feat(client): resolve OQ-07 — insert-off suppresses verb labels (#522)

Option (a): cursor shape still changes (body orients to targets), but
verb labels and interaction prompts are suppressed when insert_active
is false. Amends D-056 and D-057 with resolution note.

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>

client/tests/test_cursor_states.gd

@@ -305,6 +305,46 @@ func test_cursor_changes_require_los() -> void:
 	cursor.queue_free()
 
 
+# -- OQ-07: Insert-off behavior (D-056 amendment, #522) ----------------------
+# Option (a): cursor shape still changes, verb labels suppressed.
+
+func test_insert_off_cursor_still_changes_shape() -> void:
+	# OQ-07 option (a): cursor state machine still fires when insert is off.
+	# The character's body orients toward targets even without insert data.
+	var cursor = _make_cursor_or_skip()
+	if cursor == null:
+		return
+	if cursor.has_method("set_insert_active") and cursor.has_method("set_hover_target"):
+		cursor.set_insert_active(false)
+		cursor.set_hover_target({"entity_id": 2, "kind": "Npc", "relationship": "Unknown"})
+		assert_that(str(cursor.get_state())).is_equal("EntityHover")
+	cursor.queue_free()
+
+
+func test_insert_off_suppresses_interactions() -> void:
+	# OQ-07 option (a): with insert off, should_show_interactions() returns false.
+	# Verb labels (z-layer 6) are suppressed — no actionable insert data.
+	var cursor = _make_cursor_or_skip()
+	if cursor == null:
+		return
+	if cursor.has_method("set_insert_active") and cursor.has_method("should_show_interactions"):
+		cursor.set_insert_active(false)
+		assert_that(cursor.should_show_interactions()).is_false()
+	cursor.queue_free()
+
+
+func test_insert_on_restores_interaction_display() -> void:
+	# Re-enabling insert allows interactions to show again.
+	var cursor = _make_cursor_or_skip()
+	if cursor == null:
+		return
+	if cursor.has_method("set_insert_active") and cursor.has_method("should_show_interactions"):
+		cursor.set_insert_active(false)
+		cursor.set_insert_active(true)
+		assert_that(cursor.should_show_interactions()).is_true()
+	cursor.queue_free()
+
+
 # -- Interaction range (D-056) ------------------------------------------------
 
 func test_click_interaction_range() -> void: