diff --git a/apps/extension/src/lib/__tests__/trace-reducer-v2.test.ts b/apps/extension/src/lib/__tests__/trace-reducer-v2.test.ts
index 4a9e375..510a075 100644
--- a/apps/extension/src/lib/__tests__/trace-reducer-v2.test.ts
+++ b/apps/extension/src/lib/__tests__/trace-reducer-v2.test.ts
@@ -171,7 +171,7 @@ describe("reduceTraceSteps", () => {
     });
   });
 
-  it("keeps hover steps before menu clicks", () => {
+  it("drops hover steps, which only exist in trace v3", () => {
     const { steps } = reduceTraceSteps(
       [
         {
@@ -187,12 +187,7 @@ describe("reduceTraceSteps", () => {
       ],
       "https://example.com/app",
     );
-    expect(steps.map((s) => s.op)).toEqual(["hover", "click"]);
-    expect(steps[0]).toMatchObject({
-      op: "hover",
-      page: "p1",
-      target: { name: "Account" },
-    });
+    expect(steps.map((s) => s.op)).toEqual(["click"]);
   });
 
   it("resolveTraceStartUrl prefers explicit start URL", () => {
diff --git a/apps/extension/src/lib/__tests__/trace-reducer-v3.test.ts b/apps/extension/src/lib/__tests__/trace-reducer-v3.test.ts
index 1018aec..8d0e59f 100644
--- a/apps/extension/src/lib/__tests__/trace-reducer-v3.test.ts
+++ b/apps/extension/src/lib/__tests__/trace-reducer-v3.test.ts
@@ -48,6 +48,25 @@ describe("trace reducer v3", () => {
     ]);
   });
 
+  it("keeps hover steps before menu clicks", () => {
+    const drafts: RecordingDraftStep[] = [
+      {
+        op: "hover",
+        captureTarget: { tag: "span", role: "button", name: "Account" },
+        preStateId: "s1",
+        postStateId: "s1",
+      },
+      {
+        op: "click",
+        captureTarget: { tag: "a", role: "link", name: "Profile" },
+        preStateId: "s1",
+        postStateId: "s1",
+      },
+    ];
+
+    expect(reduceTraceStepsV3(drafts).steps.map((s) => s.op)).toEqual(["hover", "click"]);
+  });
+
   it("does not export a tab transition without both observation endpoints", () => {
     const sourceOnly: RecordingDraftStep = { op: "switch_tab", preStateId: "s1" };
     const targetOnly: RecordingDraftStep = { op: "switch_tab", postStateId: "s2" };
diff --git a/apps/extension/src/lib/recording/trace-reducer-v2.ts b/apps/extension/src/lib/recording/trace-reducer-v2.ts
index dacf581..f129bc4 100644
--- a/apps/extension/src/lib/recording/trace-reducer-v2.ts
+++ b/apps/extension/src/lib/recording/trace-reducer-v2.ts
@@ -119,14 +119,6 @@ function toV2Step(
         },
         effectForNavigation(step.navigatedTo, urlToId),
       );
-    case "hover":
-      if (!step.captureTarget) return null;
-      return {
-        op: "hover",
-        id,
-        page,
-        target: step.captureTarget,
-      };
     case "fill":
       if (!step.captureTarget) return null;
       return {
@@ -161,6 +153,9 @@ function toV2Step(
         },
         effectForNavigation(step.navigatedTo, urlToId),
       );
+    // `hover` only exists in Trace v3. Peers that negotiate v2 predate the
+    // step variant and fail to decode the whole result if we emit it.
+    case "hover":
     case "scroll":
     case "switch_tab":
       return null;
diff --git a/apps/extension/src/tools/__tests__/record-steps.test.ts b/apps/extension/src/tools/__tests__/record-steps.test.ts
index 83d108b..f933b49 100644
--- a/apps/extension/src/tools/__tests__/record-steps.test.ts
+++ b/apps/extension/src/tools/__tests__/record-steps.test.ts
@@ -1200,7 +1200,8 @@ describe("recorded user steps reach the exported trace", () => {
     const trace = (stopped as RecordStopResult).trace;
     expect("version" in trace).toBe(false);
     expect("pages" in trace && trace.pages.length).toBeGreaterThan(0);
-    expect("steps" in trace && trace.steps.map((step) => step.op)).toEqual(["hover", "click"]);
+    // `hover` has no v2 counterpart on peers that negotiate v2.
+    expect("steps" in trace && trace.steps.map((step) => step.op)).toEqual(["click"]);
   });
 
   it("rejects unsupported trace_version values", async () => {