feat(core): Implement Protocol V2 with enhanced settings and lifecycle hooks

readme.hints.md

@@ -125,4 +125,94 @@ The protocol v2 implementation is contained in a separate `ts_tapbundle_protocol
 
 This architectural decision ensures the protocol can be used in any JavaScript environment without modification and maintains proper build dependencies.
 
-See `readme.protocol.md` for the full specification and `ts_tapbundle_protocol/` for the implementation.
+See `readme.protocol.md` for the full specification and `ts_tapbundle_protocol/` for the implementation.
+
+## Protocol V2 Implementation Status
+
+The Protocol V2 has been implemented to fix issues with TAP protocol parsing when test descriptions contain special characters like `#`, `###SNAPSHOT###`, or protocol markers like `⟦TSTEST:ERROR⟧`.
+
+### Implementation Details:
+
+1. **Protocol Components**:
+   - `ProtocolEmitter` - Generates protocol v2 messages (used by tapbundle)
+   - `ProtocolParser` - Parses protocol v2 messages (used by tstest)
+   - Uses Unicode markers `⟦TSTEST:` and `⟧` to avoid conflicts with test content
+
+2. **Current Status**:
+   - ✅ Basic protocol emission and parsing works
+   - ✅ Handles test descriptions with special characters correctly
+   - ✅ Supports metadata for timing, tags, errors
+   - ⚠️ Protocol messages sometimes appear in console output (parsing not catching all cases)
+
+3. **Key Findings**:
+   - `tap.skip.test()` doesn't create actual test objects, just logs and increments counter
+   - `tap.todo()` method is not implemented (no `addTodo` method in Tap class)
+   - Protocol parser's `isBlockStart` was fixed to only match exact block markers, not partial matches in test descriptions
+
+4. **Import Paths**:
+   - tstest imports from: `import { ProtocolParser } from '../dist_ts_tapbundle_protocol/index.js';`
+   - tapbundle imports from: `import { ProtocolEmitter } from '../dist_ts_tapbundle_protocol/index.js';`
+
+## Test Configuration System (Phase 2)
+
+The Test Configuration System has been implemented to provide global settings and lifecycle hooks for tests.
+
+### Key Features:
+
+1. **00init.ts Discovery**:
+   - Automatically detects `00init.ts` files in the same directory as test files
+   - Creates a temporary loader file that imports both `00init.ts` and the test file
+   - Loader files are cleaned up automatically after test execution
+
+2. **Settings Inheritance**:
+   - Global settings from `00init.ts` → File-level settings → Test-level settings
+   - Settings include: timeout, retries, retryDelay, bail, concurrency
+   - Lifecycle hooks: beforeAll, afterAll, beforeEach, afterEach
+
+3. **Implementation Details**:
+   - `SettingsManager` class handles settings inheritance and merging
+   - `tap.settings()` API allows configuration at any level
+   - Lifecycle hooks are integrated into test execution flow
+
+### Important Development Notes:
+
+1. **Local Development**: When developing tstest itself, use `node cli.js` instead of globally installed `tstest` to test changes
+
+2. **Console Output Buffering**: Console output from tests is buffered and only displayed for failing tests. TAP-compliant comments (lines starting with `#`) are always shown.
+
+3. **TypeScript Warnings**: Fixed async/await warnings in `movePreviousLogFiles()` by using sync versions of file operations
+
+## Enhanced Communication Features (Phase 3)
+
+The Enhanced Communication system has been implemented to provide rich, real-time feedback during test execution.
+
+### Key Features:
+
+1. **Event-Based Test Lifecycle Reporting**:
+   - `test:queued` - Test is ready to run
+   - `test:started` - Test execution begins
+   - `test:completed` - Test finishes (with pass/fail status)
+   - `suite:started` - Test suite/describe block begins
+   - `suite:completed` - Test suite/describe block ends
+   - `hook:started` - Lifecycle hook (beforeEach/afterEach) begins
+   - `hook:completed` - Lifecycle hook finishes
+   - `assertion:failed` - Assertion failure with detailed information
+
+2. **Visual Diff Output for Assertion Failures**:
+   - **String Diffs**: Character-by-character comparison with colored output
+   - **Object/Array Diffs**: Deep property comparison showing added/removed/changed properties
+   - **Primitive Diffs**: Clear display of expected vs actual values
+   - **Colorized Output**: Green for expected, red for actual, yellow for differences
+   - **Smart Formatting**: Multi-line strings and complex objects are formatted for readability
+
+3. **Real-Time Test Progress API**:
+   - Tests emit progress events as they execute
+   - tstest parser processes events and updates display in real-time
+   - Structured event format carries rich metadata (timing, errors, diffs)
+   - Seamless integration with existing TAP protocol via Protocol V2
+
+### Implementation Details:
+- Events are transmitted via Protocol V2's `EVENT` block type
+- Event data is JSON-encoded within protocol markers
+- Parser handles events asynchronously for real-time updates
+- Visual diffs are generated using custom diff algorithms for each data type