-2` classes for "Industrial Precision" borders.
+- Updated scrollbar to match industrial aesthetic (no radius, technical colors).
+- Added `status-success` and `status-alert` high-contrast utility classes.
 
-### 2. Documentation Update
-- Updated `PROJECT_ARCHITECTURE.md` with new styling specs.
-- Updated `README.md` version and date.
-- Marked Task 1 as completed in `.planning/phases/07.1-frontend-overhaul/PLAN.md`.
+### 2. AI Rules Update
+- Updated `AI_RULES.md` to include a mandatory rule for 0px border radius and no shadows.
+
+### 3. Documentation Update
+- Marked Task 2 as completed in `.planning/phases/07.1-frontend-overhaul/PLAN.md`.
 
 ---
 
 ## NEXT STEPS (Phase 7.1: Frontend UI/UX Overhaul)
 
-1. **Task 2: Implement Global Sharp Edges & Borders**: Update `globals.css` for 0px radius and 1px/2px borders.
-2. **Task 3: Component-Level Overhaul**: Update Buttons and Inputs.
-3. **Task 4: StatCard & Data Table Refinement**.
+1. **Task 3: Component-Level Overhaul**: Update Buttons and Inputs.
+2. **Task 4: StatCard & Data Table Refinement**.
+3. **Task 5: Layout & Viewport Adjustments**.
diff --git a/frontend/VERSION.json b/frontend/VERSION.json
index d0ee76a3..e67a9b46 100644
--- a/frontend/VERSION.json
+++ b/frontend/VERSION.json
@@ -1,6 +1,6 @@
 {
-  "version": "1.14.26",
-  "last_build": "2026-04-25-1225",
+  "version": "1.14.27",
+  "last_build": "2026-04-25-1226",
   "codename": "ConfigCore",
-  "commit": "701e30fb"
+  "commit": "c15a80a5"
 }
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