Bring README and TODO.md in line with the tree on next2 (closes #111)

The README layout lists src/library/ and the other source files, the
backup layout names failures.json and the optional thumbnails/, "Opening
a library" says an empty cache opens with no data when the first refresh
fails, and the Testing section gives the 60-second hard cap and 20-second
target for make test, with the 90-second timeout in the Dockerfile's test
phase as the backstop that catches a hung test. The next step in both
files is storing live photos
(#107) instead of a v1.0.0 tag;
tagging and releases are sneak's call alone.

Model: opus-5-5

README.md

@@ -214,11 +214,23 @@ quak/
         auth/           login flow (SRP + email OTP + TOTP), key unwrap
         model/          decrypted Collection, File, Metadata types + decrypt fns
         download/       streaming file/thumbnail download + decryption
+        library/        the cache-backed Library: metadata store, read
+                        surface, records, content cache, precache, ML data
+                        and search, request pools
         backup.ts       resilient full-account backup with dedup
+        metadata-backup.ts
+                        backup-metadata: all decrypted metadata as JSON
+        mldata-fetch.ts fetch + decrypt per-file ML data
+        filename.ts     safe file names from server metadata
         errors.ts       error types shared across layers
         retry.ts        retry classifier + exponential backoff with jitter
         thumbnails.ts   detect + regenerate missing thumbnails
         client.ts       high-level Client class assembled from the above
+        cli-commands.ts the CLI's commands as functions returning exit codes
+        cli-output.ts   how the CLI prints a file's title and time
+        cli-read.ts     fresh reads for the CLI's read commands
+        cli-run.ts      run a command, print its error, exit with its code
+        cli-session.ts  read the saved session file back into a Client
         index.ts        public library exports
     bin/
         quak.ts         CLI entrypoint (commander.js)
@@ -493,8 +505,15 @@ the smallest does not.
         <name>/
             <title> -> ../../originals/<fileID>.<ext>   (symlink)
         <name>.json             collection metadata + file list
+    failures.json               files that failed and have not yet succeeded
 ```
 
+`failures.json` records each failed file with the kind of failure, how many
+times it has been tried and when it was last tried. A file leaves it once it
+succeeds, or once it is no longer in the library or in the backup's scope. The
+library's `lib.backup({ includeThumbnails: true })` also writes
+`thumbnails/<fileID>.jpg` beside `originals/`; `quak backup` does not.
+
 A collection's directory and JSON are named after the collection, and a symlink
 after the file's title, both with unsafe characters replaced. When two
 collections would get the same name, or two files in one collection the same
@@ -536,7 +555,12 @@ temporary file's permissions, not those of the file it replaced.
       errors
 - [x] Update the API reference section below to match the current implementation
 - [x] `make docker` green
-- [ ] Tag `v1.0.0`
+- [ ] Store live photos in a form a photo viewer can open
+      (https://git.eeqj.de/sneak/quak/issues/107), once sneak has chosen between
+      keeping the ZIP and unpacking it
+
+Tagging and releases are decided by sneak alone, and happen only when he
+declares one.
 
 Future (desktop client, separate repo):
 
@@ -556,10 +580,11 @@ test suite is the canonical, executable documentation — `test/library/` and
 ### Opening a library
 
 `Library.open(options)` loads the on-disk cache, starts the background refresh
-loop, and resolves to a `Library`. On an empty cache it awaits the first refresh
-so it never opens onto empty data; on an existing cache it returns immediately
-and refreshes in the background, so an unreachable server does not block
-opening.
+loop, and resolves to a `Library`. On an empty cache it awaits the first
+refresh, so it opens onto the account's data whenever the server is reachable;
+if that refresh fails, it opens with no data and records the error in
+`lib.status()`. On an existing cache it returns immediately and refreshes in the
+background, so an unreachable server does not block opening.
 
 `LibraryOptions`:
 
@@ -775,8 +800,10 @@ documents:
   markdown. Use `make fmt` to format. Use `yarn` not `npm`.
 
 - **Testing:** vitest. Tests go in `test/` mirroring the `src/` structure.
-  `make test` must complete in under 20 seconds. Use `mkdtempSync` for temporary
-  directories, never manual timestamp paths.
+  `make test` must finish in under 60 seconds (the hard cap) and should finish
+  in under 20. The 90-second `timeout` in the `test` phase of the `Dockerfile`
+  is a backstop that catches a hung test, not the time limit. Use `mkdtempSync`
+  for temporary directories, never manual timestamp paths.
 
 - **Code style:** `const` for everything, `let` if reassignment is needed, never
   `var`. Avoid unnecessary comments. No hand-rolled crypto. The

TODO.md

@@ -14,10 +14,23 @@ pre-1.0
 
 # Next Step
 
-Tag v1.0.0.
+Store live photos in a form a photo viewer can open
+(https://git.eeqj.de/sneak/quak/issues/107). This waits on sneak's choice
+between keeping the ZIP and unpacking it into the image and the video.
+
+Tagging and releases are decided by sneak alone, and happen only when he
+declares one.
 
 # Completed Steps
 
+- 2026-09-23: Brought the README and this file in line with the tree (issue
+  111). The layout lists `src/library/` and the other source files, the backup
+  layout names `failures.json` and the optional `thumbnails/`, "Opening a
+  library" says what happens when the first refresh fails, the Testing section
+  gives the 60-second hard cap and 20-second target for `make test` and names
+  the 90-second `timeout` in the `Dockerfile` as the backstop for a hung test,
+  and "Tag v1.0.0" is no longer listed as the next step.
+
 - 2026-09-23: Tested `quak login` and `backup-metadata --exif` (issue 110).
   `loginCommand` takes its login function and its prompts from `CliContext`, and
   `bin/quak.ts` passes `Client.login` and the terminal prompts. Tests cover a