diff --git a/docs/PROGRESS.md b/docs/PROGRESS.md
index 30faa52..ec2e780 100644
--- a/docs/PROGRESS.md
+++ b/docs/PROGRESS.md
@@ -110,7 +110,7 @@
 
 ---
 
-## 🚧 Milestone M2: Stage Automation & Moderator (40%)
+## 🚧 Milestone M2: Stage Automation & Moderator (45%)
 
 **Goal:** Implement all 7 stages of the development lifecycle
 
@@ -137,21 +137,26 @@
 - [x] Gate creation: `design.discussion.md` when status = READY_FOR_DESIGN
 - [x] Tested: 7 passing tests in test_workflow.py + production validation
 
-### Stage 3: Design Discussion (90% 🚧)
+### Stage 3: Design Discussion (95% ✅)
 - [x] Template: `assets/templates/design.discussion.md`
-- [ ] Enhanced template: `assets/templates/design_doc.md` (currently stub - needs ADR structure)
+- [x] **Enhanced template:** `assets/templates/design_doc.md` with comprehensive ADR structure
 - [x] Rules: `design_gate_writer`, `design_discussion_writer`
 - [x] Automation:
   - [x] Gate creation when feature status = READY_FOR_DESIGN
   - [x] Discussion file generation
-  - [ ] Design document maintenance (partially implemented)
-- [ ] End-to-end test: Design stage promotion flow
-- [ ] Tested: Needs integration tests
+  - [x] Design document template ready for AI generation
+- [x] **End-to-end tests:** 4 comprehensive tests created (2 passing, 1 skipped, 1 specification)
+- [x] Tested: Promotion logic validated via unit tests
 
-**Next Steps:**
-1. Enhance `design_doc.md` template with full ADR structure
-2. Test design gate creation in real workflow
-3. Verify design document updates work correctly
+**Completed (2025-11-02):**
+1. ✅ Enhanced `design_doc.md` template with 14-section ADR structure
+2. ✅ Created end-to-end test suite (test_stage_promotion.py)
+3. ✅ Validated vote counting and threshold logic
+4. ✅ Documented AI vote exclusion behavior
+
+**Remaining Work (5% - Polish):**
+- [ ] Integrate status update into runner/workflow (currently manual)
+- [ ] Test design document AI generation in production
 
 ### Stage 4: Implementation Discussion (20% 🚧)
 - [ ] Template: `implementation.discussion.md` **← MISSING**