diff --git a/CHANGELOG.md b/CHANGELOG.md
index 12980eb5..08cafbdb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@ All notable changes to vouch are documented here. Format follows
 ## [Unreleased]
 
 ### Fixed
+- **`kb.session_transcript` handler test needs a KB** : `test_handler_returns_degraded_when_absent` now chdirs into a temp KB and points Claude/Codex search roots at empty dirs, so the handler can return the degraded payload instead of raising `KBNotFoundError`.
 - **`kb.search` excludes retracted claims and archived pages** (#581):
   `search_kb` now drops `ARCHIVED` / `SUPERSEDED` / `REDACTED` claims and
   `ARCHIVED` pages the same way `kb.context` already does, so lifecycle
diff --git a/tests/test_session_transcript.py b/tests/test_session_transcript.py
index 19c0a6d9..5af1a244 100644
--- a/tests/test_session_transcript.py
+++ b/tests/test_session_transcript.py
@@ -196,9 +196,17 @@ def test_handler_bad_agent_is_invalid_request() -> None:
     assert resp["error"]["code"] == "invalid_request"
 
 
-def test_handler_returns_degraded_when_absent() -> None:
+def test_handler_returns_degraded_when_absent(
+    store: KBStore, monkeypatch: pytest.MonkeyPatch
+) -> None:
     from vouch.jsonl_server import handle_request
 
+    # handle_request discovers the KB via cwd; point both agent search roots
+    # at empty dirs so the locator misses and returns the degraded payload.
+    monkeypatch.chdir(store.root)
+    monkeypatch.setenv("VOUCH_CLAUDE_PROJECTS_DIR", str(store.kb_dir / "no-claude"))
+    monkeypatch.setenv("CODEX_HOME", str(store.kb_dir / "no-codex"))
+
     resp = handle_request({
         "id": "3", "method": "kb.session_transcript",
         "params": {"session_id": "11111111-1111-1111-1111-111111111111"},