diff --git a/DC-PRODUCTION-GRADE-BACKLOG.md b/DC-PRODUCTION-GRADE-BACKLOG.md
index e5ba39c..c0da210 100644
--- a/DC-PRODUCTION-GRADE-BACKLOG.md
+++ b/DC-PRODUCTION-GRADE-BACKLOG.md
@@ -27,6 +27,7 @@
 
 ### DC-063: Branch coverage at 72% — below the 80% gate
 - **status:** pending
+- **status:** in-progress (auto-claimed at 20260812T182426Z)
 - **details:** Jest coverage report shows branches at 72.14% (303/420), failing the 80% threshold. The uncovered branches are concentrated in error-handling paths (catch blocks, fallback returns, edge-case conditionals). Fix: run `npx jest --coverage --coverageReporters=text` to identify the files with the lowest branch coverage, then add targeted tests for the uncovered conditional paths. Priority files: backup-manager.js (multiple catch blocks), health-checker.js (timeout/retry branches), tailscale-coord.js (API error branches). Effort: ~2 hr.
 - **impact:** Error paths are where production incidents hide. Every untested catch block is a potential crash.