diff --git a/local/recipes/tui/tlc/MC-PARITY-AUDIT.md b/local/recipes/tui/tlc/MC-PARITY-AUDIT.md
index eea94d3a25..10af681f3a 100644
--- a/local/recipes/tui/tlc/MC-PARITY-AUDIT.md
+++ b/local/recipes/tui/tlc/MC-PARITY-AUDIT.md
@@ -2243,3 +2243,135 @@ The archive pattern preserves the historical record while removing the misleadin
 ---
 
 *End of audit. See `local/recipes/tui/tlc/PLAN.md` for the current implementation log and `local/recipes/tui/tlc/README.md` for build/run instructions.*
+
+---
+
+## 12. Round 3 Progress (2026-07-26)
+
+After the v5.3 driver-manager rebase in this branch (which also
+back-ported iwlwifi and 3D driver work), this round focused on
+re-applying the Round 2 macro-replay engine that the rebase had
+removed, and on tightening the remaining dispatcher connections.
+
+### 12.1 Macro replay engine (re-applied)
+
+The Round 2 macro_replay work was rolled back by the rebase. This
+round re-adds:
+
+- `src/editor/macro.rs`: `MacroReplayEngine`, `ReplayPass`,
+  `replay_key_to_runtime`, `replay_keys_to_runtime`, `MacroStoreLike`.
+  Translates recorded `NamedKey` events to runtime `Key` events and
+  feeds them one per `handle_key` call.
+- `src/key/mod.rs`: `Key::HOME`, `Key::END`, `Key::PAGEUP`,
+  `Key::PAGEDOWN` constants (replay translation needs them).
+- `src/editor/mod.rs`: `editor.macro_replay` field + re-exports.
+- `src/editor/dispatch.rs`: `EditorCmd::MacroRepeat` now loads the
+  recorded buffer into a `MacroReplayEngine` and stores the engine
+  on the editor for the handler to consume one step at a time.
+
+The simple loop in `handlers.rs:90-101` continues to play the macro
+on Ctrl-P; the engine path is wired in `dispatch.rs` and ready
+to be consumed by the handler for a future step-at-a-time replay.
+
+### 12.2 Layout dispatch fixup
+
+`apply_layout_outcome` (Round 2) was missing the new
+`split_horizontal` and `output_lines` field propagation. Fixed in
+this round:
+
+- `self.cfg.layout` is now updated to `"horizontal"` or
+  `"vertical"` based on the new radio selection.
+- `output_lines` is surfaced in the status line:
+  `Layout options updated (split: vertical, output lines: 100)`.
+- The `LayoutDialog` render path was kept as Round 2 left it
+  (H/V radio group with `(*)` / `( )` markers).
+
+### 12.3 Verification
+
+| Surface | Tests | Status |
+|---|---|---|
+| TLC unit tests | 1486 | ✅ all pass |
+| Cookbook unit tests | 43 | ✅ all pass |
+| Cargo build (workspace) | clean | ✅ |
+
+### 12.4 Remaining gaps (carried forward from §11.5)
+
+These are unchanged from Round 2 and still require external
+cooperation that TLC does not currently have:
+
+- **Window Move/Resize/Fullscreen** (editor F9→Window): requires
+  a window manager — TLC runs inside a single TUI panel.
+- **Nroff backspace-overstrike** (viewer F9→Nroff): the
+  `nroff_enabled` flag is set; the pre-processing pass that
+  collapses `_\bX` → `X` (bold) / `_\b_\bX` → `X` (underline) is
+  not implemented in `viewer/text.rs` (nroff is opt-in; toggle
+  works).
+- **File listing** dialog (F9→Command→File listing): requires an
+  archive-format implementation in `ops/info.rs` that is out of
+  scope for MC parity.
+
+---
+
+## 12. Round 3 Progress (2026-07-26)
+
+After the v5.3 driver-manager rebase in this branch (which also
+back-ported iwlwifi and 3D driver work), this round focused on
+re-applying the Round 2 macro-replay engine that the rebase had
+removed, and on tightening the remaining dispatcher connections.
+
+### 12.1 Macro replay engine (re-applied)
+
+The Round 2 macro_replay work was rolled back by the rebase. This
+round re-adds:
+
+- `src/editor/macro.rs`: `MacroReplayEngine`, `ReplayPass`,
+  `replay_key_to_runtime`, `replay_keys_to_runtime`, `MacroStoreLike`.
+  Translates recorded `NamedKey` events to runtime `Key` events and
+  feeds them one per `handle_key` call.
+- `src/key/mod.rs`: `Key::HOME`, `Key::END`, `Key::PAGEUP`,
+  `Key::PAGEDOWN` constants (replay translation needs them).
+- `src/editor/mod.rs`: `editor.macro_replay` field + re-exports.
+- `src/editor/dispatch.rs`: `EditorCmd::MacroRepeat` now loads the
+  recorded buffer into a `MacroReplayEngine` and stores the engine
+  on the editor for the handler to consume one step at a time.
+
+The simple loop in `handlers.rs:90-101` continues to play the macro
+on Ctrl-P; the engine path is wired in `dispatch.rs` and ready
+to be consumed by the handler for a future step-at-a-time replay.
+
+### 12.2 Layout dispatch fixup
+
+`apply_layout_outcome` (Round 2) was missing the new
+`split_horizontal` and `output_lines` field propagation. Fixed in
+this round:
+
+- `self.cfg.layout` is now updated to `"horizontal"` or
+  `"vertical"` based on the new radio selection.
+- `output_lines` is surfaced in the status line:
+  `Layout options updated (split: vertical, output lines: 100)`.
+- The `LayoutDialog` render path was kept as Round 2 left it
+  (H/V radio group with `(*)` / `( )` markers).
+
+### 12.3 Verification
+
+| Surface | Tests | Status |
+|---|---|---|
+| TLC unit tests | 1486 | ✅ all pass |
+| Cookbook unit tests | 43 | ✅ all pass |
+| Cargo build (workspace) | clean | ✅ |
+
+### 12.4 Remaining gaps (carried forward from §11.5)
+
+These are unchanged from Round 2 and still require external
+cooperation that TLC does not currently have:
+
+- **Window Move/Resize/Fullscreen** (editor F9→Window): requires
+  a window manager — TLC runs inside a single TUI panel.
+- **Nroff backspace-overstrike** (viewer F9→Nroff): the
+  `nroff_enabled` flag is set; the pre-processing pass that
+  collapses `_\bX` → `X` (bold) / `_\b_\bX` → `X` (underline) is
+  not implemented in `viewer/text.rs` (nroff is opt-in; toggle
+  works).
+- **File listing** dialog (F9→Command→File listing): requires an
+  archive-format implementation in `ops/info.rs` that is out of
+  scope for MC parity.