docs: fix misleading claims in bug documentation

The agent's doc claimed 'skip individual streaming events (don't yield)'
but the code actually yields for every token (for live typing UX).
Updated to accurately describe what the code does:
- Yields immediately for each token (UX)
- Doesn't append to response_parts (prevents O(N²))
- Each yield has ONE streaming marker (not accumulated)

Also noted that API key fix relies on undocumented Gradio behavior.

docs/bugs/P1_MAGENTIC_STREAMING_AND_KEY_PERSISTENCE.md

@@ -57,13 +57,16 @@ async for event in orchestrator.run(message):
 For N tokens, this yields N times, each time showing all previous tokens. This is O(N²) string operations and creates massive visual spam.
 
 ### Fix Applied
-**File:** `src/app.py:171-197`
+**File:** `src/app.py:175-204`
 
-Implemented streaming token buffering:
+Implemented streaming token buffering with live updates:
 1. Added `streaming_buffer = ""` to accumulate tokens
-2. Skip individual streaming events (don't append or yield)
-3. Flush buffer only when non-streaming event occurs or at completion
-4. Result: One consolidated streaming message instead of N individual ones
+2. For each streaming event: append to buffer, yield immediately (for live typing UX)
+3. **Key fix**: Don't append streaming events to `response_parts` (prevents O(N²) list growth)
+4. Each yield has only ONE `📡 STREAMING:` line (the accumulated buffer)
+5. Flush buffer to `response_parts` only when non-streaming event occurs
+
+**Result**: Live typing feel preserved, but no visual spam (each update replaces, not accumulates)
 
 ### Proposed Fix Options
 
@@ -137,18 +140,18 @@ Gradio's `ChatInterface` with `additional_inputs` has known issues:
 2. `src/utils/llm_factory.py`
 
 **Bug 1 (Streaming Spam):**
-- Implemented "smart streaming":
-  - Accumulate tokens in `streaming_buffer`
-  - Yield updates immediately to show progress (UX improvement)
-  - **Crucially**: Do NOT append to the persistent `response_parts` list until the stream segment is complete.
-  - This prevents the O(N²) list growth and "new line spam" while keeping the UI responsive.
+- Accumulate tokens in `streaming_buffer`
+- Yield updates immediately for live typing UX
+- **Key**: Don't append to `response_parts` until stream segment complete
+- Each yield has ONE `📡 STREAMING:` line (not N accumulated lines)
 
 **Bug 2 (API Key Persistence):**
-- **Strategy:** Cleaner Fix (Example List Modification)
-  - Instead of complex `gr.State` wiring (which caused context issues), we simply **removed the empty string columns** for `api_key` and `api_key_state` from the `examples` list in `create_demo`.
-  - Gradio's behavior is that if an example row has fewer columns than inputs, the remaining inputs (like the API key textbox) are **left unchanged** when the example is clicked.
-  - This naturally preserves the user's input without requiring extra state management.
-  - The `api_key_state` parameter remains in `research_agent` as a fallback but is largely redundant with this cleaner fix.
+- **Strategy:** Partial example list (relies on Gradio behavior)
+  - Examples have only 2 elements `[message, mode]` instead of 4
+  - Gradio only updates inputs with corresponding example values
+  - Remaining inputs (api_key textbox) are left unchanged
+  - `api_key_state` parameter exists as fallback but may be redundant
+- **Note:** This is a workaround relying on undocumented Gradio behavior
 
 **Bug 3 (OpenAIModel Deprecation):** ✅ FIXED
 - Replaced all `OpenAIModel` imports with `OpenAIChatModel` in `src/app.py` and `src/utils/llm_factory.py`.