update project progress documentation

README.md

@@ -35,6 +35,10 @@ Traefik is disabled so later ArgoCD-managed components own add-ons explicitly.
 
 Delete the lab with `k3d cluster delete security-baseline`.
 
+For repeatable CI and runtime testing, the repository also includes a Flatcar
+Linux Proxmox host definition under `scripts/proxmox/`. The current test
+environment runs k3d on a dedicated Flatcar VM with kernel access for Falco.
+
 ## Production-style option
 
 `terraform/cloud-cluster/` and `ansible/bootstrap-k3s.yml` provide an optional,
@@ -44,14 +48,44 @@ requires your own AWS credentials, an existing EC2 key pair, a Flatcar AMI ID
 for the chosen region, and a tightly scoped admin CIDR.
 It is not needed for the portfolio demo and is not run in CI.
 
+The Proxmox scripts also create Flatcar-based hosts for a self-hosted Gitea
+Actions runner and for the dedicated k3d test environment. They use Ignition
+for first-boot configuration and do not contain account-specific credentials.
+
+## GitOps and security validation
+
+ArgoCD is bootstrapped once and then manages the platform applications through
+the app-of-apps definition in `deployments/argocd/`. The managed components are
+Kyverno, Falco, and the security demonstration workloads. Cilium values and an
+optional Cilium Application are also stored under `deployments/` for the
+kube-proxy-free profile.
+
+The kube-bench workflow is retained in `.github/workflows/` for GitHub Actions
+and uses a Gitea-compatible artifact action when run by Gitea Actions. It
+creates an ephemeral k3d cluster, waits for the Kubernetes API, runs the K3s
+benchmark, and uploads the report without failing the workflow solely because
+the benchmark contains findings that require review.
+
+Kyverno admission tests have verified that privileged containers, root
+containers, host networking or host PID access, unapproved registries, and
+application workloads in the `default` namespace are rejected. Falco runtime
+testing has verified that the suspicious shell workload produces the custom
+shell detection while the compliant workload does not.
+
 ## Build status
 
 - [x] Phase 1: local k3d definition and optional Terraform/Ansible path
-- [ ] Phase 2: ArgoCD app-of-apps deployment (scaffolded; runtime verification pending)
+- [x] Phase 2: ArgoCD app-of-apps deployment and remote Flatcar test environment
 - [x] Phase 3: kube-bench CI scan
-- [ ] Architecture revision: Flatcar hosts and Cilium kube-proxy replacement (configured; runtime verification pending)
-- [ ] Phase 4: Kyverno policy set and CIS mapping (configured; runtime verification pending)
-- [ ] Phase 5: Falco rules and webhook alerting
-- [ ] Phase 6: test workloads and evidence capture
-- [ ] Phase 7: architecture/design documentation
+- [x] Architecture revision: Flatcar hosts and Falco kernel access
+- [x] Phase 4: Kyverno policy set, CIS mapping, and admission tests
+- [ ] Phase 5: Falco rules and webhook alerting (runtime detection verified; webhook pending)
+- [x] Phase 6: test workloads and runtime verification
+- [ ] Phase 7: architecture and design documentation (repository layout started)
 - [ ] Phase 8: final portfolio polish
+
+## Remaining work
+
+- Configure a Slack or Discord webhook through a Kubernetes Secret outside Git.
+- Add the architecture diagram, CIS evidence summary, and demo capture.
+- Finish the design trade-off documentation and final repository review.