diff --git a/backend/app/services/ai_tree_builder.py b/backend/app/services/ai_tree_builder.py
index 59a27a7d..e743de3f 100644
--- a/backend/app/services/ai_tree_builder.py
+++ b/backend/app/services/ai_tree_builder.py
@@ -38,11 +38,19 @@ HARD RULES:
 - When you run out of safe in-scope steps, DO NOT GUESS. Emit an "escalate" node.
 
 Return ONLY a JSON object for ONE node, one of:
-{"node_type":"question","text":"<yes/no question>"}
+{"node_type":"question","text":"<binary question>","yes_label":"<button text>","no_label":"<button text>"}
 {"node_type":"instruction","text":"<one safe reversible action>"}
 {"node_type":"resolved","text":"<confirmation the issue is fixed>"}
 {"node_type":"escalate","reason_category":"exhausted_safe_steps","text":"<why>"}
 No prose, no markdown fences.
+
+QUESTION LABELS: yes_label and no_label are the literal button texts the tech
+clicks — each must be a direct, complete answer to the question. For a plain
+yes/no question use "Yes"/"No". If the question offers two alternatives
+("Is it X or Y?"), the labels MUST be those alternatives (yes_label = the
+first), e.g. {"text":"Is the account a Microsoft account or a local account?",
+"yes_label":"Microsoft account","no_label":"Local account"}. Never pair an
+alternatives question with Yes/No labels. Keep labels under 6 words.
 """
 
 
@@ -60,12 +68,27 @@ def _assign_id(node: dict[str, Any]) -> dict[str, Any]:
     return node
 
 
+def _ensure_labels(node: dict[str, Any]) -> dict[str, Any]:
+    """Default question labels to Yes/No when the model omits them.
+
+    Labels are the literal button texts; downstream (UI, walked_path
+    answer_label, LLM context) assumes every served question carries both.
+    """
+    if node.get("node_type") == "question":
+        node["yes_label"] = (node.get("yes_label") or "Yes").strip() or "Yes"
+        node["no_label"] = (node.get("no_label") or "No").strip() or "No"
+    return node
+
+
 def _build_context(problem_text: str, category: str, walked_path: list[dict]) -> str:
     lines = [f"PROBLEM: {problem_text}", f"CATEGORY: {category}", "STEPS SO FAR:"]
     if not walked_path:
         lines.append("(none yet — produce the first diagnostic question)")
     for i, step in enumerate(walked_path, 1):
-        ans = step.get("answer")
+        # Prefer the chosen label: for an alternatives question
+        # ("Microsoft account or local account?"), a raw "yes" is ambiguous
+        # and degrades the next generation.
+        ans = step.get("answer_label") or step.get("answer")
         suffix = f" -> {ans}" if ans else ""
         lines.append(f"{i}. [{step.get('node_type','?')}] {step.get('text','')}{suffix}")
     return "\n".join(lines)
@@ -79,6 +102,17 @@ def validate_node(node: dict[str, Any]) -> dict[str, Any]:
     for pat in HARD_FLOOR_TEXT_PATTERNS:
         if pat in text:
             raise UnsafeNodeError(f"hard-floor pattern '{pat}' in node text")
+    labels = [node.get(k) for k in ("yes_label", "no_label") if node.get(k) is not None]
+    if labels:
+        if not all(isinstance(lb, str) and lb.strip() for lb in labels):
+            raise UnsafeNodeError(f"malformed answer labels: {labels!r}")
+        if len(labels) == 2 and labels[0].strip().lower() == labels[1].strip().lower():
+            raise UnsafeNodeError(f"indistinct answer labels: {labels!r}")
+        for lb in labels:
+            low = lb.lower()
+            for pat in HARD_FLOOR_TEXT_PATTERNS:
+                if pat in low:
+                    raise UnsafeNodeError(f"hard-floor pattern '{pat}' in answer label")
     return node
 
 
@@ -111,7 +145,7 @@ async def generate_next_node(
                 max_tokens=1024,
             )
             node = parse_llm_json(raw)
-            return _assign_id(validate_node(node))
+            return _assign_id(_ensure_labels(validate_node(node)))
         except Exception as e:
             logger.warning("ai_tree_builder node attempt %d failed: %s", attempt + 1, e)
             continue
@@ -147,6 +181,10 @@ def normalize_walked_path(walked_path: list[dict]) -> dict[str, Any]:
         if step.get("reason_category"):
             node["reason_category"] = step["reason_category"]
         if ntype == "question":
+            if step.get("yes_label"):
+                node["yes_label"] = step["yes_label"]
+            if step.get("no_label"):
+                node["no_label"] = step["no_label"]
             answer = (step.get("answer") or "").lower()
             stub_seq += 1
             stub_id = f"review-{stub_seq}"
diff --git a/backend/app/services/l1_session_service.py b/backend/app/services/l1_session_service.py
index 6d1d7a06..771e0a23 100644
--- a/backend/app/services/l1_session_service.py
+++ b/backend/app/services/l1_session_service.py
@@ -183,6 +183,24 @@ async def advance_ai_build(
             "answer": answer,
             "l1_note": note,
         }
+        # answer_label: the button text the tech actually clicked. Derived from
+        # the server-held pending_node (never client-supplied) so an
+        # alternatives question ("Microsoft account or local account?") records
+        # "Microsoft account", not a bare "yes", in the transcript, the LLM
+        # context, and the captured flywheel tree.
+        pending = session.pending_node
+        if (
+            answer in ("yes", "no")
+            and isinstance(pending, dict)
+            and pending.get("id") == node_id
+        ):
+            label = pending.get(f"{answer}_label")
+            if label:
+                entry["answer_label"] = label
+            if pending.get("yes_label"):
+                entry["yes_label"] = pending["yes_label"]
+            if pending.get("no_label"):
+                entry["no_label"] = pending["no_label"]
         # JSONB requires assigning a new list — in-place mutation isn't tracked
         session.walked_path = [*session.walked_path, entry]
         session.pending_node = None  # the served node has now been answered
diff --git a/backend/tests/test_ai_tree_builder.py b/backend/tests/test_ai_tree_builder.py
index 8a60a105..8ca02c35 100644
--- a/backend/tests/test_ai_tree_builder.py
+++ b/backend/tests/test_ai_tree_builder.py
@@ -48,6 +48,83 @@ async def test_generate_next_node_generation_failed_node_has_id(monkeypatch):
     assert node.get("id")
 
 
+# ---------------------------------------------------------------------------
+# Answer labels: the button text must match the question (live-walk defect:
+# "Microsoft account or local account?" rendered with Yes/No buttons).
+# ---------------------------------------------------------------------------
+
+def test_system_prompt_requires_answer_labels():
+    """The prompt must mandate yes_label/no_label on question nodes — the prompt
+    forcing label-less '<yes/no question>' output is the root cause of the
+    question/button mismatch."""
+    assert "yes_label" in atb.SYSTEM_PROMPT and "no_label" in atb.SYSTEM_PROMPT
+
+
+@pytest.mark.asyncio
+async def test_generated_question_passes_labels_through(monkeypatch):
+    monkeypatch.setattr(
+        atb, "get_ai_provider",
+        lambda *a, **k: _FakeProvider(
+            '{"node_type":"question",'
+            '"text":"Is Jane\'s Windows account a Microsoft account or a local account?",'
+            '"yes_label":"Microsoft account","no_label":"Local account"}'
+        ),
+    )
+    node = await atb.generate_next_node("login issue", "account_login", [])
+    assert node["yes_label"] == "Microsoft account"
+    assert node["no_label"] == "Local account"
+
+
+@pytest.mark.asyncio
+async def test_question_missing_labels_gets_yes_no_defaults(monkeypatch):
+    monkeypatch.setattr(
+        atb, "get_ai_provider",
+        lambda *a, **k: _FakeProvider('{"node_type":"question","text":"Is the printer powered on?"}'),
+    )
+    node = await atb.generate_next_node("printer down", "printer", [])
+    assert node["yes_label"] == "Yes"
+    assert node["no_label"] == "No"
+
+
+def test_validate_node_rejects_hard_floor_text_in_labels():
+    node = {"node_type": "question", "text": "How should we proceed?",
+            "yes_label": "Edit the registry", "no_label": "Wait"}
+    with pytest.raises(atb.UnsafeNodeError):
+        atb.validate_node(node)
+
+
+def test_validate_node_rejects_indistinct_or_malformed_labels():
+    base = {"node_type": "question", "text": "Which network is the laptop on?"}
+    with pytest.raises(atb.UnsafeNodeError):
+        atb.validate_node({**base, "yes_label": "Wi-Fi", "no_label": "wi-fi "})
+    with pytest.raises(atb.UnsafeNodeError):
+        atb.validate_node({**base, "yes_label": 1, "no_label": "Ethernet"})
+
+
+def test_build_context_prefers_answer_label_over_raw_answer():
+    """The LLM context must show what the tech actually chose — 'Q? -> yes' is
+    ambiguous for an alternatives question and degrades the next generation."""
+    ctx = atb._build_context("login issue", "account_login", [
+        {"node_type": "question", "id": "n1",
+         "text": "Microsoft account or local account?",
+         "answer": "yes", "answer_label": "Microsoft account"},
+    ])
+    assert "-> Microsoft account" in ctx
+    assert "-> yes" not in ctx
+
+
+def test_normalize_walked_path_preserves_question_labels():
+    walked = [
+        {"node_type": "question", "id": "n1", "text": "Wi-Fi or Ethernet?",
+         "answer": "yes", "answer_label": "Wi-Fi",
+         "yes_label": "Wi-Fi", "no_label": "Ethernet"},
+        {"node_type": "resolved", "id": "n2", "text": "Fixed."},
+    ]
+    tree = atb.normalize_walked_path(walked)
+    n1 = tree["nodes"]["n1"]
+    assert n1["yes_label"] == "Wi-Fi" and n1["no_label"] == "Ethernet"
+
+
 def test_validate_node_rejects_hard_floor_text():
     node = {"node_type": "instruction", "id": "n1", "text": "Open regedit and change the key", "next": "generate"}
     with pytest.raises(atb.UnsafeNodeError):
diff --git a/backend/tests/test_l1_session_service.py b/backend/tests/test_l1_session_service.py
index b6f74020..44c92170 100644
--- a/backend/tests/test_l1_session_service.py
+++ b/backend/tests/test_l1_session_service.py
@@ -1157,6 +1157,41 @@ async def test_advance_ai_build_replays_pending_node_without_regenerating(
     assert replay["id"] == first["id"]
 
 
+@pytest.mark.asyncio
+async def test_advance_ai_build_records_answer_label_from_pending_node(
+    test_db: AsyncSession, monkeypatch,
+):
+    """When the served question carried yes_label/no_label, answering it must
+    record the chosen label (answer_label) in walked_path — derived server-side
+    from pending_node, never trusted from the client. 'Microsoft account or
+    local account? -> yes' is meaningless in the transcript and the LLM context."""
+    from app.services import l1_session_service as svc
+    from app.services import ai_tree_builder
+    account = await _make_account(test_db)
+    l1_user = await _make_user(test_db, account_id=account.id)
+    s = await svc.start_ai_build_session(
+        test_db, account_id=account.id, user=l1_user,
+        ticket_id="t-label", ticket_kind="internal",
+        category="account_login", problem_text="login issue")
+
+    async def fake_next(problem, category, walked):
+        return {"node_type": "question", "id": "q-acct",
+                "text": "Is the account a Microsoft account or a local account?",
+                "yes_label": "Microsoft account", "no_label": "Local account"}
+    monkeypatch.setattr(ai_tree_builder, "generate_next_node", fake_next)
+
+    first = await svc.advance_ai_build(
+        test_db, session_id=s.id, problem_text="login issue",
+        category="account_login", node_id=None)
+    await svc.advance_ai_build(
+        test_db, session_id=s.id, problem_text="login issue",
+        category="account_login",
+        node_id=first["id"], node_text=first["text"], answer="yes")
+    refreshed = await test_db.get(L1WalkSession, s.id)
+    assert refreshed.walked_path[0]["answer"] == "yes"
+    assert refreshed.walked_path[0]["answer_label"] == "Microsoft account"
+
+
 # ---------------------------------------------------------------------------
 # Finding 10: escalation recipient resolution
 # ---------------------------------------------------------------------------
diff --git a/frontend/src/components/l1/L1EscalationsSection.tsx b/frontend/src/components/l1/L1EscalationsSection.tsx
index 97a7ee1f..bf46d31c 100644
--- a/frontend/src/components/l1/L1EscalationsSection.tsx
+++ b/frontend/src/components/l1/L1EscalationsSection.tsx
@@ -63,7 +63,7 @@ export function L1EscalationsSection() {
                         <li key={i} className="flex flex-col">
                           <span className="text-text-muted text-xs">{step.question ?? step.text}</span>
                           {step.answer && (
-                            <span className="font-medium text-text-primary">→ {step.answer}</span>
+                            <span className="font-medium text-text-primary">→ {step.answer_label ?? step.answer}</span>
                           )}
                         </li>
                       ))}
diff --git a/frontend/src/components/l1/L1WalkTreeVariant.tsx b/frontend/src/components/l1/L1WalkTreeVariant.tsx
index e887cea8..b3963a3a 100644
--- a/frontend/src/components/l1/L1WalkTreeVariant.tsx
+++ b/frontend/src/components/l1/L1WalkTreeVariant.tsx
@@ -167,13 +167,13 @@ export function L1WalkTreeVariant({ session, onSessionUpdate, onDone }: Props) {
                       onClick={() => advanceNode({ answer: 'yes' })}
                       className="flex-1 rounded-md bg-accent text-white py-3 text-base font-medium hover:bg-accent/90 min-h-[44px] transition-colors"
                     >
-                      Yes
+                      {node.yes_label ?? 'Yes'}
                     </button>
                     <button
                       onClick={() => advanceNode({ answer: 'no' })}
                       className="flex-1 rounded-md border border-default py-3 text-base font-medium hover:bg-elevated min-h-[44px] transition-colors"
                     >
-                      No
+                      {node.no_label ?? 'No'}
                     </button>
                   </div>
                 </>
@@ -252,7 +252,7 @@ export function L1WalkTreeVariant({ session, onSessionUpdate, onDone }: Props) {
               {session.walked_path.map((step, i) => (
                 <li key={i} className="flex flex-col">
                   <span className="text-muted-foreground text-xs">{step.question ?? step.text}</span>
-                  {step.answer && <span className="font-medium">→ {step.answer}</span>}
+                  {step.answer && <span className="font-medium">→ {step.answer_label ?? step.answer}</span>}
                   {step.l1_note && <span className="text-muted-foreground text-xs italic mt-0.5">{step.l1_note}</span>}
                 </li>
               ))}
diff --git a/frontend/src/types/l1.ts b/frontend/src/types/l1.ts
index 69fa25e5..d6665e95 100644
--- a/frontend/src/types/l1.ts
+++ b/frontend/src/types/l1.ts
@@ -12,6 +12,8 @@ export interface WalkStep {
   question?: string
   text?: string
   answer: string | null
+  /** Button text the tech clicked (ai_build); falls back to `answer`. */
+  answer_label?: string
   l1_note: string | null
 }
 
@@ -75,9 +77,12 @@ export interface IntakeResult {
   category?: string        // for 'out_of_scope'
 }
 
-/** A single node of an AI-built decision tree, returned by /next-node. */
+/** A single node of an AI-built decision tree, returned by /next-node.
+ *  Question nodes carry the literal button texts (yes_label/no_label) so the
+ *  choices always match the question ("Microsoft account" / "Local account",
+ *  not a mismatched Yes/No). The backend defaults them to Yes/No. */
 export type TreeNode =
-  | { node_type: 'question'; id: string; text: string }
+  | { node_type: 'question'; id: string; text: string; yes_label?: string; no_label?: string }
   | { node_type: 'instruction'; id: string; text: string }
   | { node_type: 'resolved'; id: string; text: string }
   | { node_type: 'escalate'; id: string; reason_category?: string; text: string }