... which lead me to realize that it's one of those terms with multiple meanings - like "agent" or even "AI" itself - but where people who use it may not be aware of how many different definitions are floating around.
In this project it refers to validating tool calls - fixing invalid tool responses, making sure certain required tool calls have been made, maintaining an error budget after which the task is abandoned with an error.
Other projects might use "guardrails" to mean protecting against unsafe content (Llama Gaurd), refusing off-topic queries (NVIDIA NeMo Guardrails "topical rails", filtering PII, detecting jailbreaks, or human-in-the-loop checks of specific actions.
I've even seen people talk about running a coding agent in a sandbox (Docker, Firecracker etc) as a form of guardrail.