Agent failure modes — taxonomy, recurring five, mitigation taxonomies 2024-2026 MASFT (Berkeley 2025) 14 modes, 3 categories Cohen's Kappa 0.88 on annotation reliably distinct Microsoft Taxonomy autonomy amplifies AI failures bias, hallucination, leakage worse when agent has tools Characterizing Faults in Agentic AI orchestration + state evolution + env interaction Hallucinations Survey (arXiv:2509.18970) Instruction deviation + Long-range context misuse five industry-recurring modes 1. hallucinated actions fake tool, fabricated args 2. scope creep extra PRs, extra emails, extra writes 3. cascading errors one mistake, N downstream ops 4. context loss forgets early-turn constraints 5. tool misuse wrong args, wrong tool mitigation gates at every step per-step safety classifier (Lesson 21) tool-call argument validation (Lesson 06) CRITIC-style external grounding of claims (Lesson 05) state re-probe to catch success hallucination ("was the file actually created?") Phoenix trace clustering for drift detection in production cascading is the killer — one phantom SKU 4 API calls multi-system incident.