diff --git a/modules/mesh-delivery-assigner/internal/assign/wants.go b/modules/mesh-delivery-assigner/internal/assign/wants.go
index 264a2e9..1e2d5ed 100644
--- a/modules/mesh-delivery-assigner/internal/assign/wants.go
+++ b/modules/mesh-delivery-assigner/internal/assign/wants.go
@@ -201,7 +201,7 @@ func Wants(m Module, n Nodes, wants map[string]delivery.Want, lastHealthy map[st
 	}
 	if !held && !out.Lifted && !m.Released && m.FP != "" {
 		for _, node := range slices.Sorted(slices.Values(m.Nodes)) {
-			if h, ok := n.Haves[node][m.Name]; ok && h.FP == m.FP && h.Health == delivery.HealthFailed {
+			if h, ok := n.Haves[node][m.Name]; ok && h.FP == m.FP && failed(h) {
 				out.Held = &delivery.Held{Node: node, Words: HeldWords(h, m.Now)}
 				held = true
 				break
@@ -315,6 +315,14 @@ func Wants(m Module, n Nodes, wants map[string]delivery.Want, lastHealthy map[st
 	return out
 }
 
+// failed says whether a have's health check failed once the node is done moving: phase running or failed. A failed health while it
+// backs up, applies or checks is a step of the move, not its outcome (on novox at 15:27:36 on 2026-10-25, "health failed, phase
+// applying" held the controller's canary two seconds before the new build was healthy). Every healthy read (healthy, providedHealthy,
+// the world's lastHealthy) already asks for phase running.
+func failed(h delivery.Have) bool {
+	return h.Health == delivery.HealthFailed && (h.Phase == delivery.PhaseRunning || h.Phase == delivery.PhaseFailed)
+}
+
 // runs says whether a have is of a module the node runs: running, whatever its health.
 func runs(h delivery.Have) bool {
 	return h.Phase == delivery.PhaseRunning
diff --git a/modules/mesh-delivery-assigner/internal/assign/wants_test.go b/modules/mesh-delivery-assigner/internal/assign/wants_test.go
index ebaa65f..be6c0ee 100644
--- a/modules/mesh-delivery-assigner/internal/assign/wants_test.go
+++ b/modules/mesh-delivery-assigner/internal/assign/wants_test.go
@@ -756,3 +756,29 @@ func TestAnOldFormNodeGetsItsFirstWantAtFOnlyUnderTheCanary(t *testing.T) {
 		t.Errorf("old-form canary: g14's want = %+v, want F", w)
 	}
 }
+
+// A failed health counts only once the node is done moving: phase running or failed, never backing-up, applying or checking.
+// The live row on novox at 15:27:36 on 2026-10-25 ("health failed, phase applying" at the controller's new fingerprint) held the
+// canary two seconds before the new build was healthy.
+func TestAFailedHealthWhileTheNodeMovesHoldsNothing(t *testing.T) {
+	for _, phase := range []delivery.Phase{delivery.PhaseBackingUp, delivery.PhaseApplying, delivery.PhaseChecking} {
+		m := Module{Name: "mesh-controller", FP: fNew, Built: true, Granted: true, Composed: composedEverywhere, Nodes: []string{"novox"},
+			Manifest: catalogue.Manifest{Module: "mesh-controller"}}
+		n := Nodes{Online: map[string]bool{"novox": true}, Haves: map[string]map[string]delivery.Have{
+			"novox": {"mesh-controller": {FP: fNew, Phase: phase, Health: delivery.HealthFailed}}}}
+		before := map[string]delivery.Want{"novox": {FP: fNew, Composed: dig(fNew)}}
+		if out := Wants(m, n, before, map[string]string{"novox": fOld}); out.Held != nil {
+			t.Errorf("phase %s, health failed: held %+v, want no hold while the node moves", phase, out.Held)
+		}
+	}
+	for _, phase := range []delivery.Phase{delivery.PhaseRunning, delivery.PhaseFailed} {
+		m := Module{Name: "mesh-controller", FP: fNew, Built: true, Granted: true, Composed: composedEverywhere, Nodes: []string{"novox"},
+			Manifest: catalogue.Manifest{Module: "mesh-controller"}}
+		n := Nodes{Online: map[string]bool{"novox": true}, Haves: map[string]map[string]delivery.Have{
+			"novox": {"mesh-controller": {FP: fNew, Phase: phase, Health: delivery.HealthFailed}}}}
+		before := map[string]delivery.Want{"novox": {FP: fNew, Composed: dig(fNew)}}
+		if out := Wants(m, n, before, map[string]string{"novox": fOld}); out.Held == nil || out.Held.Node != "novox" {
+			t.Errorf("phase %s, health failed: held %+v, want a hold on novox", phase, out.Held)
+		}
+	}
+}