diff --git a/dev-docs/tasks/phase-3-editor-ux-overhaul/PROGRESS.md b/dev-docs/tasks/phase-3-editor-ux-overhaul/PROGRESS.md
index 985fd17..fa2686f 100644
--- a/dev-docs/tasks/phase-3-editor-ux-overhaul/PROGRESS.md
+++ b/dev-docs/tasks/phase-3-editor-ux-overhaul/PROGRESS.md
@@ -1,6 +1,6 @@
 # Phase 3: Editor UX Overhaul - Progress Tracker
 
-**Last Updated:** 2026-01-07  
+**Last Updated:** 2026-01-09  
 **Overall Status:** 🟡 In Progress
 
 ---
@@ -9,27 +9,28 @@
 
 | Metric       | Value   |
 | ------------ | ------- |
-| Total Tasks  | 9       |
-| Completed    | 3       |
-| In Progress  | 0       |
-| Not Started  | 6       |
-| **Progress** | **33%** |
+| Total Tasks  | 10      |
+| Completed    | 4       |
+| In Progress  | 1       |
+| Not Started  | 5       |
+| **Progress** | **40%** |
 
 ---
 
 ## Task Status
 
-| Task      | Name                    | Status         | Notes                                         |
-| --------- | ----------------------- | -------------- | --------------------------------------------- |
-| TASK-001  | Dashboard UX Foundation | 🟢 Complete    | Tabbed navigation done                        |
-| TASK-001B | Launcher Fixes          | 🟢 Complete    | All 4 subtasks implemented                    |
-| TASK-002  | GitHub Integration      | 🟢 Complete    | OAuth + basic features done                   |
-| TASK-002B | GitHub Advanced         | 🔴 Not Started | Issues/PR panels planned                      |
-| TASK-003  | Shared Component System | 🔴 Not Started | Prefab system refactor                        |
-| TASK-004  | AI Project Creation     | 🔴 Not Started | AI scaffolding feature                        |
-| TASK-005  | Deployment Automation   | 🔴 Not Started | Planning docs only, no implementation         |
-| TASK-006  | Expressions Overhaul    | 🔴 Not Started | Enhanced expression nodes                     |
-| TASK-007  | App Config              | 🟡 In Progress | Runtime ✅, UI mostly done (Monaco debugging) |
+| Task      | Name                     | Status         | Notes                                         |
+| --------- | ------------------------ | -------------- | --------------------------------------------- |
+| TASK-001  | Dashboard UX Foundation  | 🟢 Complete    | Tabbed navigation done                        |
+| TASK-001B | Launcher Fixes           | 🟢 Complete    | All 4 subtasks implemented                    |
+| TASK-002  | GitHub Integration       | 🟢 Complete    | OAuth + basic features done                   |
+| TASK-002B | GitHub Advanced          | 🔴 Not Started | Issues/PR panels planned                      |
+| TASK-003  | Shared Component System  | 🔴 Not Started | Prefab system refactor                        |
+| TASK-004  | AI Project Creation      | 🔴 Not Started | AI scaffolding feature                        |
+| TASK-005  | Deployment Automation    | 🔴 Not Started | Planning docs only, no implementation         |
+| TASK-006  | Expressions Overhaul     | 🔴 Not Started | Enhanced expression nodes                     |
+| TASK-007  | App Config               | 🟡 In Progress | Runtime ✅, UI mostly done (Monaco debugging) |
+| TASK-009  | Template System Refactor | 🟢 Complete    | Embedded templates with type safety           |
 
 ---
 
@@ -43,12 +44,13 @@
 
 ## Recent Updates
 
-| Date       | Update                                                |
-| ---------- | ----------------------------------------------------- |
-| 2026-01-07 | Audit completed: corrected TASK-001B, TASK-005 status |
-| 2026-01-07 | Added TASK-006 and TASK-007 to tracking               |
-| 2026-01-07 | TASK-008 moved to Phase 6 (UBA)                       |
-| 2026-01-07 | TASK-000 moved to Phase 9 (Styles)                    |
+| Date       | Update                                                  |
+| ---------- | ------------------------------------------------------- |
+| 2026-01-09 | TASK-009 complete: Embedded template system implemented |
+| 2026-01-07 | Audit completed: corrected TASK-001B, TASK-005 status   |
+| 2026-01-07 | Added TASK-006 and TASK-007 to tracking                 |
+| 2026-01-07 | TASK-008 moved to Phase 6 (UBA)                         |
+| 2026-01-07 | TASK-000 moved to Phase 9 (Styles)                      |
 
 ---