fix(core): move branch watch into Vcs

LocationWatcher only existed to republish git/hg metadata as filesystem.changed for Vcs. Nothing else consumed those events. Vcs now owns the Parcel watch, same as skills and config.
fix(core): restore parcel watch for git HEAD
2026-08-11 12:10:01 -04:00 · 2026-08-10 17:46:45 -05:00 · 2026-08-10 17:35:50 -05:00
128 changed files with 1988 additions and 3741 deletions
@@ -75,7 +75,7 @@ jobs:
  build-cli:
    needs: version
    runs-on: blacksmith-4vcpu-ubuntu-2404
-    if: github.repository == 'anomalyco/opencode' && github.ref_name != 'beta'
+    if: github.repository == 'anomalyco/opencode'
    steps:
      - uses: actions/checkout@f43a0e5ff2bd294095638e18286ca9a3d1956744 # v3.6.0
        with:
@@ -91,7 +91,7 @@ jobs:
          opencode-app-secret: ${{ secrets.OPENCODE_APP_SECRET }}

      - name: Build legacy CLI
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        run: ./packages/opencode/script/build.ts ${{ (github.ref_name == 'beta' && '--sourcemaps') || '' }}
        env:
          OPENCODE_VERSION: ${{ needs.version.outputs.version }}
@@ -109,7 +109,7 @@ jobs:
          GH_TOKEN: ${{ steps.committer.outputs.token }}

      - uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4.6.2
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        with:
          name: opencode-cli
          path: |
@@ -117,7 +117,7 @@ jobs:
            packages/opencode/dist/opencode-linux*

      - uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4.6.2
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        with:
          name: opencode-cli-windows
          path: packages/opencode/dist/opencode-windows*
@@ -132,7 +132,7 @@ jobs:

  build-node-cli:
    needs: version
-    if: github.repository == 'anomalyco/opencode' && github.ref_name != 'beta'
+    if: github.repository == 'anomalyco/opencode'
    strategy:
      fail-fast: false
      matrix:
@@ -184,7 +184,7 @@ jobs:
      - build-cli
      - version
    runs-on: blacksmith-4vcpu-windows-2025
-    if: github.repository == 'anomalyco/opencode' && github.ref_name != 'v2' && github.ref_name != 'beta'
+    if: github.repository == 'anomalyco/opencode' && github.ref_name != 'v2'
    env:
      AZURE_CLIENT_ID: ${{ secrets.AZURE_CLIENT_ID }}
      AZURE_TENANT_ID: ${{ secrets.AZURE_TENANT_ID }}
@@ -377,7 +377,7 @@ jobs:
        env:
          OPENCODE_VERSION: ${{ needs.version.outputs.version }}
          OPENCODE_CHANNEL: ${{ (github.ref_name == 'beta' && 'beta') || 'prod' }}
-          OPENCODE_CLI_TARGET: ${{ matrix.settings.target }}
+          RUST_TARGET: ${{ matrix.settings.target }}

      - name: Build
        run: bun run build
@@ -393,7 +393,6 @@ jobs:
          VITE_SENTRY_DSN: ${{ vars.WEB_SENTRY_DSN }}
          VITE_SENTRY_ENVIRONMENT: ${{ (github.ref_name == 'beta' && 'beta') || 'production' }}
          VITE_SENTRY_RELEASE: desktop@${{ needs.version.outputs.version }}
-          OPENCODE_CLI_TARGET: ${{ matrix.settings.target }}

      - name: Package
        if: needs.version.outputs.release
@@ -497,31 +496,29 @@ jobs:
          registry-url: "https://registry.npmjs.org"

      - uses: actions/download-artifact@d3f86a106a0bac45b974a628896c90dbdf5c8093 # v4.3.0
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        with:
          name: opencode-cli
          path: packages/opencode/dist

      - uses: actions/download-artifact@d3f86a106a0bac45b974a628896c90dbdf5c8093 # v4.3.0
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        with:
          name: opencode-cli-windows
          path: packages/opencode/dist

      - uses: actions/download-artifact@d3f86a106a0bac45b974a628896c90dbdf5c8093 # v4.3.0
-        if: github.ref_name != 'v2' && github.ref_name != 'beta'
+        if: github.ref_name != 'v2'
        with:
          name: opencode-cli-signed-windows
          path: packages/opencode/dist

      - uses: actions/download-artifact@d3f86a106a0bac45b974a628896c90dbdf5c8093 # v4.3.0
-        if: github.ref_name != 'beta'
        with:
          name: opencode-preview-cli
          path: packages/cli/dist

      - uses: actions/download-artifact@d3f86a106a0bac45b974a628896c90dbdf5c8093 # v4.3.0
-        if: github.ref_name != 'beta'
        with:
          pattern: opencode-node-cli-*
          path: packages/cli/dist/node
@@ -439,7 +439,6 @@
        "@actions/artifact": "4.0.0",
        "@lydell/node-pty": "catalog:",
        "@opencode-ai/app": "workspace:*",
-        "@opencode-ai/client": "workspace:*",
        "@opencode-ai/ui": "workspace:*",
        "@sentry/solid": "catalog:",
        "@sentry/vite-plugin": "catalog:",
@@ -69,63 +69,6 @@ describe("v2 session reducer", () => {
    })
  })

-  test("prefers durable selection predecessors and derives them for older events", () => {
-    const source: SessionMessageInfo[] = [
-      { id: "msg_previous_agent", type: "agent-switched", agent: "build", time: { created: 1 } },
-      {
-        id: "msg_previous_model",
-        type: "model-switched",
-        model: { id: "old", providerID: "provider" },
-        time: { created: 1 },
-      },
-    ]
-    const reducer = createV2SessionReducer()
-
-    const agent = reducer.reduce(
-      source,
-      event({
-        ...base,
-        id: "evt_agent",
-        type: "session.agent.selected",
-        data: { sessionID: "ses_1", agent: "plan", previous: "review" },
-      }),
-    )
-    const model = reducer.reduce(
-      source,
-      event({
-        ...base,
-        id: "evt_model",
-        type: "session.model.selected",
-        data: {
-          sessionID: "ses_1",
-          model: { id: "new", providerID: "provider" },
-          previous: { id: "durable", providerID: "provider" },
-        },
-      }),
-    )
-    const legacyAgent = reducer.reduce(
-      source,
-      event({
-        ...base,
-        id: "evt_legacy_agent",
-        type: "session.agent.selected",
-        data: { sessionID: "ses_1", agent: "plan" },
-      }),
-    )
-
-    expect(agent?.messages.at(-1)).toMatchObject({ type: "agent-switched", agent: "plan", previous: "review" })
-    expect(model?.messages.at(-1)).toMatchObject({
-      type: "model-switched",
-      model: { id: "new" },
-      previous: { id: "durable" },
-    })
-    expect(legacyAgent?.messages.at(-1)).toMatchObject({
-      type: "agent-switched",
-      agent: "plan",
-      previous: "build",
-    })
-  })
-
  test("folds tool, retry, and completion events", () => {
    const reducer = createV2SessionReducer()
    let messages: SessionMessageInfo[] = []
@@ -61,12 +61,6 @@ export function createV2SessionReducer() {
          type: "agent-switched",
          metadata: event.metadata,
          agent: event.data.agent,
-          previous:
-            event.data.previous ??
-            source.findLast(
-              (item): item is Extract<SessionMessageInfo, { type: "agent-switched" | "assistant" }> =>
-                item.type === "agent-switched" || item.type === "assistant",
-            )?.agent,
          time: { created: event.created },
        })
      case "session.model.selected":
@@ -75,12 +69,10 @@ export function createV2SessionReducer() {
          type: "model-switched",
          metadata: event.metadata,
          model: event.data.model,
-          previous:
-            event.data.previous ??
-            source.findLast(
-              (item): item is Extract<SessionMessageInfo, { type: "model-switched" | "assistant" }> =>
-                item.type === "model-switched" || item.type === "assistant",
-            )?.model,
+          previous: source.findLast(
+            (item): item is Extract<SessionMessageInfo, { type: "model-switched" | "assistant" }> =>
+              item.type === "model-switched" || item.type === "assistant",
+          )?.model,
          time: { created: event.created },
        })
      case "session.synthetic":
@@ -351,8 +351,8 @@ export const { use: useTabs, provider: TabsProvider } = createSimpleContext({
        const key = tabKey(tab)
        const next = { title: session.title, directory: session.location.directory }
        const current = info[key]
-        if (current && current.title === next.title && current.directory === next.directory) return
-        console.debug("[tabs] update persisted session info", { key, sessionID: session.id, current, next })
+        console.log({ tab, session, current })
+        if (current?.title === next.title && current.directory === next.directory) return
        setInfo(key, next)
      },
      select: navigateTab,
@@ -4,7 +4,6 @@ import { Runtime } from "../../framework/runtime"
 import { ServerConnection } from "../../services/server-connection"
 import { Config } from "../../config"
 import { resolve } from "@opencode-ai/tui/config"
-import { Global } from "@opencode-ai/util/global"

 export default Runtime.handler(Commands.commands.mini, (input) =>
  Effect.gen(function* () {
@@ -17,7 +16,6 @@ export default Runtime.handler(Commands.commands.mini, (input) =>
      mismatch: "replace",
    })
    const config = yield* Config.Service
-    const global = yield* Global.Service
    const resolved = resolve(yield* config.get(), { terminalSuspend: process.platform !== "win32" })
    const fileSystem = yield* FileSystem.FileSystem
    const runServicePromise = Effect.runPromiseWith(Context.make(FileSystem.FileSystem, fileSystem))
@@ -41,7 +39,6 @@ export default Runtime.handler(Commands.commands.mini, (input) =>
        config: {
          update: (update) => runServicePromise(config.update(update)),
        },
-        paths: { home: global.home, state: global.state, log: global.log },
      }),
    )
  }),
@@ -1,5 +1,6 @@
 import type { MiniFrontendInput } from "@opencode-ai/tui/mini"
 import { createModelPreferenceRepository } from "@opencode-ai/tui/model-preference"
+import { Global } from "@opencode-ai/util/global"
 import fs from "node:fs"
 import { readFile } from "node:fs/promises"
 import path from "node:path"
@@ -128,9 +129,13 @@ export async function usingInteractiveStdin<T>(
 export function createMiniHost(input: {
  terminal: InteractiveStdin
  directory: string
-  paths: { home: string; state: string; log: string }
+  paths?: { home: string; state: string; log: string }
 }): MiniHost {
-  const paths = input.paths
+  const paths = input.paths ?? {
+    home: Global.Path.home,
+    state: Global.Path.state,
+    log: Global.Path.log,
+  }
  const diagnostics = {
    pid: process.pid,
    cwd: input.directory,
@@ -22,7 +22,6 @@ export type MiniCommandInput = {
  demo?: boolean
  tuiConfig?: MiniFrontendInput["tuiConfig"]
  config?: MiniFrontendInput["config"]
-  paths: { home: string; state: string; log: string }
 }

 type Model = MiniFrontendInput["model"]
@@ -105,7 +104,7 @@ export async function runMini(input: MiniCommandInput) {
        }))
      const frontend = await frontendTask
      return frontend.runMiniFrontend({
-        host: createMiniHost({ terminal, directory, paths: input.paths }),
+        host: createMiniHost({ terminal, directory }),
        sdk,
        directory,
        target: resolveTarget,
@@ -39,8 +39,7 @@ export const run = Effect.fnUntraced(function* (options: Options) {
 })

 const processEffect = Effect.fnUntraced(function* (options: Options) {
-  const global = yield* Global.Service
-  if (options.mode === "service") yield* Effect.sync(() => process.chdir(global.home))
+  if (options.mode === "service") yield* Effect.sync(() => process.chdir(Global.Path.home))
  return yield* Effect.scoped(
    Effect.gen(function* () {
      const serviceOptions = options.mode === "service" ? yield* ServiceConfig.options() : undefined
@@ -339,11 +339,7 @@ export type Endpoint5_31Output =
          readonly type: "session.agent.selected"
          readonly durable: { readonly aggregateID: string; readonly seq: Event.Seq; readonly version: Event.Version }
          readonly location?: Location.Ref | undefined
-          readonly data: {
-            readonly sessionID: Session.ID
-            readonly agent: Agent.ID
-            readonly previous?: Agent.ID | undefined
-          }
+          readonly data: { readonly sessionID: Session.ID; readonly agent: Agent.ID }
        }
      | {
          readonly id: Event.ID
@@ -352,11 +348,7 @@ export type Endpoint5_31Output =
          readonly type: "session.model.selected"
          readonly durable: { readonly aggregateID: string; readonly seq: Event.Seq; readonly version: Event.Version }
          readonly location?: Location.Ref | undefined
-          readonly data: {
-            readonly sessionID: Session.ID
-            readonly model: Model.Ref
-            readonly previous?: Model.Ref | undefined
-          }
+          readonly data: { readonly sessionID: Session.ID; readonly model: Model.Ref }
        }
      | {
          readonly id: Event.ID
@@ -41,7 +41,6 @@ export type SessionMessageAgentSelected = {
  time: { created: number }
  type: "agent-switched"
  agent: string
-  previous?: string
 }

 export type PromptBase64 = string
@@ -436,7 +435,7 @@ export type SessionAgentSelected = {
  type: "session.agent.selected"
  durable: { aggregateID: string; seq: number; version: 1 }
  location?: LocationRef
-  data: { sessionID: string; agent: string; previous?: string }
+  data: { sessionID: string; agent: string }
 }

 export type SessionModelSelected = {
@@ -446,7 +445,7 @@ export type SessionModelSelected = {
  type: "session.model.selected"
  durable: { aggregateID: string; seq: number; version: 1 }
  location?: LocationRef
-  data: { sessionID: string; model: ModelRef; previous?: ModelRef }
+  data: { sessionID: string; model: ModelRef }
 }

 export type SessionMoved = {
@@ -2536,7 +2535,6 @@ export type SessionImportInput = {
          readonly time: { readonly created: number }
          readonly type: "agent-switched"
          readonly agent: string
-          readonly previous?: string
        }
      | {
          readonly id: string
@@ -2788,7 +2786,6 @@ export type SessionImportInput = {
          readonly time: { readonly created: number }
          readonly type: "agent-switched"
          readonly agent: string
-          readonly previous?: string
        }
      | {
          readonly id: string
@@ -3040,7 +3037,6 @@ export type SessionImportInput = {
          readonly time: { readonly created: number }
          readonly type: "agent-switched"
          readonly agent: string
-          readonly previous?: string
        }
      | {
          readonly id: string
@@ -194,10 +194,11 @@ async function formatTypescript(input: string) {

 function renderRegistry(names: string[]) {
  return `import type { DatabaseMigration } from "./migration"
-${names.map((name, index) => `import m${index.toString().padStart(2, "0")} from "./migration/${name}"`).join("\n")}

-export const migrations = [
-${names.map((_, index) => `  m${index.toString().padStart(2, "0")},`).join("\n")}
-] satisfies DatabaseMigration.Migration[]
+export const migrations: DatabaseMigration.Migration[] = (
+  await Promise.all([
+${names.map((name) => `    import("./migration/${name}"),`).join("\n")}
+  ])
+).map((module) => module.default)
 `
 }
@@ -508,23 +508,8 @@ function toolOutput(result: ToolResultValue) {
    case "text":
    case "error":
      return { type: "text" as const, value: messageValue(result.value) }
-    case "content":
-      return {
-        type: "content" as const,
-        value: result.value.map((item) => {
-          if (item.type === "text") return { type: "text" as const, text: item.text }
-          const data = /^data:[^;,]+(?:;[^,]*)*;base64,(.*)$/s.exec(item.uri)?.[1]
-          const image = item.mime.toLowerCase().startsWith("image/")
-          if (data !== undefined)
-            return image
-              ? { type: "image-data" as const, data, mediaType: item.mime }
-              : { type: "file-data" as const, data, mediaType: item.mime, filename: item.name }
-          return image ? { type: "image-url" as const, url: item.uri } : { type: "file-url" as const, url: item.uri }
-        }),
-      }
-    case "json":
-      return { type: "json" as const, value: jsonValue(result.value) }
  }
+  return { type: "json" as const, value: jsonValue(result.value) }
 }

 function tool(input: ToolDefinition): LanguageModelV3FunctionTool {
@@ -11,7 +11,6 @@ import { ChildProcess } from "effect/unstable/process"
 import { Config } from "./config"
 import { Location } from "./location"
 import { ShellSelect } from "./shell/select"
-import { Global } from "@opencode-ai/util/global"

 export const Info = Command.Info
 export type Info = Command.Info
@@ -62,7 +61,6 @@ export const layer = (options?: ShellSelect.Options) =>
      const processes = yield* AppProcess.Service
      const config = yield* Config.Service
      const location = yield* Location.Service
-      const global = yield* Global.Service
      const state = State.create<Data, Draft>({
        name: "command",
        initial: () => ({ commands: new Map() }),
@@ -113,7 +111,6 @@ export const layer = (options?: ShellSelect.Options) =>
              location,
              processes,
              shell: options,
-              bin: global.bin,
            })

          const prompt = (yield* mcp.prompts()).find(
@@ -167,7 +164,6 @@ function evaluateTemplate(
    readonly location: Location.Info
    readonly processes: AppProcess.Interface
    readonly shell?: ShellSelect.Options
-    readonly bin: string
  },
 ) {
  return Effect.gen(function* () {
@@ -201,16 +197,11 @@ const evaluateShell = Effect.fnUntraced(function* (
    readonly location: Location.Info
    readonly processes: AppProcess.Interface
    readonly shell?: ShellSelect.Options
-    readonly bin: string
  },
 ) {
  const matches = Array.from(text.matchAll(shellRegex))
  if (matches.length === 0) return text
-  const shell = ShellSelect.preferred(
-    Config.latest(yield* services.config.entries(), "shell"),
-    services.shell,
-    services.bin,
-  )
+  const shell = ShellSelect.preferred(Config.latest(yield* services.config.entries(), "shell"), services.shell)
  const outputs = yield* Effect.forEach(
    matches,
    (match) => {
@@ -271,7 +262,7 @@ export function configured(options?: ShellSelect.Options) {
  return makeLocationNode({
    service: Service,
    layer: layer(options),
-    deps: [MCP.node, Bus.node, AppProcess.node, Config.node, Location.node, Global.node],
+    deps: [MCP.node, Bus.node, AppProcess.node, Config.node, Location.node],
  })
 }

@@ -1,122 +0,0 @@
-export * as ConfigInstructionPlugin from "./instruction"
-
-import { define } from "@opencode-ai/plugin/effect/plugin"
-import { FSUtil } from "@opencode-ai/util/fs-util"
-import { Global } from "@opencode-ai/util/global"
-import { dirname, join } from "path"
-import { Effect, PubSub, Semaphore, Stream } from "effect"
-import { Watcher } from "../../filesystem/watcher"
-import { InstructionDiscovery } from "../../instruction-discovery"
-import { Instructions } from "../../instructions/index"
-import { Location } from "../../location"
-import { AbsolutePath } from "../../schema"
-
-type Loaded =
-  | { readonly type: "available"; readonly files: InstructionDiscovery.File[] }
-  | { readonly type: "unavailable" }
-
-export const Plugin = define({
-  id: "opencode.config.instruction",
-  effect: Effect.fn(function* () {
-    const discovery = yield* InstructionDiscovery.Service
-    yield* Effect.gen(function* () {
-      const fs = yield* FSUtil.Service
-      const global = yield* Global.Service
-      const location = yield* Location.Service
-      const watcher = yield* Watcher.Service
-      const changes = yield* PubSub.sliding<string>(1)
-      const lock = Semaphore.makeUnsafe(1)
-      const start = yield* fs.resolve(location.directory)
-      const stop = yield* fs.resolve(location.project.directory)
-      const project = discovery.project && FSUtil.contains(stop, start)
-      const globalFile = yield* fs.resolve(join(global.config, "AGENTS.md"))
-      const loaded: { current: Loaded } = { current: { type: "available", files: [] } }
-
-      const publish = (update: Watcher.Update) => PubSub.publish(changes, update.path).pipe(Effect.asVoid)
-      const candidates = [
-        globalFile,
-        ...(project ? ancestorDirectories(start, stop).map((directory) => join(directory, "AGENTS.md")) : []),
-      ]
-      for (const path of new Set(candidates)) {
-        const updates = yield* watcher.subscribe({ path, type: "file" })
-        yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped({ startImmediately: true }))
-      }
-
-      const read = Effect.fn("ConfigInstructionPlugin.read")(function* (path: string) {
-        const content = yield* fs.readFileStringSafe(path)
-        if (content !== undefined) return new InstructionDiscovery.File({ path: AbsolutePath.make(path), content })
-        yield* Effect.logDebug("instruction file skipped", { path, reason: "unavailable" })
-      })
-
-      const globalSource = Effect.fn("ConfigInstructionPlugin.globalSource")(function* () {
-        const file = yield* read(globalFile)
-        return file ? [file] : []
-      })
-
-      const projectSource = Effect.fn("ConfigInstructionPlugin.projectSource")(function* () {
-        if (!project) return []
-        const discovered = new Set(
-          yield* Effect.forEach(yield* fs.up({ targets: ["AGENTS.md"], start, stop }), fs.resolve),
-        )
-        const files = yield* Effect.forEach(discovered, read, { concurrency: "unbounded" })
-        if (files.some((file) => file === undefined)) return Instructions.unavailable
-        return files.filter((file): file is InstructionDiscovery.File => file !== undefined)
-      })
-
-      const isolate = <A, E, R>(source: string, effect: Effect.Effect<A, E, R>) =>
-        effect.pipe(
-          Effect.catchCause((cause) =>
-            Effect.logWarning("failed to load instruction source", { source, cause }).pipe(
-              Effect.as(Instructions.unavailable),
-            ),
-          ),
-        )
-
-      const refresh = Effect.fn("ConfigInstructionPlugin.refresh")(function* (file?: string) {
-        yield* lock.withPermit(
-          Effect.gen(function* () {
-            const sources = yield* Effect.all({
-              global: isolate("global", globalSource()),
-              project: isolate("project", projectSource()),
-            })
-            loaded.current =
-              Array.isArray(sources.global) && Array.isArray(sources.project)
-                ? { type: "available", files: [...sources.global, ...sources.project] }
-                : { type: "unavailable" }
-            if (!file) return
-            yield* Effect.logDebug("instructions rescanned", {
-              file,
-              instructions:
-                loaded.current.type === "available" ? loaded.current.files.map((item) => item.path) : "unavailable",
-            })
-          }),
-        )
-      })
-
-      yield* Stream.fromPubSub(changes).pipe(
-        Stream.runForEach((file) => refresh(file).pipe(Effect.andThen(discovery.reload()))),
-        Effect.forkScoped({ startImmediately: true }),
-      )
-      yield* refresh()
-      yield* discovery.transform((draft) => {
-        if (loaded.current.type === "unavailable") {
-          draft.unavailable()
-          return
-        }
-        for (const file of loaded.current.files) draft.add(file)
-      })
-    }).pipe(
-      Effect.catchCause((cause) =>
-        Effect.logWarning("failed to activate instruction source", { cause }).pipe(
-          Effect.andThen(discovery.transform((draft) => draft.unavailable())),
-          Effect.asVoid,
-        ),
-      ),
-    )
-  }),
-})
-
-function ancestorDirectories(start: string, stop: string): string[] {
-  if (start === stop) return [start]
-  return [start, ...ancestorDirectories(dirname(start), stop)]
-}
@@ -1,57 +0,0 @@
-export * as SkillFile from "./skill-file"
-
-import path from "path"
-import { Result, Schema, type SchemaIssue, SchemaParser } from "effect"
-import { ConfigMarkdown } from "../markdown"
-import { AbsolutePath } from "../../schema"
-import { Skill } from "../../skill"
-
-const Frontmatter = Schema.Struct({
-  name: Schema.String.pipe(Schema.optional),
-  description: Schema.String.pipe(Schema.optional),
-  slash: Schema.Boolean.pipe(Schema.optional),
-  metadata: Schema.Unknown.pipe(Schema.optional),
-})
-const decodeFrontmatter = SchemaParser.decodeUnknownResult(Frontmatter)
-
-export type ParseResult =
-  | { readonly _tag: "Parsed"; readonly skill: Skill.Info }
-  | { readonly _tag: "Skipped"; readonly reason: "markdown" }
-  | { readonly _tag: "Skipped"; readonly reason: "frontmatter"; readonly issue: SchemaIssue.Issue }
-
-const metadataBoolean = (metadata: unknown, key: string) => {
-  if (metadata === undefined || metadata === null || typeof metadata !== "object" || Array.isArray(metadata)) {
-    return undefined
-  }
-  const value = Reflect.get(metadata, key)
-  if (typeof value === "boolean") return value
-  if (typeof value !== "string") return undefined
-  const normalized = value.trim().toLowerCase()
-  if (normalized === "true") return true
-  if (normalized === "false") return false
-  return undefined
-}
-
-export function parse(directory: string, filepath: string, content: string): ParseResult {
-  const markdown = ConfigMarkdown.parseOption(content)
-  if (!markdown) return { _tag: "Skipped", reason: "markdown" }
-  const decoded = decodeFrontmatter(markdown.data)
-  if (Result.isFailure(decoded)) return { _tag: "Skipped", reason: "frontmatter", issue: decoded.failure }
-  const frontmatter = decoded.success
-  const id =
-    path.dirname(filepath) === directory ? path.basename(filepath, ".md") : path.basename(path.dirname(filepath))
-  const slash = metadataBoolean(frontmatter.metadata, "opencode/slash") ?? frontmatter.slash
-  const autoinvoke = metadataBoolean(frontmatter.metadata, "opencode/autoinvoke")
-  return {
-    _tag: "Parsed",
-    skill: {
-      id: Skill.ID.make(id),
-      name: Skill.Name.make(frontmatter.name ?? id),
-      ...(frontmatter.description === undefined ? {} : { description: frontmatter.description }),
-      ...(slash === undefined ? {} : { slash }),
-      ...(autoinvoke === undefined ? {} : { autoinvoke }),
-      location: AbsolutePath.make(filepath),
-      content: markdown.content,
-    },
-  }
-}
@@ -1,191 +1,64 @@
 export * as ConfigSkillPlugin from "./skill"

 import { define } from "@opencode-ai/plugin/effect/plugin"
-import type { Entry } from "@opencode-ai/schema/config"
-import { FSUtil } from "@opencode-ai/util/fs-util"
-import { Global } from "@opencode-ai/util/global"
 import path from "path"
-import { Effect, FiberMap, PubSub, Semaphore, Stream } from "effect"
+import { Effect, Stream } from "effect"
 import { Config } from "../../config"
-import { Watcher } from "../../filesystem/watcher"
-import { Location } from "../../location"
 import { AbsolutePath } from "../../schema"
 import { Skill } from "../../skill"
-import { SkillDiscovery } from "../../skill/discovery"
-import { SkillFile } from "./skill-file"
-
-type Source = Skill.DirectorySource | Skill.UrlSource
+import { Global } from "@opencode-ai/util/global"
+import { Location } from "../../location"

 export const Plugin = define({
  id: "opencode.config.skill",
  effect: Effect.fn(function* (ctx) {
    const config = yield* Config.Service
-    const discovery = yield* SkillDiscovery.Service
-    const fs = yield* FSUtil.Service
    const global = yield* Global.Service
    const location = yield* Location.Service
-    const watcher = yield* Watcher.Service
-    const loaded: { entries: Entry[]; skills: Skill.Info[] } = {
-      entries: yield* config.entries(),
-      skills: [],
-    }
-    const watches = yield* FiberMap.make<string>()
-    const changes = yield* PubSub.sliding<string>(1)
-    const lock = Semaphore.makeUnsafe(1)
-
-    const watch = Effect.fn("ConfigSkillPlugin.watch")(function* (directory: string, type: Watcher.WatchInput["type"]) {
-      const target = path.resolve(directory)
-      const updates = yield* watcher.subscribe({ path: target, type })
-      yield* FiberMap.run(
-        watches,
-        `${type}:${target}`,
-        updates.pipe(Stream.runForEach((update) => PubSub.publish(changes, update.path).pipe(Effect.asVoid))),
-        { onlyIfMissing: true, startImmediately: true },
-      )
-    })
-
-    function firstMissing(target: string): Effect.Effect<string | undefined> {
-      const parent = path.dirname(target)
-      if (parent === target) return Effect.succeed(undefined)
-      return fs.isDir(parent).pipe(Effect.flatMap((exists) => (exists ? Effect.succeed(target) : firstMissing(parent))))
-    }
-
-    const watchDirectory: (directory: string) => Effect.Effect<string[]> = Effect.fn(
-      "ConfigSkillPlugin.watchDirectory",
-    )(function* (directory: string) {
-      const target = path.resolve(directory)
-      const resolved = yield* fs.realPath(directory).pipe(Effect.catch(() => Effect.succeed(undefined)))
-      if (resolved) {
-        yield* watch(resolved, "directory")
-        if (resolved !== target) yield* watch(target, "file")
-        return resolved === target ? [target] : [target, resolved]
-      }
-      const missing = yield* firstMissing(target)
-      if (missing) yield* watch(missing, "file")
-      if (
-        yield* fs.realPath(directory).pipe(
-          Effect.as(true),
-          Effect.catch(() => Effect.succeed(false)),
-        )
-      ) {
-        if (missing) yield* FiberMap.remove(watches, `file:${path.resolve(missing)}`)
-        return yield* watchDirectory(directory)
-      }
-      return [target]
-    })
-
-    const sources = () => {
-      const result: Source[] = []
-      const add = (source: Source) => {
-        if (result.some((item) => Skill.Source.equals(item, source))) return
-        result.push(source)
-      }
+    const loaded = { entries: yield* config.entries() }
+    yield* ctx.skill.transform((draft) => {
      const claude = loaded.entries.flatMap((entry) => (entry.type === "claude" ? [entry.path] : []))
      const agents = loaded.entries.flatMap((entry) => (entry.type === "agents" ? [entry.path] : []))
      const directories = loaded.entries.flatMap((entry) => (entry.type === "directory" ? [entry.path] : []))
      const items = loaded.entries.flatMap((entry) => (entry.type === "document" ? (entry.info.skills ?? []) : []))
      for (const directory of [...claude, ...agents]) {
-        add(Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make(path.join(directory, "skills")) }))
+        draft.source(
+          Skill.DirectorySource.make({
+            type: "directory",
+            path: AbsolutePath.make(path.join(directory, "skills")),
+          }),
+        )
      }
      for (const directory of directories) {
-        add(Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make(path.join(directory, "skill")) }))
-        add(Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make(path.join(directory, "skills")) }))
+        draft.source(
+          Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make(path.join(directory, "skill")) }),
+        )
+        draft.source(
+          Skill.DirectorySource.make({
+            type: "directory",
+            path: AbsolutePath.make(path.join(directory, "skills")),
+          }),
+        )
      }
      for (const item of items) {
        if (URL.canParse(item) && /^(https?:)$/.test(new URL(item).protocol)) {
-          add(Skill.UrlSource.make({ type: "url", url: item }))
+          draft.source(Skill.UrlSource.make({ type: "url", url: item }))
          continue
        }
        const expanded = item.startsWith("~/") ? path.join(global.home, item.slice(2)) : item
-        add(
+        draft.source(
          Skill.DirectorySource.make({
            type: "directory",
            path: AbsolutePath.make(path.isAbsolute(expanded) ? expanded : path.join(location.directory, expanded)),
          }),
        )
      }
-      return result
-    }
-
-    const load = Effect.fn("ConfigSkillPlugin.load")(function* (source: Source) {
-      const directories =
-        source.type === "directory"
-          ? [source.path]
-          : yield* discovery.pull(source.url).pipe(
-              Effect.catchCause((cause) =>
-                Effect.logWarning("failed to load skill source", {
-                  source: Skill.Source.key(source),
-                  cause,
-                }).pipe(Effect.as([] as AbsolutePath[])),
-              ),
-            )
-      const roots = (yield* Effect.forEach(directories, watchDirectory)).flat()
-      const skills: Skill.Info[] = []
-      for (const directory of directories) {
-        const files = yield* fs
-          .scan("{*.md,**/SKILL.md}", { cwd: directory, absolute: true, include: "file", symlink: true, dot: true })
-          .pipe(Effect.catch(() => Effect.succeed([] as string[])))
-        for (const filepath of files.toSorted()) {
-          const resolved = yield* fs.realPath(filepath).pipe(Effect.catch(() => Effect.succeed(filepath)))
-          if (!roots.some((root) => FSUtil.contains(root, resolved))) yield* watch(path.dirname(resolved), "directory")
-          const content = yield* fs.readFileStringSafe(filepath).pipe(Effect.catch(() => Effect.succeed(undefined)))
-          if (!content) continue
-          const parsed = SkillFile.parse(directory, filepath, content)
-          if (parsed._tag === "Skipped") {
-            yield* Effect.logDebug("skill file skipped", {
-              filepath,
-              reason: parsed.reason,
-              ...(parsed.reason === "frontmatter" ? { issue: parsed.issue } : {}),
-            })
-            continue
-          }
-          skills.push(parsed.skill)
-        }
-      }
-      yield* Effect.logDebug("skill source loaded", {
-        source: Skill.Source.key(source),
-        type: source.type,
-        directories,
-        skills: skills.map((skill) => skill.id),
-      })
-      return skills
-    })
-
-    const refresh = Effect.fn("ConfigSkillPlugin.refresh")(function* (file?: string) {
-      yield* lock.withPermit(
-        Effect.gen(function* () {
-          yield* FiberMap.clear(watches)
-          const skills = new Map<Skill.ID, Skill.Info>()
-          const current = sources()
-          for (const source of current) {
-            for (const skill of yield* load(source)) skills.set(skill.id, skill)
-          }
-          loaded.skills = Array.from(skills.values())
-          if (file) {
-            yield* Effect.logInfo("skills rescanned", {
-              file,
-              sources: current.map(Skill.Source.key),
-              skills: loaded.skills.map((skill) => skill.id),
-            })
-          }
-        }),
-      )
-    })
-
-    yield* Stream.fromPubSub(changes).pipe(
-      Stream.runForEach((file) => refresh(file).pipe(Effect.andThen(ctx.skill.reload()))),
-      Effect.forkScoped({ startImmediately: true }),
-    )
-    yield* refresh()
-    yield* ctx.skill.transform((draft) => {
-      for (const skill of loaded.skills) draft.add(skill)
    })
    yield* ctx.event.subscribe().pipe(
      Stream.filter((event) => event.type === "config.updated"),
      Stream.runForEach(() =>
        config.entries().pipe(
          Effect.tap((entries) => Effect.sync(() => (loaded.entries = entries))),
-          Effect.andThen(refresh()),
          Effect.andThen(ctx.skill.reload()),
        ),
      ),
@@ -1,216 +0,0 @@
-export * as ConfigPluginSource from "./source"
-
-import { Directory, Document, type Entry } from "@opencode-ai/schema/config"
-import { ConfigPlugin } from "@opencode-ai/schema/config/plugin"
-import { FSUtil } from "@opencode-ai/util/fs-util"
-import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
-import { Context, Effect, Layer, Option, PubSub, Schema, Scope, Stream } from "effect"
-import path from "path"
-import { fileURLToPath } from "url"
-import { Config } from "../../config"
-import { Watcher } from "../../filesystem/watcher"
-import { Location } from "../../location"
-
-export type Operation =
-  | {
-      readonly type: "add"
-      readonly target: string
-      readonly options: Record<string, unknown>
-      readonly mtime?: number
-    }
-  | {
-      readonly type: "remove"
-      readonly target: string
-    }
-
-export interface Interface {
-  readonly operations: () => Effect.Effect<readonly Operation[], never, Scope.Scope>
-  readonly changes: () => Stream.Stream<void>
-}
-
-export class Service extends Context.Service<Service, Interface>()("@opencode/ConfigPluginSource") {}
-
-export const layer = Layer.effect(
-  Service,
-  Effect.gen(function* () {
-    const config = yield* Config.Service
-    const watcher = yield* Watcher.Service
-    const fs = yield* FSUtil.Service
-    const location = yield* Location.Service
-    const configuredChanges = yield* PubSub.unbounded<void>()
-    const watched = new Set<string>()
-
-    // Configured local plugin files can live outside config roots, where the
-    // config change feed cannot see them; watch those entrypoints directly.
-    // Watches start on first sighting and are never torn down individually:
-    // a stale watch after a config edit costs one deduped fs handle and a
-    // no-op activation, and every watch dies with this layer's scope.
-    const watchConfiguredSources = Effect.fn("ConfigPluginSource.watchConfiguredSources")(function* (
-      entries: readonly Entry[],
-      operations: readonly Operation[],
-    ) {
-      for (const operation of operations) {
-        if (operation.type !== "add" || !path.isAbsolute(operation.target)) continue
-        if (watched.has(operation.target)) continue
-        // The config change feed already covers {plugin,plugins} directories.
-        if (isPluginSource(entries, operation.target)) continue
-        // Directory targets can't hot-reload (their stat mtime ignores edits
-        // inside), so don't watch what can't trigger anything.
-        if (yield* fs.isDir(operation.target)) continue
-        watched.add(operation.target)
-        const updates = yield* watcher.subscribe({ path: operation.target, type: "file" })
-        yield* updates.pipe(
-          Stream.runForEach(() => PubSub.publish(configuredChanges, undefined)),
-          Effect.catchCause((cause) =>
-            Effect.logError("configured plugin watch failed", { target: operation.target, cause }),
-          ),
-          Effect.forkScoped({ startImmediately: true }),
-        )
-      }
-    })
-
-    return Service.of({
-      operations: Effect.fn("ConfigPluginSource.operations")(function* () {
-        const entries = yield* config.entries()
-        const operations = yield* scan(fs, location, entries)
-        yield* watchConfiguredSources(entries, operations)
-        return operations
-      }),
-      changes: () =>
-        Stream.merge(
-          config.changes().pipe(
-            Stream.filterEffect((update) =>
-              Effect.map(config.entries(), (entries) => isPluginSource(entries, update.path)),
-            ),
-            Stream.map(() => undefined),
-          ),
-          Stream.fromPubSub(configuredChanges),
-        ),
-    })
-  }),
-)
-
-export const node = makeLocationNode({
-  service: Service,
-  layer,
-  deps: [Config.node, FSUtil.node, Watcher.node, Location.node],
-})
-
-export const empty = makeLocationNode({
-  service: Service,
-  layer: Layer.succeed(
-    Service,
-    Service.of({
-      operations: () => Effect.succeed([]),
-      changes: () => Stream.never,
-    }),
-  ),
-  deps: [],
-})
-
-function parse(input: ConfigPlugin.Plugin): Operation {
-  if (typeof input !== "string") {
-    return { type: "add", target: input.package, options: input.options ?? {} }
-  }
-  if (!input.startsWith("-")) return { type: "add", target: input, options: {} }
-  if (input.length === 1) throw new Error("Plugin remove operation requires a target")
-  return { type: "remove", target: input.slice(1) }
-}
-
-const scan = Effect.fn("ConfigPluginSource.scan")(function* (
-  fs: FSUtil.Interface,
-  location: Location.Interface,
-  entries: readonly Entry[],
-) {
-  const discovered = yield* Effect.forEach(
-    entries.filter((entry): entry is Directory => entry.type === "directory"),
-    (entry) => discoverDirectory(fs, entry.path),
-  ).pipe(Effect.map((items) => items.flat()))
-  const configured = entries
-    .filter((entry): entry is Document => entry.type === "document")
-    .flatMap((entry) =>
-      (entry.info.plugins ?? []).map(parse).map((operation) => {
-        if (operation.type === "remove") return operation
-        const directory = entry.path ? path.dirname(entry.path) : location.directory
-        const target = operation.target.startsWith("file://")
-          ? fileURLToPath(operation.target)
-          : operation.target.startsWith("./") || operation.target.startsWith("../")
-            ? path.resolve(directory, operation.target)
-            : operation.target
-        return { ...operation, target }
-      }),
-    )
-  // Explicit config is applied last so it can remove auto-discovered packages.
-  return yield* Effect.forEach([...discovered, ...configured], (operation) => {
-    if (operation.type === "remove" || !path.isAbsolute(operation.target)) return Effect.succeed(operation)
-    return fs.stat(operation.target).pipe(
-      Effect.map((info) => ({
-        ...operation,
-        mtime: Option.getOrElse(info.mtime, () => new Date(0)).getTime(),
-      })),
-      Effect.catch(() => Effect.succeed(operation)),
-    )
-  })
-})
-
-const sourceDirectories = ["plugin", "plugins"] as const
-const Package = Schema.Struct({
-  exports: Schema.optional(Schema.Unknown),
-  module: Schema.optional(Schema.Unknown),
-  main: Schema.optional(Schema.Unknown),
-})
-const decodePackage = Schema.decodeUnknownOption(Package)
-
-function discoverDirectory(fs: FSUtil.Interface, directory: string) {
-  return Effect.gen(function* () {
-    const files = yield* fs
-      .scan(`{${sourceDirectories.join(",")}}/*.{ts,js}`, {
-        cwd: directory,
-        absolute: true,
-        include: "file",
-        dot: true,
-        symlink: true,
-      })
-      .pipe(Effect.orElseSucceed(() => []))
-    const children = yield* fs
-      .scan(`{${sourceDirectories.join(",")}}/*`, {
-        cwd: directory,
-        absolute: true,
-        include: "all",
-        dot: true,
-        symlink: true,
-      })
-      .pipe(Effect.orElseSucceed(() => []))
-    const directories = yield* Effect.filter(children.sort(), fs.isDir)
-    const packages = yield* Effect.forEach(directories, (child) => discoverPackage(fs, child))
-    return [...files.sort(), ...packages.filter((target): target is string => typeof target === "string")].map(
-      (target): Operation => ({ type: "add", target, options: {} }),
-    )
-  })
-}
-
-function discoverPackage(fs: FSUtil.Interface, directory: string) {
-  return Effect.gen(function* () {
-    const manifest = yield* fs
-      .readJson(path.join(directory, "package.json"))
-      .pipe(Effect.map(decodePackage), Effect.orElseSucceed(Option.none))
-    const configured = Option.isSome(manifest)
-      ? [manifest.value.exports, manifest.value.module, manifest.value.main].filter(
-          (entry): entry is string => typeof entry === "string",
-        )
-      : []
-    const target = yield* Effect.findFirst(
-      [...configured, "index.ts", "index.js"].map((entry) => path.resolve(directory, entry)),
-      fs.isFile,
-    )
-    return Option.getOrUndefined(target)
-  })
-}
-
-function isPluginSource(entries: readonly Entry[], file: string) {
-  return entries.some(
-    (entry) =>
-      entry.type === "directory" &&
-      sourceDirectories.some((directory) => FSUtil.contains(path.join(entry.path, directory), file)),
-  )
-}
@@ -40,19 +40,16 @@ const databaseLayer = Layer.effect(
 )

 export function layer(options: Options = { path: ":memory:" }) {
-  return Layer.unwrap(
-    Effect.gen(function* () {
-      const provide = (filename: string) => databaseLayer.pipe(Layer.provide(sqliteLayer({ filename })))
-      const filename = options.path ?? ":memory:"
-      if (filename === ":memory:" || isAbsolute(filename)) return provide(filename)
-      const global = yield* Global.Service
-      return provide(join(global.data, filename))
-    }),
-  )
+  return Layer.suspend(() => {
+    const provide = (filename: string) => databaseLayer.pipe(Layer.provide(sqliteLayer({ filename })))
+    const filename = options.path ?? ":memory:"
+    if (filename === ":memory:" || isAbsolute(filename)) return provide(filename)
+    return provide(join(Global.Path.data, filename))
+  })
 }

 export function configured(options?: Options) {
-  return makeGlobalNode({ service: Service, layer: layer(options), deps: [Global.node] })
+  return makeGlobalNode({ service: Service, layer: layer(options), deps: [] })
 }

 export const node = configured({ path: ":memory:" })
@@ -1,86 +1,47 @@
 import type { DatabaseMigration } from "./migration"
-import m00 from "./migration/20260127222353_familiar_lady_ursula"
-import m01 from "./migration/20260211171708_add_project_commands"
-import m02 from "./migration/20260213144116_wakeful_the_professor"
-import m03 from "./migration/20260225215848_workspace"
-import m04 from "./migration/20260227213759_add_session_workspace_id"
-import m05 from "./migration/20260228203230_blue_harpoon"
-import m06 from "./migration/20260303231226_add_workspace_fields"
-import m07 from "./migration/20260309230000_move_org_to_state"
-import m08 from "./migration/20260312043431_session_message_cursor"
-import m09 from "./migration/20260323234822_events"
-import m10 from "./migration/20260410174513_workspace-name"
-import m11 from "./migration/20260413175956_chief_energizer"
-import m12 from "./migration/20260423070820_add_icon_url_override"
-import m13 from "./migration/20260427172553_slow_nightmare"
-import m14 from "./migration/20260428004200_add_session_path"
-import m15 from "./migration/20260501142318_next_venus"
-import m16 from "./migration/20260504145000_add_sync_owner"
-import m17 from "./migration/20260507164347_add_workspace_time"
-import m18 from "./migration/20260510033149_session_usage"
-import m19 from "./migration/20260511000411_data_migration_state"
-import m20 from "./migration/20260511173437_session-metadata"
-import m21 from "./migration/20260601010001_normalize_storage_paths"
-import m22 from "./migration/20260601202201_amazing_prowler"
-import m23 from "./migration/20260602002951_lowly_union_jack"
-import m24 from "./migration/20260602182828_add_project_directories"
-import m25 from "./migration/20260603001617_session_message_projection_indexes"
-import m26 from "./migration/20260603040000_session_message_projection_order"
-import m27 from "./migration/20260603141458_session_input_inbox"
-import m28 from "./migration/20260603160727_jittery_ezekiel_stane"
-import m29 from "./migration/20260604172448_event_sourced_session_input"
-import m30 from "./migration/20260605003541_add_session_context_snapshot"
-import m31 from "./migration/20260605042240_add_context_epoch_agent"
-import m32 from "./migration/20260611035744_credential"
-import m33 from "./migration/20260611192811_lush_chimera"
-import m34 from "./migration/20260612174303_project_dir_strategy"
-import m35 from "./migration/20260622142730_simplify_session_context_epoch"
-import m36 from "./migration/20260622170816_reset_v2_session_state"
-import m37 from "./migration/20260622202450_simplify_session_input"
-import m38 from "./migration/20260804233008_loose_psylocke"
-import m39 from "./migration/20260805200742_import_legacy_credentials"
-import m40 from "./migration/20260808023530_workspace_domain"

-export const migrations = [
-  m00,
-  m01,
-  m02,
-  m03,
-  m04,
-  m05,
-  m06,
-  m07,
-  m08,
-  m09,
-  m10,
-  m11,
-  m12,
-  m13,
-  m14,
-  m15,
-  m16,
-  m17,
-  m18,
-  m19,
-  m20,
-  m21,
-  m22,
-  m23,
-  m24,
-  m25,
-  m26,
-  m27,
-  m28,
-  m29,
-  m30,
-  m31,
-  m32,
-  m33,
-  m34,
-  m35,
-  m36,
-  m37,
-  m38,
-  m39,
-  m40,
-] satisfies DatabaseMigration.Migration[]
+export const migrations: DatabaseMigration.Migration[] = (
+  await Promise.all([
+    import("./migration/20260127222353_familiar_lady_ursula"),
+    import("./migration/20260211171708_add_project_commands"),
+    import("./migration/20260213144116_wakeful_the_professor"),
+    import("./migration/20260225215848_workspace"),
+    import("./migration/20260227213759_add_session_workspace_id"),
+    import("./migration/20260228203230_blue_harpoon"),
+    import("./migration/20260303231226_add_workspace_fields"),
+    import("./migration/20260309230000_move_org_to_state"),
+    import("./migration/20260312043431_session_message_cursor"),
+    import("./migration/20260323234822_events"),
+    import("./migration/20260410174513_workspace-name"),
+    import("./migration/20260413175956_chief_energizer"),
+    import("./migration/20260423070820_add_icon_url_override"),
+    import("./migration/20260427172553_slow_nightmare"),
+    import("./migration/20260428004200_add_session_path"),
+    import("./migration/20260501142318_next_venus"),
+    import("./migration/20260504145000_add_sync_owner"),
+    import("./migration/20260507164347_add_workspace_time"),
+    import("./migration/20260510033149_session_usage"),
+    import("./migration/20260511000411_data_migration_state"),
+    import("./migration/20260511173437_session-metadata"),
+    import("./migration/20260601010001_normalize_storage_paths"),
+    import("./migration/20260601202201_amazing_prowler"),
+    import("./migration/20260602002951_lowly_union_jack"),
+    import("./migration/20260602182828_add_project_directories"),
+    import("./migration/20260603001617_session_message_projection_indexes"),
+    import("./migration/20260603040000_session_message_projection_order"),
+    import("./migration/20260603141458_session_input_inbox"),
+    import("./migration/20260603160727_jittery_ezekiel_stane"),
+    import("./migration/20260604172448_event_sourced_session_input"),
+    import("./migration/20260605003541_add_session_context_snapshot"),
+    import("./migration/20260605042240_add_context_epoch_agent"),
+    import("./migration/20260611035744_credential"),
+    import("./migration/20260611192811_lush_chimera"),
+    import("./migration/20260612174303_project_dir_strategy"),
+    import("./migration/20260622142730_simplify_session_context_epoch"),
+    import("./migration/20260622170816_reset_v2_session_state"),
+    import("./migration/20260622202450_simplify_session_input"),
+    import("./migration/20260804233008_loose_psylocke"),
+    import("./migration/20260805200742_import_legacy_credentials"),
+    import("./migration/20260808023530_workspace_domain"),
+  ])
+).map((module) => module.default)
@@ -5,7 +5,6 @@ import { Effect, Semaphore } from "effect"
 import type { EffectDrizzleSqlite } from "@opencode-ai/effect-drizzle-sqlite"
 import { migrations } from "./migration.gen"
 import schema from "./schema.gen"
-import { Global } from "@opencode-ai/util/global"

 type Database = EffectDrizzleSqlite.EffectSQLiteDatabase
 type Transaction = Parameters<Parameters<Database["transaction"]>[0]>[0]
@@ -14,7 +13,7 @@ const lock = Semaphore.makeUnsafe(1)
 export type Migration = {
  id: string
  foreignKeys?: boolean
-  up: (tx: Transaction) => Effect.Effect<void, unknown, Global.Service>
+  up: (tx: Transaction) => Effect.Effect<void, unknown>
 }

 export function apply(db: Database) {
@@ -1,4 +1,3 @@
-import { readFile } from "node:fs/promises"
 import path from "node:path"
 import { sql } from "drizzle-orm"
 import { Effect, Option, Schema } from "effect"
@@ -34,10 +33,7 @@ const wellKnownSourcesKey = "wellknown:sources"
 const migration: DatabaseMigration.Migration = {
  id: "20260805200742_import_legacy_credentials",
  up(tx) {
-    return Effect.gen(function* () {
-      const global = yield* Global.Service
-      return yield* importLegacyCredentials(tx, path.join(global.data, "auth.json"))
-    })
+    return importLegacyCredentials(tx, path.join(Global.Path.data, "auth.json"))
  },
 }

@@ -45,9 +41,9 @@ export default migration

 export function importLegacyCredentials(tx: Parameters<DatabaseMigration.Migration["up"]>[0], filepath: string) {
  return Effect.gen(function* () {
-    const content = yield* Effect.promise(() => readFile(filepath, "utf8").catch(() => undefined))
-    if (content === undefined) return
-    const input = Option.getOrUndefined(decodeJson(content))
+    const file = Bun.file(filepath)
+    if (!(yield* Effect.promise(() => file.exists()))) return
+    const input = Option.getOrUndefined(decodeJson(yield* Effect.promise(() => file.text())))
    if (typeof input !== "object" || input === null || Array.isArray(input)) {
      return yield* Effect.fail(new Error("Legacy credential file must contain an object"))
    }
@@ -467,11 +467,10 @@ function updateProgress(progress: Progress) {
  if (runtimeState.status === "running") runtimeState = { status: "running", progress }
 }

-export function run(options: Options = {}): Effect.Effect<RunResult, never, Database.Service | Global.Service> {
+export function run(options: Options = {}): Effect.Effect<RunResult, never, Database.Service> {
  return lock.withPermit(
    Effect.gen(function* () {
      const { db } = yield* Database.Service
-      const global = yield* Global.Service
      const state = yield* readState(db)
      if (state?.phase === "completed") return { status: "completed" as const }
      if (!(yield* hasLegacySessions(db))) return { status: "completed" as const }
@@ -479,7 +478,7 @@ export function run(options: Options = {}): Effect.Effect<RunResult, never, Data
        const now = Date.now()
        yield* db.run(sql`
          INSERT OR IGNORE INTO project (id, worktree, time_created, time_updated, sandboxes)
-          VALUES (${Project.ID.global}, ${path.parse(global.data).root}, ${now}, ${now}, '[]')
+          VALUES (${Project.ID.global}, ${path.parse(Global.Path.data).root}, ${now}, ${now}, '[]')
        `)
        if (state === undefined)
          yield* db
@@ -493,7 +492,7 @@ export function run(options: Options = {}): Effect.Effect<RunResult, never, Data
              }),
            )
            .pipe(Effect.orDie)
-        const sourceTotal = yield* countNextSessions(nextPath(options, global.data))
+        const sourceTotal = yield* countNextSessions(nextPath(options))
        const legacyTotal = (yield* db.get<{ value: number }>(sql`SELECT COUNT(*) AS value FROM session`))?.value ?? 0
        const cursor = state?.phase === "sessions" ? state.cursor : undefined
        const migrated =
@@ -503,7 +502,7 @@ export function run(options: Options = {}): Effect.Effect<RunResult, never, Data
            : 0
        const denominator = sourceTotal + legacyTotal
        updateProgress({ label: "Migrating sessions", numerator: migrated, denominator })
-        yield* importNextDatabase(db, nextPath(options, global.data), (completed) => {
+        yield* importNextDatabase(db, nextPath(options), (completed) => {
          updateProgress({ label: "Migrating sessions", numerator: migrated + completed, denominator })
        })
        updateProgress({ label: "Migrating sessions", numerator: migrated + sourceTotal, denominator })
@@ -622,10 +621,10 @@ export function run(options: Options = {}): Effect.Effect<RunResult, never, Data
  )
 }

-function nextPath(options: Options, data: string) {
+function nextPath(options: Options) {
  if (options.nextDatabasePath) return options.nextDatabasePath
  if (process.env.OPENCODE_DB === ":memory:") return undefined
-  return path.join(data, "opencode-next.db")
+  return path.join(Global.Path.data, "opencode-next.db")
 }

 function openNextDatabase(sourcePath: string) {
@@ -1,71 +0,0 @@
-export * as LocationWatcher from "./location-watcher"
-
-import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
-import { Context, Effect, Layer, Stream } from "effect"
-import { FileSystem } from "@opencode-ai/schema/filesystem"
-import { Document } from "@opencode-ai/schema/config"
-import path from "path"
-import { Config } from "../config"
-import { Bus } from "../bus"
-import { FSUtil } from "@opencode-ai/util/fs-util"
-import { Git } from "../git"
-import { Location } from "../location"
-import { Watcher } from "./watcher"
-
-export interface Interface {}
-
-export class Service extends Context.Service<Service, Interface>()("@opencode/LocationWatcher") {}
-
-const layer = Layer.effect(
-  Service,
-  Effect.gen(function* () {
-    const location = yield* Location.Service
-    const watcher = yield* Watcher.Service
-    const bus = yield* Bus.Service
-    const fs = yield* FSUtil.Service
-    const git = yield* Git.Service
-    const configService = yield* Config.Service
-    const publish = (update: { type: "create" | "update" | "delete"; path: string }) =>
-      bus.publish(FileSystem.Event.Changed, {
-        file: update.path,
-        event: update.type === "create" ? "add" : update.type === "update" ? "change" : "unlink",
-      })
-
-    yield* Effect.gen(function* () {
-      const config = (yield* configService.entries())
-        .filter((entry): entry is Document => entry.type === "document")
-        .flatMap((item) => item.info.watcher?.ignore ?? [])
-
-      if (location.vcs?.type === "git") {
-        const resolved = (yield* git.repo.discover(location.directory))?.gitDirectory
-        const vcs = resolved
-          ? yield* fs.realPath(resolved).pipe(Effect.catch(() => Effect.succeed(resolved)))
-          : undefined
-        if (vcs && !config.includes(".git") && !config.includes(vcs) && (!resolved || !config.includes(resolved))) {
-          const updates = yield* watcher.subscribe({ path: path.join(vcs, "HEAD"), type: "file" })
-          yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped)
-        }
-      }
-      if (location.vcs?.type === "hg") {
-        const store = location.vcs.store
-        const vcs = yield* fs.realPath(store).pipe(Effect.catch(() => Effect.succeed(store)))
-        if (!config.includes(".hg") && !config.includes(vcs)) {
-          const updates = yield* watcher.subscribe({ path: path.join(vcs, "branch"), type: "file" })
-          yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped)
-        }
-      }
-    }).pipe(
-      Effect.withSpan("LocationWatcher.start", { attributes: { directory: location.directory } }),
-      Effect.catchCause((cause) => Effect.logError("failed to init location watcher service", { cause })),
-      Effect.forkScoped,
-    )
-
-    return Service.of({})
-  }),
-)
-
-export const node = makeLocationNode({
-  service: Service,
-  layer,
-  deps: [Watcher.node, FSUtil.node, Location.node, Config.node, Git.node, Bus.node],
-})
@@ -7,7 +7,6 @@ import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
 import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Npm } from "@opencode-ai/util/npm"
 import { AppProcess } from "@opencode-ai/util/process"
-import { Global } from "@opencode-ai/util/global"
 import { Config } from "./config"
 import { Location } from "./location"
 import { make, type Info } from "./formatter/builtins"
@@ -26,7 +25,6 @@ const layer = Layer.effect(
    const location = yield* Location.Service
    const npm = yield* Npm.Service
    const processes = yield* AppProcess.Service
-    const global = yield* Global.Service
    const commands = new Map<string, string[] | false>()
    let formatters: Info[] = []

@@ -44,7 +42,6 @@ const layer = Layer.effect(
          fs,
          npm,
          processes,
-          bin: global.bin,
        })
        formatters = builtIns
        if (configured === true) return
@@ -125,5 +122,5 @@ const layer = Layer.effect(
 export const node = makeLocationNode({
  service: Service,
  layer,
-  deps: [Config.node, FSUtil.node, Location.node, Npm.node, AppProcess.node, Global.node],
+  deps: [Config.node, FSUtil.node, Location.node, Npm.node, AppProcess.node],
 })
@@ -18,10 +18,8 @@ export function make(input: {
  readonly fs: FSUtil.Interface
  readonly npm: Npm.Interface
  readonly processes: AppProcess.Interface
-  readonly bin: string
 }) {
  const disabled = false as const
-  const findExecutable = (name: string) => which(name, undefined, input.bin)
  const findUp = (target: string) => input.fs.findUp(target, input.directory, input.worktree)
  const readText = (file: string) => input.fs.readFileString(file).pipe(Effect.orElseSucceed(() => ""))
  const commandOutput = (command: string[]) =>
@@ -39,7 +37,7 @@ export function make(input: {
    name: "gofmt",
    extensions: [".go"],
    enabled: Effect.sync(() => {
-      const match = findExecutable("gofmt")
+      const match = which("gofmt")
      return match ? [match, "-w", "$FILE"] : disabled
    }),
  }
@@ -48,7 +46,7 @@ export function make(input: {
    name: "mix",
    extensions: [".ex", ".exs", ".eex", ".heex", ".leex", ".neex", ".sface"],
    enabled: Effect.sync(() => {
-      const match = findExecutable("mix")
+      const match = which("mix")
      return match ? [match, "format", "$FILE"] : disabled
    }),
  }
@@ -151,7 +149,7 @@ export function make(input: {
    name: "zig",
    extensions: [".zig", ".zon"],
    enabled: Effect.sync(() => {
-      const match = findExecutable("zig")
+      const match = which("zig")
      return match ? [match, "fmt", "$FILE"] : disabled
    }),
  }
@@ -161,7 +159,7 @@ export function make(input: {
    extensions: [".c", ".cc", ".cpp", ".cxx", ".c++", ".h", ".hh", ".hpp", ".hxx", ".h++", ".ino", ".C", ".H"],
    enabled: Effect.gen(function* () {
      if (!(yield* findUp(".clang-format")).length) return disabled
-      const match = findExecutable("clang-format")
+      const match = which("clang-format")
      return match ? [match, "-i", "$FILE"] : disabled
    }).pipe(Effect.orElseSucceed(() => disabled)),
  }
@@ -170,7 +168,7 @@ export function make(input: {
    name: "ktlint",
    extensions: [".kt", ".kts"],
    enabled: Effect.sync(() => {
-      const match = findExecutable("ktlint")
+      const match = which("ktlint")
      return match ? [match, "-F", "$FILE"] : disabled
    }),
  }
@@ -179,18 +177,17 @@ export function make(input: {
    name: "ruff",
    extensions: [".py", ".pyi"],
    enabled: Effect.gen(function* () {
-      const bin = findExecutable("ruff")
-      if (!bin) return disabled
+      if (!which("ruff")) return disabled
      for (const config of ["pyproject.toml", "ruff.toml", ".ruff.toml"]) {
        const found = yield* findUp(config)
        if (!found.length) continue
        if (config !== "pyproject.toml" || (yield* readText(found[0])).includes("[tool.ruff]")) {
-          return [bin, "format", "$FILE"]
+          return ["ruff", "format", "$FILE"]
        }
      }
      for (const dependency of ["requirements.txt", "pyproject.toml", "Pipfile"]) {
        const found = yield* findUp(dependency)
-        if (found.length && (yield* readText(found[0])).includes("ruff")) return [bin, "format", "$FILE"]
+        if (found.length && (yield* readText(found[0])).includes("ruff")) return ["ruff", "format", "$FILE"]
      }
      return disabled
    }).pipe(Effect.orElseSucceed(() => disabled)),
@@ -200,7 +197,7 @@ export function make(input: {
    name: "air",
    extensions: [".R"],
    enabled: Effect.gen(function* () {
-      const bin = findExecutable("air")
+      const bin = which("air")
      if (!bin) return disabled
      const output = yield* commandOutput([bin, "--help"])
      if (output._tag === "None" || output.value.exitCode !== 0) return disabled
@@ -213,34 +210,34 @@ export function make(input: {
    name: "uv",
    extensions: [".py", ".pyi"],
    enabled: Effect.gen(function* () {
-      const bin = findExecutable("uv")
+      const bin = which("uv")
      if (!bin) return disabled
      const output = yield* commandOutput([bin, "format", "--help"])
      return output._tag === "Some" && output.value.exitCode === 0 ? [bin, "format", "--", "$FILE"] : disabled
    }),
  }

-  const rubocop = executable("rubocop", [".rb", ".rake", ".gemspec", ".ru"], ["--autocorrect", "$FILE"], findExecutable)
-  const standardrb = executable("standardrb", [".rb", ".rake", ".gemspec", ".ru"], ["--fix", "$FILE"], findExecutable)
-  const htmlbeautifier = executable("htmlbeautifier", [".erb", ".html.erb"], ["$FILE"], findExecutable)
-  const dart = executable("dart", [".dart"], ["format", "$FILE"], findExecutable)
+  const rubocop = executable("rubocop", [".rb", ".rake", ".gemspec", ".ru"], ["--autocorrect", "$FILE"])
+  const standardrb = executable("standardrb", [".rb", ".rake", ".gemspec", ".ru"], ["--fix", "$FILE"])
+  const htmlbeautifier = executable("htmlbeautifier", [".erb", ".html.erb"], ["$FILE"])
+  const dart = executable("dart", [".dart"], ["format", "$FILE"])

  const ocamlformat: Info = {
    name: "ocamlformat",
    extensions: [".ml", ".mli"],
    enabled: Effect.gen(function* () {
      if (!(yield* findUp(".ocamlformat")).length) return disabled
-      const match = findExecutable("ocamlformat")
+      const match = which("ocamlformat")
      return match ? [match, "-i", "$FILE"] : disabled
    }).pipe(Effect.orElseSucceed(() => disabled)),
  }

-  const terraform = executable("terraform", [".tf", ".tfvars"], ["fmt", "$FILE"], findExecutable)
-  const latexindent = executable("latexindent", [".tex"], ["-w", "-s", "$FILE"], findExecutable)
-  const gleam = executable("gleam", [".gleam"], ["format", "$FILE"], findExecutable)
-  const shfmt = executable("shfmt", [".sh", ".bash"], ["-w", "$FILE"], findExecutable)
-  const nixfmt = executable("nixfmt", [".nix"], ["$FILE"], findExecutable)
-  const rustfmt = executable("rustfmt", [".rs"], ["$FILE"], findExecutable)
+  const terraform = executable("terraform", [".tf", ".tfvars"], ["fmt", "$FILE"])
+  const latexindent = executable("latexindent", [".tex"], ["-w", "-s", "$FILE"])
+  const gleam = executable("gleam", [".gleam"], ["format", "$FILE"])
+  const shfmt = executable("shfmt", [".sh", ".bash"], ["-w", "$FILE"])
+  const nixfmt = executable("nixfmt", [".nix"], ["$FILE"])
+  const rustfmt = executable("rustfmt", [".rs"], ["$FILE"])

  const pint: Info = {
    name: "pint",
@@ -256,9 +253,9 @@ export function make(input: {
    }).pipe(Effect.orElseSucceed(() => disabled)),
  }

-  const ormolu = executable("ormolu", [".hs"], ["-i", "$FILE"], findExecutable)
-  const cljfmt = executable("cljfmt", [".clj", ".cljs", ".cljc", ".edn"], ["fix", "--quiet", "$FILE"], findExecutable)
-  const dfmt = executable("dfmt", [".d"], ["-i", "$FILE"], findExecutable)
+  const ormolu = executable("ormolu", [".hs"], ["-i", "$FILE"])
+  const cljfmt = executable("cljfmt", [".clj", ".cljs", ".cljc", ".edn"], ["fix", "--quiet", "$FILE"])
+  const dfmt = executable("dfmt", [".d"], ["-i", "$FILE"])

  return [
    gofmt,
@@ -290,17 +287,12 @@ export function make(input: {
  ] satisfies Info[]
 }

-function executable(
-  name: string,
-  extensions: readonly string[],
-  args: string[],
-  findExecutable: (name: string) => string | null,
-): Info {
+function executable(name: string, extensions: readonly string[], args: string[]): Info {
  return {
    name,
    extensions,
    enabled: Effect.sync(() => {
-      const match = findExecutable(name)
+      const match = which(name)
      return match ? [match, ...args] : false
    }),
  }
@@ -1,13 +1,15 @@
 export * as InstructionDiscovery from "./instruction-discovery"

-import { Context, Effect, Layer, Schema, Types } from "effect"
-import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
-import { Bus } from "./bus"
-import { Instructions } from "./instructions/index"
+import { Array, Context, Effect, Layer, Schema } from "effect"
+import { isAbsolute, join, relative, sep } from "path"
+import { FSUtil } from "@opencode-ai/util/fs-util"
+import { Global } from "@opencode-ai/util/global"
+import { Location } from "./location"
 import { AbsolutePath } from "./schema"
-import { State } from "./state"
+import { Instructions } from "./instructions/index"
+import { makeLocationNode } from "@opencode-ai/util/effect/app-node"

-export class File extends Schema.Class<File>("InstructionDiscovery.File")({
+class File extends Schema.Class<File>("InstructionDiscovery.File")({
  path: AbsolutePath,
  content: Schema.String,
 }) {}
@@ -15,30 +17,7 @@ export class File extends Schema.Class<File>("InstructionDiscovery.File")({
 const Files = Schema.Array(File)
 const key = Instructions.Key.make("core/instructions")

-export const Event = {
-  Updated: Bus.ephemeral({ type: "instruction-discovery.updated", schema: {} }),
-}
-
-export type Data = {
-  files: Map<AbsolutePath, Types.DeepMutable<File>>
-  available: boolean
-}
-
-export type Draft = {
-  list: () => readonly Types.DeepMutable<File>[]
-  // Map insertion order is render order: config adds global then nearest-to-farthest project files;
-  // sibling contributors interleave by transform registration order.
-  add: (file: File) => void
-  update: (path: string, update: (file: Types.DeepMutable<File>) => void) => void
-  remove: (path: string) => void
-  unavailable: () => void
-}
-
-export interface Interface extends State.Transformable<Draft> {
-  // Discovery policy lives here because internal plugins have no per-composition options channel.
-  // Move it into plugin config once plugins can consume their own options.
-  readonly project: boolean
-  readonly list: () => Effect.Effect<File[] | Instructions.Unavailable>
+export interface Interface {
  readonly load: () => Effect.Effect<Instructions.List>
 }

@@ -53,26 +32,9 @@ export const layer = (options?: Options) =>
  Layer.effect(
    Service,
    Effect.gen(function* () {
-      const bus = yield* Bus.Service
-      const state = State.create<Data, Draft>({
-        name: "instruction-discovery",
-        initial: () => ({ files: new Map(), available: true }),
-        draft: (draft) => ({
-          list: () => Array.from(draft.files.values()),
-          add: (file) => draft.files.set(file.path, new File(file) as Types.DeepMutable<File>),
-          update: (path, update) => {
-            const current = draft.files.get(AbsolutePath.make(path))
-            if (!current) return
-            update(current)
-            current.path = AbsolutePath.make(path)
-          },
-          remove: (path) => draft.files.delete(AbsolutePath.make(path)),
-          unavailable: () => {
-            draft.available = false
-          },
-        }),
-        finalize: () => bus.publish(Event.Updated, {}).pipe(Effect.asVoid),
-      })
+      const fs = yield* FSUtil.Service
+      const global = yield* Global.Service
+      const location = yield* Location.Service

      const source = (value: ReadonlyArray<File> | Instructions.Unavailable | Instructions.Removed) =>
        Instructions.make<ReadonlyArray<File>>({
@@ -87,22 +49,52 @@ export const layer = (options?: Options) =>
          },
        })

-      const list = Effect.fn("InstructionDiscovery.list")(function* () {
-        const current = state.get()
-        if (!current.available) return Instructions.unavailable
-        return Array.from(current.files.values())
+      const observe = Effect.fn("InstructionDiscovery.observe")(function* () {
+        const start = yield* fs.resolve(location.directory)
+        const stop = yield* fs.resolve(location.project.directory)
+        const fromProject = relative(stop, start)
+        const insideProject =
+          fromProject === "" ||
+          (fromProject !== ".." && !fromProject.startsWith(`..${sep}`) && !isAbsolute(fromProject))
+        const discovered = new Set(
+          yield* Effect.forEach(
+            options?.project === false || !insideProject
+              ? []
+              : yield* fs.up({
+                  targets: ["AGENTS.md"],
+                  start,
+                  stop,
+                }),
+            fs.resolve,
+          ),
+        )
+        const paths = Array.dedupe([yield* fs.resolve(join(global.config, "AGENTS.md")), ...discovered])
+        const files = yield* Effect.forEach(
+          paths,
+          (path) =>
+            fs
+              .readFileStringSafe(path)
+              .pipe(
+                Effect.map((content) =>
+                  content === undefined ? undefined : new File({ path: AbsolutePath.make(path), content }),
+                ),
+              ),
+          { concurrency: "unbounded" },
+        )
+        if (files.some((file, index) => file === undefined && discovered.has(paths[index])))
+          return Instructions.unavailable
+        return files.filter((file): file is File => file !== undefined)
      })

      return Service.of({
-        project: options?.project !== false,
-        transform: state.transform,
-        reload: state.reload,
-        list,
-        load: Effect.fn("InstructionDiscovery.load")(function* () {
-          const files = yield* list()
-          if (!Array.isArray(files)) return source(files)
-          return source(files.length === 0 ? Instructions.removed : files)
-        }),
+        load: () =>
+          observe().pipe(
+            Effect.map((files) =>
+              Array.isArray(files) && files.length === 0 ? source(Instructions.removed) : source(files),
+            ),
+            Effect.catch(() => Effect.succeed(source(Instructions.unavailable))),
+            Effect.catchDefect(() => Effect.succeed(source(Instructions.unavailable))),
+          ),
      })
    }),
  )
@@ -111,7 +103,7 @@ export function configured(options?: Options) {
  return makeLocationNode({
    service: Service,
    layer: layer(options),
-    deps: [Bus.node],
+    deps: [FSUtil.node, Global.node, Location.node],
  })
 }

@@ -15,7 +15,6 @@ import { FileSystemSearch } from "./filesystem/search"
 import { Generate } from "./generate"
 import { Form } from "./form"
 import { Image } from "./image"
-import { LocationWatcher } from "./filesystem/location-watcher"
 import { Integration } from "./integration"
 import { Location } from "./location"
 import { LocationMutation } from "./location-mutation"
@@ -99,8 +98,6 @@ const locationServiceNodes = [
  Snapshot.node,
  SessionRunnerLLM.node,
  Vcs.node,
-  // Start repository watches only after boot-critical filesystem and Git work.
-  LocationWatcher.node,
 ] as const satisfies readonly Node.LocationNode<unknown, unknown>[]

 export const locationServices = LayerNode.group<typeof locationServiceNodes>(locationServiceNodes)
@@ -1,8 +1,11 @@
-import { Cause, Context, Duration, Effect, Layer, Option, Schedule, Schema, Semaphore } from "effect"
+import path from "path"
+import { Context, Duration, Effect, Layer, Option, Schedule, Schema } from "effect"
 import { HttpClient, HttpClientRequest } from "effect/unstable/http"
 import { ModelsDev } from "@opencode-ai/schema/models-dev"
 import { Money } from "@opencode-ai/schema/money"
 import { App } from "./app"
+import { Global } from "@opencode-ai/util/global"
+import { Flock } from "@opencode-ai/util/flock"
 import { Hash } from "@opencode-ai/util/hash"
 import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Bus } from "./bus"
@@ -10,7 +13,6 @@ import { makeGlobalNode } from "@opencode-ai/util/effect/app-node"
 import { httpClient } from "@opencode-ai/util/effect/app-node-platform"
 import { Model } from "./model"
 import { Provider } from "./provider"
-import { KV } from "./kv"

 export const CatalogModelStatus = Schema.Literals(["alpha", "beta", "deprecated"])
 export type CatalogModelStatus = typeof CatalogModelStatus.Type
@@ -535,18 +537,6 @@ export type Options = typeof Options.Type

 export class Service extends Context.Service<Service, Interface>()("@opencode/ModelsDev") {}

-const CatalogJson = Schema.fromJsonString(Schema.Record(Schema.String, Schema.Unknown))
-const Cache = Schema.Struct({
-  updatedAt: Schema.Number,
-  body: CatalogJson,
-})
-const defaultSource = "https://models.opencode.ai"
-
-function cacheKey(source: string) {
-  if (source === defaultSource) return "models-dev:catalog"
-  return `models-dev:catalog:${Hash.fast(source)}`
-}
-
 export const layer = (options?: Options) =>
  Layer.effect(
    Service,
@@ -554,7 +544,6 @@ export const layer = (options?: Options) =>
      const fs = yield* FSUtil.Service
      const bus = yield* Bus.Service
      const app = yield* App.Metadata
-      const kv = yield* KV.Service
      const http = HttpClient.filterStatusOk(
        (yield* HttpClient.HttpClient).pipe(
          HttpClient.retryTransient({
@@ -565,28 +554,21 @@ export const layer = (options?: Options) =>
        ),
      )

-      const source = options?.url || defaultSource
+      const source = options?.url || "https://models.opencode.ai"
      const fetch = options?.fetch ?? true
      const userAgent = App.useragent(app)
-      const key = cacheKey(source)
+      const filepath = path.join(
+        Global.Path.cache,
+        source === "https://models.opencode.ai" ? "models.json" : `models-${Hash.fast(source)}.json`,
+      )
      const ttl = Duration.minutes(5)
-      const lock = Semaphore.makeUnsafe(1)
-
-      const loadFromCache = Effect.fnUntraced(function* () {
-        const value = yield* kv.get(key)
-        const cached = Schema.decodeUnknownOption(Cache)(value)
-        if (Option.isSome(cached))
-          return {
-            catalog: cached.value.body as Record<string, SourceProvider>,
-            updatedAt: cached.value.updatedAt,
-          }
-        if (value !== undefined) yield* kv.remove(key)
-      })
+      const lockKey = `models-dev:${filepath}`

      const fresh = Effect.fnUntraced(function* () {
-        const cached = yield* loadFromCache()
-        if (!cached) return false
-        return Date.now() - cached.updatedAt < Duration.toMillis(ttl)
+        const stat = yield* fs.stat(filepath).pipe(Effect.catch(() => Effect.succeed(undefined)))
+        if (!stat) return false
+        const mtime = Option.getOrElse(stat.mtime, () => new Date(0)).getTime()
+        return Date.now() - mtime < Duration.toMillis(ttl)
      })

      const fetchApi = Effect.fn("ModelsDev.fetchApi")(function* () {
@@ -598,12 +580,15 @@ export const layer = (options?: Options) =>
        )
      })

-      const loadFromFile = options?.file
-        ? fs.readJson(options.file).pipe(
-            Effect.map((input) => input as Record<string, SourceProvider>),
-            Effect.catch(() => Effect.succeed(undefined)),
-          )
-        : Effect.succeed(undefined)
+      const loadFromDisk = fs.readJson(options?.file ?? filepath).pipe(
+        Effect.map((input) => input as Record<string, SourceProvider>),
+        Effect.catch((error) => {
+          if (options?.file === undefined && error._tag === "FileSystemError" && error.method === "readJson") {
+            return fs.remove(filepath, { force: true }).pipe(Effect.ignore, Effect.as(undefined))
+          }
+          return Effect.succeed(undefined)
+        }),
+      )

      const loadSnapshot = Effect.sync(() =>
        typeof OPENCODE_MODELS_DEV === "undefined" ? undefined : OPENCODE_MODELS_DEV,
@@ -611,36 +596,33 @@ export const layer = (options?: Options) =>

      const fetchAndWrite = Effect.fn("ModelsDev.fetchAndWrite")(function* () {
        const text = yield* fetchApi()
-        const catalog = (yield* Schema.decodeUnknownEffect(CatalogJson)(text)) as Record<string, SourceProvider>
-        // Best-effort: a cache-write failure must never kill catalog
-        // population. The payload has outgrown some KV backends' per-value
-        // limits (Durable Object SQLite caps values at 2 MB and api.json
-        // passed it in Aug 2026); a boot without a cache hit just refetches.
-        yield* kv.set(key, { updatedAt: Date.now(), body: text }).pipe(
-          Effect.catchCauseIf(
-            (cause) => !Cause.hasInterruptsOnly(cause),
-            (cause) => Effect.logWarning("Failed to cache models.dev catalog", { cause }),
+        const tempfile = `${filepath}.${process.pid}.${Date.now()}.tmp`
+        yield* fs.writeWithDirs(tempfile, text).pipe(
+          Effect.andThen(fs.rename(tempfile, filepath)),
+          Effect.catch((error) =>
+            Effect.gen(function* () {
+              yield* fs.remove(tempfile, { force: true }).pipe(Effect.ignore)
+              return yield* Effect.fail(error)
+            }),
          ),
        )
-        return catalog
+        return text
      })

      const populate = Effect.gen(function* () {
-        const fromFile = yield* loadFromFile
-        if (fromFile) return normalize(fromFile)
-        const cached = options?.file ? undefined : yield* loadFromCache()
-        if (cached) return normalize(cached.catalog)
+        const fromDisk = yield* loadFromDisk
+        if (fromDisk) return normalize(fromDisk)
        const bundled = yield* loadSnapshot
        if (bundled) return normalize(bundled)
        if (!fetch) return []
-        const catalog = yield* lock.withPermit(
+        // Flock is cross-process: concurrent opencode CLIs can race on this cache file.
+        const text = yield* Effect.scoped(
          Effect.gen(function* () {
-            const stored = options?.file ? undefined : yield* loadFromCache()
-            if (stored) return stored.catalog
+            yield* Flock.effect(lockKey)
            return yield* fetchAndWrite()
          }),
        )
-        return normalize(catalog)
+        return normalize(JSON.parse(text) as Record<string, SourceProvider>)
      }).pipe(Effect.withSpan("ModelsDev.populate"), Effect.orDie)

      const [cachedGet, invalidate] = yield* Effect.cachedInvalidateWithTTL(populate, Duration.infinity)
@@ -648,19 +630,21 @@ export const layer = (options?: Options) =>
      const get = (): Effect.Effect<readonly Snapshot[]> => cachedGet

      const refresh = Effect.fn("ModelsDev.refresh")(function* (force = false) {
-        yield* lock
-          .withPermit(
-            Effect.gen(function* () {
-              if (!force && (yield* fresh())) return
-              yield* fetchAndWrite()
-              yield* invalidate
-              yield* bus.publish(ModelsDev.Event.Refreshed, {})
-            }),
-          )
-          .pipe(
-            Effect.tapCause((cause) => Effect.logError("Failed to fetch models.dev", { cause: cause })),
-            Effect.ignore,
-          )
+        if (!force && (yield* fresh())) return
+        yield* Effect.scoped(
+          Effect.gen(function* () {
+            yield* Flock.effect(lockKey)
+            // Re-check under the lock: another process may have refreshed between
+            // our outer check and lock acquisition.
+            if (!force && (yield* fresh())) return
+            yield* fetchAndWrite()
+            yield* invalidate
+            yield* bus.publish(ModelsDev.Event.Refreshed, {})
+          }),
+        ).pipe(
+          Effect.tapCause((cause) => Effect.logError("Failed to fetch models.dev", { cause: cause })),
+          Effect.ignore,
+        )
      })

      if (fetch && !process.argv.includes("--get-yargs-completions")) {
@@ -676,7 +660,7 @@ export function configured(options?: Options) {
  return makeGlobalNode({
    service: Service,
    layer: layer(options),
-    deps: [FSUtil.node, Bus.node, App.node, KV.node, httpClient],
+    deps: [FSUtil.node, Bus.node, App.node, httpClient],
  })
 }

@@ -3,7 +3,7 @@ export * as PluginHooks from "./hooks"
 import type { AISDKHooks } from "@opencode-ai/plugin/effect/aisdk"
 import type { SessionHooks } from "@opencode-ai/plugin/effect/session"
 import type { ShellHooks } from "@opencode-ai/plugin/effect/shell"
-import type { ToolFailures, ToolHooks } from "@opencode-ai/plugin/effect/tool"
+import type { ToolHooks } from "@opencode-ai/plugin/effect/tool"
 import { Context, Effect, Layer, Scope } from "effect"
 import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
 import { State } from "../state"
@@ -15,29 +15,19 @@ export interface Domains {
  readonly tool: ToolHooks
 }

-type NoFailures<Spec> = { readonly [Name in keyof Spec]: never }
-
-// Failure channel for each hook event. Only tool execute.before may fail: a Tool.Error rejects the call before it runs.
-interface Failures extends Record<keyof Domains, unknown> {
-  readonly aisdk: NoFailures<AISDKHooks>
-  readonly session: NoFailures<SessionHooks>
-  readonly shell: NoFailures<ShellHooks>
-  readonly tool: ToolFailures
-}
-
-type Callback<Event, Error> = (event: Event) => Effect.Effect<void, Error>
+type Callback<Event> = (event: Event) => Effect.Effect<void>

 export interface Interface {
-  readonly register: <Domain extends keyof Domains, Name extends keyof Domains[Domain] & keyof Failures[Domain]>(
+  readonly register: <Domain extends keyof Domains, Name extends keyof Domains[Domain]>(
    domain: Domain,
    name: Name,
-    callback: Callback<Domains[Domain][Name], Failures[Domain][Name]>,
+    callback: Callback<Domains[Domain][Name]>,
  ) => Effect.Effect<State.Registration, never, Scope.Scope>
-  readonly trigger: <Domain extends keyof Domains, Name extends keyof Domains[Domain] & keyof Failures[Domain]>(
+  readonly trigger: <Domain extends keyof Domains, Name extends keyof Domains[Domain]>(
    domain: Domain,
    name: Name,
    event: Domains[Domain][Name],
-  ) => Effect.Effect<Domains[Domain][Name], Failures[Domain][Name]>
+  ) => Effect.Effect<Domains[Domain][Name]>
 }

 export class Service extends Context.Service<Service, Interface>()("@opencode/PluginHooks") {}
@@ -66,9 +56,7 @@ const layer = Layer.effect(

    const trigger: Interface["trigger"] = Effect.fn("PluginHooks.trigger")(function* (domain, name, event) {
      for (const callback of callbacks.get(key(domain, name)) ?? []) {
-        const result: Effect.Effect<void, Failures[typeof domain][typeof name]> = Reflect.apply(callback, undefined, [
-          event,
-        ])
+        const result: Effect.Effect<void> = Reflect.apply(callback, undefined, [event])
        yield* result
      }
      return event
@@ -290,10 +290,8 @@ export const make = Effect.fn("PluginHost.make")(function* (plugin: import("../p
      transform: (callback) =>
        skill.transform((draft) => {
          callback({
-            list: () => mutable(draft.list()),
-            add: (value) => draft.add(Schema.decodeUnknownSync(Skill.Info)(value)),
-            update: draft.update,
-            remove: draft.remove,
+            source: (source) => draft.source(Schema.decodeUnknownSync(Skill.Source)(source)),
+            list: draft.list,
          })
        }),
    },
@@ -1,8 +1,6 @@
 export * as PluginInternal from "./internal"

 import type { Plugin } from "@opencode-ai/plugin/effect/plugin"
-import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { httpClient } from "@opencode-ai/util/effect/app-node-platform"
 import { Context, Effect, Scope } from "effect"
 import { HttpClient } from "effect/unstable/http"
 import { Agent } from "../agent"
@@ -12,7 +10,6 @@ import { Config } from "../config"
 import { Credential } from "../credential"
 import { ConfigAgentPlugin } from "../config/plugin/agent"
 import { ConfigCommandPlugin } from "../config/plugin/command"
-import { ConfigInstructionPlugin } from "../config/plugin/instruction"
 import { ConfigProviderPlugin } from "../config/plugin/provider"
 import { ConfigPolicyPlugin } from "../config/plugin/policy"
 import { ConfigReferencePlugin } from "../config/plugin/reference"
@@ -27,7 +24,6 @@ import { FileSystem } from "../filesystem"
 import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Global } from "@opencode-ai/util/global"
 import { Image } from "../image"
-import { InstructionDiscovery } from "../instruction-discovery"
 import { Integration } from "../integration"
 import { KV } from "../kv"
 import { Location } from "../location"
@@ -41,8 +37,6 @@ import { Ripgrep } from "../ripgrep"
 import { SessionInstructions } from "../session/instructions"
 import { Shell } from "../shell"
 import { Skill } from "../skill"
-import { SkillDiscovery } from "../skill/discovery"
-import { Watcher } from "../filesystem/watcher"
 import { PatchTool } from "../tool/plugin/patch"
 import { EditTool } from "../tool/plugin/edit"
 import { GlobTool } from "../tool/plugin/glob"
@@ -85,7 +79,6 @@ const services = Effect.fn("PluginInternal.services")(function* () {
  const global = yield* Global.Service
  const http = yield* HttpClient.HttpClient
  const image = yield* Image.Service
-  const instructionDiscovery = yield* InstructionDiscovery.Service
  const integration = yield* Integration.Service
  const kv = yield* KV.Service
  const location = yield* Location.Service
@@ -102,9 +95,7 @@ const services = Effect.fn("PluginInternal.services")(function* () {
  const instructions = yield* SessionInstructions.Service
  const shell = yield* Shell.Service
  const skill = yield* Skill.Service
-  const skillDiscovery = yield* SkillDiscovery.Service
  const tools = yield* Tool.Service
-  const watcher = yield* Watcher.Service
  const wellknown = yield* WellKnown.Service
  return Context.mergeAll(
    Context.make(Agent.Service, agent),
@@ -121,7 +112,6 @@ const services = Effect.fn("PluginInternal.services")(function* () {
    Context.make(Global.Service, global),
    Context.make(HttpClient.HttpClient, http),
    Context.make(Image.Service, image),
-    Context.make(InstructionDiscovery.Service, instructionDiscovery),
    Context.make(Integration.Service, integration),
    Context.make(KV.Service, kv),
    Context.make(Location.Service, location),
@@ -138,9 +128,7 @@ const services = Effect.fn("PluginInternal.services")(function* () {
    Context.make(SessionInstructions.Service, instructions),
    Context.make(Shell.Service, shell),
    Context.make(Skill.Service, skill),
-    Context.make(SkillDiscovery.Service, skillDiscovery),
    Context.make(Tool.Service, tools),
-    Context.make(Watcher.Service, watcher),
    Context.make(WellKnown.Service, wellknown),
  )
 })
@@ -149,44 +137,6 @@ type ContextServices<A> = A extends Context.Context<infer R> ? R : never

 export type Requirements = ContextServices<Effect.Success<ReturnType<typeof services>>>

-export const requirements = LayerNode.group([
-  Agent.node,
-  Catalog.node,
-  Command.node,
-  Config.node,
-  Credential.node,
-  Bus.node,
-  Environment.node,
-  FileMutation.node,
-  Formatter.node,
-  FileSystem.node,
-  FSUtil.node,
-  Global.node,
-  httpClient,
-  Image.node,
-  InstructionDiscovery.node,
-  Integration.node,
-  KV.node,
-  Location.node,
-  LocationMutation.node,
-  ModelsDev.node,
-  Npm.node,
-  Permission.node,
-  PluginRuntime.node,
-  Form.node,
-  ReadToolFileSystem.node,
-  Reference.node,
-  WebSearch.node,
-  Ripgrep.node,
-  SessionInstructions.node,
-  Shell.node,
-  Skill.node,
-  SkillDiscovery.node,
-  Tool.node,
-  Watcher.node,
-  WellKnown.node,
-])
-
 export type InternalPlugin = Plugin<Requirements | Scope.Scope>

 const pre = [
@@ -214,7 +164,6 @@ const pre = [
 ] as const satisfies readonly InternalPlugin[]

 const post = [
-  ConfigInstructionPlugin.Plugin,
  ConfigReferencePlugin.Plugin,
  ConfigAgentPlugin.Plugin,
  ConfigCommandPlugin.Plugin,
@@ -36,7 +36,6 @@ export const ModelsDevPlugin = define({
          draft.integrationID = Integration.ID.make(provider.info.id)
        })
        for (const model of provider.models) {
-          if (model.status === "deprecated") continue
          catalog.model.update(provider.info.id, model.id, (draft) => Object.assign(draft, model))
        }
      }
@@ -28,23 +28,29 @@ export const Plugin = define({
  effect: Effect.fn(function* (ctx) {
    const reportContent = yield* reportContentWithDiagnostics(ctx.app)
    yield* ctx.skill.transform((draft) => {
-      draft.add(
-        Skill.Info.make({
-          id: Skill.ID.make("opencode"),
-          name: Skill.Name.make("OpenCode"),
-          description: OpencodeDescription,
-          location: AbsolutePath.make("/builtin/opencode.md"),
-          content: OpencodeContent,
+      draft.source(
+        Skill.EmbeddedSource.make({
+          type: "embedded",
+          skill: Skill.Info.make({
+            id: Skill.ID.make("opencode"),
+            name: Skill.Name.make("OpenCode"),
+            description: OpencodeDescription,
+            location: AbsolutePath.make("/builtin/opencode.md"),
+            content: OpencodeContent,
+          }),
        }),
      )
-      draft.add(
-        Skill.Info.make({
-          id: Skill.ID.make("report"),
-          name: Skill.Name.make("Report"),
-          description: REPORT_DESCRIPTION,
-          slash: true,
-          location: AbsolutePath.make("/builtin/report.md"),
-          content: reportContent,
+      draft.source(
+        Skill.EmbeddedSource.make({
+          type: "embedded",
+          skill: Skill.Info.make({
+            id: Skill.ID.make("report"),
+            name: Skill.Name.make("Report"),
+            description: REPORT_DESCRIPTION,
+            slash: true,
+            location: AbsolutePath.make("/builtin/report.md"),
+            content: reportContent,
+          }),
        }),
      )
    })
@@ -1,17 +1,48 @@
 export * as PluginSupervisor from "./supervisor"

 import type { Plugin as PluginDefinition } from "@opencode-ai/plugin/effect/plugin"
-import { Event } from "@opencode-ai/schema/config"
-import { Context, Deferred, Effect, Layer, Schema, Stream } from "effect"
+import { Directory, Document, Event, type Entry } from "@opencode-ai/schema/config"
+import { ConfigPlugin } from "@opencode-ai/schema/config/plugin"
+import { Context, Deferred, Effect, Layer, Option, PubSub, Schema, Stream } from "effect"
 import path from "path"
-import { pathToFileURL } from "url"
-import { ConfigPluginSource } from "../config/plugin/source"
+import { fileURLToPath, pathToFileURL } from "url"
+import { Agent } from "../agent"
+import { Catalog } from "../catalog"
+import { Command } from "../command"
+import { Config } from "../config"
+import { Credential } from "../credential"
 import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
+import { httpClient } from "@opencode-ai/util/effect/app-node-platform"
 import { Bus } from "../bus"
+import { Environment } from "../environment"
+import { FileMutation } from "../file-mutation"
+import { Formatter } from "../formatter"
+import { FileSystem } from "../filesystem"
+import { Watcher } from "../filesystem/watcher"
+import { Form } from "../form"
+import { FSUtil } from "@opencode-ai/util/fs-util"
+import { Global } from "@opencode-ai/util/global"
+import { Image } from "../image"
+import { Integration } from "../integration"
+import { KV } from "../kv"
+import { Location } from "../location"
+import { LocationMutation } from "../location-mutation"
+import { ModelsDev } from "../models-dev"
 import { Npm } from "@opencode-ai/util/npm"
+import { Permission } from "../permission"
 import { Plugin } from "../plugin"
 import { PluginPromise } from "../plugin/promise"
+import { Reference } from "../reference"
+import { Ripgrep } from "../ripgrep"
+import { SessionInstructions } from "../session/instructions"
+import { Shell } from "../shell"
+import { Skill } from "../skill"
+import { ReadToolFileSystem } from "../tool/read-filesystem"
+import { Tool } from "../tool"
+import { WebSearch } from "../websearch"
+import { WellKnown } from "../wellknown"
 import { PluginInternal } from "./internal"
+import { PluginRuntime } from "./runtime"
 import { SdkPlugins } from "./sdk"
 import { importModule } from "@opencode-ai/util/runtime-import"

@@ -32,10 +63,65 @@ const PluginModule = Schema.Struct({
  ]),
 })

+type Operation =
+  | {
+      readonly type: "add"
+      readonly target: string
+      readonly options: Record<string, unknown>
+      readonly mtime?: number
+    }
+  | {
+      readonly type: "remove"
+      readonly target: string
+    }
+
+function parse(input: ConfigPlugin.Plugin): Operation {
+  if (typeof input !== "string") {
+    return { type: "add", target: input.package, options: input.options ?? {} }
+  }
+  if (!input.startsWith("-")) return { type: "add", target: input, options: {} }
+  if (input.length === 1) throw new Error("Plugin remove operation requires a target")
+  return { type: "remove", target: input.slice(1) }
+}
+
+const scan = Effect.fn("PluginSupervisor.scan")(function* (entries: readonly Entry[]) {
+  const fs = yield* FSUtil.Service
+  const location = yield* Location.Service
+  const discovered = yield* Effect.forEach(
+    entries.filter((entry): entry is Directory => entry.type === "directory"),
+    (entry) => discoverDirectory(fs, entry.path),
+  ).pipe(Effect.map((items) => items.flat()))
+  const configured = entries
+    .filter((entry): entry is Document => entry.type === "document")
+    .flatMap((entry) =>
+      (entry.info.plugins ?? []).map(parse).map((operation) => {
+        if (operation.type === "remove") return operation
+        const directory = entry.path ? path.dirname(entry.path) : location.directory
+        const target = operation.target.startsWith("file://")
+          ? fileURLToPath(operation.target)
+          : operation.target.startsWith("./") || operation.target.startsWith("../")
+            ? path.resolve(directory, operation.target)
+            : operation.target
+        return { ...operation, target }
+      }),
+    )
+  // Explicit config is applied last so it can remove auto-discovered packages.
+  return yield* Effect.forEach([...discovered, ...configured], (operation) => {
+    if (operation.type === "remove" || !path.isAbsolute(operation.target)) return Effect.succeed(operation)
+    return fs.stat(operation.target).pipe(
+      Effect.map((info) => ({
+        ...operation,
+        mtime: Option.getOrElse(info.mtime, () => new Date(0)).getTime(),
+      })),
+      Effect.catch(() => Effect.succeed(operation)),
+    )
+  })
+})
+
 const resolve = Effect.fn("PluginSupervisor.resolve")(function* (
  pre: readonly Plugin.Versioned[],
  post: readonly Plugin.Versioned[],
-  operations: readonly ConfigPluginSource.Operation[],
+  operations: readonly Operation[],
 ) {
  const matches = (selector: string, target: string) =>
    selector === "*" || (selector.endsWith(".*") ? target.startsWith(selector.slice(0, -1)) : selector === target)
@@ -82,9 +168,7 @@ const resolve = Effect.fn("PluginSupervisor.resolve")(function* (
  ]
 })

-const load = Effect.fn("PluginSupervisor.load")(function* (
-  operation: Extract<ConfigPluginSource.Operation, { type: "add" }>,
-) {
+const load = Effect.fn("PluginSupervisor.load")(function* (operation: Extract<Operation, { type: "add" }>) {
  const npm = yield* Npm.Service
  const entrypoint = path.isAbsolute(operation.target)
    ? pathToFileURL(operation.target).href
@@ -108,6 +192,31 @@ const load = Effect.fn("PluginSupervisor.load")(function* (
  } satisfies Plugin.Versioned
 })

+function discoverDirectory(fs: FSUtil.Interface, directory: string) {
+  return Effect.gen(function* () {
+    const files = yield* fs
+      .scan("{plugin,plugins}/*.{ts,js}", {
+        cwd: directory,
+        absolute: true,
+        include: "file",
+        dot: true,
+        symlink: true,
+      })
+      .pipe(Effect.orElseSucceed(() => []))
+    return files.sort().map((target): Operation => ({ type: "add", target, options: {} }))
+  })
+}
+
+const sourceDirectories = ["plugin", "plugins"] as const
+
+function isPluginSource(entries: readonly Entry[], file: string) {
+  return entries.some(
+    (entry) =>
+      entry.type === "directory" &&
+      sourceDirectories.some((directory) => FSUtil.contains(path.join(entry.path, directory), file)),
+  )
+}
+
 export interface Interface {
  /** Wait for the initial plugin generation and startup updates to settle. */
  readonly flush: Effect.Effect<void>
@@ -115,29 +224,72 @@ export interface Interface {

 export class Service extends Context.Service<Service, Interface>()("@opencode/PluginSupervisor") {}

-export const layer = Layer.effect(
+const layer = Layer.effect(
  Service,
  Effect.gen(function* () {
    const registry = yield* Plugin.Service
    const sdk = yield* SdkPlugins.Service
-    const sources = yield* ConfigPluginSource.Service
+    const config = yield* Config.Service
    const bus = yield* Bus.Service
+    const watcher = yield* Watcher.Service
+    const fs = yield* FSUtil.Service
    const ready = { current: yield* Deferred.make<void>() }
    let observed = 0

+    // Configured local plugin files can live outside config roots, where the
+    // config change feed cannot see them; watch those entrypoints directly.
+    // Watches start on first sighting and are never torn down individually:
+    // a stale watch after a config edit costs one deduped fs handle and a
+    // no-op activation, and every watch dies with this layer's scope.
+    const configuredChanges = yield* PubSub.unbounded<void>()
+    const watched = new Set<string>()
+    const watchConfiguredSources = Effect.fn("PluginSupervisor.watchConfiguredSources")(function* (
+      entries: readonly Entry[],
+      operations: readonly Operation[],
+    ) {
+      for (const operation of operations) {
+        if (operation.type !== "add" || !path.isAbsolute(operation.target)) continue
+        if (watched.has(operation.target)) continue
+        // The config change feed already covers {plugin,plugins} directories.
+        if (isPluginSource(entries, operation.target)) continue
+        // Directory targets can't hot-reload (their stat mtime ignores edits
+        // inside), so don't watch what can't trigger anything.
+        if (yield* fs.isDir(operation.target)) continue
+        watched.add(operation.target)
+        const updates = yield* watcher.subscribe({ path: operation.target, type: "file" })
+        yield* updates.pipe(
+          Stream.runForEach(() => PubSub.publish(configuredChanges, undefined)),
+          Effect.catchCause((cause) =>
+            Effect.logError("configured plugin watch failed", { target: operation.target, cause }),
+          ),
+          Effect.forkScoped({ startImmediately: true }),
+        )
+      }
+    })
+
    const activate = Effect.fn("PluginSupervisor.activate")(function* () {
      // Resolve OpenCode's internal plugins with their privileged Location services.
      const internal = yield* PluginInternal.list()
      // Combine internal plugins with host-contributed SDK plugins in boot order.
      const pre = [...internal.pre.map((plugin) => ({ ...plugin, version: "internal" })), ...sdk.all()]
      const post = internal.post.map((plugin) => ({ ...plugin, version: "internal" }))
-      const operations = yield* sources.operations()
+      const entries = yield* config.entries()
+      const operations = yield* scan(entries)
+      yield* watchConfiguredSources(entries, operations)
      // Apply config operations and load enabled package plugins into one ordered generation.
      const plugins = yield* resolve(pre, post, operations)
      // Replace the active generation in one scoped, batched activation.
      yield* registry.activate(plugins)
    })
-    const updates = Stream.merge(sources.changes(), bus.subscribe([Event.Updated, SdkPlugins.Updated])).pipe(
+    const updates = Stream.merge(
+      config.changes().pipe(
+        Stream.filterEffect((update) =>
+          Effect.map(config.entries(), (entries) => isPluginSource(entries, update.path)),
+        ),
+        Stream.merge(Stream.fromPubSub(configuredChanges)),
+      ),
+      bus.subscribe([Event.Updated, SdkPlugins.Updated]),
+    ).pipe(
      // Make accepted work visible to flush before coalescing the burst.
      Stream.mapEffect(() =>
        Effect.gen(function* () {
@@ -163,13 +315,48 @@ export const layer = Layer.effect(
  }),
 )

-const nodeDeps = [
-  Plugin.node,
-  SdkPlugins.node,
-  ConfigPluginSource.node,
-  Bus.node,
-  Npm.node,
-  PluginInternal.requirements,
-] as const
+const nodeLayer = layer as Layer.Layer<Service, never, PluginInternal.Requirements>

-export const node = makeLocationNode({ service: Service, layer, deps: nodeDeps })
+export const node = makeLocationNode({
+  service: Service,
+  layer: nodeLayer,
+  deps: [
+    Plugin.node,
+    SdkPlugins.node,
+    Agent.node,
+    Catalog.node,
+    Command.node,
+    Config.node,
+    Credential.node,
+    Bus.node,
+    Environment.node,
+    FileMutation.node,
+    Formatter.node,
+    FileSystem.node,
+    FSUtil.node,
+    Global.node,
+    httpClient,
+    Image.node,
+    Integration.node,
+    KV.node,
+    Location.node,
+    LocationMutation.node,
+    ModelsDev.node,
+    Npm.node,
+    Permission.node,
+    PluginRuntime.node,
+    Form.node,
+    ReadToolFileSystem.node,
+    Reference.node,
+    Ripgrep.node,
+    SessionInstructions.node,
+    Shell.node,
+    Skill.node,
+    Tool.node,
+    Watcher.node,
+    WebSearch.node,
+    WellKnown.node,
+  ],
+})
+
+export { layer }
@@ -9,7 +9,6 @@ import { Bus } from "./bus"
 import { Location } from "./location"
 import { PtyID } from "./pty/schema"
 import { ShellSelect } from "./shell/select"
-import { Global } from "@opencode-ai/util/global"
 import { lazy } from "./util/lazy"

 const BUFFER_LIMIT = 1024 * 1024 * 2
@@ -97,7 +96,6 @@ export const layer = (options?: ShellSelect.Options) =>
      const bus = yield* Bus.Service
      const location = yield* Location.Service
      const config = yield* Config.Service
-      const global = yield* Global.Service
      const context = yield* Effect.context()
      const runFork = Effect.runForkWith(context)
      const sessions = new Map<PtyID, Active>()
@@ -167,8 +165,7 @@ export const layer = (options?: ShellSelect.Options) =>

      const create = Effect.fn("Pty.create")(function* (input: CreateInput) {
        const id = PtyID.ascending()
-        const command =
-          input.command || ShellSelect.preferred(Config.latest(yield* config.entries(), "shell"), options, global.bin)
+        const command = input.command || ShellSelect.preferred(Config.latest(yield* config.entries(), "shell"), options)
        const args = ShellSelect.login(command) ? [...(input.args ?? []), "-l"] : [...(input.args ?? [])]
        const cwd = input.cwd || location.directory
        const env = {
@@ -318,11 +315,7 @@ export const layer = (options?: ShellSelect.Options) =>
  )

 export function configured(options?: ShellSelect.Options) {
-  return makeLocationNode({
-    service: Service,
-    layer: layer(options),
-    deps: [Bus.node, Location.node, Config.node, Global.node],
-  })
+  return makeLocationNode({ service: Service, layer: layer(options), deps: [Bus.node, Location.node, Config.node] })
 }

 export const node = configured()
@@ -34,8 +34,6 @@ export namespace RipgrepBinary {
      const fs = yield* FSUtil.Service
      const http = HttpClient.filterStatusOk(yield* HttpClient.HttpClient)
      const spawner = yield* ChildProcessSpawner
-      const global = yield* Global.Service
-      const findExecutable = (name: string) => which(name, undefined, global.bin)

      const run = Effect.fnUntraced(function* (command: string, args: string[]) {
        const handle = yield* spawner.spawn(ChildProcess.make(command, args, { extendEnv: true, stdin: "ignore" }))
@@ -55,12 +53,10 @@ export namespace RipgrepBinary {
        config: (typeof PLATFORM)[keyof typeof PLATFORM],
        target: string,
      ) {
-        const dir = yield* fs.makeTempDirectoryScoped({ directory: global.bin, prefix: "ripgrep-" })
+        const dir = yield* fs.makeTempDirectoryScoped({ directory: Global.Path.bin, prefix: "ripgrep-" })

        if (config.extension === "zip") {
-          const shell =
-            (yield* Effect.sync(() => findExecutable("powershell.exe") ?? findExecutable("pwsh.exe"))) ??
-            "powershell.exe"
+          const shell = (yield* Effect.sync(() => which("powershell.exe") ?? which("pwsh.exe"))) ?? "powershell.exe"
          const result = yield* run(shell, [
            "-NoProfile",
            "-NonInteractive",
@@ -95,10 +91,10 @@ export namespace RipgrepBinary {
      return Service.of({
        filepath: yield* Effect.cached(
          Effect.gen(function* () {
-            const system = yield* Effect.sync(() => findExecutable(process.platform === "win32" ? "rg.exe" : "rg"))
+            const system = yield* Effect.sync(() => which(process.platform === "win32" ? "rg.exe" : "rg"))
            if (system && (yield* fs.isFile(system).pipe(Effect.orDie))) return system

-            const target = path.join(global.bin, `rg${process.platform === "win32" ? ".exe" : ""}`)
+            const target = path.join(Global.Path.bin, `rg${process.platform === "win32" ? ".exe" : ""}`)
            if (yield* fs.isFile(target).pipe(Effect.orDie)) return target

            const platformKey = `${process.arch}-${process.platform}` as keyof typeof PLATFORM
@@ -107,10 +103,10 @@ export namespace RipgrepBinary {

            const filename = `ripgrep-${VERSION}-${config.platform}.${config.extension}`
            const url = `https://github.com/BurntSushi/ripgrep/releases/download/${VERSION}/${filename}`
-            const archive = path.join(global.bin, filename)
+            const archive = path.join(Global.Path.bin, filename)

            yield* Effect.logInfo("downloading ripgrep", { url })
-            yield* fs.ensureDir(global.bin).pipe(Effect.orDie)
+            yield* fs.ensureDir(Global.Path.bin).pipe(Effect.orDie)
            const bytes = yield* HttpClientRequest.get(url).pipe(
              http.execute,
              Effect.flatMap((response) => response.arrayBuffer),
@@ -131,6 +127,6 @@ export namespace RipgrepBinary {
  export const node = makeGlobalNode({
    service: Service,
    layer: layer,
-    deps: [FSUtil.node, Global.node, httpClient, CrossSpawnSpawner.node],
+    deps: [FSUtil.node, httpClient, CrossSpawnSpawner.node],
  })
 }
@@ -716,11 +716,10 @@ const layer = Layer.effect(
            .pipe(Effect.ignore, Effect.forkIn(scope, { startImmediately: true }), Effect.asVoid)
      }),
      switchAgent: Effect.fn("Session.switchAgent")(function* (input) {
-        const session = yield* result.get(input.sessionID)
+        yield* result.get(input.sessionID)
        yield* bus.publish(SessionEvent.AgentSelected, {
          sessionID: input.sessionID,
          agent: input.agent,
-          previous: session.agent,
        })
      }),
      switchModel: Effect.fn("Session.switchModel")(function* (input) {
@@ -734,7 +733,6 @@ const layer = Layer.effect(
        yield* bus.publish(SessionEvent.ModelSelected, {
          sessionID: input.sessionID,
          model: input.model,
-          previous: session.model,
        })
      }),
      rename: Effect.fn("Session.rename")(function* (input) {
@@ -4,7 +4,6 @@ import { SessionEvent } from "./event"
 import { SessionMessage } from "./message"

 export interface Adapter {
-  readonly getAgent: () => Effect.Effect<SessionMessage.AgentSelected["agent"] | undefined, never, never>
  readonly getModel: () => Effect.Effect<SessionMessage.ModelSelected["model"] | undefined, never, never>
  readonly getCurrentAssistant: () => Effect.Effect<SessionMessage.Assistant | undefined, never, never>
  readonly getAssistant: (
@@ -60,23 +59,19 @@ export function update(adapter: Adapter, event: SessionEvent.DurableEvent) {
      "session.created": () => Effect.void,
      "session.usage.recorded": () => Effect.void,
      "session.agent.selected": (event) => {
-        return Effect.gen(function* () {
-          const previous = event.data.previous ?? (yield* adapter.getAgent())
-          yield* adapter.appendMessage(
-            SessionMessage.AgentSelected.make({
-              id: SessionMessage.ID.fromEvent(event.id),
-              type: "agent-switched",
-              metadata: event.metadata,
-              agent: event.data.agent,
-              previous,
-              time: { created: event.created },
-            }),
-          )
-        })
+        return adapter.appendMessage(
+          SessionMessage.AgentSelected.make({
+            id: SessionMessage.ID.fromEvent(event.id),
+            type: "agent-switched",
+            metadata: event.metadata,
+            agent: event.data.agent,
+            time: { created: event.created },
+          }),
+        )
      },
      "session.model.selected": (event) => {
        return Effect.gen(function* () {
-          const previous = event.data.previous ?? (yield* adapter.getModel())
+          const previous = yield* adapter.getModel()
          yield* adapter.appendMessage(
            SessionMessage.ModelSelected.make({
              id: SessionMessage.ID.fromEvent(event.id),
@@ -5,7 +5,6 @@ import { DateTime, Effect, Layer, Schema, Stream } from "effect"
 import { Database } from "../database/database"
 import { Bus } from "../bus"
 import { makeGlobalNode } from "@opencode-ai/util/effect/app-node"
-import { Agent } from "../agent"
 import { Model } from "../model"
 import { SessionEvent } from "./event"
 import { SessionMessage } from "./message"
@@ -231,17 +230,6 @@ function run(db: DatabaseService, event: MessageEvent) {
    }
    const appendMessage = (message: SessionMessage.Info) => insertMessage(db, event, message)
    const adapter: SessionMessageUpdater.Adapter = {
-      getAgent() {
-        return db
-          .select({ agent: SessionTable.agent })
-          .from(SessionTable)
-          .where(eq(SessionTable.id, event.data.sessionID))
-          .get()
-          .pipe(
-            Effect.orDie,
-            Effect.map((row) => (row?.agent ? Agent.ID.make(row.agent) : undefined)),
-          )
-      },
      getModel() {
        return db
          .select({ model: SessionTable.model })
@@ -410,15 +398,12 @@ const layer = Layer.effectDiscard(
      db.delete(SessionTable).where(eq(SessionTable.id, event.data.sessionID)).run().pipe(Effect.orDie),
    )
    yield* bus.project(SessionEvent.AgentSelected, (event) =>
-      Effect.gen(function* () {
-        yield* run(db, event)
-        yield* db
-          .update(SessionTable)
-          .set({ agent: event.data.agent, time_updated: DateTime.toEpochMillis(event.created) })
-          .where(eq(SessionTable.id, event.data.sessionID))
-          .run()
-          .pipe(Effect.orDie)
-      }),
+      db
+        .update(SessionTable)
+        .set({ agent: event.data.agent, time_updated: DateTime.toEpochMillis(event.created) })
+        .where(eq(SessionTable.id, event.data.sessionID))
+        .run()
+        .pipe(Effect.orDie, Effect.andThen(run(db, event))),
    )
    yield* bus.project(SessionEvent.ModelSelected, (event) =>
      Effect.gen(function* () {
@@ -59,25 +59,6 @@ const attachmentContent = (file: FileAttachment): ContentPart[] => {
  return []
 }

-const userAttachmentContent = (files: readonly FileAttachment[]) => {
-  const eligible = files.filter(
-    (file) => imageMimes.has(file.mime) && file.source.type === "inline" && file.mention?.text,
-  )
-  if (eligible.length < 2) return files.flatMap(attachmentContent)
-
-  const seen = new Map<string, Set<string>>()
-  return files.flatMap((file) => {
-    if (!imageMimes.has(file.mime) || file.source.type !== "inline" || !file.mention?.text)
-      return attachmentContent(file)
-    const metadata = JSON.stringify([file.mime, file.name ?? null, file.description ?? null, file.mention.text])
-    const payloads = seen.get(metadata) ?? new Set<string>()
-    if (payloads.has(file.data)) return []
-    payloads.add(file.data)
-    seen.set(metadata, payloads)
-    return attachmentContent(file)
-  })
-}
-
 const decodeToolInput = Schema.decodeUnknownOption(Schema.UnknownFromJsonString)

 const providerMetadata = (
@@ -205,7 +186,7 @@ function toLLMMessage(message: SessionMessage.Info, model: Model.Ref, providerMe
      const content = [
        ...(message.skills ?? []).map((skill) => Message.text(skill.text)),
        ...(message.text === "" ? [] : [Message.text(message.text)]),
-        ...userAttachmentContent(message.files ?? []),
+        ...(message.files ?? []).flatMap(attachmentContent),
      ]
      if (content.length === 0) return []
      return [
@@ -143,9 +143,7 @@ export const layer = (options?: ShellSelect.Options) =>
      })

      const resolve = () =>
-        config
-          .entries()
-          .pipe(Effect.map((entries) => ShellSelect.preferred(Config.latest(entries, "shell"), options, global.bin)))
+        config.entries().pipe(Effect.map((entries) => ShellSelect.preferred(Config.latest(entries, "shell"), options)))

      const name = () => resolve().pipe(Effect.map(ShellSelect.name))

@@ -34,19 +34,15 @@ function stat(file: string) {
  return statSync(file, { throwIfNoEntry: false }) ?? undefined
 }

-function findExecutable(name: string, bin?: string) {
-  return which(name, undefined, bin)
-}
-
-function full(file: string, options?: Options, bin?: string) {
+function full(file: string, options?: Options) {
  if (process.platform !== "win32") return file
  const shell = FSUtil.windowsPath(file)
  if (path.win32.dirname(shell) !== ".") {
-    if (shell.startsWith("/") && name(shell) === "bash") return gitbash(options, bin) || shell
+    if (shell.startsWith("/") && name(shell) === "bash") return gitbash(options) || shell
    return shell
  }
-  if (name(shell) === "bash") return gitbash(options, bin) || findExecutable(shell, bin) || shell
-  return findExecutable(shell, bin) || shell
+  if (name(shell) === "bash") return gitbash(options) || which(shell) || shell
+  return which(shell) || shell
 }

 function meta(file: string) {
@@ -61,26 +57,21 @@ function rooted(file: string) {
  return path.isAbsolute(FSUtil.windowsPath(file))
 }

-function resolve(file: string, options?: Options, bin?: string) {
-  const shell = full(file, options, bin)
+function resolve(file: string, options?: Options) {
+  const shell = full(file, options)
  if (rooted(shell)) {
    if (stat(shell)?.isFile()) return shell
    return
  }
-  return findExecutable(shell, bin) ?? undefined
+  return which(shell) ?? undefined
 }

-function win(options?: Options, bin?: string) {
+function win(options?: Options) {
  return Array.from(
    new Set(
-      [
-        findExecutable("pwsh", bin),
-        findExecutable("powershell", bin),
-        gitbash(options, bin),
-        process.env.COMSPEC || "cmd.exe",
-      ]
+      [which("pwsh"), which("powershell"), gitbash(options), process.env.COMSPEC || "cmd.exe"]
        .filter((item): item is string => Boolean(item))
-        .map((file) => full(file, options, bin)),
+        .map((file) => full(file, options)),
    ),
  )
 }
@@ -91,27 +82,27 @@ async function unix() {
  return ["/bin/bash", "/bin/zsh", "/bin/sh"]
 }

-function select(file: string | undefined, options?: Options, opts?: { acceptable?: boolean }, bin?: string) {
+function select(file: string | undefined, options?: Options, opts?: { acceptable?: boolean }) {
  if (file && (!opts?.acceptable || ok(file))) {
-    const shell = resolve(file, options, bin)
+    const shell = resolve(file, options)
    if (shell) return shell
  }
-  if (process.platform === "win32") return win(options, bin)[0]
-  return fallback(bin)
+  if (process.platform === "win32") return win(options)[0]
+  return fallback()
 }

-export function gitbash(options?: Options, bin?: string) {
+export function gitbash(options?: Options) {
  if (process.platform !== "win32") return
  if (options?.gitbash) return options.gitbash
-  const git = findExecutable("git", bin)
+  const git = which("git")
  if (!git) return
  const file = path.join(git, "..", "..", "bin", "bash.exe")
  if (stat(file)?.size) return file
 }

-function fallback(bin?: string) {
+function fallback() {
  if (process.platform === "darwin") return "/bin/zsh"
-  const bash = findExecutable("bash", bin)
+  const bash = which("bash")
  if (bash) return bash
  return "/bin/sh"
 }
@@ -129,12 +120,12 @@ export function ps(file: string) {
  return meta(file)?.ps === true
 }

-function info(file: string, options?: Options, bin?: string): Item {
-  const item = full(file, options, bin)
+function info(file: string, options?: Options): Item {
+  const item = full(file, options)
  const n = name(item)
  return {
    path: item,
-    name: resolve(n, options, bin) ? n : item,
+    name: resolve(n, options) ? n : item,
    acceptable: ok(item),
  }
 }
@@ -148,36 +139,30 @@ export function args(file: string, command: string) {
  return ["-c", command]
 }

-let defaultPreferred: { bin?: string; value: string } | undefined
-let defaultAcceptable: { bin?: string; value: string } | undefined
+let defaultPreferred: string | undefined
+let defaultAcceptable: string | undefined

-export function preferred(configShell?: string, options?: Options, bin?: string) {
-  if (configShell) return select(configShell, options, undefined, bin)
-  if (options?.gitbash) return select(process.env.SHELL, options, undefined, bin)
-  const cached = defaultPreferred
-  if (cached && cached.bin === bin) return cached.value
-  const value = select(process.env.SHELL, undefined, undefined, bin) ?? fallback(bin)
-  defaultPreferred = { bin, value }
-  return value
+export function preferred(configShell?: string, options?: Options) {
+  if (configShell) return select(configShell, options)
+  if (options?.gitbash) return select(process.env.SHELL, options)
+  defaultPreferred ??= select(process.env.SHELL)
+  return defaultPreferred
 }
 preferred.reset = () => {
  defaultPreferred = undefined
 }

-export function acceptable(configShell?: string, options?: Options, bin?: string) {
-  if (configShell) return select(configShell, options, { acceptable: true }, bin)
-  if (options?.gitbash) return select(process.env.SHELL, options, { acceptable: true }, bin)
-  const cached = defaultAcceptable
-  if (cached && cached.bin === bin) return cached.value
-  const value = select(process.env.SHELL, undefined, { acceptable: true }, bin) ?? fallback(bin)
-  defaultAcceptable = { bin, value }
-  return value
+export function acceptable(configShell?: string, options?: Options) {
+  if (configShell) return select(configShell, options, { acceptable: true })
+  if (options?.gitbash) return select(process.env.SHELL, options, { acceptable: true })
+  defaultAcceptable ??= select(process.env.SHELL, undefined, { acceptable: true })
+  return defaultAcceptable
 }
 acceptable.reset = () => {
  defaultAcceptable = undefined
 }

-export async function list(options?: Options, bin?: string): Promise<Item[]> {
-  const shells = process.platform === "win32" ? win(options, bin) : await unix()
-  return shells.filter((shell) => resolve(shell, options, bin)).map((shell) => info(shell, options, bin))
+export async function list(options?: Options): Promise<Item[]> {
+  const shells = process.platform === "win32" ? win(options) : await unix()
+  return shells.filter((shell) => resolve(shell, options)).map((shell) => info(shell, options))
 }
@@ -2,12 +2,17 @@ export * as Skill from "./skill"

 import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
 import path from "path"
-import { Context, Effect, Layer, Types } from "effect"
+import { Context, Effect, FiberMap, Layer, PubSub, Schema, Semaphore, Stream, Types } from "effect"
 import { Skill } from "@opencode-ai/schema/skill"
 import { Agent } from "./agent"
+import { ConfigMarkdown } from "./config/markdown"
 import { Bus } from "./bus"
+import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Permission } from "./permission"
+import { AbsolutePath } from "./schema"
+import { SkillDiscovery } from "./skill/discovery"
 import { State } from "./state"
+import { Watcher } from "./filesystem/watcher"

 export const DirectorySource = Skill.DirectorySource
 export type DirectorySource = Skill.DirectorySource
@@ -52,18 +57,38 @@ export const toModelOutput = (skill: Info, files: ReadonlyArray<string>) => {
  ].join("\n")
 }

+const Frontmatter = Schema.Struct({
+  name: Schema.String.pipe(Schema.optional),
+  description: Schema.String.pipe(Schema.optional),
+  slash: Schema.Boolean.pipe(Schema.optional),
+  metadata: Schema.Unknown.pipe(Schema.optional),
+})
+const decodeFrontmatter = Schema.decodeUnknownOption(Frontmatter)
+
+const metadataBoolean = (metadata: unknown, key: string) => {
+  if (metadata === undefined || metadata === null || typeof metadata !== "object" || Array.isArray(metadata)) {
+    return undefined
+  }
+  const value = (metadata as { readonly [key: string]: unknown })[key]
+  if (typeof value === "boolean") return value
+  if (typeof value !== "string") return undefined
+  const normalized = value.trim().toLowerCase()
+  if (normalized === "true") return true
+  if (normalized === "false") return false
+  return undefined
+}
+
 export type Data = {
-  skills: Map<ID, Types.DeepMutable<Info>>
+  sources: Types.DeepMutable<Source>[]
 }

 export type Draft = {
-  list: () => readonly Types.DeepMutable<Info>[]
-  add: (skill: Info) => void
-  update: (id: string, update: (skill: Types.DeepMutable<Info>) => void) => void
-  remove: (id: string) => void
+  source: (source: Source) => void
+  list: () => readonly Source[]
 }

 export interface Interface extends State.Transformable<Draft> {
+  readonly sources: () => Effect.Effect<Source[]>
  readonly list: () => Effect.Effect<Info[]>
 }

@@ -72,35 +97,179 @@ export class Service extends Context.Service<Service, Interface>()("@opencode/Sk
 const layer = Layer.effect(
  Service,
  Effect.gen(function* () {
+    const discovery = yield* SkillDiscovery.Service
+    const fs = yield* FSUtil.Service
    const bus = yield* Bus.Service
+    const watcher = yield* Watcher.Service
+    const cache = new Map<string, { skills: Info[]; paths: readonly string[] }>()
+    const watches = yield* FiberMap.make<string>()
+    const lock = Semaphore.makeUnsafe(1)
+    const changes = yield* PubSub.unbounded<string>()
+
+    const invalidate = Effect.fn("Skill.invalidateFromWatcher")(function* (file: string) {
+      const changed = yield* lock.withPermit(
+        Effect.gen(function* () {
+          const invalidated = Array.from(cache.entries()).filter(([, loaded]) =>
+            loaded.paths.some((item) => FSUtil.overlaps(item, file)),
+          )
+          if (invalidated.length === 0) return false
+          cache.clear()
+          yield* FiberMap.clear(watches)
+          yield* Effect.logInfo("skill cache invalidated", {
+            file,
+            sources: invalidated.map(([key]) => key),
+            skills: invalidated.flatMap(([, loaded]) => loaded.skills.map((skill) => skill.id)),
+          })
+          return true
+        }),
+      )
+      if (!changed) return
+      yield* bus.publish(Skill.Event.Updated, {}).pipe(Effect.asVoid)
+    })
+
+    yield* Stream.fromPubSub(changes).pipe(Stream.runForEach(invalidate), Effect.forkScoped({ startImmediately: true }))
+
+    const watch = Effect.fn("Skill.watch")(function* (directory: string, type: Watcher.WatchInput["type"]) {
+      const target = path.resolve(directory)
+      const updates = yield* watcher.subscribe(
+        type === "file" ? { path: target, type: "file" } : { path: target, type: "directory" },
+      )
+      yield* FiberMap.run(
+        watches,
+        `${type}:${target}`,
+        updates.pipe(Stream.runForEach((update) => PubSub.publish(changes, update.path).pipe(Effect.asVoid))),
+        {
+          onlyIfMissing: true,
+          startImmediately: true,
+        },
+      )
+    })
+
+    function firstMissing(target: string): Effect.Effect<string | undefined> {
+      const parent = path.dirname(target)
+      if (parent === target) return Effect.succeed(undefined)
+      return fs.isDir(parent).pipe(Effect.flatMap((exists) => (exists ? Effect.succeed(target) : firstMissing(parent))))
+    }
+
+    const watchDirectory: (directory: string) => Effect.Effect<string[]> = Effect.fn("Skill.watchDirectory")(function* (
+      directory: string,
+    ) {
+      const target = path.resolve(directory)
+      const resolved = yield* fs.realPath(directory).pipe(Effect.catch(() => Effect.succeed(undefined)))
+      if (resolved) {
+        yield* watch(resolved, "directory")
+        if (resolved !== target) {
+          yield* watch(target, "file")
+        }
+        return resolved === target ? [target] : [target, resolved]
+      }
+      const missing = yield* firstMissing(target)
+      if (missing) yield* watch(missing, "file")
+      if (
+        yield* fs.realPath(directory).pipe(
+          Effect.as(true),
+          Effect.catch(() => Effect.succeed(false)),
+        )
+      ) {
+        if (missing) yield* FiberMap.remove(watches, `file:${path.resolve(missing)}`)
+        return yield* watchDirectory(directory)
+      }
+      return [target]
+    })

    const state = State.create<Data, Draft>({
      name: "skill",
-      initial: () => ({ skills: new Map() }),
+      initial: () => ({ sources: [] }),
      draft: (draft) => ({
-        list: () => Array.from(draft.skills.values()),
-        add: (skill) => {
-          draft.skills.set(skill.id, { ...skill } as Types.DeepMutable<Info>)
-        },
-        update: (id, update) => {
-          const current = draft.skills.get(ID.make(id))
-          if (!current) return
-          update(current)
-          current.id = ID.make(id)
-        },
-        remove: (id) => {
-          draft.skills.delete(ID.make(id))
+        source: (source) => {
+          if (draft.sources.some((item) => Source.equals(item, source))) return
+          draft.sources.push(source as Types.DeepMutable<Source>)
        },
+        list: () => draft.sources as Source[],
      }),
-      finalize: () => bus.publish(Skill.Event.Updated, {}).pipe(Effect.asVoid),
+      finalize: () =>
+        lock
+          .withPermit(FiberMap.clear(watches).pipe(Effect.andThen(Effect.sync(() => cache.clear())), Effect.asVoid))
+          .pipe(Effect.andThen(bus.publish(Skill.Event.Updated, {})), Effect.asVoid),
+    })
+
+    const load = Effect.fn("Skill.load")(function* (source: Source) {
+      const skills: Info[] = []
+      if (source.type === "embedded") {
+        yield* Effect.logDebug("skill source loaded", {
+          source: Source.key(source),
+          type: source.type,
+          directories: [],
+          skills: [source.skill.id],
+        })
+        return { skills: [source.skill], paths: [] }
+      }
+      const directories = source.type === "directory" ? [source.path] : yield* discovery.pull(source.url)
+      const roots = (yield* Effect.forEach(directories, watchDirectory)).flat()
+      const paths = [...roots]
+      for (const directory of directories) {
+        const files = yield* fs
+          .scan("{*.md,**/SKILL.md}", { cwd: directory, absolute: true, include: "file", symlink: true, dot: true })
+          .pipe(Effect.catch(() => Effect.succeed([] as string[])))
+        for (const filepath of files.toSorted()) {
+          const resolved = yield* fs.realPath(filepath).pipe(Effect.catch(() => Effect.succeed(filepath)))
+          if (!roots.some((root) => FSUtil.contains(root, resolved))) {
+            const external = path.dirname(resolved)
+            paths.push(external)
+            yield* watch(external, "directory")
+          }
+          const content = yield* fs.readFileStringSafe(filepath).pipe(Effect.catch(() => Effect.succeed(undefined)))
+          if (!content) continue
+          const markdown = ConfigMarkdown.parseOption(content)
+          if (!markdown) continue
+          const frontmatter = decodeFrontmatter(markdown.data).valueOrUndefined
+          if (!frontmatter) continue
+          const id =
+            path.dirname(filepath) === directory
+              ? path.basename(filepath, ".md")
+              : path.basename(path.dirname(filepath))
+          skills.push({
+            id: ID.make(id),
+            name: Name.make(frontmatter.name ?? id),
+            description: frontmatter.description,
+            slash: metadataBoolean(frontmatter.metadata, "opencode/slash") ?? frontmatter.slash,
+            autoinvoke: metadataBoolean(frontmatter.metadata, "opencode/autoinvoke"),
+            location: AbsolutePath.make(filepath),
+            content: markdown.content,
+          })
+        }
+      }
+      yield* Effect.logDebug("skill source loaded", {
+        source: Source.key(source),
+        type: source.type,
+        directories,
+        skills: skills.map((skill) => skill.id),
+      })
+      return { skills, paths }
+    })
+
+    const list = Effect.fn("Skill.list")(function* () {
+      return yield* lock.withPermit(
+        Effect.gen(function* () {
+          const skills = new Map<ID, Info>()
+          for (const source of state.get().sources) {
+            const key = Source.key(source)
+            const loaded = cache.get(key) ?? (yield* load(source))
+            cache.set(key, loaded)
+            for (const skill of loaded.skills) skills.set(skill.id, skill)
+          }
+          return Array.from(skills.values())
+        }),
+      )
    })

    return Service.of({
      transform: state.transform,
      reload: state.reload,
-      list: Effect.fn("Skill.list")(function* () {
-        return Array.from(state.get().skills.values())
+      sources: Effect.fn("Skill.sources")(function* () {
+        return state.get().sources
      }),
+      list,
    })
  }),
 )
@@ -108,5 +277,5 @@ const layer = Layer.effect(
 export const node = makeLocationNode({
  service: Service,
  layer,
-  deps: [Bus.node],
+  deps: [SkillDiscovery.node, FSUtil.node, Bus.node, Watcher.node],
 })
@@ -1,9 +1,10 @@
 import whichPkg from "which"
 import path from "path"
+import { Global } from "@opencode-ai/util/global"

-export function which(cmd: string, env?: NodeJS.ProcessEnv, bin?: string) {
+export function which(cmd: string, env?: NodeJS.ProcessEnv) {
  const base = env?.PATH ?? env?.Path ?? process.env.PATH ?? process.env.Path ?? ""
-  const full = base && bin ? base + path.delimiter + bin : base || bin
+  const full = base ? base + path.delimiter + Global.Path.bin : Global.Path.bin
  const result = whichPkg.sync(cmd, {
    nothrow: true,
    path: full,
@@ -3,7 +3,6 @@ export * as Vcs from "./vcs"
 import path from "path"
 import { Context, Effect, Layer, Stream } from "effect"
 import { FileDiff } from "@opencode-ai/schema/file-diff"
-import { FileSystem } from "@opencode-ai/schema/filesystem"
 import { FileStatus, Info, Mode } from "@opencode-ai/schema/vcs"
 import { VcsEvent } from "@opencode-ai/schema/vcs-event"
 import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
@@ -11,6 +10,8 @@ import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Location } from "./location"
 import { AppProcess } from "@opencode-ai/util/process"
 import { Bus } from "./bus"
+import { Git } from "./git"
+import { Watcher } from "./filesystem/watcher"
 import { VcsGit } from "./vcs/git"
 import { VcsHg } from "./vcs/hg"

@@ -44,29 +45,36 @@ const layer = Layer.effect(
    const fs = yield* FSUtil.Service
    const location = yield* Location.Service
    const bus = yield* Bus.Service
+    const git = yield* Git.Service
+    const watcher = yield* Watcher.Service
    const impl = adapter(proc, fs, location)
    const vcs = location.vcs
    const state = { info: impl ? yield* impl.info() : ({ branch: {} } satisfies Info) }

    if (vcs && impl) {
-      const store = yield* fs.realPath(vcs.store).pipe(Effect.catch(() => Effect.succeed(vcs.store)))
-      const isBranchMetadata =
-        vcs.type === "git"
-          ? (file: string) => path.basename(file) === "HEAD" && FSUtil.contains(store, file)
-          : (file: string) => path.resolve(file) === path.join(store, "branch")
-      yield* bus.subscribe(FileSystem.Event.Changed).pipe(
-        Stream.filter((event) => isBranchMetadata(event.data.file)),
-        Stream.runForEach((event) =>
-          Effect.gen(function* () {
-            const next = yield* impl.info()
-            const changed = state.info.branch.current !== next.branch.current
-            state.info = next
-            if (!changed) return
-            yield* bus.publish(VcsEvent.BranchUpdated, { branch: next.branch.current })
-          }).pipe(Effect.withSpan("Vcs.refreshBranch", { attributes: { file: event.data.file } })),
-        ),
-        Effect.forkScoped({ startImmediately: true }),
-      )
+      yield* Effect.gen(function* () {
+        const discovered = vcs.type === "git" ? (yield* git.repo.discover(location.directory))?.gitDirectory : undefined
+        const target = discovered ?? vcs.store
+        const dir = yield* fs.realPath(target).pipe(Effect.catch(() => Effect.succeed(target)))
+        const keep = vcs.type === "git" ? ["HEAD", "HEAD.lock"] : ["branch"]
+        const ignore = (yield* fs.readDirectoryEntries(dir).pipe(Effect.catch(() => Effect.succeed([])))).flatMap(
+          (entry) => (keep.includes(entry.name) ? [] : [entry.name]),
+        )
+        const updates = yield* watcher.subscribe({ path: dir, type: "directory", ignore })
+        yield* updates.pipe(
+          Stream.filter((update) => keep.includes(path.basename(update.path))),
+          Stream.runForEach((update) =>
+            Effect.gen(function* () {
+              const next = yield* impl.info()
+              const changed = state.info.branch.current !== next.branch.current
+              state.info = next
+              if (!changed) return
+              yield* bus.publish(VcsEvent.BranchUpdated, { branch: next.branch.current })
+            }).pipe(Effect.withSpan("Vcs.refreshBranch", { attributes: { file: update.path } })),
+          ),
+          Effect.forkScoped({ startImmediately: true }),
+        )
+      }).pipe(Effect.catchCause((cause) => Effect.logError("failed to watch vcs metadata", { cause })))
    }

    return Service.of({
@@ -88,5 +96,5 @@ const layer = Layer.effect(
 export const node = makeLocationNode({
  service: Service,
  layer: layer,
-  deps: [AppProcess.node, FSUtil.node, Location.node, Bus.node],
+  deps: [AppProcess.node, FSUtil.node, Location.node, Bus.node, Git.node, Watcher.node],
 })
@@ -275,73 +275,6 @@ it.effect("projects replay metadata onto AI SDK prompt parts", () =>
  }),
 )

-it.effect("preserves tool result content in AI SDK prompts", () =>
-  Effect.gen(function* () {
-    const aisdk = yield* AISDK.Service
-    yield* aisdk.hook.sdk((event) => {
-      event.sdk = { languageModel: () => ({ provider: event.model.providerID }) }
-    })
-
-    const resolved = yield* aisdk.model(model("test-ai-sdk"))
-    const prepared = yield* compileRequest(
-      LLM.request({
-        model: resolved,
-        messages: [
-          Message.tool({
-            id: "call_1",
-            name: "read",
-            result: {
-              type: "content",
-              value: [
-                { type: "text", text: "attachments" },
-                { type: "file", uri: "data:image/png;base64,AAAA", mime: "image/png", name: "pixel.png" },
-                {
-                  type: "file",
-                  uri: "data:application/pdf;charset=utf-8;base64,JVBERg==",
-                  mime: "application/pdf",
-                  name: "document.pdf",
-                },
-                { type: "file", uri: "data:audio/mpeg;base64,SUQz", mime: "audio/mpeg", name: "clip.mp3" },
-                { type: "file", uri: "https://example.com/pixel.png", mime: "image/png" },
-                { type: "file", uri: "https://example.com/document.pdf", mime: "application/pdf" },
-              ],
-            },
-          }),
-        ],
-      }),
-    )
-
-    expect(prepared.body.prompt).toEqual([
-      {
-        role: "tool",
-        content: [
-          {
-            type: "tool-result",
-            toolCallId: "call_1",
-            toolName: "read",
-            output: {
-              type: "content",
-              value: [
-                { type: "text", text: "attachments" },
-                { type: "image-data", data: "AAAA", mediaType: "image/png" },
-                {
-                  type: "file-data",
-                  data: "JVBERg==",
-                  mediaType: "application/pdf",
-                  filename: "document.pdf",
-                },
-                { type: "file-data", data: "SUQz", mediaType: "audio/mpeg", filename: "clip.mp3" },
-                { type: "image-url", url: "https://example.com/pixel.png" },
-                { type: "file-url", url: "https://example.com/document.pdf" },
-              ],
-            },
-          },
-        ],
-      },
-    ])
-  }),
-)
-
 it.effect("emits malformed AI SDK tool input without executing it", () =>
  Effect.gen(function* () {
    const aisdk = yield* AISDK.Service
@@ -1,6 +0,0 @@
---
-name: first
-description: First skill
---
-
-# first
@@ -1,6 +0,0 @@
---
-name: second
-description: Second skill
---
-
-# second
@@ -5,10 +5,8 @@ import { describe, expect } from "bun:test"
 import { Plugin as EffectPlugin } from "@opencode-ai/plugin/effect"
 import { Agent } from "@opencode-ai/core/agent"
 import { Catalog } from "@opencode-ai/core/catalog"
-import { ConfigPluginSource } from "@opencode-ai/core/config/plugin/source"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
 import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { Global } from "@opencode-ai/util/global"
 import { Bus } from "@opencode-ai/core/bus"
 import { Location } from "@opencode-ai/core/location"
 import { LocationServiceMap } from "@opencode-ai/core/location-services"
@@ -21,19 +19,10 @@ import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Effect, Fiber, Logger, Stream } from "effect"
 import { Database } from "../../src/database/database"
 import { tmpdir } from "../fixture/tmpdir"
-import { tempGlobalLayer } from "../fixture/global"
 import { testEffect } from "../lib/effect"

 const it = testEffect(
-  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, SdkPlugins.node, LocationServiceMap.node]), [
-    [Global.node, tempGlobalLayer],
-  ]),
-)
-const staticIt = testEffect(
-  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, SdkPlugins.node, LocationServiceMap.node]), [
-    [ConfigPluginSource.node, ConfigPluginSource.empty],
-    [Global.node, tempGlobalLayer],
-  ]),
+  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, SdkPlugins.node, LocationServiceMap.node])),
 )

 describe("PluginSupervisor config", () => {
@@ -168,92 +157,6 @@ describe("PluginSupervisor config", () => {
    ),
  )

-  it.live("loads auto-discovered plugin packages from package metadata", () =>
-    withLocation(
-      undefined,
-      Effect.gen(function* () {
-        yield* ready()
-        const plugins = yield* Plugin.Service
-        expect((yield* plugins.list()).map((plugin) => String(plugin.id))).toContain("package-metadata")
-      }),
-      false,
-      async (directory) => {
-        const plugin = path.join(directory, ".opencode", "plugins", "package-metadata")
-        await fs.mkdir(plugin, { recursive: true })
-        await fs.writeFile(path.join(plugin, "package.json"), JSON.stringify({ exports: "./entry.ts" }))
-        await fs.writeFile(path.join(plugin, "entry.ts"), discoveredPlugin("package-metadata"))
-      },
-    ),
-  )
-
-  it.live("loads auto-discovered plugin packages from index fallback", () =>
-    withLocation(
-      undefined,
-      Effect.gen(function* () {
-        yield* ready()
-        const plugins = yield* Plugin.Service
-        expect((yield* plugins.list()).map((plugin) => String(plugin.id))).toContain("index-fallback")
-      }),
-      false,
-      async (directory) => {
-        const plugin = path.join(directory, ".opencode", "plugins", "index-fallback")
-        await fs.mkdir(plugin, { recursive: true })
-        await fs.writeFile(path.join(plugin, "index.js"), discoveredPlugin("index-fallback"))
-      },
-    ),
-  )
-
-  it.live("prefers package metadata over index fallback", () =>
-    withLocation(
-      undefined,
-      Effect.gen(function* () {
-        yield* ready()
-        const plugins = yield* Plugin.Service
-        const ids = (yield* plugins.list()).map((plugin) => String(plugin.id))
-        expect(ids).toContain("metadata-precedence")
-        expect(ids).not.toContain("module-collision")
-        expect(ids).not.toContain("main-collision")
-        expect(ids).not.toContain("index-collision")
-      }),
-      false,
-      async (directory) => {
-        const plugin = path.join(directory, ".opencode", "plugins", "collision")
-        await fs.mkdir(plugin, { recursive: true })
-        await fs.writeFile(
-          path.join(plugin, "package.json"),
-          JSON.stringify({ exports: "./entry.js", module: "./module.js", main: "./main.js" }),
-        )
-        await fs.writeFile(path.join(plugin, "entry.js"), discoveredPlugin("metadata-precedence"))
-        await fs.writeFile(path.join(plugin, "module.js"), discoveredPlugin("module-collision"))
-        await fs.writeFile(path.join(plugin, "main.js"), discoveredPlugin("main-collision"))
-        await fs.writeFile(path.join(plugin, "index.js"), discoveredPlugin("index-collision"))
-      },
-    ),
-  )
-
-  staticIt.live("uses only internal and SDK plugins when the static source is wired", () =>
-    Effect.gen(function* () {
-      const sdk = yield* SdkPlugins.Service
-      yield* sdk.register(EffectPlugin.define({ id: "static-sdk", effect: () => Effect.void }))
-      yield* withLocation(
-        { plugins: ["-*", path.join(import.meta.dir, "../plugin/fixtures/config-promise-plugin.ts")] },
-        Effect.gen(function* () {
-          yield* ready()
-          const plugins = yield* Plugin.Service
-          const ids = (yield* plugins.list()).map((plugin) => String(plugin.id))
-          expect(ids).toContain("opencode.agent")
-          expect(ids).toContain("static-sdk")
-          expect(ids).not.toContain("config-promise-plugin")
-
-          const agents = yield* Agent.Service
-          expect(yield* agents.get(Agent.ID.make("directory"))).toBeUndefined()
-          expect(yield* agents.get(Agent.ID.make("configured"))).toBeUndefined()
-        }),
-        true,
-      )
-    }),
-  )
-
  it.live("reloads an auto-discovered plugin when its file changes", () =>
    withLocation(
      undefined,
@@ -452,7 +355,3 @@ export default Plugin.define({
 })
 `
 }
-
-function discoveredPlugin(id: string) {
-  return `export default { id: ${JSON.stringify(id)}, setup() {} }`
-}
@@ -46,7 +46,9 @@ describe("config plugin reloads", () => {

      expect((yield* agents.get(Agent.ID.make("first")))?.description).toBe("First agent")
      expect((yield* commands.get("first"))?.description).toBe("First command")
-      expect((yield* skills.list()).some((skill) => skill.id === "first")).toBe(true)
+      expect(
+        (yield* skills.sources()).some((source) => source.type === "directory" && source.path === "/skills/first"),
+      ).toBe(true)
      expect((yield* references.list()).map((reference) => reference.name)).toEqual(["first"])
      expect(yield* catalog.provider.get(Provider.ID.make("first"))).toBeDefined()

@@ -67,8 +69,12 @@ describe("config plugin reloads", () => {
        }),
      )

-      expect((yield* skills.list()).some((skill) => skill.id === "first")).toBe(false)
-      expect((yield* skills.list()).some((skill) => skill.id === "second")).toBe(true)
+      expect(
+        (yield* skills.sources()).some((source) => source.type === "directory" && source.path === "/skills/first"),
+      ).toBe(false)
+      expect(
+        (yield* skills.sources()).some((source) => source.type === "directory" && source.path === "/skills/second"),
+      ).toBe(true)
    }).pipe(
      Effect.provide(Config.testLayer([config("first")])),
      Effect.provideService(Global.Service, Global.Service.of(Global.make())),
@@ -83,7 +89,7 @@ function config(name: string) {
    info: decode({
      agents: { [name]: { description: `${title(name)} agent`, mode: "subagent" } },
      commands: { [name]: { template: `${title(name)} command`, description: `${title(name)} command` } },
-      skills: [path.join(import.meta.dir, "fixture", "skills", `${name}-source`)],
+      skills: [`/skills/${name}`],
      references: { [name]: `/references/${name}` },
      providers: { [name]: { models: { chat: { name: `${title(name)} model` } } } },
    }),
@@ -1,379 +1,87 @@
-import fs from "fs/promises"
 import path from "path"
 import { describe, expect } from "bun:test"
-import { Deferred, Effect, Fiber, Layer, Schema, Stream } from "effect"
+import { Effect, Layer, Schema, Stream } from "effect"
 import { Config } from "@opencode-ai/core/config"
-import {
-  AgentsDirectory,
-  ClaudeDirectory,
-  Directory as ConfigDirectory,
-  Document,
-  type Entry,
-  Info,
-} from "@opencode-ai/schema/config"
+import { AgentsDirectory, ClaudeDirectory, Directory, Document, Info } from "@opencode-ai/schema/config"
 import { ConfigSkillPlugin } from "@opencode-ai/core/config/plugin/skill"
-import { SkillFile } from "@opencode-ai/core/config/plugin/skill-file"
-import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
-import { Watcher } from "@opencode-ai/core/filesystem/watcher"
-import { Bus } from "@opencode-ai/core/bus"
-import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Global } from "@opencode-ai/util/global"
-import { LayerNode } from "@opencode-ai/util/effect/layer-node"
 import { Location } from "@opencode-ai/core/location"
 import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Skill } from "@opencode-ai/core/skill"
-import { SkillDiscovery } from "@opencode-ai/core/skill/discovery"
-import { tmpdir } from "../fixture/tmpdir"
 import { location } from "../fixture/location"
 import { testEffect } from "../lib/effect"
 import { host } from "../plugin/host"

-const urls = new Map<string, AbsolutePath[]>()
-const failedUrls = new Set<string>()
-let pulls = 0
-const discoveryLayer = Layer.succeed(
-  SkillDiscovery.Service,
-  SkillDiscovery.Service.of({
-    pull: (url) => {
-      pulls++
-      if (failedUrls.has(url)) return Effect.die(`failed to pull ${url}`)
-      return Effect.succeed(urls.get(url) ?? [])
-    },
-  }),
-)
-const watcherLayer = Watcher.testLayer
-const it = testEffect(
-  Layer.mergeAll(
-    AppNodeBuilder.build(LayerNode.group([Skill.node, Bus.node, FSUtil.node])),
-    discoveryLayer,
-    watcherLayer,
-  ),
-)
+const it = testEffect(Layer.empty)
 const decode = Schema.decodeUnknownSync(Info)

-function write(directory: string, name: string, description: string) {
-  return fs.writeFile(
-    path.join(directory, name, "SKILL.md"),
-    `---
-name: ${name}
-description: ${description}
---
-# ${name}`,
-  )
-}
-
-const startEntries = Effect.fnUntraced(function* (entries: Entry[], directory: string, home = directory) {
-  const service = yield* Skill.Service
-  yield* ConfigSkillPlugin.Plugin.effect(
-    host({
-      skill: {
-        list: () => Effect.die("unused skill.list"),
-        transform: service.transform,
-        reload: service.reload,
-      },
-    }),
-  ).pipe(
-    Effect.provide(Config.testLayer(entries)),
-    Effect.provideService(Global.Service, Global.Service.of({ ...Global.make(), home })),
-    Effect.provideService(Location.Service, Location.Service.of(location({ directory: AbsolutePath.make(directory) }))),
-  )
-  return service
-})
-
-const start = (skills: string[], directory: string) =>
-  startEntries(
-    [
-      new Document({
-        type: "document",
-        info: decode({ skills }),
-      }),
-    ],
-    directory,
-  )
-
-function emitAndWait(update: Watcher.Update) {
-  return Effect.gen(function* () {
-    const watcher = yield* Watcher.Test
-    const bus = yield* Bus.Service
-    const deferred = yield* Deferred.make<void>()
-    const fiber = yield* bus.subscribe(Skill.Event.Updated).pipe(
-      Stream.runForEach(() => Deferred.succeed(deferred, undefined).pipe(Effect.asVoid)),
-      Effect.forkScoped,
-    )
-    yield* Effect.yieldNow
-    yield* watcher.emit(update)
-    yield* Deferred.await(deferred).pipe(Effect.timeout("2 seconds"))
-    yield* Fiber.interrupt(fiber)
-  })
-}
-
-describe("SkillFile.parse", () => {
-  it.effect("parses root and nested skill ids and metadata flags", () =>
-    Effect.sync(() => {
-      const directory = "/repo/skills"
-      expect(
-        SkillFile.parse(
-          directory,
-          "/repo/skills/manual/SKILL.md",
-          `---
-name: Manual
-description: Manual only
-metadata:
-  opencode/slash: "true"
-  opencode/autoinvoke: false
---
-# manual`,
-        ),
-      ).toEqual({
-        _tag: "Parsed",
-        skill: {
-          id: Skill.ID.make("manual"),
-          name: Skill.Name.make("Manual"),
-          description: "Manual only",
-          slash: true,
-          autoinvoke: false,
-          location: AbsolutePath.make("/repo/skills/manual/SKILL.md"),
-          content: "# manual",
-        },
-      })
-      expect(SkillFile.parse(directory, "/repo/skills/foo.md", "---\nslash: true\n---\n# foo")).toMatchObject({
-        _tag: "Parsed",
-        skill: { id: Skill.ID.make("foo") },
-      })
-      expect(
-        SkillFile.parse(directory, "/repo/skills/broken.md", "---\ndescription: foo: bar\nmetadata: [\n---\n# broken"),
-      ).toEqual({ _tag: "Skipped", reason: "markdown" })
-      expect(SkillFile.parse(directory, "/repo/skills/broken.md", "---\nslash: nope\n---\n# broken")).toMatchObject({
-        _tag: "Skipped",
-        reason: "frontmatter",
-        issue: expect.anything(),
-      })
-    }),
-  )
-})
-
 describe("ConfigSkillPlugin.Plugin", () => {
-  it.live("maps config entry types to skill directories", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          const claude = path.join(tmp.path, "claude")
-          const agents = path.join(tmp.path, "agents")
-          const opencode = path.join(tmp.path, "opencode")
-          const home = path.join(tmp.path, "home")
-          const directory = path.join(tmp.path, "project")
-          const expected = [
-            path.join(claude, "skills"),
-            path.join(agents, "skills"),
-            path.join(opencode, "skill"),
-            path.join(opencode, "skills"),
-            path.join(home, "shared"),
-            path.join(directory, "relative"),
-          ]
-          yield* Effect.promise(() => Promise.all(expected.map((item) => fs.mkdir(item, { recursive: true }))))
+  it.effect("registers configured skill directories and URLs", () =>
+    Effect.gen(function* () {
+      const directory = AbsolutePath.make("/repo/packages/app")
+      const sources: Skill.Source[] = []
+      const transform = Effect.fnUntraced(function* (update: (draft: Skill.Draft) => void | Effect.Effect<void>) {
+        const result = update({
+          source: (source) => {
+            sources.push(source)
+          },
+          list: () => sources,
+        })
+        if (Effect.isEffect(result)) yield* result
+        const dispose = Effect.sync(() => {
+          sources.length = 0
+        })
+        yield* Effect.addFinalizer(() => dispose)
+        return { dispose }
+      })

-          yield* startEntries(
-            [
-              new ClaudeDirectory({ type: "claude", path: AbsolutePath.make(claude) }),
-              new AgentsDirectory({ type: "agents", path: AbsolutePath.make(agents) }),
-              new ConfigDirectory({ type: "directory", path: AbsolutePath.make(opencode) }),
-              new Document({ type: "document", info: decode({ skills: ["~/shared", "./relative"] }) }),
-            ],
-            directory,
-            home,
-          )
-          const watcher = yield* Watcher.Test
-          expect(yield* watcher.subscriptions()).toEqual(expected.map((item) => ({ path: item, type: "directory" })))
+      yield* ConfigSkillPlugin.Plugin.effect(
+        host({
+          skill: { list: () => Effect.die("unused skill.list"), transform, reload: () => Effect.void },
        }),
-      ),
-    ),
-  )
+      ).pipe(
+        Effect.provideService(Global.Service, Global.Service.of({ ...Global.make(), home: "/home/test" })),
+        Effect.provideService(Location.Service, Location.Service.of(location({ directory }))),
+        Effect.provide(
+          Config.testLayer([
+            new ClaudeDirectory({ type: "claude", path: AbsolutePath.make("/repo/.claude") }),
+            new AgentsDirectory({ type: "agents", path: AbsolutePath.make("/repo/.agents") }),
+            new Directory({ type: "directory", path: AbsolutePath.make("/repo/.opencode") }),
+            new Document({
+              type: "document",
+              info: decode({
+                skills: ["./skills", "~/shared-skills", "/opt/skills", "https://example.test/skills/"],
+              }),
+            }),
+          ]),
+        ),
+      )

-  it.live("loads directory and URL sources with later-source precedence", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          const first = path.join(tmp.path, "first")
-          const second = path.join(tmp.path, "second")
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(first, "review"), { recursive: true })
-            await fs.mkdir(path.join(second, "review"), { recursive: true })
-            await write(first, "review", "First")
-            await write(second, "review", "Second")
-          })
-          pulls = 0
-          urls.set("https://example.test/skills/", [AbsolutePath.make(second)])
-
-          const skill = yield* start([first, "https://example.test/skills/"], tmp.path)
-          expect((yield* skill.list()).find((item) => item.id === "review")?.description).toBe("Second")
-          expect(pulls).toBe(1)
+      expect(sources).toEqual([
+        Skill.DirectorySource.make({
+          type: "directory",
+          path: AbsolutePath.make(path.join("/repo/.claude", "skills")),
        }),
-      ),
-    ),
-  )
-
-  it.live("keeps directory skills when a URL source fails", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(tmp.path, "review"), { recursive: true })
-            await write(tmp.path, "review", "Available")
-          })
-          const url = "https://unreachable.example.test/skills/"
-          failedUrls.add(url)
-
-          const skill = yield* start([tmp.path, url], tmp.path)
-          expect((yield* skill.list()).find((item) => item.id === "review")?.description).toBe("Available")
-          failedUrls.delete(url)
+        Skill.DirectorySource.make({
+          type: "directory",
+          path: AbsolutePath.make(path.join("/repo/.agents", "skills")),
        }),
-      ),
-    ),
-  )
-
-  it.live("rescans directory sources when watched files change", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(tmp.path, "deploy"), { recursive: true })
-            await write(tmp.path, "deploy", "Initial")
-          })
-          const skill = yield* start([tmp.path], tmp.path)
-          expect((yield* skill.list()).find((item) => item.id === "deploy")?.description).toBe("Initial")
-
-          const deploy = path.join(tmp.path, "deploy", "SKILL.md")
-          yield* Effect.promise(() => write(tmp.path, "deploy", "Updated"))
-          yield* emitAndWait({ type: "update", path: deploy })
-          expect((yield* skill.list()).find((item) => item.id === "deploy")?.description).toBe("Updated")
-
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(tmp.path, "review"), { recursive: true })
-            await write(tmp.path, "review", "Review")
-          })
-          yield* emitAndWait({ type: "create", path: path.join(tmp.path, "review", "SKILL.md") })
-          expect((yield* skill.list()).map((item) => item.id)).toEqual([
-            Skill.ID.make("deploy"),
-            Skill.ID.make("review"),
-          ])
-
-          yield* Effect.promise(() => fs.rm(path.join(tmp.path, "review"), { recursive: true }))
-          yield* emitAndWait({ type: "delete", path: path.join(tmp.path, "review", "SKILL.md") })
-          expect((yield* skill.list()).map((item) => item.id)).toEqual([Skill.ID.make("deploy")])
+        Skill.DirectorySource.make({
+          type: "directory",
+          path: AbsolutePath.make(path.join("/repo/.opencode", "skill")),
        }),
-      ),
-    ),
-  )
-
-  it.live("watches canonical directories behind symlinked skills", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          const source = path.join(tmp.path, "source")
-          const target = path.join(tmp.path, "target", "bro")
-          const file = path.join(target, "SKILL.md")
-          yield* Effect.promise(async () => {
-            await fs.mkdir(source, { recursive: true })
-            await fs.mkdir(target, { recursive: true })
-            await fs.writeFile(file, "---\nname: bro\ndescription: Initial\n---\n# bro")
-            await fs.symlink(target, path.join(source, "bro"), process.platform === "win32" ? "junction" : undefined)
-          })
-
-          const skill = yield* start([source], tmp.path)
-          const watcher = yield* Watcher.Test
-          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Initial")
-          expect(yield* watcher.subscriptions()).toContainEqual({ path: target, type: "directory" })
-
-          yield* Effect.promise(() => fs.writeFile(file, "---\nname: bro\ndescription: Updated\n---\n# bro"))
-          yield* emitAndWait({ type: "update", path: file })
-          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Updated")
+        Skill.DirectorySource.make({
+          type: "directory",
+          path: AbsolutePath.make(path.join("/repo/.opencode", "skills")),
        }),
-      ),
-    ),
-  )
-
-  it.live("reloads symlinked sources when their target changes", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          const source = path.join(tmp.path, "source")
-          const first = path.join(tmp.path, "first")
-          const second = path.join(tmp.path, "second")
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(first, "bro"), { recursive: true })
-            await fs.mkdir(path.join(second, "bro"), { recursive: true })
-            await write(first, "bro", "First")
-            await write(second, "bro", "Second")
-            await fs.symlink(first, source, process.platform === "win32" ? "junction" : undefined)
-          })
-
-          const skill = yield* start([source], tmp.path)
-          const watcher = yield* Watcher.Test
-          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("First")
-          expect(yield* watcher.subscriptions()).toEqual([
-            { path: first, type: "directory" },
-            { path: source, type: "file" },
-          ])
-
-          yield* Effect.promise(async () => {
-            await fs.unlink(source)
-            await fs.symlink(second, source, process.platform === "win32" ? "junction" : undefined)
-          })
-          yield* emitAndWait({ type: "update", path: source })
-
-          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Second")
-          expect(yield* watcher.subscriptions()).toEqual([
-            { path: first, type: "directory" },
-            { path: source, type: "file" },
-            { path: second, type: "directory" },
-            { path: source, type: "file" },
-          ])
+        Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make(path.join(directory, "skills")) }),
+        Skill.DirectorySource.make({
+          type: "directory",
+          path: AbsolutePath.make(path.join("/home/test", "shared-skills")),
        }),
-      ),
-    ),
-  )
-
-  it.live("follows missing source directories as their parents appear", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) =>
-        Effect.gen(function* () {
-          const source = path.join(tmp.path, "generated", "skills")
-          const skill = yield* start([source], tmp.path)
-          const watcher = yield* Watcher.Test
-          expect(yield* skill.list()).toEqual([])
-          expect(yield* watcher.subscriptions()).toEqual([{ path: path.join(tmp.path, "generated"), type: "file" }])
-
-          yield* Effect.promise(() => fs.mkdir(path.join(tmp.path, "generated")))
-          yield* emitAndWait({ type: "create", path: path.join(tmp.path, "generated") })
-          yield* Effect.promise(async () => {
-            await fs.mkdir(path.join(source, "deploy"), { recursive: true })
-            await write(source, "deploy", "Deploy")
-          })
-          yield* emitAndWait({ type: "create", path: source })
-          expect((yield* skill.list()).map((item) => item.id)).toEqual([Skill.ID.make("deploy")])
-        }),
-      ),
-    ),
+        Skill.DirectorySource.make({ type: "directory", path: AbsolutePath.make("/opt/skills") }),
+        Skill.UrlSource.make({ type: "url", url: "https://example.test/skills/" }),
+      ])
+    }),
  )
 })
@@ -11,19 +11,11 @@ import { migrations } from "@opencode-ai/core/database/migration.gen"
 import { Database } from "@opencode-ai/core/database/database"
 import { tmpdir } from "./fixture/tmpdir"
 import type { SqlClient } from "effect/unstable/sql/SqlClient"
-import legacyCredentialsMigration from "@opencode-ai/core/database/migration/20260805200742_import_legacy_credentials"
-import { Global } from "@opencode-ai/util/global"
+import { importLegacyCredentials } from "@opencode-ai/core/database/migration/20260805200742_import_legacy_credentials"

-const run = <A, E>(
-  effect: Effect.Effect<A, E, SqlClient | Global.Service>,
-  global = Global.make({ data: path.join(process.cwd(), ".test-data") }),
-) =>
+const run = <A, E>(effect: Effect.Effect<A, E, SqlClient>) =>
  Effect.runPromise(
-    effect.pipe(
-      Effect.provideService(Global.Service, global),
-      Effect.provide(SqliteClient.layer({ filename: ":memory:", disableWAL: true })),
-      Effect.scoped,
-    ),
+    effect.pipe(Effect.provide(SqliteClient.layer({ filename: ":memory:", disableWAL: true })), Effect.scoped),
  )

 const makeDb = EffectDrizzleSqlite.makeWithDefaults()
@@ -39,7 +31,7 @@ describe("DatabaseMigration", () => {
          Effect.scoped(Layer.build(layer)),
        ),
        { concurrency: "unbounded" },
-      ).pipe(Effect.provideService(Global.Service, Global.make({ data: tmp.path }))),
+      ),
    )
  })

@@ -135,8 +127,7 @@ describe("DatabaseMigration", () => {
          VALUES ('existing', 'anthropic', 'Existing', ${JSON.stringify({ type: "key", key: "current-key" })}, ${now}, ${now})
        `)

-        yield* db.run(sql`DELETE FROM migration WHERE id = ${legacyCredentialsMigration.id}`)
-        yield* DatabaseMigration.applyOnly(db, [legacyCredentialsMigration])
+        yield* db.transaction((tx) => importLegacyCredentials(tx, source))

        expect(yield* db.all(sql`SELECT integration_id, label, value FROM credential ORDER BY integration_id`)).toEqual(
          [
@@ -168,28 +159,11 @@ describe("DatabaseMigration", () => {
          value: JSON.stringify(["https://example.com"]),
        })
      }),
-      Global.make({ data: tmp.path }),
    )

    expect(await Bun.file(source).text()).toBe(content)
  })

-  test("skips legacy credential import when the source file is absent", async () => {
-    await using tmp = await tmpdir()
-
-    await run(
-      Effect.gen(function* () {
-        const db = yield* makeDb
-        yield* DatabaseMigration.apply(db)
-        yield* db.run(sql`DELETE FROM migration WHERE id = ${legacyCredentialsMigration.id}`)
-        yield* DatabaseMigration.applyOnly(db, [legacyCredentialsMigration])
-
-        expect(yield* db.all(sql`SELECT id FROM credential`)).toEqual([])
-      }),
-      Global.make({ data: tmp.path }),
-    )
-  })
-
  test("rolls back a failed migration without recording it", async () => {
    await run(
      Effect.gen(function* () {
@@ -1,28 +1,15 @@
-import { $ } from "bun"
 import { describe, expect } from "bun:test"
-import fs from "fs/promises"
 import path from "path"
-import { Deferred, Duration, Effect, Fiber, Layer, Option, Schedule, Stream } from "effect"
-import { Config } from "@opencode-ai/core/config"
+import { Deferred, Effect, Fiber, Layer, Schedule, Stream } from "effect"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
-import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { Bus } from "@opencode-ai/core/bus"
 import { FSUtil } from "@opencode-ai/util/fs-util"
-import { LocationWatcher } from "@opencode-ai/core/filesystem/location-watcher"
 import { Watcher } from "@opencode-ai/core/filesystem/watcher"
-import { FileSystem } from "@opencode-ai/schema/filesystem"
-import { Location } from "@opencode-ai/core/location"
-import { AbsolutePath } from "@opencode-ai/core/schema"
-import { location } from "../fixture/location"
 import { tmpdir } from "../fixture/tmpdir"
 import { testEffect } from "../lib/effect"

-type WatcherEvent = { file: string; event: "add" | "change" | "unlink" }
 const describeNative = process.env.CI ? describe.skip : describe

-const it = testEffect(AppNodeBuilder.build(LayerNode.group([FSUtil.node, Bus.node])))
-
-const configLayer = Config.testLayer()
+const it = testEffect(AppNodeBuilder.build(FSUtil.node))

 describe("Watcher.testLayer", () => {
  it.effect("records subscriptions and broadcasts emitted updates through the service", () =>
@@ -40,7 +27,6 @@ describe("Watcher.testLayer", () => {
      yield* test.emit({ type: "update", path: "/root/file.md" })

      expect(Array.from(yield* Fiber.join(received))).toEqual([{ type: "update", path: "/root/file.md" }])
-      // subscriptions() reports acquired watches, so paths come back resolved.
      expect(yield* test.subscriptions()).toEqual([{ path: path.resolve("/root"), type: "directory" }])
    }).pipe(Effect.provide(Watcher.testLayer)),
  )
@@ -126,167 +112,20 @@ describe("Watcher lifecycle", () => {
        expect(counts.unsubscribes).toBe(0)
        return consumer
      }).pipe(withNative(native))
-      // Closing the layer scope tears the native subscription down while the
-      // consumer still holds a reference; the consumer's own release as its
-      // stream ends must not tear it down a second time.
      yield* Fiber.join(consumer)
      expect(counts.unsubscribes).toBe(1)
    })
  })
 })

-function provide(directory: string, vcs?: Location.Interface["vcs"], watcher?: Layer.Layer<Watcher.Service>) {
-  const locationLayer = Layer.succeed(
-    Location.Service,
-    Location.Service.of(location({ directory: AbsolutePath.make(directory) }, { vcs })),
-  )
-  const built = AppNodeBuilder.build(LocationWatcher.node, [
-    [Config.node, configLayer],
-    [Location.node, locationLayer],
-    ...(watcher ? ([[Watcher.node, watcher]] as const) : []),
-  ])
-  return Effect.provide(built)
-}
-
-function withTmp<A, E, R>(
-  f: (directory: string, vcs?: Location.Interface["vcs"]) => Effect.Effect<A, E, R>,
-  options?: {
-    vcs?: "git" | "hg"
-    init?: (directory: string) => Promise<void>
-    watcher?: Layer.Layer<Watcher.Service>
-  },
-) {
+function withTmp<A, E, R>(f: (directory: string) => Effect.Effect<A, E, R>) {
  return Effect.acquireRelease(
-    Effect.promise(async () => {
-      const tmp = await tmpdir()
-      if (options?.vcs === "hg") {
-        await fs.mkdir(path.join(tmp.path, ".hg"))
-        return { tmp, vcs: { type: "hg" as const, store: AbsolutePath.make(path.join(tmp.path, ".hg")) } }
-      }
-      if (options?.vcs !== "git") return { tmp, vcs: undefined }
-      await $`git init`.cwd(tmp.path).quiet()
-      await $`git config core.fsmonitor false`.cwd(tmp.path).quiet()
-      await $`git config commit.gpgsign false`.cwd(tmp.path).quiet()
-      await $`git config user.email test@opencode.test`.cwd(tmp.path).quiet()
-      await $`git config user.name Test`.cwd(tmp.path).quiet()
-      await $`git commit --allow-empty -m root`.cwd(tmp.path).quiet()
-      await options.init?.(tmp.path)
-      return { tmp, vcs: { type: "git" as const, store: AbsolutePath.make(path.join(tmp.path, ".git")) } }
-    }),
-    ({ tmp }) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-  ).pipe(Effect.flatMap(({ tmp, vcs }) => f(tmp.path, vcs).pipe(provide(tmp.path, vcs, options?.watcher))))
+    Effect.promise(() => tmpdir()),
+    (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+  ).pipe(Effect.flatMap((tmp) => f(tmp.path)))
 }

-describe("LocationWatcher subscriptions", () => {
-  it.live("watches only exact Git branch metadata", () => {
-    const subscriptions: Watcher.WatchInput[] = []
-    const watcher = Layer.succeed(
-      Watcher.Service,
-      Watcher.Service.of({
-        subscribe: (input) => Effect.sync(() => subscriptions.push(input)).pipe(Effect.as(Stream.empty)),
-      }),
-    )
-    return withTmp(
-      (directory) =>
-        Effect.gen(function* () {
-          yield* LocationWatcher.Service
-          yield* Effect.sync(() => subscriptions.length).pipe(
-            Effect.filterOrFail((count) => count > 0),
-            Effect.retry(Schedule.spaced("10 millis")),
-          )
-          yield* Effect.sleep("10 millis")
-          expect(subscriptions).toEqual([{ path: path.join(directory, ".git", "HEAD"), type: "file" }])
-        }),
-      { vcs: "git", watcher },
-    )
-  })
-
-  it.live("watches only exact Hg branch metadata", () => {
-    const subscriptions: Watcher.WatchInput[] = []
-    const watcher = Layer.succeed(
-      Watcher.Service,
-      Watcher.Service.of({
-        subscribe: (input) => Effect.sync(() => subscriptions.push(input)).pipe(Effect.as(Stream.empty)),
-      }),
-    )
-    return withTmp(
-      (directory) =>
-        Effect.gen(function* () {
-          yield* LocationWatcher.Service
-          yield* Effect.sync(() => subscriptions.length).pipe(
-            Effect.filterOrFail((count) => count > 0),
-            Effect.retry(Schedule.spaced("10 millis")),
-          )
-          yield* Effect.sleep("10 millis")
-          expect(subscriptions).toEqual([{ path: path.join(directory, ".hg", "branch"), type: "file" }])
-        }),
-      { vcs: "hg", watcher },
-    )
-  })
-})
-
-function wait(check: (event: WatcherEvent) => boolean) {
-  return Effect.gen(function* () {
-    const bus = yield* Bus.Service
-    const deferred = yield* Deferred.make<WatcherEvent>()
-    const fiber = yield* bus.subscribe(FileSystem.Event.Changed).pipe(
-      Stream.runForEach((event) => {
-        if (!check(event.data)) return Effect.void
-        return Deferred.succeed(deferred, event.data).pipe(Effect.asVoid)
-      }),
-      Effect.forkScoped,
-    )
-    yield* Effect.yieldNow
-    return { deferred, fiber }
-  })
-}
-
-function maybeNextUpdate<E>(
-  check: (event: WatcherEvent) => boolean,
-  trigger: Effect.Effect<void, E>,
-  timeout: Duration.Input = "5 seconds",
-) {
-  return Effect.acquireUseRelease(
-    wait(check),
-    ({ deferred }) => trigger.pipe(Effect.andThen(Deferred.await(deferred)), Effect.timeoutOption(timeout)),
-    ({ fiber }) => Fiber.interrupt(fiber),
-  )
-}
-
-function nextUpdate<E>(check: (event: WatcherEvent) => boolean, trigger: Effect.Effect<void, E>) {
-  return Effect.gen(function* () {
-    const result = yield* maybeNextUpdate(check, trigger)
-    if (Option.isSome(result)) return result.value
-    return yield* Effect.fail(new Error("timed out waiting for file watcher update"))
-  })
-}
-
-function eventuallyUpdate<E>(check: (event: WatcherEvent) => boolean, trigger: () => Effect.Effect<void, E>) {
-  return Effect.gen(function* () {
-    while (true) {
-      const result = yield* maybeNextUpdate(check, trigger(), "250 millis")
-      if (Option.isSome(result)) return result.value
-    }
-  }).pipe(
-    Effect.timeoutOrElse({
-      duration: "5 seconds",
-      orElse: () => Effect.fail(new Error("timed out waiting for file watcher readiness")),
-    }),
-  )
-}
-
-function ready(file: string, eventFile = file) {
-  return Effect.gen(function* () {
-    const fs = yield* FSUtil.Service
-    const content = (yield* fs.readFileStringSafe(file)) ?? `ready-${Math.random()}`
-    yield* eventuallyUpdate(
-      (event) => event.file === eventFile,
-      () => fs.writeFileString(file, content),
-    ).pipe(Effect.asVoid)
-  })
-}
-
-describeNative("LocationWatcher", () => {
+describeNative("Watcher", () => {
  it.live("limits file watches to the exact target", () =>
    withTmp((directory) =>
      Effect.gen(function* () {
@@ -333,68 +172,4 @@ describeNative("LocationWatcher", () => {
      }).pipe(Effect.provide(AppNodeBuilder.build(Watcher.node))),
    ),
  )
-
-  it.live("publishes .git/HEAD events", () =>
-    withTmp(
-      (directory) =>
-        Effect.gen(function* () {
-          const fs = yield* FSUtil.Service
-          const head = path.join(directory, ".git", "HEAD")
-          const branch = `watch-${Math.random().toString(36).slice(2)}`
-          yield* ready(head)
-          yield* Effect.promise(() => $`git branch ${branch}`.cwd(directory).quiet())
-          expect(
-            yield* nextUpdate((event) => event.file === head, fs.writeFileString(head, `ref: refs/heads/${branch}\n`)),
-          ).toEqual({ file: head, event: "change" })
-        }),
-      { vcs: "git" },
-    ),
-  )
-
-  const describeSymlink = process.platform !== "win32" ? describe : describe.skip
-  describeSymlink("symlinked .git", () => {
-    it.live("publishes .git/HEAD events through a symlinked .git directory", () =>
-      withTmp(
-        (directory) =>
-          Effect.gen(function* () {
-            const afs = yield* FSUtil.Service
-            const actual = path.join(directory, "..", `actual_${path.basename(directory)}`)
-            yield* Effect.addFinalizer(() => Effect.promise(() => fs.rm(actual, { recursive: true, force: true })))
-            const head = path.join(directory, ".git", "HEAD")
-            yield* ready(head, path.join(actual, "HEAD"))
-            const branch = `watch-${Math.random().toString(36).slice(2)}`
-            yield* Effect.promise(() => $`git branch ${branch}`.cwd(directory).quiet())
-            expect(
-              yield* nextUpdate(
-                (event) => event.file === path.join(actual, "HEAD"),
-                afs.writeFileString(head, `ref: refs/heads/${branch}\n`),
-              ),
-            ).toEqual({ file: path.join(actual, "HEAD"), event: "change" })
-          }),
-        {
-          vcs: "git",
-          init: async (directory) => {
-            const actual = path.join(directory, "..", `actual_${path.basename(directory)}`)
-            await fs.rename(path.join(directory, ".git"), actual)
-            await fs.symlink(actual, path.join(directory, ".git"))
-          },
-        },
-      ),
-    )
-  })
-
-  it.live("publishes .hg/branch events", () =>
-    withTmp(
-      (directory) =>
-        Effect.gen(function* () {
-          const fs = yield* FSUtil.Service
-          const branch = path.join(directory, ".hg", "branch")
-          yield* ready(branch)
-          expect(
-            yield* nextUpdate((event) => event.file === branch, fs.writeFileString(branch, "feature\n")),
-          ).toMatchObject({ file: branch })
-        }),
-      { vcs: "hg" },
-    ),
-  )
 })
@@ -1,27 +0,0 @@
-import path from "path"
-import { Global } from "@opencode-ai/util/global"
-import { Effect, Layer } from "effect"
-import { tmpdir } from "./tmpdir"
-
-export const tempGlobalLayer = Layer.unwrap(
-  Effect.acquireRelease(
-    Effect.promise(() => tmpdir()),
-    (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-  ).pipe(
-    Effect.map((tmp) => {
-      const data = path.join(tmp.path, "data")
-      const cache = path.join(tmp.path, "cache")
-      return Global.layerWith({
-        home: path.join(tmp.path, "home"),
-        data,
-        cache,
-        config: path.join(tmp.path, "config"),
-        state: path.join(tmp.path, "state"),
-        tmp: path.join(tmp.path, "tmp"),
-        bin: path.join(cache, "bin"),
-        log: path.join(data, "log"),
-        repos: path.join(data, "repos"),
-      })
-    }),
-  ),
-)
@@ -0,0 +1,16 @@
+import { describe, expect, test } from "bun:test"
+import fs from "fs/promises"
+import os from "os"
+import path from "path"
+import { Global } from "@opencode-ai/util/global"
+
+describe("global paths", () => {
+  test("tmp path is the canonical system temp directory", async () => {
+    expect(Global.Path.tmp).toBe(await fs.realpath(path.join(os.tmpdir(), "opencode")))
+    expect(Global.make().tmp).toBe(Global.Path.tmp)
+  })
+
+  test("tmp path is created on module load", async () => {
+    expect((await fs.stat(Global.Path.tmp)).isDirectory()).toBe(true)
+  })
+})
@@ -1,124 +1,49 @@
 import { describe, expect } from "bun:test"
-import { Deferred, Effect, Fiber, Layer, Stream } from "effect"
+import { Effect, Layer } from "effect"
 import fs from "fs/promises"
 import path from "path"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
-import { Bus } from "@opencode-ai/core/bus"
-import { ConfigInstructionPlugin } from "@opencode-ai/core/config/plugin/instruction"
-import { Watcher } from "@opencode-ai/core/filesystem/watcher"
-import { InstructionDiscovery } from "@opencode-ai/core/instruction-discovery"
-import { Instructions } from "@opencode-ai/core/instructions"
-import { Location } from "@opencode-ai/core/location"
-import { AbsolutePath } from "@opencode-ai/core/schema"
+import { LayerNode } from "@opencode-ai/util/effect/layer-node"
 import { FSUtil } from "@opencode-ai/util/fs-util"
 import { Global } from "@opencode-ai/util/global"
-import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { tempGlobalLayer } from "./fixture/global"
+import { InstructionDiscovery } from "@opencode-ai/core/instruction-discovery"
+import { Location } from "@opencode-ai/core/location"
+import { AbsolutePath } from "@opencode-ai/core/schema"
 import { location } from "./fixture/location"
 import { tmpdir } from "./fixture/tmpdir"
-import { readInitial, readUpdate, state } from "./lib/instructions"
 import { testEffect } from "./lib/effect"
-import { host } from "./plugin/host"
+import { readInitial, readUpdate, state } from "./lib/instructions"

 const it = testEffect(Layer.empty)

 const instructionLayer = (input: {
-  config?: string
+  config: string
  locationServiceLayer: Layer.Layer<Location.Service>
  filesystemLayer?: Layer.Layer<FSUtil.Service>
  project?: boolean
-}) => {
-  const watcher = Watcher.testLayer
-  return Layer.mergeAll(
-    AppNodeBuilder.build(
-      LayerNode.group([InstructionDiscovery.node, Bus.node, FSUtil.node, Global.node, Location.node, Watcher.node]),
-      [
-        [InstructionDiscovery.node, InstructionDiscovery.configured({ project: input.project })],
-        [Global.node, input.config ? Global.layerWith({ config: input.config }) : tempGlobalLayer],
-        [Location.node, input.locationServiceLayer],
-        [Watcher.node, watcher],
-        ...(input.filesystemLayer ? [[FSUtil.node, input.filesystemLayer] as const] : []),
-      ],
-    ),
-    watcher,
-  )
-}
-
-const start = Effect.fnUntraced(function* () {
-  yield* ConfigInstructionPlugin.Plugin.effect(host())
-  return yield* InstructionDiscovery.Service
-})
-
-const file = (path: string, content: string) =>
-  new InstructionDiscovery.File({ path: AbsolutePath.make(path), content })
-
-function emitAndWait(update: Watcher.Update) {
-  return Effect.gen(function* () {
-    const watcher = yield* Watcher.Test
-    const bus = yield* Bus.Service
-    const updated = yield* Deferred.make<void>()
-    const fiber = yield* bus.subscribe(InstructionDiscovery.Event.Updated).pipe(
-      Stream.runForEach(() => Deferred.succeed(updated, undefined).pipe(Effect.asVoid)),
-      Effect.forkScoped,
-    )
-    yield* Effect.yieldNow
-    yield* watcher.emit(update)
-    yield* Deferred.await(updated).pipe(Effect.timeout("2 seconds"))
-    yield* Fiber.interrupt(fiber)
-  })
-}
+}) =>
+  AppNodeBuilder.build(InstructionDiscovery.node, [
+    [InstructionDiscovery.node, InstructionDiscovery.configured({ project: input.project })],
+    [Global.node, Global.layerWith({ config: input.config })],
+    [Location.node, input.locationServiceLayer],
+    ...(input.filesystemLayer ? [[FSUtil.node, input.filesystemLayer] as const] : []),
+  ])

 describe("InstructionDiscovery", () => {
-  it.effect("stores ordered values with last-write-wins precedence", () =>
-    Effect.gen(function* () {
-      const discovery = yield* InstructionDiscovery.Service
-      yield* discovery.transform((draft) => {
-        draft.add(file("/repo/AGENTS.md", "first"))
-        draft.add(file("/repo/packages/AGENTS.md", "package"))
-        draft.add(file("/repo/AGENTS.md", "last"))
-        draft.update("/repo/packages/AGENTS.md", (current) => {
-          current.content = "updated"
-          current.path = AbsolutePath.make("/ignored")
-        })
-        draft.remove("/missing")
-      })
-
-      expect(yield* discovery.list()).toEqual([
-        file("/repo/AGENTS.md", "last"),
-        file("/repo/packages/AGENTS.md", "updated"),
-      ])
-    }).pipe(Effect.provide(AppNodeBuilder.build(LayerNode.group([InstructionDiscovery.node, Bus.node])))),
-  )
-
-  it.effect("preserves admitted values while the source is unavailable", () =>
-    Effect.gen(function* () {
-      const discovery = yield* InstructionDiscovery.Service
-      yield* discovery.transform((draft) => draft.unavailable())
-      expect(
-        (yield* readUpdate(
-          yield* discovery.load(),
-          state({ "core/instructions": [{ path: "/repo/AGENTS.md", content: "old" }] }),
-        )).changed,
-      ).toBe(false)
-    }).pipe(Effect.provide(AppNodeBuilder.build(LayerNode.group([InstructionDiscovery.node, Bus.node])))),
-  )
-})
-
-describe("ConfigInstructionPlugin.Plugin", () => {
-  it.live("loads global and upward project files and rescans them on change", () =>
+  it.live("loads global and upward project AGENTS.md files as one aggregate context", () =>
    Effect.acquireRelease(
      Effect.promise(() => tmpdir()),
      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
    ).pipe(
-      Effect.flatMap((tmp) => {
-        const global = path.join(tmp.path, "global")
-        const project = path.join(tmp.path, "project")
-        const directory = path.join(project, "packages", "core")
-        const outside = path.join(tmp.path, "AGENTS.md")
-        const globalFile = path.join(global, "AGENTS.md")
-        const projectFile = path.join(project, "AGENTS.md")
-        const packageFile = path.join(directory, "AGENTS.md")
-        return Effect.gen(function* () {
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          const global = path.join(tmp.path, "global")
+          const project = path.join(tmp.path, "project")
+          const directory = path.join(project, "packages", "core")
+          const outside = path.join(tmp.path, "AGENTS.md")
+          const globalFile = path.join(global, "AGENTS.md")
+          const projectFile = path.join(project, "AGENTS.md")
+          const packageFile = path.join(directory, "AGENTS.md")
          yield* Effect.promise(async () => {
            await fs.mkdir(global, { recursive: true })
            await fs.mkdir(directory, { recursive: true })
@@ -128,15 +53,25 @@ describe("ConfigInstructionPlugin.Plugin", () => {
            await fs.writeFile(packageFile, "package")
          })

-          const discovery = yield* start()
-          const watcher = yield* Watcher.Test
-          expect(yield* watcher.subscriptions()).toEqual([
-            { path: globalFile, type: "file" },
-            { path: packageFile, type: "file" },
-            { path: path.join(project, "packages", "AGENTS.md"), type: "file" },
-            { path: projectFile, type: "file" },
-          ])
-          const initialized = yield* readInitial(yield* discovery.load())
+          const load = InstructionDiscovery.Service.pipe(
+            Effect.flatMap((service) => service.load()),
+            Effect.provide(
+              instructionLayer({
+                config: global,
+                locationServiceLayer: Layer.succeed(
+                  Location.Service,
+                  Location.Service.of(
+                    location(
+                      { directory: AbsolutePath.make(directory) },
+                      { projectDirectory: AbsolutePath.make(project) },
+                    ),
+                  ),
+                ),
+              }),
+            ),
+          )
+
+          const initialized = yield* readInitial(yield* load)
          expect(initialized.text).toBe(
            [
              `Instructions from: ${globalFile}\nglobal`,
@@ -147,14 +82,13 @@ describe("ConfigInstructionPlugin.Plugin", () => {
          expect(initialized.text).not.toContain("outside")

          yield* Effect.promise(() => fs.writeFile(packageFile, "changed"))
-          yield* emitAndWait({ type: "update", path: packageFile })
-          expect((yield* readUpdate(yield* discovery.load(), initialized)).text).toContain(
+          expect((yield* readUpdate(yield* load, initialized)).text).toContain(
            `Instructions from: ${packageFile}\nchanged`,
          )

          yield* Effect.promise(() => fs.rm(packageFile))
-          yield* emitAndWait({ type: "delete", path: packageFile })
-          expect((yield* readUpdate(yield* discovery.load(), initialized)).text).toBe(
+          const partial = yield* readUpdate(yield* load, initialized)
+          expect(partial.text).toBe(
            [
              "These instructions replace all previously loaded ambient instructions.",
              `Instructions from: ${globalFile}\nglobal`,
@@ -162,30 +96,12 @@ describe("ConfigInstructionPlugin.Plugin", () => {
            ].join("\n\n"),
          )

-          yield* Effect.promise(() => fs.rm(globalFile))
-          yield* emitAndWait({ type: "delete", path: globalFile })
-          yield* Effect.promise(() => fs.rm(projectFile))
-          yield* emitAndWait({ type: "delete", path: projectFile })
-          expect((yield* readUpdate(yield* discovery.load(), initialized)).text).toBe(
+          yield* Effect.promise(() => Promise.all([fs.rm(globalFile), fs.rm(projectFile)]))
+          expect((yield* readUpdate(yield* load, initialized)).text).toBe(
            "Previously loaded instructions no longer apply.",
          )
-        }).pipe(
-          Effect.provide(
-            instructionLayer({
-              config: global,
-              locationServiceLayer: Layer.succeed(
-                Location.Service,
-                Location.Service.of(
-                  location(
-                    { directory: AbsolutePath.make(directory) },
-                    { projectDirectory: AbsolutePath.make(project) },
-                  ),
-                ),
-              ),
-            }),
-          ),
-        )
-      }),
+        }),
+      ),
    ),
  )

@@ -198,150 +114,115 @@ describe("ConfigInstructionPlugin.Plugin", () => {
        Effect.gen(function* () {
          const file = path.join(tmp.path, "AGENTS.md")
          yield* Effect.promise(() => fs.writeFile(file, ""))
-          const discovery = yield* start()
-          expect((yield* readInitial(yield* discovery.load())).text).toBe(`Instructions from: ${file}\n`)
-        }).pipe(
-          Effect.provide(
-            instructionLayer({
-              config: path.join(tmp.path, "global"),
-              locationServiceLayer: Layer.succeed(
-                Location.Service,
-                Location.Service.of(location({ directory: AbsolutePath.make(tmp.path) })),
-              ),
-            }),
-          ),
-        ),
-      ),
-    ),
-  )
-
-  it.live("discovers a newly created instruction file in an intermediate directory", () =>
-    Effect.acquireRelease(
-      Effect.promise(() => tmpdir()),
-      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
-    ).pipe(
-      Effect.flatMap((tmp) => {
-        const project = path.join(tmp.path, "project")
-        const intermediate = path.join(project, "packages", "AGENTS.md")
-        const directory = path.join(project, "packages", "core")
-        const projectFile = path.join(project, "AGENTS.md")
-        return Effect.gen(function* () {
-          yield* Effect.promise(() => fs.mkdir(directory, { recursive: true }))
-          yield* Effect.promise(() => fs.writeFile(projectFile, "project"))
-          const discovery = yield* start()
-          expect((yield* readInitial(yield* discovery.load())).text).toBe(`Instructions from: ${projectFile}\nproject`)
-
-          yield* Effect.promise(() => fs.writeFile(intermediate, "intermediate"))
-          yield* emitAndWait({ type: "create", path: intermediate })
-
-          expect((yield* readInitial(yield* discovery.load())).text).toBe(
-            [`Instructions from: ${intermediate}\nintermediate`, `Instructions from: ${projectFile}\nproject`].join(
-              "\n\n",
+          const context = yield* InstructionDiscovery.Service.pipe(
+            Effect.flatMap((service) => service.load()),
+            Effect.provide(
+              instructionLayer({
+                config: path.join(tmp.path, "global"),
+                locationServiceLayer: Layer.succeed(
+                  Location.Service,
+                  Location.Service.of(location({ directory: AbsolutePath.make(tmp.path) })),
+                ),
+              }),
            ),
          )
-        }).pipe(
-          Effect.provide(
-            instructionLayer({
-              config: path.join(tmp.path, "global"),
-              locationServiceLayer: Layer.succeed(
-                Location.Service,
-                Location.Service.of(
-                  location(
-                    { directory: AbsolutePath.make(directory) },
-                    { projectDirectory: AbsolutePath.make(project) },
-                  ),
-                ),
-              ),
-            }),
-          ),
-        )
-      }),
+
+          expect((yield* readInitial(context)).text).toBe(`Instructions from: ${file}\n`)
+        }),
+      ),
    ),
  )

-  it.effect("isolates source failure without failing activation", () => {
-    const failingFS = Layer.effect(
-      FSUtil.Service,
-      FSUtil.Service.pipe(
-        Effect.map((fs) =>
-          FSUtil.Service.of({ ...fs, up: () => Effect.fail(new FSUtil.FileSystemError({ method: "up" })) }),
-        ),
-      ),
-    ).pipe(Layer.provide(LayerNode.compile(FSUtil.node)))
-    return Effect.gen(function* () {
-      const discovery = yield* start()
-      expect(
-        (yield* readUpdate(
-          yield* discovery.load(),
-          state({ "core/instructions": [{ path: "/repo/AGENTS.md", content: "old" }] }),
-        )).changed,
-      ).toBe(false)
-    }).pipe(
-      Effect.provide(
-        instructionLayer({
-          filesystemLayer: failingFS,
-          locationServiceLayer: Layer.succeed(
-            Location.Service,
-            Location.Service.of(location({ directory: AbsolutePath.make("/repo") })),
+  it.effect("preserves admitted instructions while observation is unavailable", () =>
+    Effect.gen(function* () {
+      const failingFS = Layer.effect(
+        FSUtil.Service,
+        FSUtil.Service.pipe(
+          Effect.map((fs) =>
+            FSUtil.Service.of({ ...fs, up: () => Effect.fail(new FSUtil.FileSystemError({ method: "up" })) }),
          ),
-        }),
-      ),
-    )
-  })
-
-  it.effect("marks a discovered file that disappears before read as unavailable", () => {
-    const discovered = AbsolutePath.make("/repo/AGENTS.md")
-    const racingFS = Layer.effect(
-      FSUtil.Service,
-      FSUtil.Service.pipe(
-        Effect.map((fs) =>
-          FSUtil.Service.of({
-            ...fs,
-            up: () => Effect.succeed([discovered]),
-            readFileStringSafe: () => Effect.succeed(undefined),
+        ),
+      ).pipe(Layer.provide(LayerNode.compile(FSUtil.node)))
+      const context = yield* InstructionDiscovery.Service.pipe(
+        Effect.flatMap((service) => service.load()),
+        Effect.provide(
+          instructionLayer({
+            config: "/global",
+            filesystemLayer: failingFS,
+            locationServiceLayer: Layer.succeed(
+              Location.Service,
+              Location.Service.of(location({ directory: AbsolutePath.make("/repo") })),
+            ),
          }),
        ),
-      ),
-    ).pipe(Layer.provide(LayerNode.compile(FSUtil.node)))
-    return Effect.gen(function* () {
-      const discovery = yield* start()
-      expect(
-        (yield* readUpdate(
-          yield* discovery.load(),
-          state({ "core/instructions": [{ path: discovered, content: "old" }] }),
-        )).changed,
-      ).toBe(false)
-    }).pipe(
-      Effect.provide(
-        instructionLayer({
-          filesystemLayer: racingFS,
-          locationServiceLayer: Layer.succeed(
-            Location.Service,
-            Location.Service.of(location({ directory: AbsolutePath.make("/repo") })),
-          ),
-        }),
-      ),
-    )
-  })
+      )

-  it.effect("canonicalizes boundaries and honors project opt-out", () =>
+      expect(
+        (yield* readUpdate(context, state({ "core/instructions": [{ path: "/repo/AGENTS.md", content: "old" }] })))
+          .changed,
+      ).toBe(false)
+    }),
+  )
+
+  it.effect("preserves admitted instructions when a discovered file disappears before read", () =>
    Effect.gen(function* () {
-      const observed: { values: { targets: string[]; start: string; stop?: string }[] } = { values: [] }
+      const file = AbsolutePath.make("/repo/AGENTS.md")
+      const racingFS = Layer.effect(
+        FSUtil.Service,
+        FSUtil.Service.pipe(
+          Effect.map((fs) =>
+            FSUtil.Service.of({
+              ...fs,
+              up: () => Effect.succeed([file]),
+              readFileStringSafe: () => Effect.succeed(undefined),
+            }),
+          ),
+        ),
+      ).pipe(Layer.provide(LayerNode.compile(FSUtil.node)))
+      const context = yield* InstructionDiscovery.Service.pipe(
+        Effect.flatMap((service) => service.load()),
+        Effect.provide(
+          instructionLayer({
+            config: "/global",
+            filesystemLayer: racingFS,
+            locationServiceLayer: Layer.succeed(
+              Location.Service,
+              Location.Service.of(location({ directory: AbsolutePath.make("/repo") })),
+            ),
+          }),
+        ),
+      )
+
+      expect(
+        (yield* readUpdate(context, state({ "core/instructions": [{ path: file, content: "old" }] }))).changed,
+      ).toBe(false)
+    }),
+  )
+
+  it.effect("canonicalizes upward discovery boundaries", () =>
+    Effect.gen(function* () {
+      let observed: { targets: string[]; start: string; stop?: string } | undefined
      const observingFS = Layer.effect(
        FSUtil.Service,
        FSUtil.Service.pipe(
          Effect.map((fs) =>
            FSUtil.Service.of({
              ...fs,
-              up: (options) => Effect.sync(() => (observed.values.push(options), [])),
+              up: (options) =>
+                Effect.sync(() => {
+                  observed = options
+                  return []
+                }),
            }),
          ),
        ),
      ).pipe(Layer.provide(LayerNode.compile(FSUtil.node)))

-      yield* start().pipe(
+      yield* InstructionDiscovery.Service.pipe(
+        Effect.flatMap((service) => service.load()),
        Effect.provide(
          instructionLayer({
+            config: "/global",
            filesystemLayer: observingFS,
            locationServiceLayer: Layer.succeed(
              Location.Service,
@@ -352,11 +233,31 @@ describe("ConfigInstructionPlugin.Plugin", () => {
          }),
        ),
      )
-      yield* start().pipe(
+
+      expect(observed).toEqual({
+        targets: ["AGENTS.md"],
+        start: FSUtil.resolve("/repo"),
+        stop: FSUtil.resolve("/repo"),
+      })
+    }),
+  )
+
+  it.effect("honors the project instruction opt-out", () =>
+    Effect.gen(function* () {
+      let scanned = false
+
+      yield* InstructionDiscovery.Service.pipe(
+        Effect.flatMap((service) => service.load()),
        Effect.provide(
          instructionLayer({
-            filesystemLayer: observingFS,
+            config: "/global",
            project: false,
+            filesystemLayer: Layer.effect(
+              FSUtil.Service,
+              FSUtil.Service.pipe(
+                Effect.map((fs) => FSUtil.Service.of({ ...fs, up: () => Effect.sync(() => ((scanned = true), [])) })),
+              ),
+            ).pipe(Layer.provide(LayerNode.compile(FSUtil.node))),
            locationServiceLayer: Layer.succeed(
              Location.Service,
              Location.Service.of(location({ directory: AbsolutePath.make("/repo") })),
@@ -364,10 +265,25 @@ describe("ConfigInstructionPlugin.Plugin", () => {
          }),
        ),
      )
-      yield* start().pipe(
+
+      expect(scanned).toBe(false)
+    }),
+  )
+
+  it.effect("does not discover project instructions outside the canonical project root", () =>
+    Effect.gen(function* () {
+      let scanned = false
+      yield* InstructionDiscovery.Service.pipe(
+        Effect.flatMap((service) => service.load()),
        Effect.provide(
          instructionLayer({
-            filesystemLayer: observingFS,
+            config: "/global",
+            filesystemLayer: Layer.effect(
+              FSUtil.Service,
+              FSUtil.Service.pipe(
+                Effect.map((fs) => FSUtil.Service.of({ ...fs, up: () => Effect.sync(() => ((scanned = true), [])) })),
+              ),
+            ).pipe(Layer.provide(LayerNode.compile(FSUtil.node))),
            locationServiceLayer: Layer.succeed(
              Location.Service,
              Location.Service.of(
@@ -381,8 +297,7 @@ describe("ConfigInstructionPlugin.Plugin", () => {
        ),
      )

-      const repo = path.resolve("/repo")
-      expect(observed.values).toEqual([{ targets: ["AGENTS.md"], start: repo, stop: repo }])
+      expect(scanned).toBe(false)
    }),
  )
 })
@@ -1,5 +1,4 @@
 import { describe, expect } from "bun:test"
-import os from "os"
 import { Effect, Layer } from "effect"
 import * as TestClock from "effect/testing/TestClock"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
@@ -17,7 +16,6 @@ const directory = AbsolutePath.make(FSUtil.resolve("/repo/packages/core"))
 const projectDirectory = AbsolutePath.make(FSUtil.resolve("/repo"))
 const timestamp = Date.parse("2026-06-03T12:00:00.000Z")
 const sessionID = SessionSchema.ID.make("ses_builtin_test")
-const temporary = os.tmpdir()
 const localDate = (time: number) => new Date(time).toDateString()
 const locationLayer = Layer.succeed(
  Location.Service,
@@ -31,7 +29,7 @@ const locationLayer = Layer.succeed(
 const it = testEffect(
  AppNodeBuilder.build(InstructionBuiltIns.node, [
    [Location.node, locationLayer],
-    [Global.node, Global.layerWith({ config: temporary, tmp: temporary })],
+    [Global.node, Global.layerWith({ config: "/global", tmp: "/temporary" })],
  ]),
 )

@@ -51,7 +49,7 @@ describe("InstructionBuiltIns", () => {
          `  Workspace root folder: ${projectDirectory}`,
          "  Is directory a git repo: yes",
          `  Platform: ${process.platform}`,
-          `  Use ${temporary} for temporary work outside the workspace; it already exists and is pre-approved for external directory access.`,
+          "  Use /temporary for temporary work outside the workspace; it already exists and is pre-approved for external directory access.",
          "</env>",
          "",
          `Today's date: ${localDate(timestamp)}`,
@@ -9,7 +9,6 @@ import { Agent } from "@opencode-ai/core/agent"
 import { Catalog } from "@opencode-ai/core/catalog"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
 import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { Global } from "@opencode-ai/util/global"
 import { LocationServiceMap } from "@opencode-ai/core/location-services"
 import { Location } from "@opencode-ai/core/location"
 import { Plugin } from "@opencode-ai/core/plugin"
@@ -22,7 +21,6 @@ import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Session } from "@opencode-ai/core/session"
 import { SessionRunnerModel } from "@opencode-ai/core/session/runner/model"
 import { tmpdir } from "./fixture/tmpdir"
-import { tempGlobalLayer } from "./fixture/global"
 import { testEffect } from "./lib/effect"
 import { toolDefinitions, waitForTool } from "./lib/tool"
 import { Database } from "../src/database/database"
@@ -30,15 +28,9 @@ import { Bus } from "../src/bus"
 import { Reference } from "../src/reference"
 import { Tool } from "../src/tool"

-const it = testEffect(
-  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, LocationServiceMap.node]), [
-    [Global.node, tempGlobalLayer],
-  ]),
-)
+const it = testEffect(AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, LocationServiceMap.node])))
 const itWithSdk = testEffect(
-  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, SdkPlugins.node, LocationServiceMap.node]), [
-    [Global.node, tempGlobalLayer],
-  ]),
+  AppNodeBuilder.build(LayerNode.group([Database.node, Bus.node, SdkPlugins.node, LocationServiceMap.node])),
 )

 describe("LocationServiceMap", () => {
@@ -1,17 +1,19 @@
-import { describe, expect, test } from "bun:test"
+import { describe, expect, beforeEach, afterAll, test } from "bun:test"
 import { Money } from "@opencode-ai/schema/money"
 import { Effect, Layer, Ref } from "effect"
 import { HttpClient, HttpClientResponse } from "effect/unstable/http"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
 import { LayerNodePlatform } from "@opencode-ai/util/effect/app-node-platform"
 import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { KV } from "@opencode-ai/core/kv"
+import { Global } from "@opencode-ai/util/global"
 import { Model } from "@opencode-ai/core/model"
 import { ModelsDev } from "@opencode-ai/core/models-dev"
 import { Provider } from "@opencode-ai/core/provider"
 import { it } from "./lib/effect"
+import { readFile, rm, writeFile, utimes, mkdir } from "fs/promises"
+import path from "path"

-const cacheKey = "models-dev:catalog"
+const cacheFile = path.join(Global.Path.cache, "models.json")

 test("normalizes permissive interleaved values to compatibility", () => {
  expect(Model.compatibility("reasoning_text")).toEqual({ reasoningField: "reasoning_text" })
@@ -162,18 +164,7 @@ const makeMockClient = (state: Ref.Ref<MockState>) =>
    }),
  )

-interface MockCache {
-  readonly values: Map<string, KV.Value>
-}
-
-const makeMockKV = (cache: MockCache) =>
-  Layer.mock(KV.Service, {
-    get: (key) => Effect.sync(() => cache.values.get(key)),
-    set: (key, value) => Effect.sync(() => cache.values.set(key, value)).pipe(Effect.asVoid),
-    remove: (key) => Effect.sync(() => cache.values.delete(key)).pipe(Effect.asVoid),
-  })
-
-const buildLayer = (state: Ref.Ref<MockState>, cache: MockCache, options: ModelsDev.Options = { fetch: false }) =>
+const buildLayer = (state: Ref.Ref<MockState>, options: ModelsDev.Options = { fetch: false }) =>
  // Layer.fresh is required because the ModelsDev implementation is a module-level Layer constant,
  // and Effect.provide uses a process-global MemoMap by default — without fresh,
  // every test would reuse the cachedInvalidateWithTTL state from the first run.
@@ -181,29 +172,31 @@ const buildLayer = (state: Ref.Ref<MockState>, cache: MockCache, options: Models
    AppNodeBuilder.build(ModelsDev.node, [
      [ModelsDev.node, ModelsDev.configured(options)],
      [LayerNodePlatform.httpClient, Layer.succeed(HttpClient.HttpClient, makeMockClient(state))],
-      [KV.node, makeMockKV(cache)],
    ]),
  )

-// Mirrors production KV backends whose writes die as defects (e.g. Durable
-// Object SQLite rejecting values over its 2 MB cap with EffectDrizzleQueryError).
-const makeFailingWriteKV = (cache: MockCache) =>
-  Layer.mock(KV.Service, {
-    get: (key) => Effect.sync(() => cache.values.get(key)),
-    set: () => Effect.die(new Error('Failed query: insert into "kv"')),
-    remove: (key) => Effect.sync(() => cache.values.delete(key)).pipe(Effect.asVoid),
+const writeCacheText = (text: string, mtimeMs?: number) =>
+  Effect.promise(async () => {
+    await mkdir(Global.Path.cache, { recursive: true })
+    await writeFile(cacheFile, text)
+    if (mtimeMs !== undefined) {
+      const t = mtimeMs / 1000
+      await utimes(cacheFile, t, t)
+    }
  })

-const makeCache = (): MockCache => ({ values: new Map() })
+const writeCache = (data: object, mtimeMs?: number) => writeCacheText(JSON.stringify(data), mtimeMs)

-const writeCacheText = (cache: MockCache, text: string, updatedAt = Date.now()) =>
-  cache.values.set(cacheKey, { updatedAt, body: text })
+const provided = <A, E>(state: Ref.Ref<MockState>, eff: Effect.Effect<A, E, ModelsDev.Service>) =>
+  eff.pipe(Effect.provide(buildLayer(state)))

-const writeCache = (cache: MockCache, data: object, updatedAt?: number) =>
-  writeCacheText(cache, JSON.stringify(data), updatedAt)
+beforeEach(async () => {
+  await rm(cacheFile, { force: true })
+})

-const provided = <A, E>(state: Ref.Ref<MockState>, cache: MockCache, eff: Effect.Effect<A, E, ModelsDev.Service>) =>
-  eff.pipe(Effect.provide(buildLayer(state, cache)))
+afterAll(async () => {
+  await rm(cacheFile, { force: true })
+})

 const initialState: MockState = {
  body: JSON.stringify(fixture),
@@ -212,14 +205,12 @@ const initialState: MockState = {
 }

 describe("ModelsDev Service", () => {
-  it.live("get() returns normalized snapshots from KV when a cache entry exists", () =>
+  it.live("get() returns normalized snapshots from disk when cache file exists", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture)
+      yield* writeCache(fixture)
      const state = yield* Ref.make(initialState)
      const result = yield* provided(
        state,
-        cache,
        ModelsDev.Service.use((s) => s.get()),
      )
      expect(result).toEqual(fixtureSnapshot)
@@ -228,13 +219,11 @@ describe("ModelsDev Service", () => {
    }),
  )

-  it.live("get() returns empty catalog when KV is empty, fetch disabled, and no bundled snapshot is injected", () =>
+  it.live("get() returns empty catalog when disk empty, fetch disabled, and no bundled snapshot is injected", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
      const state = yield* Ref.make(initialState)
      const result = yield* provided(
        state,
-        cache,
        ModelsDev.Service.use((s) => s.get()),
      )
      expect(result).toEqual([])
@@ -243,34 +232,14 @@ describe("ModelsDev Service", () => {
    }),
  )

-  it.live("get() recovers from a corrupted KV entry by fetching a fresh catalog", () =>
+  it.live("get() recovers from a corrupted cache file by fetching a fresh catalog", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCacheText(cache, "{")
+      yield* writeCacheText("{")
      const state = yield* Ref.make({ ...initialState, body: JSON.stringify(fixture2) })
-      const context = yield* Layer.build(buildLayer(state, cache, { fetch: true }))
+      const context = yield* Layer.build(buildLayer(state, { fetch: true }))
      const result = yield* ModelsDev.Service.use((s) => s.get()).pipe(Effect.provide(context))
      expect(result).toEqual(fixture2Snapshot)
-      expect(cache.values.get(cacheKey)).toMatchObject({ body: JSON.stringify(fixture2) })
-      const final = yield* Ref.get(state)
-      expect(final.calls.length).toBe(1)
-    }),
-  )
-
-  it.live("get() still populates the catalog when the KV cache write fails", () =>
-    Effect.gen(function* () {
-      const cache = makeCache()
-      const state = yield* Ref.make({ ...initialState, body: JSON.stringify(fixture2) })
-      const layer = Layer.fresh(
-        AppNodeBuilder.build(ModelsDev.node, [
-          [ModelsDev.node, ModelsDev.configured({ fetch: true })],
-          [LayerNodePlatform.httpClient, Layer.succeed(HttpClient.HttpClient, makeMockClient(state))],
-          [KV.node, makeFailingWriteKV(cache)],
-        ]),
-      )
-      const result = yield* ModelsDev.Service.use((s) => s.get()).pipe(Effect.provide(layer))
-      expect(result).toEqual(fixture2Snapshot)
-      expect(cache.values.has(cacheKey)).toBe(false)
+      expect(yield* Effect.promise(() => readFile(cacheFile, "utf8"))).toBe(JSON.stringify(fixture2))
      const final = yield* Ref.get(state)
      expect(final.calls.length).toBe(1)
    }),
@@ -278,10 +247,9 @@ describe("ModelsDev Service", () => {

  it.live("uses the default models URL when the configured URL is empty", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
      const state = yield* Ref.make(initialState)
      yield* ModelsDev.Service.use((service) => service.get()).pipe(
-        Effect.provide(buildLayer(state, cache, { url: "", fetch: true })),
+        Effect.provide(buildLayer(state, { url: "", fetch: true })),
      )
      expect((yield* Ref.get(state)).calls[0]?.url).toBe("https://models.opencode.ai/api.json")
    }),
@@ -289,31 +257,32 @@ describe("ModelsDev Service", () => {

  it.live("get() is single-flight under concurrent calls", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
+      yield* writeCache(fixture)
      const state = yield* Ref.make(initialState)
-      const results = yield* Effect.gen(function* () {
-        const svc = yield* ModelsDev.Service
-        return yield* Effect.all([svc.get(), svc.get(), svc.get(), svc.get(), svc.get()], {
-          concurrency: "unbounded",
-        })
-      }).pipe(Effect.provide(buildLayer(state, cache, { fetch: true })))
+      const results = yield* provided(
+        state,
+        Effect.gen(function* () {
+          const svc = yield* ModelsDev.Service
+          return yield* Effect.all([svc.get(), svc.get(), svc.get(), svc.get(), svc.get()], {
+            concurrency: "unbounded",
+          })
+        }),
+      )
      for (const result of results) expect(result).toEqual(fixtureSnapshot)
-      expect((yield* Ref.get(state)).calls.length).toBe(1)
    }),
  )

-  it.live("get() caches across calls (later KV writes are ignored until invalidate)", () =>
+  it.live("get() caches across calls (later disk writes are ignored until invalidate)", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture)
+      yield* writeCache(fixture)
      const state = yield* Ref.make(initialState)
      const first = yield* provided(
        state,
-        cache,
        Effect.gen(function* () {
          const svc = yield* ModelsDev.Service
          const a = yield* svc.get()
-          writeCache(cache, fixture2)
+          // mutate disk between calls — cache should mask the change
+          yield* writeCache(fixture2)
          const b = yield* svc.get()
          return { a, b }
        }),
@@ -325,12 +294,10 @@ describe("ModelsDev Service", () => {

  it.live("refresh(true) fetches via HttpClient and updates the cache", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture)
+      yield* writeCache(fixture)
      const state = yield* Ref.make({ ...initialState, body: JSON.stringify(fixture2) })
      const result = yield* provided(
        state,
-        cache,
        Effect.gen(function* () {
          const svc = yield* ModelsDev.Service
          const before = yield* svc.get()
@@ -341,7 +308,6 @@ describe("ModelsDev Service", () => {
      )
      expect(result.before).toEqual(fixtureSnapshot)
      expect(result.after).toEqual(fixture2Snapshot)
-      expect(cache.values.get(cacheKey)).toMatchObject({ body: JSON.stringify(fixture2) })
      const final = yield* Ref.get(state)
      expect(final.calls.length).toBe(1)
      expect(final.calls[0].url).toContain("/api.json")
@@ -349,14 +315,13 @@ describe("ModelsDev Service", () => {
    }),
  )

-  it.live("refresh(false) skips fetch when the KV entry is fresh", () =>
+  it.live("refresh(false) skips fetch when on-disk file is fresh", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture, Date.now() - 1000)
+      // Fresh: mtime within the 5-minute TTL.
+      yield* writeCache(fixture, Date.now() - 1000)
      const state = yield* Ref.make({ ...initialState, body: JSON.stringify(fixture2) })
      yield* provided(
        state,
-        cache,
        ModelsDev.Service.use((s) => s.refresh(false)),
      )
      const final = yield* Ref.get(state)
@@ -364,14 +329,13 @@ describe("ModelsDev Service", () => {
    }),
  )

-  it.live("refresh(false) fetches when the KV entry is stale", () =>
+  it.live("refresh(false) fetches when on-disk file is stale", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture, Date.now() - 10 * 60 * 1000)
+      // Stale: mtime 10 minutes ago, beyond the 5-minute TTL.
+      yield* writeCache(fixture, Date.now() - 10 * 60 * 1000)
      const state = yield* Ref.make({ ...initialState, body: JSON.stringify(fixture2) })
      const after = yield* provided(
        state,
-        cache,
        Effect.gen(function* () {
          const svc = yield* ModelsDev.Service
          yield* svc.refresh(false)
@@ -386,12 +350,10 @@ describe("ModelsDev Service", () => {

  it.live("refresh swallows HTTP errors and leaves cache intact", () =>
    Effect.gen(function* () {
-      const cache = makeCache()
-      writeCache(cache, fixture)
+      yield* writeCache(fixture)
      const state = yield* Ref.make({ ...initialState, status: 500, body: "boom" })
      const result = yield* provided(
        state,
-        cache,
        Effect.gen(function* () {
          const svc = yield* ModelsDev.Service
          yield* svc.refresh(true)
@@ -1,5 +1,4 @@
 import { describe, expect } from "bun:test"
-import { ToolFailure } from "@opencode-ai/ai"
 import { Context, Effect, Exit, Fiber, Schema, Stream } from "effect"
 import { Plugin as EffectPlugin } from "@opencode-ai/plugin/effect"
 import { Config as ConfigSchema } from "@opencode-ai/schema/config"
@@ -396,51 +395,4 @@ describe("Plugin", () => {
      })
    }),
  )
-
-  it.effect("rejects tool execution when an execute.before hook fails", () =>
-    Effect.gen(function* () {
-      const plugins = yield* Plugin.Service
-      const registry = yield* Tool.Service
-      const executed: unknown[] = []
-
-      const plugin = EffectPlugin.define({
-        id: "tool-hook-reject",
-        effect: (ctx) =>
-          Effect.gen(function* () {
-            yield* ctx.tool
-              .transform((draft) =>
-                draft.add({
-                  name: "echo",
-                  options: { codemode: false },
-                  description: "Echo",
-                  input: Schema.Struct({ text: Schema.String }),
-                  output: Schema.Struct({ text: Schema.String }),
-                  execute: ({ text }) =>
-                    Effect.sync(() => executed.push({ text })).pipe(Effect.as({ output: { text } })),
-                }),
-              )
-              .pipe(Effect.orDie)
-
-            yield* ctx.tool
-              .hook("execute.before", () => new ToolFailure({ message: "write disabled" }))
-              .pipe(Effect.asVoid)
-          }),
-      })
-
-      yield* plugins.activate([versioned(plugin)])
-
-      const toolSet = yield* registry.snapshot()
-      const failure = yield* toolSet
-        .execute({
-          sessionID: Session.ID.make("ses_hook_reject"),
-          agent: Agent.ID.make("build"),
-          messageID: SessionMessage.ID.make("msg_hook_reject"),
-          call: { type: "tool-call", id: "call-hook-reject", name: "echo", input: { text: "original" } },
-        })
-        .pipe(Effect.flip)
-
-      expect(failure).toMatchObject({ _tag: "Tool.Error", message: "write disabled" })
-      expect(executed).toEqual([])
-    }),
-  )
 })
@@ -19,11 +19,9 @@ import { PluginHooks } from "@opencode-ai/core/plugin/hooks"
 import { PluginRuntime } from "@opencode-ai/core/plugin/runtime"
 import { Reference } from "@opencode-ai/core/reference"
 import { Skill } from "@opencode-ai/core/skill"
-import { SkillDiscovery } from "@opencode-ai/core/skill/discovery"
-import { Watcher } from "@opencode-ai/core/filesystem/watcher"
 import { Tool } from "@opencode-ai/core/tool"
 import { WebSearch } from "@opencode-ai/core/websearch"
-import { Effect, Layer } from "effect"
+import { Effect, Layer, Stream } from "effect"
 import { tempLocationLayer } from "../fixture/location"

 const npmLayer = Layer.succeed(
@@ -55,10 +53,8 @@ export const PluginTestLayer = AppNodeBuilder.build(
    PluginHooks.node,
    Reference.node,
    Skill.node,
-    SkillDiscovery.node,
    PluginHooks.node,
    Tool.node,
-    Watcher.node,
    WebSearch.node,
  ]),
  [
@@ -215,66 +215,6 @@ describe("ModelsDevPlugin", () => {
    }),
  )

-  it.effect("omits deprecated models from the catalog", () =>
-    Effect.gen(function* () {
-      const integrations = yield* Integration.Service
-      const catalog = yield* Catalog.Service
-      const providerID = Provider.ID.make("acme")
-      const activeID = Model.ID.make("current")
-      const deprecatedID = Model.ID.make("legacy")
-      const model = {
-        modelID: activeID,
-        providerID,
-        name: "Current",
-        capabilities: { tools: true, input: [], output: [] },
-        variants: [],
-        time: { released: Date.parse("2026-01-01") },
-        cost: [],
-        status: "active",
-        enabled: true,
-        limit: { context: 128_000, output: 32_000 },
-      } satisfies Omit<Model.Info, "id">
-      const snapshots = [
-        {
-          info: {
-            id: providerID,
-            name: "Acme",
-            package: Provider.aisdk("@ai-sdk/openai-compatible"),
-          },
-          environment: [],
-          models: [
-            { id: activeID, ...model },
-            {
-              id: deprecatedID,
-              ...model,
-              modelID: deprecatedID,
-              name: "Legacy",
-              status: "deprecated" as const,
-            },
-          ],
-        },
-      ] satisfies readonly ModelsDev.Snapshot[]
-
-      yield* ModelsDevPlugin.effect(
-        host({
-          catalog: catalogHost(catalog),
-          integration: integrationHost(integrations),
-        }),
-      ).pipe(
-        Effect.provideService(
-          ModelsDev.Service,
-          ModelsDev.Service.of({
-            get: () => Effect.succeed(snapshots),
-            refresh: () => Effect.void,
-          }),
-        ),
-      )
-
-      expect(yield* catalog.model.get(providerID, activeID)).toBeDefined()
-      expect(yield* catalog.model.get(providerID, deprecatedID)).toBeUndefined()
-    }),
-  )
-
  it.effect("registers key methods for providers with environment variables", () =>
    Effect.gen(function* () {
      const integrations = yield* Integration.Service
@@ -543,10 +543,11 @@ describe("Session.create", () => {
        Effect.promise(() => tmpdir()),
        (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
      )
+      const targetDatabase = Database.layer({ path: path.join(tmp.path, "target.sqlite") })
      const targetLayer = AppNodeBuilder.build(
        LayerNode.group([Database.node, Bus.node, SessionProjector.node, SessionStore.node]),
        [
-          [Database.node, Database.configured({ path: path.join(tmp.path, "target.sqlite") })],
+          [Database.node, targetDatabase],
          [Bus.node, Bus.configured({ persist: true })],
        ],
      )
@@ -647,17 +648,14 @@ describe("Session.create", () => {
  it.effect("switches the selected agent through the durable Session event", () =>
    Effect.gen(function* () {
      const session = yield* Session.Service
-      const created = yield* session.create({ location, agent: Agent.ID.make("build") })
+      const created = yield* session.create({ location })

      yield* session.switchAgent({ sessionID: created.id, agent: Agent.ID.make("plan") })

      expect(yield* session.get(created.id)).toMatchObject({ agent: "plan" })
      expect(
        Array.from(yield* logEvents(session, created.id, true).pipe(Stream.drop(1), Stream.take(1), Stream.runCollect)),
-      ).toMatchObject([{ type: "session.agent.selected", data: { agent: "plan", previous: "build" } }])
-      expect(yield* session.messages({ sessionID: created.id, order: "asc" })).toMatchObject([
-        { type: "agent-switched", agent: "plan", previous: "build" },
-      ])
+      ).toMatchObject([{ type: "session.agent.selected", data: { agent: "plan" } }])
    }),
  )

@@ -678,12 +676,7 @@ describe("Session.create", () => {
  it.effect("switches the selected model through the durable Session event", () =>
    Effect.gen(function* () {
      const session = yield* Session.Service
-      const previous = Model.Ref.make({
-        id: Model.ID.make("haiku"),
-        providerID: Provider.ID.anthropic,
-        variant: Model.VariantID.make("default"),
-      })
-      const created = yield* session.create({ location, model: previous })
+      const created = yield* session.create({ location })
      const model = Model.Ref.make({
        id: Model.ID.make("sonnet"),
        providerID: Provider.ID.anthropic,
@@ -697,10 +690,7 @@ describe("Session.create", () => {
        yield* logEvents(session, created.id, true).pipe(Stream.drop(1), Stream.take(1), Stream.runCollect),
      )
      expect(bus).toMatchObject([{ type: "session.model.selected" }])
-      expect(bus[0]?.data).toEqual({ sessionID: created.id, model, previous })
-      expect(yield* session.messages({ sessionID: created.id, order: "asc" })).toMatchObject([
-        { type: "model-switched", model, previous },
-      ])
+      expect(bus[0]?.data).toEqual({ sessionID: created.id, model })
    }),
  )

@@ -99,10 +99,7 @@ const builtins = Layer.mock(InstructionBuiltIns.Service, {
      }),
    ),
 })
-const discovery = Layer.mock(InstructionDiscovery.Service, {
-  project: true,
-  load: () => Effect.succeed(Instructions.empty),
-})
+const discovery = Layer.mock(InstructionDiscovery.Service, { load: () => Effect.succeed(Instructions.empty) })
 const skills = Layer.mock(SkillInstructions.Service, { load: () => Effect.succeed(Instructions.empty) })
 const references = Layer.mock(ReferenceInstructions.Service, { load: () => Effect.succeed(Instructions.empty) })
 const mcp = Layer.mock(McpInstructions.Service, { load: () => Effect.succeed(Instructions.empty) })
@@ -358,7 +358,6 @@ describe("SessionProjector", () => {
          directory: "/project",
          title: "test",
          version: "test",
-          agent: "plan",
          model: previousModel,
        })
        .run()
@@ -460,10 +459,6 @@ describe("SessionProjector", () => {
        text: "synthetic context",
        metadata: { source: "projector-test" },
      })
-      expect(messages.find((message) => message.type === "agent-switched")).toMatchObject({
-        agent: build,
-        previous: "plan",
-      })
      expect(messages.find((message) => message.type === "model-switched")).toMatchObject({ previous: previousModel })
      expect(messages.find((message) => message.type === "shell")).toMatchObject({
        command: "pwd",
@@ -373,103 +373,6 @@ Recent work
    ])
  })

-  test("deduplicates provider media while preserving durable attachment references", () => {
-    const data = Base64.make("AAECAw==")
-    const messages = toLLMMessages(
-      [
-        SessionMessage.User.make({
-          id: id("user-duplicate-image"),
-          type: "user",
-          text: "[Image 1] [Image 1] [Image 2]",
-          files: [
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-              mention: { start: 0, end: 9, text: "[Image 1]" },
-            }),
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-              mention: { start: 10, end: 19, text: "[Image 1]" },
-            }),
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-              description: "alternate use",
-              mention: { start: 20, end: 29, text: "[Image 2]" },
-            }),
-          ],
-          time: { created },
-        }),
-      ],
-      model,
-    )
-
-    expect(messages[0]?.content).toEqual([
-      { type: "text", text: "[Image 1] [Image 1] [Image 2]" },
-      { type: "media", mediaType: "image/png", data, filename: "image.png" },
-      {
-        type: "media",
-        mediaType: "image/png",
-        data,
-        filename: "image.png",
-        metadata: { description: "alternate use" },
-      },
-    ])
-  })
-
-  test("preserves provider media with distinct labels or URI sources", () => {
-    const data = Base64.make("AAECAw==")
-    const messages = toLLMMessages(
-      [
-        SessionMessage.User.make({
-          id: id("user-distinct-images"),
-          type: "user",
-          text: "[Image 1] [Image 2]",
-          files: [
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-              mention: { start: 0, end: 9, text: "[Image 1]" },
-            }),
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-              mention: { start: 10, end: 19, text: "[Image 2]" },
-            }),
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "uri", uri: "file:///project/image.png" },
-              name: "image.png",
-              mention: { start: 0, end: 9, text: "[Image 1]" },
-            }),
-            FileAttachment.make({
-              data,
-              mime: "image/png",
-              source: { type: "inline" },
-              name: "image.png",
-            }),
-          ],
-          time: { created },
-        }),
-      ],
-      model,
-    )
-
-    expect(messages[0]?.content.filter((part) => part.type === "media")).toHaveLength(4)
-  })
-
  test("replays durable tool media into canonical tool messages without structured base64", () => {
    const messages = toLLMMessages(
      [
@@ -83,10 +83,7 @@ const models = Layer.mock(SessionRunnerModel.Service)({
    ),
 })
 const systemContext = Layer.mock(InstructionBuiltIns.Service, { load: () => Effect.succeed(Instructions.empty) })
-const instructionContext = Layer.mock(InstructionDiscovery.Service, {
-  project: true,
-  load: () => Effect.succeed(Instructions.empty),
-})
+const instructionContext = Layer.mock(InstructionDiscovery.Service, { load: () => Effect.succeed(Instructions.empty) })
 const skillInstructions = Layer.mock(SkillInstructions.Service, { load: () => Effect.succeed(Instructions.empty) })
 const referenceInstructions = Layer.mock(ReferenceInstructions.Service, {
  load: () => Effect.succeed(Instructions.empty),
@@ -312,10 +312,7 @@ const systemContext = Layer.mock(InstructionBuiltIns.Service, {
      }),
    ),
 })
-const instructionContext = Layer.mock(InstructionDiscovery.Service, {
-  project: true,
-  load: () => Effect.succeed(Instructions.empty),
-})
+const instructionContext = Layer.mock(InstructionDiscovery.Service, { load: () => Effect.succeed(Instructions.empty) })
 const skillInstructions = Layer.mock(SkillInstructions.Service, {
  load: (agent) =>
    Effect.succeed(
@@ -1,102 +1,438 @@
+import fs from "fs/promises"
+import path from "path"
 import { describe, expect } from "bun:test"
-import { Deferred, Effect, Fiber, Stream } from "effect"
+import { Deferred, Effect, Fiber, Layer, Stream } from "effect"
 import { Agent } from "@opencode-ai/core/agent"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
 import { LayerNode } from "@opencode-ai/util/effect/layer-node"
 import { Bus } from "@opencode-ai/core/bus"
 import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Skill } from "@opencode-ai/core/skill"
+import { SkillDiscovery } from "@opencode-ai/core/skill/discovery"
+import { Watcher } from "@opencode-ai/core/filesystem/watcher"
+import { tmpdir } from "./fixture/tmpdir"
 import { testEffect } from "./lib/effect"

-const it = testEffect(AppNodeBuilder.build(LayerNode.group([Skill.node, Agent.node, Bus.node])))
+const urls = new Map<string, AbsolutePath[]>()
+let pulls = 0
+const discovery = Layer.succeed(
+  SkillDiscovery.Service,
+  SkillDiscovery.Service.of({
+    pull: (url) => {
+      pulls++
+      return Effect.succeed(urls.get(url) ?? [])
+    },
+  }),
+)
+const watcherLayer = Watcher.testLayer
+const it = testEffect(
+  Layer.mergeAll(
+    AppNodeBuilder.build(LayerNode.group([Skill.node, Agent.node, Bus.node]), [
+      [SkillDiscovery.node, discovery],
+      [Watcher.node, watcherLayer],
+    ]),
+    watcherLayer,
+  ),
+)

-const info = (id: string, description: string) =>
-  Skill.Info.make({
-    id: Skill.ID.make(id),
-    name: Skill.Name.make(id),
-    description,
-    location: AbsolutePath.make(`/skills/${id}/SKILL.md`),
-    content: `# ${id}`,
+function write(directory: string, name: string, description: string) {
+  return fs.writeFile(
+    path.join(directory, name, "SKILL.md"),
+    `---
+name: ${name}
+description: ${description}
+---
+# ${name}`,
+  )
+}
+
+function waitForSkillUpdate() {
+  return Effect.gen(function* () {
+    const bus = yield* Bus.Service
+    const deferred = yield* Deferred.make<void>()
+    const fiber = yield* bus.subscribe(Skill.Event.Updated).pipe(
+      Stream.runForEach(() => Deferred.succeed(deferred, undefined).pipe(Effect.asVoid)),
+      Effect.forkScoped,
+    )
+    yield* Effect.yieldNow
+    return { deferred, fiber }
  })
+}
+
+function expectSubscription(check: (input: Watcher.WatchInput) => boolean) {
+  return Effect.gen(function* () {
+    const watcher = yield* Watcher.Test
+    expect((yield* watcher.subscriptions()).some(check)).toBe(true)
+  })
+}
+
+function emitAndWait(update: Watcher.Update) {
+  return Effect.gen(function* () {
+    const watcher = yield* Watcher.Test
+    yield* Effect.acquireUseRelease(
+      waitForSkillUpdate(),
+      ({ deferred }) => watcher.emit(update).pipe(Effect.andThen(Deferred.await(deferred)), Effect.timeout("1 second")),
+      ({ fiber }) => Fiber.interrupt(fiber),
+    )
+  })
+}

 describe("Skill", () => {
-  it.effect("registers values with last-write-wins precedence", () =>
+  it.live("publishes updates when skill sources change", () =>
    Effect.gen(function* () {
      const skill = yield* Skill.Service
-      yield* skill.transform((draft) => {
-        draft.add(info("review", "First"))
-        draft.add(info("deploy", "Deploy"))
-        draft.add(info("review", "Second"))
-        expect(draft.list().map((item) => item.id)).toEqual([Skill.ID.make("review"), Skill.ID.make("deploy")])
-      })

-      expect(yield* skill.list()).toEqual([info("review", "Second"), info("deploy", "Deploy")])
+      yield* Effect.acquireUseRelease(
+        waitForSkillUpdate(),
+        ({ deferred }) =>
+          skill
+            .transform((editor) =>
+              editor.source({ type: "directory", path: AbsolutePath.make("/tmp/opencode-skills") }),
+            )
+            .pipe(Effect.andThen(Deferred.await(deferred)), Effect.timeout("1 second")),
+        ({ fiber }) => Fiber.interrupt(fiber),
+      )
    }),
  )

-  it.effect("updates and removes registered values", () =>
-    Effect.gen(function* () {
-      const skill = yield* Skill.Service
-      yield* skill.transform((draft) => {
-        draft.add(info("review", "Initial"))
-        draft.update("review", (value) => {
-          value.description = "Updated"
-          value.id = Skill.ID.make("ignored")
-        })
-        draft.update("missing", () => Effect.die("unreachable"))
-        draft.add(info("deploy", "Deploy"))
-        draft.remove("deploy")
-      })
+  it.live("registers sources and resolves later source precedence", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          const first = path.join(tmp.path, "first")
+          const second = path.join(tmp.path, "second")
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(first, "review"), { recursive: true })
+            await fs.mkdir(path.join(second, "review"), { recursive: true })
+            await write(first, "review", "First")
+            await write(second, "review", "Second")
+            await fs.writeFile(path.join(first, "foo.md"), "---\nslash: true\n---\n# foo")
+          })

-      expect(yield* skill.list()).toEqual([info("review", "Updated")])
-    }),
-  )
+          const skill = yield* Skill.Service
+          const watcher = yield* Watcher.Test
+          yield* skill.transform((editor) => {
+            editor.source({ type: "directory", path: AbsolutePath.make(first) })
+            editor.source({ type: "directory", path: AbsolutePath.make(first) })
+            editor.source({ type: "directory", path: AbsolutePath.make(second) })
+            expect(editor.list()).toEqual([
+              { type: "directory", path: AbsolutePath.make(first) },
+              { type: "directory", path: AbsolutePath.make(second) },
+            ])
+          })

-  it.effect("restores earlier values when an updating transform is disposed", () =>
-    Effect.gen(function* () {
-      const skill = yield* Skill.Service
-      const original = info("review", "Initial")
-      yield* skill.transform((draft) => draft.add(original))
-      const updated = yield* skill.transform((draft) =>
-        draft.update("review", (value) => {
-          value.description = "Updated"
+          expect(yield* skill.sources()).toEqual([
+            { type: "directory", path: AbsolutePath.make(first) },
+            { type: "directory", path: AbsolutePath.make(second) },
+          ])
+          expect(yield* skill.list()).toEqual([
+            Skill.Info.make({
+              id: Skill.ID.make("foo"),
+              name: Skill.Name.make("foo"),
+              slash: true,
+              location: AbsolutePath.make(path.join(first, "foo.md")),
+              content: "# foo",
+            }),
+            {
+              id: Skill.ID.make("review"),
+              name: Skill.Name.make("review"),
+              description: "Second",
+              location: AbsolutePath.make(path.join(second, "review", "SKILL.md")),
+              content: "# review",
+            },
+          ])
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: first, type: "directory" },
+            { path: second, type: "directory" },
+          ])
+
+          yield* Effect.promise(() => write(second, "review", "Updated Second"))
+          yield* emitAndWait({ type: "update", path: path.join(second, "review", "SKILL.md") })
+
+          expect((yield* skill.list()).find((item) => item.id === "review")?.description).toBe("Updated Second")
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: first, type: "directory" },
+            { path: second, type: "directory" },
+            { path: first, type: "directory" },
+            { path: second, type: "directory" },
+          ])
        }),
-      )
-
-      expect((yield* skill.list())[0]?.description).toBe("Updated")
-      yield* updated.dispose
-      expect((yield* skill.list())[0]?.description).toBe("Initial")
-      expect(original.description).toBe("Initial")
-    }),
+      ),
+    ),
  )

-  it.live("publishes updates after committed values are visible", () =>
-    Effect.gen(function* () {
-      const skill = yield* Skill.Service
-      const bus = yield* Bus.Service
-      const updated = yield* Deferred.make<Skill.Info[]>()
-      const fiber = yield* bus.subscribe(Skill.Event.Updated).pipe(
-        Stream.runForEach(() => skill.list().pipe(Effect.flatMap((values) => Deferred.succeed(updated, values)))),
-        Effect.forkScoped,
-      )
-      yield* Effect.yieldNow
+  it.live("loads URL sources and filters skills for agents", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(tmp.path, "deploy"), { recursive: true })
+            await write(tmp.path, "deploy", "Deploy production")
+          })
+          pulls = 0
+          urls.set("https://example.test/skills/", [AbsolutePath.make(tmp.path)])

-      yield* skill.transform((draft) => draft.add(info("review", "Visible")))
-      expect(yield* Deferred.await(updated).pipe(Effect.timeout("1 second"))).toEqual([info("review", "Visible")])
-      yield* Fiber.interrupt(fiber)
-    }),
-  )
+          const agents = yield* Agent.Service
+          yield* agents.transform((editor) =>
+            editor.update(Agent.ID.make("reviewer"), (agent) => {
+              agent.permissions.push({ action: "skill", resource: "deploy", effect: "deny" })
+            }),
+          )

-  it.effect("filters values by agent permissions", () =>
-    Effect.gen(function* () {
-      const agents = yield* Agent.Service
-      yield* agents.transform((draft) =>
-        draft.update(Agent.ID.make("reviewer"), (agent) => {
-          agent.permissions.push({ action: "skill", resource: "deploy", effect: "deny" })
+          const skill = yield* Skill.Service
+          yield* skill.transform((editor) => editor.source({ type: "url", url: "https://example.test/skills/" }))
+
+          expect((yield* skill.list()).map((item) => item.name)).toEqual([Skill.Name.make("deploy")])
+          expect((yield* skill.list()).map((item) => item.name)).toEqual([Skill.Name.make("deploy")])
+          expect(pulls).toBe(1)
+          expect(Skill.available(yield* skill.list(), (yield* agents.get(Agent.ID.make("reviewer")))!)).toEqual([])
        }),
-      )
-      const agent = yield* agents.get(Agent.ID.make("reviewer"))
-      expect(Skill.available([info("deploy", "Deploy")], agent!)).toEqual([])
-    }),
+      ),
+    ),
+  )
+
+  it.live("parses opencode metadata flags from skill frontmatter", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(tmp.path, "manual"), { recursive: true })
+            await fs.writeFile(
+              path.join(tmp.path, "manual", "SKILL.md"),
+              `---
+name: manual
+description: Manual only
+metadata:
+  opencode/slash: true
+  opencode/autoinvoke: false
+---
+# manual`,
+            )
+          })
+
+          const skill = yield* Skill.Service
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(tmp.path) }))
+
+          expect(yield* skill.list()).toEqual([
+            {
+              id: Skill.ID.make("manual"),
+              name: Skill.Name.make("manual"),
+              description: "Manual only",
+              slash: true,
+              autoinvoke: false,
+              location: AbsolutePath.make(path.join(tmp.path, "manual", "SKILL.md")),
+              content: "# manual",
+            },
+          ])
+        }),
+      ),
+    ),
+  )
+
+  it.live("clears cached skills when sources reload", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(tmp.path, "deploy"), { recursive: true })
+            await write(tmp.path, "deploy", "Initial deploy")
+          })
+
+          const skill = yield* Skill.Service
+          const watcher = yield* Watcher.Test
+          const bus = yield* Bus.Service
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(tmp.path) }))
+          expect((yield* skill.list()).find((item) => item.id === "deploy")?.description).toBe("Initial deploy")
+          expect(yield* watcher.subscriptions()).toEqual([{ path: tmp.path, type: "directory" }])
+
+          let refreshed: Skill.Info[] = []
+          const unsubscribe = yield* bus.listen((event) => {
+            if (event.type !== Skill.Event.Updated.type) return Effect.void
+            return skill.list().pipe(
+              Effect.tap((items) => Effect.sync(() => (refreshed = items))),
+              Effect.asVoid,
+            )
+          })
+
+          yield* Effect.promise(() => write(tmp.path, "deploy", "Updated deploy"))
+          yield* skill.reload().pipe(Effect.timeout("1 second"))
+          yield* unsubscribe
+
+          expect(refreshed.find((item) => item.id === "deploy")?.description).toBe("Updated deploy")
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: tmp.path, type: "directory" },
+            { path: tmp.path, type: "directory" },
+          ])
+        }),
+      ),
+    ),
+  )
+
+  it.live("reloads project sources created after their missing parent", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          const source = path.join(tmp.path, "generated", "skills")
+          const file = path.join(source, "deploy", "SKILL.md")
+          const skill = yield* Skill.Service
+          const watcher = yield* Watcher.Test
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(source) }))
+          expect(yield* skill.list()).toEqual([])
+          expect(yield* watcher.subscriptions()).toEqual([{ path: path.join(tmp.path, "generated"), type: "file" }])
+
+          yield* Effect.promise(() => fs.mkdir(path.join(tmp.path, "generated")))
+          yield* emitAndWait({ type: "create", path: path.join(tmp.path, "generated") })
+          expect(yield* skill.list()).toEqual([])
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: path.join(tmp.path, "generated"), type: "file" },
+            { path: source, type: "file" },
+          ])
+
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.dirname(file), { recursive: true })
+            await write(source, "deploy", "Deploy production")
+          })
+          yield* emitAndWait({ type: "create", path: source })
+
+          expect((yield* skill.list()).map((item) => item.id)).toEqual([Skill.ID.make("deploy")])
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: path.join(tmp.path, "generated"), type: "file" },
+            { path: source, type: "file" },
+            { path: source, type: "directory" },
+          ])
+        }),
+      ),
+    ),
+  )
+
+  it.live("watches directory sources for added and changed skills", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(tmp.path, "deploy"), { recursive: true })
+            await write(tmp.path, "deploy", "Initial deploy")
+          })
+
+          const skill = yield* Skill.Service
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(tmp.path) }))
+          expect((yield* skill.list()).map((item) => item.id)).toEqual([Skill.ID.make("deploy")])
+          yield* expectSubscription((input) => input.type === "directory" && input.path === tmp.path)
+
+          const deploy = path.join(tmp.path, "deploy", "SKILL.md")
+          yield* Effect.promise(() => write(tmp.path, "deploy", "Updated deploy"))
+          yield* emitAndWait({ type: "update", path: deploy })
+          expect((yield* skill.list()).find((item) => item.id === "deploy")?.description).toBe("Updated deploy")
+
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(tmp.path, "review"), { recursive: true })
+            await write(tmp.path, "review", "Review changes")
+          })
+          const review = path.join(tmp.path, "review", "SKILL.md")
+          yield* emitAndWait({ type: "create", path: review })
+          expect((yield* skill.list()).map((item) => item.id)).toEqual([
+            Skill.ID.make("deploy"),
+            Skill.ID.make("review"),
+          ])
+
+          yield* Effect.promise(() => fs.rm(path.join(tmp.path, "review"), { recursive: true }))
+          yield* emitAndWait({ type: "delete", path: review })
+          expect((yield* skill.list()).map((item) => item.id)).toEqual([Skill.ID.make("deploy")])
+        }),
+      ),
+    ),
+  )
+
+  it.live("watches canonical directories behind symlinked skills", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          const source = path.join(tmp.path, "source")
+          const target = path.join(tmp.path, "target", "bro")
+          const file = path.join(target, "SKILL.md")
+          yield* Effect.promise(async () => {
+            await fs.mkdir(source, { recursive: true })
+            await fs.mkdir(target, { recursive: true })
+            await fs.writeFile(file, "---\nname: bro\ndescription: Initial\n---\n# bro")
+            await fs.symlink(target, path.join(source, "bro"))
+          })
+
+          const skill = yield* Skill.Service
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(source) }))
+          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Initial")
+          yield* expectSubscription((input) => input.type === "directory" && input.path === target)
+
+          yield* Effect.promise(() => fs.writeFile(file, "---\nname: bro\ndescription: Updated\n---\n# bro"))
+          yield* emitAndWait({ type: "update", path: file })
+          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Updated")
+        }),
+      ),
+    ),
+  )
+
+  it.live("invalidates symlinked sources when their target changes", () =>
+    Effect.acquireRelease(
+      Effect.promise(() => tmpdir()),
+      (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
+    ).pipe(
+      Effect.flatMap((tmp) =>
+        Effect.gen(function* () {
+          const source = path.join(tmp.path, "source")
+          const first = path.join(tmp.path, "first")
+          const second = path.join(tmp.path, "second")
+          yield* Effect.promise(async () => {
+            await fs.mkdir(path.join(first, "bro"), { recursive: true })
+            await fs.mkdir(path.join(second, "bro"), { recursive: true })
+            await write(first, "bro", "First")
+            await write(second, "bro", "Second")
+            await fs.symlink(first, source)
+          })
+
+          const skill = yield* Skill.Service
+          const watcher = yield* Watcher.Test
+          yield* skill.transform((editor) => editor.source({ type: "directory", path: AbsolutePath.make(source) }))
+          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("First")
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: first, type: "directory" },
+            { path: source, type: "file" },
+          ])
+
+          yield* Effect.promise(async () => {
+            await fs.unlink(source)
+            await fs.symlink(second, source)
+          })
+          yield* emitAndWait({ type: "update", path: source })
+
+          expect((yield* skill.list()).find((item) => item.id === "bro")?.description).toBe("Second")
+          expect(yield* watcher.subscriptions()).toEqual([
+            { path: first, type: "directory" },
+            { path: source, type: "file" },
+            { path: second, type: "directory" },
+            { path: source, type: "file" },
+          ])
+        }),
+      ),
+    ),
  )
 })
@@ -33,7 +33,6 @@ import { ShellTool } from "@opencode-ai/core/tool/plugin/shell"
 import { ToolOutput } from "@opencode-ai/core/tool-output"
 import { Tool } from "@opencode-ai/core/tool"
 import { tmpdir } from "./fixture/tmpdir"
-import { tempGlobalLayer } from "./fixture/global"
 import { testEffect } from "./lib/effect"
 import { toolIdentity, executeTool, toolDefinitions, waitForTool } from "./lib/tool"

@@ -139,7 +138,6 @@ const layer = AppNodeBuilder.build(
  [
    [SessionExecution.node, executionNode],
    [Permission.node, permission],
-    [Global.node, tempGlobalLayer],
  ],
 )

@@ -81,6 +81,7 @@ describe("SkillTool", () => {
            Skill.Service.of({
              transform: (_transform) => Effect.die("unused"),
              reload: () => Effect.die("unused"),
+              sources: () => Effect.die("unused"),
              list: () => Effect.succeed(current),
            }),
          )
@@ -4,7 +4,6 @@ import path from "path"
 import { Money } from "@opencode-ai/schema/money"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
 import { LayerNode } from "@opencode-ai/util/effect/layer-node"
-import { Global } from "@opencode-ai/util/global"
 import { makeGlobalNode } from "@opencode-ai/util/effect/app-node"
 import { Database } from "@opencode-ai/core/database/database"
 import { Bus } from "@opencode-ai/core/bus"
@@ -27,7 +26,6 @@ import { PluginSupervisor } from "@opencode-ai/core/plugin/supervisor"
 import { SubagentTool } from "@opencode-ai/core/tool/plugin/subagent"
 import { Tool } from "@opencode-ai/core/tool"
 import { tmpdir } from "./fixture/tmpdir"
-import { tempGlobalLayer } from "./fixture/global"
 import { testEffect } from "./lib/effect"
 import { executeTool, toolIdentity, waitForTool } from "./lib/tool"

@@ -102,10 +100,7 @@ const layer = AppNodeBuilder.build(
    PluginRuntime.providerNode,
    LocationServiceMap.node,
  ]),
-  [
-    [SessionExecution.node, executionNode],
-    [Global.node, tempGlobalLayer],
-  ],
+  [[SessionExecution.node, executionNode]],
 )

 const it = testEffect(layer)
@@ -18,14 +18,9 @@ import { tmpdir } from "./fixture/tmpdir"
 import path from "path"

 const makeDb = EffectDrizzleSqlite.makeWithDefaults()
-const run = <A, E>(effect: Effect.Effect<A, E, SqlClient | Scope.Scope | Global.Service>) =>
+const run = <A, E>(effect: Effect.Effect<A, E, SqlClient | Scope.Scope>) =>
  Effect.runPromise(
-    Effect.scoped(
-      effect.pipe(
-        Effect.provideService(Global.Service, Global.make({ data: path.join(process.cwd(), ".test-data") })),
-        Effect.provide(SqliteClient.layer({ filename: ":memory:", disableWAL: true })),
-      ),
-    ),
+    Effect.scoped(effect.pipe(Effect.provide(SqliteClient.layer({ filename: ":memory:", disableWAL: true })))),
  )

 const session = (
@@ -777,7 +772,7 @@ describe("V1Migration database workflow", () => {
    `)
  })

-  const database = <A, E>(effect: Effect.Effect<A, E, Database.Service | Global.Service | Scope.Scope>) =>
+  const database = <A, E>(effect: Effect.Effect<A, E, Database.Service | Scope.Scope>) =>
    run(
      Effect.gen(function* () {
        const db = yield* makeDb
@@ -940,7 +935,6 @@ describe("V1Migration database workflow", () => {
    await database(
      Effect.gen(function* () {
        const { db } = yield* Database.Service
-        const global = yield* Global.Service
        yield* db.run(
          sql`INSERT INTO session (id, project_id, slug, directory, title, version, time_created, time_updated) VALUES ('ses_orphan', 'missing-project', 'orphan', '/tmp/orphan', 'Orphan', '1', 1, 2)`,
        )
@@ -950,7 +944,7 @@ describe("V1Migration database workflow", () => {
          project_id: "global",
        })
        expect(yield* db.get(sql`SELECT worktree FROM project WHERE id = 'global'`)).toEqual({
-          worktree: path.parse(global.data).root,
+          worktree: path.parse(Global.Path.data).root,
        })
        expect(yield* db.get(sql`SELECT value FROM kv WHERE key = 'migration.v1-v2'`)).toEqual({
          value: '{"phase":"completed"}',
@@ -8,7 +8,6 @@ import { Bus } from "@opencode-ai/core/bus"
 import { Location } from "@opencode-ai/core/location"
 import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Vcs } from "@opencode-ai/core/vcs"
-import { FileSystem } from "@opencode-ai/schema/filesystem"
 import { VcsEvent } from "@opencode-ai/schema/vcs-event"
 import { location } from "./fixture/location"
 import { tmpdir } from "./fixture/tmpdir"
@@ -42,7 +41,9 @@ const withTmp = <A, E, R>(f: (directory: string) => Effect.Effect<A, E, R>) =>

 const withHg = <A, E, R>(f: (directory: string) => Effect.Effect<A, E, R>) =>
  withTmp((directory) =>
-    Effect.promise(() => hg(directory, "init")).pipe(Effect.andThen(f(directory).pipe(provide(directory)))),
+    Effect.promise(() => hg(directory, "init")).pipe(
+      Effect.andThen(f(directory).pipe(provide(directory))),
+    ),
  )

 async function hg(directory: string, ...args: string[]) {
@@ -124,13 +125,7 @@ describeHg("Vcs mercurial", () => {
          .subscribe(VcsEvent.BranchUpdated)
          .pipe(Stream.take(1), Stream.runHead, Effect.forkScoped({ startImmediately: true }))
        yield* Effect.promise(() => hg(directory, "branch", "-q", "feature"))
-        expect(yield* vcs.info()).toEqual({ branch: { current: "default", default: "default" } })
-
-        yield* bus.publish(FileSystem.Event.Changed, {
-          file: path.join(directory, ".hg", "branch"),
-          event: "change",
-        })
-        expect(yield* Fiber.join(updated)).toMatchObject({
+        expect(yield* Fiber.join(updated).pipe(Effect.timeout("5 seconds"))).toMatchObject({
          _tag: "Some",
          value: { location: { directory }, data: { branch: "feature" } },
        })
@@ -8,27 +8,66 @@ import { Bus } from "@opencode-ai/core/bus"
 import { Location } from "@opencode-ai/core/location"
 import { AbsolutePath } from "@opencode-ai/core/schema"
 import { Vcs } from "@opencode-ai/core/vcs"
-import { FileSystem } from "@opencode-ai/schema/filesystem"
+import { Watcher } from "@opencode-ai/core/filesystem/watcher"
 import { VcsEvent } from "@opencode-ai/schema/vcs-event"
 import { location } from "./fixture/location"
 import { tmpdir } from "./fixture/tmpdir"
 import { it } from "./lib/effect"

+const describeNative = process.env.CI ? describe.skip : describe
+
+const locationLayer = (directory: string, git?: boolean) =>
+  Layer.succeed(
+    Location.Service,
+    Location.Service.of(
+      location(
+        { directory: AbsolutePath.make(directory) },
+        git ? { vcs: { type: "git", store: AbsolutePath.make(path.join(directory, ".git")) } } : {},
+      ),
+    ),
+  )
+
 const provide = (directory: string, input: { git?: boolean } = {}) =>
+  Effect.provide(
+    LayerNode.compile(LayerNode.group([Vcs.node, Bus.node]), [[Location.node, locationLayer(directory, input.git)]]),
+  )
+
+function fakeWatcher() {
+  const subscriptions: Watcher.WatchInput[] = []
+  const active = new Set<(update: Watcher.Update) => void>()
+  const native = Watcher.Native.of({
+    subscribe: (input) =>
+      Effect.sync(() => {
+        subscriptions.push(
+          input.type === "file"
+            ? { path: input.target, type: "file" }
+            : input.ignore.length > 0
+              ? { path: input.target, type: "directory", ignore: input.ignore }
+              : { path: input.target, type: "directory" },
+        )
+        active.add(input.publish)
+        return {
+          unsubscribe: () => {
+            active.delete(input.publish)
+            return Promise.resolve()
+          },
+        }
+      }),
+  })
+  return {
+    subscriptions: () => [...subscriptions],
+    emit: (update: Watcher.Update) => {
+      for (const publish of active) publish(update)
+    },
+    layer: Watcher.layer().pipe(Layer.provide(Layer.succeed(Watcher.Native, native))),
+  }
+}
+
+const provideFake = (directory: string, fake: ReturnType<typeof fakeWatcher>, git = true) =>
  Effect.provide(
    LayerNode.compile(LayerNode.group([Vcs.node, Bus.node]), [
-      [
-        Location.node,
-        Layer.succeed(
-          Location.Service,
-          Location.Service.of(
-            location(
-              { directory: AbsolutePath.make(directory) },
-              input.git ? { vcs: { type: "git", store: AbsolutePath.make(path.join(directory, ".git")) } } : {},
-            ),
-          ),
-        ),
-      ],
+      [Location.node, locationLayer(directory, git)],
+      [Watcher.node, fake.layer],
    ]),
  )

@@ -93,35 +132,84 @@ describe("Vcs", () => {
    ),
  )

-  it.live("caches branch info and publishes HEAD changes", () =>
-    withGit((directory) =>
-      Effect.gen(function* () {
-        yield* Effect.promise(async () => {
-          await fs.writeFile(path.join(directory, "file.txt"), "one\n")
-          await commitAll(directory, "initial")
-        })
-        const vcs = yield* Vcs.Service
-        const bus = yield* Bus.Service
-        expect(yield* vcs.info()).toEqual({ branch: { current: "main", default: undefined } })
-
-        const updated = yield* bus
-          .subscribe(VcsEvent.BranchUpdated)
-          .pipe(Stream.take(1), Stream.runHead, Effect.forkScoped({ startImmediately: true }))
-        yield* Effect.promise(() => $`git checkout -q -b feature`.cwd(directory).quiet())
-
-        yield* bus.publish(FileSystem.Event.Changed, { file: path.join(directory, "HEAD"), event: "change" })
-        expect(yield* vcs.info()).toEqual({ branch: { current: "main", default: undefined } })
-
-        yield* bus.publish(FileSystem.Event.Changed, { file: path.join(directory, ".git", "HEAD"), event: "change" })
-        expect(yield* Fiber.join(updated)).toMatchObject({
-          _tag: "Some",
-          value: { location: { directory }, data: { branch: "feature" } },
-        })
-        expect(yield* vcs.info()).toEqual({ branch: { current: "feature", default: "main" } })
-      }),
-    ),
+  it.live("watches git branch metadata", () =>
+    withTmp((directory) => {
+      const fake = fakeWatcher()
+      return Effect.promise(() => initRepo(directory)).pipe(
+        Effect.andThen(
+          Effect.gen(function* () {
+            yield* Vcs.Service
+            expect(fake.subscriptions()).toHaveLength(1)
+            const git = fake.subscriptions()[0]
+            if (git?.type !== "directory") throw new Error("expected a directory watch")
+            expect(git.path).toBe(path.join(directory, ".git"))
+            expect(git.ignore ?? []).not.toContain("HEAD")
+            expect(git.ignore ?? []).toContain("objects")
+          }).pipe(provideFake(directory, fake)),
+        ),
+      )
+    }),
  )

+  it.live("caches branch info and publishes HEAD changes", () =>
+    withTmp((directory) => {
+      const fake = fakeWatcher()
+      return Effect.promise(async () => {
+        await initRepo(directory)
+        await fs.writeFile(path.join(directory, "file.txt"), "one\n")
+        await commitAll(directory, "initial")
+      }).pipe(
+        Effect.andThen(
+          Effect.gen(function* () {
+            const vcs = yield* Vcs.Service
+            const bus = yield* Bus.Service
+            expect(yield* vcs.info()).toMatchObject({ branch: { current: "main" } })
+
+            const updated = yield* bus
+              .subscribe(VcsEvent.BranchUpdated)
+              .pipe(Stream.take(1), Stream.runHead, Effect.forkScoped({ startImmediately: true }))
+            yield* Effect.promise(() => $`git checkout -q -b feature`.cwd(directory).quiet())
+            fake.emit({ type: "update", path: path.join(directory, ".git", "index.lock") })
+            expect(yield* vcs.info()).toMatchObject({ branch: { current: "main" } })
+
+            fake.emit({ type: "update", path: path.join(directory, ".git", "HEAD.lock") })
+            expect(yield* Fiber.join(updated)).toMatchObject({
+              _tag: "Some",
+              value: { location: { directory }, data: { branch: "feature" } },
+            })
+            expect(yield* vcs.info()).toMatchObject({ branch: { current: "feature" } })
+          }).pipe(provideFake(directory, fake)),
+        ),
+      )
+    }),
+  )
+
+  describeNative("native watches", () => {
+    it.live("publishes branch updates on git checkout", () =>
+      withGit((directory) =>
+        Effect.gen(function* () {
+          yield* Effect.promise(async () => {
+            await fs.writeFile(path.join(directory, "file.txt"), "one\n")
+            await commitAll(directory, "initial")
+          })
+          const vcs = yield* Vcs.Service
+          const bus = yield* Bus.Service
+          expect(yield* vcs.info()).toMatchObject({ branch: { current: "main" } })
+          const updated = yield* bus
+            .subscribe(VcsEvent.BranchUpdated)
+            .pipe(Stream.take(1), Stream.runHead, Effect.forkScoped({ startImmediately: true }))
+          yield* Effect.promise(() => $`git checkout -q -b feature`.cwd(directory).quiet())
+          expect(yield* Fiber.join(updated).pipe(Effect.timeout("5 seconds"))).toMatchObject({
+            _tag: "Some",
+            value: { data: { branch: "feature" } },
+          })
+          expect(yield* vcs.info()).toMatchObject({ branch: { current: "feature" } })
+        }),
+      ),
+      { timeout: 15_000 },
+    )
+  })
+
  it.live("diffs the working copy against HEAD with patches", () =>
    withGit((directory) =>
      Effect.gen(function* () {
@@ -57,35 +57,35 @@ test("keeps a hidden prod launcher for old Linux pins", async () => {
  expect(desktop).toContain("NoDisplay=true")
 })

-for (const channel of ["dev", "beta"] as const) {
-  test(`bundles the CLI outside the ${channel} app archive`, async () => {
+test("bundles the CLI outside the dev app archive", async () => {
+  const previous = process.env.OPENCODE_CHANNEL
+  process.env.OPENCODE_CHANNEL = "dev"
+  const module = await import("./electron-builder.config.ts?cli-resource")
+  const config = module.default as Configuration
+  if (previous === undefined) delete process.env.OPENCODE_CHANNEL
+  else process.env.OPENCODE_CHANNEL = previous
+
+  expect(config.files).toContain("!resources/opencode-cli*")
+  expect(config.extraResources).toContainEqual({
+    from: "resources/",
+    to: "",
+    filter: ["opencode-cli*"],
+  })
+})
+
+for (const channel of ["beta", "prod"] as const) {
+  test(`does not bundle the CLI in ${channel} builds`, async () => {
    const previous = process.env.OPENCODE_CHANNEL
    process.env.OPENCODE_CHANNEL = channel
-    const module = await import(`./electron-builder.config.ts?cli-resource=${channel}`)
+    const module = await import(`./electron-builder.config.ts?no-cli-resource=${channel}`)
    const config = module.default as Configuration
    if (previous === undefined) delete process.env.OPENCODE_CHANNEL
    else process.env.OPENCODE_CHANNEL = previous

-    expect(config.files).toContain("!resources/opencode-cli*")
-    expect(config.extraResources).toContainEqual({
+    expect(config.extraResources).not.toContainEqual({
      from: "resources/",
      to: "",
      filter: ["opencode-cli*"],
    })
  })
 }
-
-test("does not bundle the CLI in prod builds", async () => {
-  const previous = process.env.OPENCODE_CHANNEL
-  process.env.OPENCODE_CHANNEL = "prod"
-  const module = await import("./electron-builder.config.ts?no-cli-resource=prod")
-  const config = module.default as Configuration
-  if (previous === undefined) delete process.env.OPENCODE_CHANNEL
-  else process.env.OPENCODE_CHANNEL = previous
-
-  expect(config.extraResources).not.toContainEqual({
-    from: "resources/",
-    to: "",
-    filter: ["opencode-cli*"],
-  })
-})
@@ -57,7 +57,7 @@ const getBase = (appId: string): Configuration => ({
  },
  files: ["out/**/*", "resources/**/*", "!resources/opencode-cli*"],
  extraResources: [
-    ...(channel !== "prod"
+    ...(channel === "dev"
      ? [
          {
            from: "resources/",
@@ -37,7 +37,6 @@
    "@actions/artifact": "4.0.0",
    "@lydell/node-pty": "catalog:",
    "@opencode-ai/app": "workspace:*",
-    "@opencode-ai/client": "workspace:*",
    "@opencode-ai/ui": "workspace:*",
    "@sentry/solid": "catalog:",
    "@sentry/vite-plugin": "catalog:",
@@ -1,9 +1,9 @@
 import { $ } from "bun"
 import * as path from "node:path"

-import { CLI_TARGET } from "./utils"
+import { RUST_TARGET } from "./utils"

-if (!CLI_TARGET) throw new Error("OPENCODE_CLI_TARGET not defined")
+if (!RUST_TARGET) throw new Error("RUST_TARGET not defined")

 const BUNDLE_DIR = "dist"
 const BUNDLES_OUT_DIR = path.join(process.cwd(), "dist/bundles")
@@ -8,4 +8,3 @@ await $`bun ./scripts/copy-icons.ts ${channel}`
 await $`bun ./scripts/copy-metainfo.ts ${channel}`

 if (channel === "dev") await downloadCliToResources()
-if (channel === "beta") await downloadCliToResources("next")
@@ -13,46 +13,46 @@ export function resolveChannel(): Channel {
  return "dev"
 }

-export const CLI_BINARIES: Array<{ target: string; package: string; os: string; cpu: string }> = [
+export const CLI_BINARIES: Array<{ rustTarget: string; package: string; os: string; cpu: string }> = [
  {
-    target: "aarch64-apple-darwin",
+    rustTarget: "aarch64-apple-darwin",
    package: "@opencode-ai/cli-darwin-arm64",
    os: "darwin",
    cpu: "arm64",
  },
  {
-    target: "x86_64-apple-darwin",
+    rustTarget: "x86_64-apple-darwin",
    package: "@opencode-ai/cli-darwin-x64-baseline",
    os: "darwin",
    cpu: "x64",
  },
  {
-    target: "aarch64-pc-windows-msvc",
+    rustTarget: "aarch64-pc-windows-msvc",
    package: "@opencode-ai/cli-windows-arm64",
    os: "win32",
    cpu: "arm64",
  },
  {
-    target: "x86_64-pc-windows-msvc",
+    rustTarget: "x86_64-pc-windows-msvc",
    package: "@opencode-ai/cli-windows-x64-baseline",
    os: "win32",
    cpu: "x64",
  },
  {
-    target: "x86_64-unknown-linux-gnu",
+    rustTarget: "x86_64-unknown-linux-gnu",
    package: "@opencode-ai/cli-linux-x64-baseline",
    os: "linux",
    cpu: "x64",
  },
  {
-    target: "aarch64-unknown-linux-gnu",
+    rustTarget: "aarch64-unknown-linux-gnu",
    package: "@opencode-ai/cli-linux-arm64",
    os: "linux",
    cpu: "arm64",
  },
 ]

-export const CLI_TARGET = Bun.env.OPENCODE_CLI_TARGET
+export const RUST_TARGET = Bun.env.RUST_TARGET

 function nativeTarget() {
  const { platform, arch } = process
@@ -62,19 +62,19 @@ function nativeTarget() {
  throw new Error(`Unsupported platform: ${platform}/${arch}`)
 }

-export function getCurrentCli(target = CLI_TARGET ?? nativeTarget()) {
-  const binaryConfig = CLI_BINARIES.find((item) => item.target === target)
+export function getCurrentCli(target = RUST_TARGET ?? nativeTarget()) {
+  const binaryConfig = CLI_BINARIES.find((item) => item.rustTarget === target)
  if (!binaryConfig) throw new Error(`CLI configuration not available for target '${target}'`)

  return binaryConfig
 }

-export async function downloadCliToResources(version = CLI_VERSION) {
+export async function downloadCliToResources() {
  const cli = getCurrentCli()
  const directory = await mkdtemp(join(tmpdir(), "opencode-cli-"))
  const dest = windowsify("resources/opencode-cli")
  try {
-    await $`bun install --no-save --cwd ${directory} ${`${cli.package}@${version}`} ${`--os=${cli.os}`} ${`--cpu=${cli.cpu}`}`
+    await $`bun install --no-save --cwd ${directory} ${`${cli.package}@${CLI_VERSION}`} ${`--os=${cli.os}`} ${`--cpu=${cli.cpu}`}`
    await copyFile(
      join(directory, "node_modules", cli.package, "bin", cli.os === "win32" ? "opencode2.exe" : "opencode2"),
      dest,
@@ -88,7 +88,7 @@ export async function downloadCliToResources(version = CLI_VERSION) {
  }
  if (process.platform === "darwin") await $`codesign --force --sign - ${dest}`

-  console.log(`Copied ${cli.package}@${version} to ${dest}`)
+  console.log(`Copied ${cli.package} to ${dest}`)
 }

 export function windowsify(path: string) {
@@ -1,4 +1,3 @@
-import { Service } from "@opencode-ai/client/service"
 import { execFile } from "node:child_process"
 import { existsSync } from "node:fs"
 import { chmod, copyFile, mkdir, rename, rm } from "node:fs/promises"
@@ -9,34 +8,52 @@ import { app } from "electron"

 const execFileAsync = promisify(execFile)
 const root = dirname(fileURLToPath(import.meta.url))
+const stateHome = process.env.XDG_STATE_HOME
+const desktopStateNames = ["ai.opencode.desktop.dev", "ai.opencode.desktop.beta", "ai.opencode.desktop"]

 type Logger = {
  log(message: string, meta?: Record<string, unknown>): void
  error(message: string, meta?: Record<string, unknown>): void
 }

-export async function startBackgroundCli(logger: Logger) {
+export async function startBackgroundCli(logger: Logger, shellStateHome?: string) {
  const bundled = app.isPackaged
    ? join(process.resourcesPath, executableName())
    : join(root, "../../resources", executableName())
  logger.log("v2 CLI executable resolved", { bundled, packaged: app.isPackaged })
-  const version = parseVersion(await run(bundled, ["--version"], logger))
+  const version = await run(bundled, ["--version"], logger)
  const binary = app.isPackaged ? await installCli(bundled, version, logger) : bundled
-  const service = await Service.ensure({
-    version,
-    command: [binary, "serve", "--service"],
-    onStart: (reason, previousVersion) => logger.log("v2 CLI background service starting", { reason, previousVersion }),
+
+  const candidates = [
+    ...new Set([stateHome, shellStateHome, ...desktopStateNames.map((name) => join(app.getPath("appData"), name))]),
+  ].filter((candidate) => candidate === undefined || existsSync(candidate))
+  const discovered = await Promise.all(
+    candidates.map(async (candidate) => ({
+      stateHome: candidate,
+      url: serviceUrl(await run(binary, ["service", "status"], logger, { stateHome: candidate })),
+    })),
+  )
+  const found = discovered.find((candidate) => candidate.url !== undefined)
+  logger.log("v2 CLI background instance checked", {
+    detected: Boolean(found),
+    ...endpoint(found?.url),
+  })
+
+  const daemonStateHome = found?.stateHome ?? stateHome
+  const url = await run(binary, ["service", "start"], logger, { stateHome: daemonStateHome })
+  const password = await run(binary, ["service", "get", "password"], logger, {
+    redact: true,
+    stateHome: daemonStateHome,
  })
-  if (service.auth?.type !== "basic") throw new Error("V2 CLI background service did not provide authentication")
  logger.log("v2 CLI background service ready", {
-    username: service.auth.username,
-    version,
-    ...endpoint(service.url),
+    existing: Boolean(found),
+    username: "opencode",
+    ...endpoint(url),
  })
  return {
-    url: service.url,
-    username: service.auth.username,
-    password: service.auth.password,
+    url,
+    username: "opencode",
+    password,
  }
 }

@@ -60,13 +77,21 @@ async function installCli(source: string, version: string, logger: Logger) {
  return destination
 }

-async function run(binary: string, args: string[], logger: Logger) {
+async function run(
+  binary: string,
+  args: string[],
+  logger: Logger,
+  options: { redact?: boolean; stateHome?: string } = {},
+) {
  logger.log("v2 CLI command started", { binary, args })
-  return execFileAsync(binary, args, { windowsHide: true }).then(
+  const env = { ...process.env }
+  if (options.stateHome === undefined) delete env.XDG_STATE_HOME
+  else env.XDG_STATE_HOME = options.stateHome
+  return execFileAsync(binary, args, { env, windowsHide: true }).then(
    (result) => {
      const stdout = result.stdout.trim()
      const stderr = result.stderr.trim()
-      logger.log("v2 CLI command completed", { args, stdout, stderr })
+      logger.log("v2 CLI command completed", { args, stdout: options.redact ? "[redacted]" : stdout, stderr })
      return stdout
    },
    (error: unknown) => {
@@ -74,7 +99,7 @@ async function run(binary: string, args: string[], logger: Logger) {
      logger.error("v2 CLI command failed", {
        args,
        error: error instanceof Error ? error.message : String(error),
-        stdout: output.stdout?.trim() ?? "",
+        stdout: options.redact && output.stdout ? "[redacted]" : (output.stdout?.trim() ?? ""),
        stderr: output.stderr?.trim() ?? "",
      })
      throw error
@@ -82,11 +107,11 @@ async function run(binary: string, args: string[], logger: Logger) {
  )
 }

-function parseVersion(output: string) {
-  const marker = output.lastIndexOf(" v")
-  const version = marker === -1 ? output : output.slice(marker + 2)
-  if (!version) throw new Error("V2 CLI did not provide a version")
-  return version
+function serviceUrl(status: string) {
+  if (URL.canParse(status)) return status
+  if (!status.startsWith("running ")) return
+  const url = status.slice("running ".length).trim()
+  return URL.canParse(url) ? url : undefined
 }

 function endpoint(url: string | undefined) {
@@ -181,7 +181,7 @@ const main = Effect.gen(function* () {
    return
  }

-  preferAppEnv()
+  const shellEnv = preferAppEnv(app.getPath("userData"))

  app.on("second-instance", (_event: Event, argv: string[]) => {
    const urls = argv.filter((arg: string) => arg.startsWith("opencode://"))
@@ -310,7 +310,7 @@ const main = Effect.gen(function* () {
    useEnvProxy()

    logger.log("starting v2 background service")
-    const sidecar = yield* Effect.promise(() => startBackgroundCli(logger))
+    const sidecar = yield* Effect.promise(() => startBackgroundCli(logger, shellEnv?.XDG_STATE_HOME))
    yield* Deferred.succeed(serverReady, {
      url: sidecar.url,
      username: sidecar.username,
@@ -17,16 +17,17 @@ export function setDefaultServerUrl(url: string | null) {
  getStore().delete(DEFAULT_SERVER_URL_KEY)
 }

-export function preferAppEnv() {
+export function preferAppEnv(userDataPath: string) {
  const shell = process.platform === "win32" ? null : getUserShell()
  const shellEnv = shell ? loadShellEnv(shell, getLogger()) : null
-  if (!shellEnv?.XDG_STATE_HOME) delete process.env.XDG_STATE_HOME
  Object.assign(process.env, {
    ...shellEnv,
    OPENCODE_EXPERIMENTAL_ICON_DISCOVERY: "true",
    OPENCODE_EXPERIMENTAL_FILEWATCHER: "true",
    OPENCODE_CLIENT: "desktop",
+    XDG_STATE_HOME: process.env.XDG_STATE_HOME ?? userDataPath,
  })
+  return shellEnv
 }

 export async function checkHealth(url: string, password?: string | null): Promise<boolean> {
@@ -77,21 +77,20 @@ export function spatialPathSpans(points: readonly DiagramPoint[]): SpatialSpan[]
    .sort(([left], [right]) => left - right)
    .flatMap(([y, xs]) => {
      const sorted = [...xs].sort((left, right) => left - right)
-      const [first, ...rest] = sorted
-      if (first === undefined) return []
      const spans: SpatialSpan[] = []
-      let start = first
-      let end = first
-      for (const x of rest) {
-        if (x === end + 1) {
+      let start = sorted[0]
+      let end = start
+      if (start === undefined) return spans
+      for (const x of sorted.slice(1)) {
+        if (x === end! + 1) {
          end = x
          continue
        }
-        spans.push(normalizedSpan(y, start, end))
+        spans.push(normalizedSpan(y, start, end!))
        start = x
        end = x
      }
-      spans.push(normalizedSpan(y, start, end))
+      spans.push(normalizedSpan(y, start, end!))
      return spans
    })
 }
@@ -44,10 +44,6 @@ export interface MermaidMarkdownRendererOptions {
    muted?: ColorInput
    warning?: ColorInput
    background?: ColorInput
-    request?: ColorInput
-    response?: ColorInput
-    note?: ColorInput
-    noteBackground?: ColorInput
  }
 }

@@ -135,12 +131,12 @@ function prepareDiagram(kind: DiagramKind, source: string, options: MermaidMarkd
            participant: color(colors.primary),
            lifeline: color(colors.muted),
            group: color(colors.secondary),
-            request: color(colors.request ?? colors.primary),
-            response: color(colors.response ?? colors.primary),
+            request: color(colors.primary),
+            response: color(colors.primary),
            fragment: color(colors.secondary),
            fragmentLabelBg: color(colors.background),
-            note: color(colors.note ?? colors.warning),
-            noteBg: color(colors.noteBackground ?? colors.background),
+            note: color(colors.warning),
+            noteBg: color(colors.background),
          }),
        ),
        height: size.height,
@@ -1,6 +1,5 @@
 import { describe, expect, test } from "bun:test"
 import { RGBA } from "@opentui/core"
-import { blendColor } from "./core/color/style.js"
 import { createOpenCodeDiagramPalette } from "./palette.js"

 type Rgb = readonly [number, number, number]
@@ -32,15 +31,11 @@ describe("OpenCode diagram palette", () => {
  }>)("derives a controlled neutral ladder for a $name", ({ text, subdued, secondary, muted }) => {
    const primary = rgb(text)
    const info = RGBA.fromInts(40, 120, 220)
-    const success = RGBA.fromInts(80, 180, 120)
-    const warning = RGBA.fromInts(220, 160, 80)
    const background = RGBA.fromInts(10, 20, 30)
    const palette = createOpenCodeDiagramPalette({
      text: primary,
      subdued: rgb(subdued),
      info,
-      success,
-      warning,
      background,
    })

@@ -50,9 +45,5 @@ describe("OpenCode diagram palette", () => {
    expect(palette.muted.equals(rgb(muted))).toBe(true)
    expect(palette.warning).toBe(info)
    expect(palette.background).toBe(background)
-    expect(palette.request).toBe(success)
-    expect(palette.response).toBe(warning)
-    expect(palette.note).toBe(primary)
-    expect(palette.noteBackground.equals(blendColor(background, rgb(subdued), 0.25))).toBe(true)
  })
 })
@@ -5,8 +5,6 @@ export interface OpenCodeDiagramPaletteInput {
  readonly text: RGBA
  readonly subdued: RGBA
  readonly info: RGBA
-  readonly success: RGBA
-  readonly warning: RGBA
  readonly background: RGBA
 }

@@ -18,9 +16,5 @@ export function createOpenCodeDiagramPalette(input: OpenCodeDiagramPaletteInput)
    muted: blendColor(input.text, input.subdued, 0.7),
    warning: input.info,
    background: input.background,
-    request: input.success,
-    response: input.warning,
-    note: input.text,
-    noteBackground: blendColor(input.background, input.subdued, 0.25),
  }
 }
@@ -12,8 +12,6 @@ export default Plugin.define({
          text: context.theme.text.default,
          subdued: context.theme.text.subdued,
          info: context.theme.text.feedback.info.default,
-          success: context.theme.text.feedback.success.default,
-          warning: context.theme.text.feedback.warning.default,
          background: context.theme.background.default,
        }),
      })),
@@ -51,15 +51,16 @@ sequenceDiagram
 `)

    expectDiagram(output).toEqualDiagram(`
-      Browser           Server
-      ───┬───           ───┬──
-         │                 │
-         │ GET /           │
-         ├─────────────────►
-         │                 │
-         │ 401 WWW-Auth    │
-         ◄─────────────────┤
-         │                 │
+      ╭─────────╮       ╭────────╮
+      │ Browser │       │ Server │
+      ╰────┬────╯       ╰────┬───╯
+           │                 │
+           │     GET /       │
+           ├─────────────────►
+           │                 │
+           │  401 WWW-Auth   │
+           ◄─────────────────┤
+           │                 │
    `)
  })

@@ -139,13 +140,13 @@ sequenceDiagram
 `)

    const lines = output.split("\n")
-    const browserCenter = lines[0]!.indexOf("w")
-    const serverCenter = lines[0]!.indexOf("v")
+    const browserCenter = lines[1]!.indexOf("w")
+    const serverCenter = lines[1]!.indexOf("v")

-    expect(lines[1]?.[browserCenter]).toBe("┬")
-    expect(lines[2]?.[browserCenter]).toBe("│")
-    expect(lines[1]?.[serverCenter]).toBe("┬")
-    expect(lines[2]?.[serverCenter]).toBe("│")
+    expect(lines[2]?.[browserCenter]).toBe("┬")
+    expect(lines[3]?.[browserCenter]).toBe("│")
+    expect(lines[2]?.[serverCenter]).toBe("┬")
+    expect(lines[3]?.[serverCenter]).toBe("│")
  })

  test("ramps participant frames into neutral lifelines", () => {
@@ -276,8 +277,8 @@ sequenceDiagram
  A->>B: hello`)

    expect(output).not.toContain("<br")
-    expect(output).toContain("First line")
-    expect(output).toContain("Second line")
+    expect(output).toContain("│ First line  │")
+    expect(output).toContain("│ Second line │")
  })

  test("parses Mermaid arrow head variants", () => {
@@ -313,27 +314,28 @@ sequenceDiagram
 `)

    expect(output).toMatchInlineSnapshot(`
-      " A                  B
-      ─┬─                ─┬─
-       │                  │
-       │ open solid       │
-       ├─────────────────>│
-       │                  │
-       │ open dashed      │
-       │<─────────────────┤
-       │                  │
-       │ failed solid     │
-       ├─────────────────✕│
-       │                  │
-       │ failed dashed    │
-       │✕─────────────────┤
-       │                  │
-       │ async solid      │
-       ├─────────────────)│
-       │                  │
-       │ async dashed     │
-       │(─────────────────┤
-       │                  │"
+      "╭───╮              ╭───╮
+      │ A │              │ B │
+      ╰─┬─╯              ╰─┬─╯
+        │                  │
+        │   open solid     │
+        ├─────────────────>│
+        │                  │
+        │   open dashed    │
+        │<─────────────────┤
+        │                  │
+        │  failed solid    │
+        ├─────────────────✕│
+        │                  │
+        │  failed dashed   │
+        │✕─────────────────┤
+        │                  │
+        │   async solid    │
+        ├─────────────────)│
+        │                  │
+        │  async dashed    │
+        │(─────────────────┤
+        │                  │"
    `)
  })

@@ -385,7 +387,7 @@ sequenceDiagram
  end
 `)
    const lines = output.split("\n")
-    const participantCenter = lines.find((line) => line.includes("  A"))!.indexOf("A")
+    const participantCenter = lines.find((line) => line.includes("│ A │"))!.indexOf("A")
    const fragmentStart = lines.find((line) => line.includes("alt: ok"))!.indexOf("╭")

    expect(fragmentStart).toBeLessThan(participantCenter)
@@ -555,7 +557,7 @@ sequenceDiagram
    const fragmentMessageRow = fragment.split("\n").find((line) => line.includes("this non adjacent message"))!
    expect(groupMessageRow.trimEnd().endsWith("│")).toBe(true)
    expect(fragmentMessageRow).toContain("this non adjacent message is deliberately much wider than the frame")
-    expect(fragmentMessageRow.match(/│/g)?.length).toBe(3)
+    expect(fragmentMessageRow.match(/│/g)?.length).toBe(2)
  })

  test("keeps long notes inside groups and nested fragment frames intact", () => {
@@ -598,7 +600,7 @@ sequenceDiagram
    const groupBorderRight = output.split("\n")[0]!.lastIndexOf("╮")
    const lines = output.split("\n")
    const externalLabelRow = lines.findIndex((line) => line.includes("External"))
-    const externalHeaderLeft = lines[externalLabelRow + 1]!.lastIndexOf("─")
+    const externalHeaderLeft = lines[externalLabelRow - 1]!.lastIndexOf("╭")

    expect(externalHeaderLeft).toBeGreaterThan(groupBorderRight)
  })
@@ -653,17 +655,18 @@ sequenceDiagram
 `)

    expect(output).toMatchInlineSnapshot(`
-      "                   ╭─ Backend ───────────────────────────────╮
-      Browser            │ API              Cache              DB  │
-      ───┬───            │ ─┬─              ──┬──              ─┬─ │
-         │               │  │                 │                 │  │
-         │ GET /users/42 │  │                 │                 │  │
-         ├──────────────────►                 │                 │  │
-         │               │  │                 │                 │  │
-         │               │  │ get user:42     │                 │  │
-         │               │  ├─────────────────►                 │  │
-         │               │  │                 │                 │  │
-                         ╰─────────────────────────────────────────╯"
+      "                   ╭─ Backend ──────────────────────────────────╮
+      ╭─────────╮        │ ╭─────╮          ╭───────╮          ╭────╮ │
+      │ Browser │        │ │ API │          │ Cache │          │ DB │ │
+      ╰────┬────╯        │ ╰──┬──╯          ╰───┬───╯          ╰──┬─╯ │
+           │             │    │                 │                 │   │
+           │  GET /users/42   │                 │                 │   │
+           ├──────────────────►                 │                 │   │
+           │             │    │                 │                 │   │
+           │             │    │  get user:42    │                 │   │
+           │             │    ├─────────────────►                 │   │
+           │             │    │                 │                 │   │
+                         ╰────────────────────────────────────────────╯"
    `)
  })

@@ -703,17 +706,18 @@ sequenceDiagram
 `)

    expect(output).toMatchInlineSnapshot(`
-      "Service
-      ───┬───
-         │
-         ├────────────────────╮
-         │ Check Permissions  │
-         ◄────────────────────╯
-         │"
+      "╭─────────╮
+      │ Service │
+      ╰────┬────╯
+           │
+           ├────────────────────╮
+           │ Check Permissions  │
+           ◄────────────────────╯
+           │"
    `)
  })

-  test("renders note badges in their reserved rows", () => {
+  test("frames notes in their reserved rows", () => {
    const output = renderSequenceDiagram(`
 sequenceDiagram
  Browser->>Server: one
@@ -725,9 +729,11 @@ sequenceDiagram
    const nextMessageRow = lines.findIndex((line) => line.includes("two"))

    expect(noteRow).toBeGreaterThan(0)
-    expect(lines[noteRow - 1]?.trim()).toBe("│                 │")
-    expect(lines[noteRow]).toContain(" phase ")
-    expect(lines[noteRow + 1]?.trim()).toBe("│                 │")
+    expect(lines[noteRow - 1]).toContain("╭")
+    expect(lines[noteRow - 1]).toContain("╮")
+    expect(lines[noteRow]).toContain("│ phase │")
+    expect(lines[noteRow + 1]).toContain("╰")
+    expect(lines[noteRow + 1]).toContain("╯")
    expect(nextMessageRow).toBe(noteRow + 2)
  })

@@ -191,9 +191,29 @@ function renderSelfMessage(
 }

 function renderNote(grid: SequenceGrid, placement: Extract<SequenceStepPlacement, { type: "note" }>): void {
-  placement.textLines.forEach((line, index) =>
-    setText(grid, placement.textX, placement.textY + index, line, "noteBadge"),
-  )
+  const width = Math.max(...placement.textLines.map(diagramTextWidth))
+  const left = placement.textX
+  const right = left + width - 1
+  const top = placement.textY - 1
+  const bottom = placement.textY + placement.textLines.length
+
+  for (let x = left + 1; x < right; x++) {
+    setCell(grid, x, top, SEQUENCE_BORDER.horizontal, "note")
+    setCell(grid, x, bottom, SEQUENCE_BORDER.horizontal, "note")
+  }
+  for (let y = top + 1; y < bottom; y++) {
+    setCell(grid, left, y, SEQUENCE_BORDER.vertical, "note")
+    setCell(grid, right, y, SEQUENCE_BORDER.vertical, "note")
+  }
+  setCell(grid, left, top, SEQUENCE_BORDER.topLeft, "note")
+  setCell(grid, right, top, SEQUENCE_BORDER.topRight, "note")
+  setCell(grid, left, bottom, SEQUENCE_BORDER.bottomLeft, "note")
+  setCell(grid, right, bottom, SEQUENCE_BORDER.bottomRight, "note")
+  placement.textLines.forEach((line, index) => setText(grid, left, placement.textY + index, line, "noteBadge"))
+  for (let y = placement.textY; y < bottom; y++) {
+    setCell(grid, left, y, SEQUENCE_BORDER.vertical, "note")
+    setCell(grid, right, y, SEQUENCE_BORDER.vertical, "note")
+  }
 }

 export function drawSequenceDiagramGrid(
@@ -216,12 +236,22 @@ export function drawSequenceDiagramGrid(
        setText(grid, centeredStart(center, line), participantHeaderY + index, line, "participant"),
      )
    } else {
-      labelLines.forEach((line, index) =>
-        setText(grid, centeredStart(center, line), participantHeaderTopY + index, line, "participant"),
-      )
      for (let x = headerLeftX; x <= headerRightX; x++) {
+        setCell(grid, x, participantHeaderTopY, SEQUENCE_BORDER.horizontal, "participant")
        setCell(grid, x, participantRuleY, SEQUENCE_BORDER.horizontal, "participant")
      }
+
+      setCell(grid, headerLeftX, participantHeaderTopY, SEQUENCE_BORDER.topLeft, "participant")
+      setCell(grid, headerRightX, participantHeaderTopY, SEQUENCE_BORDER.topRight, "participant")
+      for (let y = participantHeaderY; y < participantRuleY; y++) {
+        setCell(grid, headerLeftX, y, SEQUENCE_BORDER.vertical, "participant")
+        setCell(grid, headerRightX, y, SEQUENCE_BORDER.vertical, "participant")
+      }
+      setCell(grid, headerLeftX, participantRuleY, SEQUENCE_BORDER.bottomLeft, "participant")
+      setCell(grid, headerRightX, participantRuleY, SEQUENCE_BORDER.bottomRight, "participant")
+      labelLines.forEach((line, index) =>
+        setText(grid, centeredStart(center, line), participantHeaderY + index, line, "participant"),
+      )
      setCell(grid, center, participantRuleY, SEQUENCE_BORDER.topT, "participant")
    }

@@ -206,7 +206,7 @@ ${Array.from(
    expect(explicit.activations).toEqual(shorthand.activations)
  })

-  test("left-aligns message label blocks inside their arrow span", () => {
+  test("centers message label blocks over their arrow span", () => {
    const plan = createSequencePlacementPlan(
      parseMermaidSequenceDiagram(`sequenceDiagram
  participant A
@@ -214,6 +214,8 @@ ${Array.from(
  A->>B: short<br/>a much longer line`),
    )
    const message = plan.steps.find((step) => step.type === "message")!
-    expect(message.labelX).toBe(message.leftX + 2)
+    const labelWidth = Math.max(...message.labelLines.map(diagramTextWidth))
+
+    expect(message.labelX * 2 + labelWidth).toBe(message.leftX + message.rightX)
  })
 })
@@ -142,7 +142,7 @@ function messageLabelText(message: SequenceMessage): string {

 function participantHeaderWidth(label: string, compact: boolean): number {
  const width = labelLinesWidth(mermaidLabelLines(label))
-  return compact ? width : Math.max(3, width)
+  return compact ? width : Math.max(5, width + 4)
 }

 function fragmentLabelText(fragment: SequenceFragment): string {
@@ -247,7 +247,7 @@ function getStepContentBounds(
    const leftX = Math.min(fromX, toX)
    const rightX = Math.max(fromX, toX)
    const labelWidth = messageWidth(step.message)
-    const labelLeftX = leftX + 2
+    const labelLeftX = Math.floor((leftX + rightX - labelWidth) / 2)
    return { leftX: Math.min(leftX, labelLeftX), rightX: Math.max(rightX, labelLeftX + labelWidth - 1) }
  }
  if (step.type !== "note") return undefined
@@ -525,8 +525,8 @@ export function createSequencePlacementPlan(
    ...diagram.participants.map((participant) => mermaidLabelLines(participant.label).length),
  )
  const participantHeaderTopY = hasGroups ? 1 : 0
-  const participantHeaderY = participantHeaderTopY
-  const participantRuleY = participantHeaderTopY + (compact ? participantLabelHeight - 1 : participantLabelHeight)
+  const participantHeaderY = participantHeaderTopY + (compact ? 0 : 1)
+  const participantRuleY = participantHeaderTopY + (compact ? participantLabelHeight - 1 : participantLabelHeight + 1)
  const lifelineStartY = participantRuleY + 1
  const stepStartY = lifelineStartY + 1
  const width = Math.max(contentBounds.rightX + 1, ...groups.map((group) => group.rightX + 1), fragments.rightX + 1)
@@ -650,7 +650,7 @@ export function createSequencePlacementPlan(
      const inlineLabel = inlineMessageLabel(step.message, labelLines, fromX, toX, compact)
      const arrowY = inlineLabel ? stepY : stepY + labelLines.length
      const renderedLabelWidth = inlineLabel ? visualLength(inlineLabel) : labelLinesWidth(labelLines)
-      const labelX = inlineLabel ? Math.floor((leftX + rightX - renderedLabelWidth) / 2) : leftX + 2
+      const labelX = Math.floor((leftX + rightX - renderedLabelWidth) / 2)
      steps.push({
        type: "message",
        message: step.message,
@@ -4,11 +4,9 @@ export interface Registration {
  readonly dispose: Effect.Effect<void>
 }

-export type Hooks<Spec, Failures extends Record<keyof Spec, unknown> = Record<keyof Spec, never>> = <
-  Name extends keyof Spec,
->(
+export type Hooks<Spec> = <Name extends keyof Spec>(
  name: Name,
-  callback: (input: Spec[Name]) => Effect.Effect<void, Failures[Name]>,
+  callback: (input: Spec[Name]) => Effect.Effect<void>,
 ) => Effect.Effect<Registration, never, Scope.Scope>

 export type Transform<Input> = (callback: (input: Input) => void) => Effect.Effect<Registration, never, Scope.Scope>
@@ -1,13 +1,11 @@
 import type { SkillApi } from "@opencode-ai/client/effect/api"
 import { Skill } from "@opencode-ai/schema/skill"
-import type { Effect, Types } from "effect"
+import type { Effect } from "effect"
 import type { Transform } from "./registration.js"

 export interface SkillDraft {
-  list(): readonly Types.DeepMutable<Skill.Info>[]
-  add(skill: Skill.Info): void
-  update(id: string, update: (skill: Types.DeepMutable<Skill.Info>) => void): void
-  remove(id: string): void
+  source(source: Skill.Source): void
+  list(): readonly Skill.Source[]
 }

 export interface SkillDomain extends SkillApi<unknown> {
@@ -38,13 +38,7 @@ export interface ToolHooks {
  )
 }

-// Only execute.before may fail: a Tool.Error rejects the call before the tool runs.
-export interface ToolFailures extends Record<keyof ToolHooks, unknown> {
-  readonly "execute.before": Tool.Error
-  readonly "execute.after": never
-}
-
 export interface ToolDomain {
  readonly transform: Transform<ToolDraft>
-  readonly hook: Hooks<ToolHooks, ToolFailures>
+  readonly hook: Hooks<ToolHooks>
 }
@@ -1,13 +1,10 @@
 import type { SkillApi } from "@opencode-ai/client/promise/api"
 import type { Skill } from "@opencode-ai/schema/skill"
 import type { Transform } from "./registration.js"
-import type { DeepMutable } from "./types.js"

 export interface SkillDraft {
-  list(): readonly DeepMutable<Skill.Info>[]
-  add(skill: Skill.Info): void
-  update(id: string, update: (skill: DeepMutable<Skill.Info>) => void): void
-  remove(id: string): void
+  source(source: Skill.Source): void
+  list(): readonly Skill.Source[]
 }

 export interface SkillDomain extends SkillApi {
@@ -12733,9 +12733,6 @@
          },
          "agent": {
            "type": "string"
-          },
-          "previous": {
-            "type": "string"
          }
        },
        "required": ["id", "time", "type", "agent"],
@@ -14373,9 +14370,6 @@
              },
              "agent": {
                "type": "string"
-              },
-              "previous": {
-                "type": "string"
              }
            },
            "required": ["sessionID", "agent"],
@@ -14444,9 +14438,6 @@
              },
              "model": {
                "$ref": "#/components/schemas/Model.Ref"
-              },
-              "previous": {
-                "$ref": "#/components/schemas/Model.Ref"
              }
            },
            "required": ["sessionID", "model"],
@@ -69,7 +69,6 @@ export const AgentSelected = Event.durable({
  schema: {
    ...Base,
    agent: Agent.ID,
-    previous: Agent.ID.pipe(optional),
  },
 })
 export type AgentSelected = typeof AgentSelected.Type
@@ -80,7 +79,6 @@ export const ModelSelected = Event.durable({
  schema: {
    ...Base,
    model: Model.Ref,
-    previous: Model.Ref.pipe(optional),
  },
 })
 export type ModelSelected = typeof ModelSelected.Type
--- a/Show More
+++ b/Show More