diff --git a/packages/data-designer-engine/src/data_designer/engine/models/facade.py b/packages/data-designer-engine/src/data_designer/engine/models/facade.py
index 88543030..65dc7b85 100644
--- a/packages/data-designer-engine/src/data_designer/engine/models/facade.py
+++ b/packages/data-designer-engine/src/data_designer/engine/models/facade.py
@@ -320,7 +320,11 @@ class ModelFacade:
         tool_schemas = None
         tool_call_turns = 0
         total_tool_calls = 0
-        curr_num_correction_steps = 0
+        # Counts parse attempts within the current conversation (initial attempt + corrections).
+        # The first parse is attempt 1, so `parse_attempts <= max_correction_steps` permits exactly
+        # `max_correction_steps` corrections after the initial attempt before falling through to
+        # restart-or-raise. Reset to 0 on each conversation restart.
+        parse_attempts = 0
         curr_num_restarts = 0
 
         mcp_facade = self._get_mcp_facade(tool_alias)
@@ -367,7 +371,7 @@ class ModelFacade:
             response = (completion_response.message.content or "").strip()
             reasoning_trace = completion_response.message.reasoning_content
             messages.append(ChatMessage.as_assistant(content=response, reasoning_content=reasoning_trace or None))
-            curr_num_correction_steps += 1
+            parse_attempts += 1
 
             try:
                 output_obj = parser(response)  # type: ignore - if not a string will cause a ParserException below
@@ -379,12 +383,12 @@ class ModelFacade:
                         exc,
                     ) from exc
 
-                if curr_num_correction_steps <= max_correction_steps:
+                if parse_attempts <= max_correction_steps:
                     # Add user message with error for correction
                     messages.append(ChatMessage.as_user(content=str(get_exception_primary_cause(exc))))
 
                 elif curr_num_restarts < max_conversation_restarts:
-                    curr_num_correction_steps = 0
+                    parse_attempts = 0
                     curr_num_restarts += 1
                     messages = deepcopy(restart_checkpoint)
                     tool_call_turns = checkpoint_tool_call_turns
@@ -425,7 +429,8 @@ class ModelFacade:
         tool_schemas = None
         tool_call_turns = 0
         total_tool_calls = 0
-        curr_num_correction_steps = 0
+        # See `generate` for a description of the parse-attempts counter semantics.
+        parse_attempts = 0
         curr_num_restarts = 0
 
         mcp_facade = self._get_mcp_facade(tool_alias)
@@ -469,7 +474,7 @@ class ModelFacade:
             response = (completion_response.message.content or "").strip()
             reasoning_trace = completion_response.message.reasoning_content
             messages.append(ChatMessage.as_assistant(content=response, reasoning_content=reasoning_trace or None))
-            curr_num_correction_steps += 1
+            parse_attempts += 1
 
             try:
                 output_obj = parser(response)
@@ -481,11 +486,11 @@ class ModelFacade:
                         exc,
                     ) from exc
 
-                if curr_num_correction_steps <= max_correction_steps:
+                if parse_attempts <= max_correction_steps:
                     messages.append(ChatMessage.as_user(content=str(get_exception_primary_cause(exc))))
 
                 elif curr_num_restarts < max_conversation_restarts:
-                    curr_num_correction_steps = 0
+                    parse_attempts = 0
                     curr_num_restarts += 1
                     messages = deepcopy(restart_checkpoint)
                     tool_call_turns = checkpoint_tool_call_turns