diff --git a/webviews/src/agent-session/acpmux/ComposerContext.tsx b/webviews/src/agent-session/acpmux/ComposerContext.tsx
index 39a5e00e63b7..a6236923bbc8 100644
--- a/webviews/src/agent-session/acpmux/ComposerContext.tsx
+++ b/webviews/src/agent-session/acpmux/ComposerContext.tsx
@@ -176,7 +176,7 @@ export function ComposerContext({
   /// picker offers only these, whatever the machine's kind.
   offloads?: readonly OffloadKind[];
   /// The New Tab page's saved environments, in the environment picker. While one is picked it
-  /// alone names where the chat starts: the folder and New Worktree controls step aside.
+  /// alone names where the chat starts: the folder control steps aside.
   saved?: SavedEnvironmentRows;
   /// The machine list opened, and every few seconds while it stays open: read the machines and
   /// their status again.
@@ -449,12 +449,6 @@ export function ComposerContext({
     if (savedRows?.current !== undefined) savedRows.onClear();
     pickComputer(id);
   };
-  // Preview: New Worktree is a control of its own beside the folder, as Codex's Worktree and
-  // Claude's chips are (hq#2569 #9), for a new chat on this computer in a folder.
-  const worktree =
-    environmentsShown && !readOnly && !savedPick && selectedComputer === "local" && currentFolder && onNewWorktree
-      ? () => onNewWorktree(currentFolder)
-      : undefined;
   const folderShown = !savedPick && !(readOnly && !newChats && !currentFolder);
   return (
     <div className="acpmux-composer-strip">
@@ -492,9 +486,7 @@ export function ComposerContext({
               onBrowse={onBrowseProject}
               onNoProject={onNoProject}
               noProject={noProject && !currentFolder}
-              onNewWorktree={
-                !worktree && currentFolder && onNewWorktree ? () => onNewWorktree(currentFolder) : undefined
-              }
+              onNewWorktree={currentFolder && onNewWorktree ? () => onNewWorktree(currentFolder) : undefined}
               localName={localName}
               peers={peers}
               {...(folderNote && !currentFolder ? { note: folderNote } : {})}
@@ -534,13 +526,6 @@ export function ComposerContext({
               }}
             />
           )}
-          {worktree && (
-            <span className="acpmux-location-picker">
-              <button type="button" className="acpmux-location-button ui-ghost ui-ghost-sm" onClick={worktree}>
-                <LocationFace icon={<BranchIcon />} value={t("worktree.new")} chevron={false} />
-              </button>
-            </span>
-          )}
           {environmentsShown ? (
             <EnvironmentPicker
               label={t(CONTEXT_LABELS.environment)}
diff --git a/webviews/src/agent-session/acpmux/newtab/NewTabScreen.test.tsx b/webviews/src/agent-session/acpmux/newtab/NewTabScreen.test.tsx
index 011d0f5cfce2..959e156504f9 100644
--- a/webviews/src/agent-session/acpmux/newtab/NewTabScreen.test.tsx
+++ b/webviews/src/agent-session/acpmux/newtab/NewTabScreen.test.tsx
@@ -227,6 +227,32 @@ test("cancelling a saved environment browse keeps the New Tab project", async ()
   expect(container.querySelector(".nt-location")?.textContent).toBe(before);
 });
 
+// Leo, 2026-10-31: "who the f*** put worktree on there". The bar above the composer holds
+// the folder and the machine only; New Worktree is an action in the folder menu.
+test("the location bar has no New Worktree control; the folder menu still offers it", async () => {
+  await act(async () => {
+    root!.render(
+      <NewTabScreen
+        {...firstRunProps}
+        cwd="/Users/you/src/cmux"
+        startCwd="/Users/you/src/cmux"
+        projects={[{ cwd: "/Users/you/src/cmux", label: "cmux" }]}
+        environments
+        onNewWorktree={async () => undefined}
+      />,
+    );
+  });
+  const strip = container.querySelector(".acpmux-composer-context")!;
+  expect(strip).toBeTruthy();
+  const buttons = [...strip.querySelectorAll("button")].map((button) => button.textContent?.trim());
+  expect(buttons.some((text) => text?.includes("New Worktree"))).toBe(false);
+  const folder = strip.querySelector<HTMLButtonElement>('[aria-label="Folder"]');
+  expect(folder?.textContent).toContain("cmux");
+  await act(async () => folder!.click());
+  const options = [...document.querySelectorAll<HTMLElement>('[role="option"]')].map((o) => o.textContent?.trim());
+  expect(options).toContain("New Worktree");
+});
+
 test("a fresh New Tab exposes the no-project path in its environment card", async () => {
   let browsed = 0;
   await act(async () => {
diff --git a/webviews/src/agent-session/acpmux/startFolder.gallery.ts b/webviews/src/agent-session/acpmux/startFolder.gallery.ts
index 8f97b60731a7..9fa779acfbbc 100644
--- a/webviews/src/agent-session/acpmux/startFolder.gallery.ts
+++ b/webviews/src/agent-session/acpmux/startFolder.gallery.ts
@@ -10,7 +10,7 @@ const AGENT_HOME = "/Users/you/Library/Application Support/cmux/agent-home/6b16a
 
 const WORKTREE = "/Users/you/.cmux/worktrees/cmux/fix-sidebar";
 
-/// A new chat in a project folder: New Worktree is a control beside the folder (cx-lyqio.2, hq#2569 #9).
+/// A new chat in a project folder: New Worktree is an action in its folder menu (cx-lyqio.2).
 // A new chat (no session yet: the summary's empty id matches the snapshot's), so it offers New Worktree.
 const inProject = noChat([session({ sessionId: "cmux", title: "Fix the sidebar", cwd: "/Users/you/src/cmux" })], {
   sessionId: "",
@@ -18,7 +18,9 @@ const inProject = noChat([session({ sessionId: "cmux", title: "Fix the sidebar",
 });
 
 const newWorktree: Play = async (ctx) => {
-  await ctx.click({ role: "button", name: "New Worktree" });
+  await ctx.click({ selector: '[aria-label="Folder"]' });
+  await ctx.waitFor(() => ctx.document.querySelector(".acpmux-location-menu"));
+  await ctx.click({ role: "option", name: "New Worktree" });
 };
 
 // The home folder's row in the folder menu. Rows show the repository or folder name since #22724,
@@ -81,7 +83,7 @@ export default agentPaneEntry({
       },
     },
     "new-worktree": {
-      note: "Play: New Worktree beside a new chat's folder; the host makes the worktree on its own branch and the chat starts there (the folder chip names it).",
+      note: "Play: New Worktree from a new chat's folder menu; the host makes the worktree on its own branch and the chat starts there (the folder chip names it).",
       ready: { newSession: true },
       native: {
         "git.worktree.create": {
diff --git a/webviews/test/environment-picker.test.tsx b/webviews/test/environment-picker.test.tsx
index d235cb6e3211..35cde57c6e85 100644
--- a/webviews/test/environment-picker.test.tsx
+++ b/webviews/test/environment-picker.test.tsx
@@ -696,7 +696,8 @@ test("⌥⌘1 on the environment already chosen stays the app's", async () => {
   expect(calls).toEqual([]);
 });
 
-// hq#2569 #9: a new chat chooses a worktree beside its folder, as Codex's Worktree and Claude's chips do.
+// A new chat makes a worktree from its folder menu. The bar above the composer holds the folder and
+// the machine only (Leo 2026-10-31, on a New Worktree control there: "who the f*** put worktree on there").
 const inFolder = {
   summary: {
     sessionId: "",
@@ -710,13 +711,25 @@ const worktreeButton = () =>
   [...host.querySelectorAll<HTMLButtonElement>(".acpmux-location-button")].find(
     (button) => button.textContent?.trim() === t("worktree.new"),
   );
+// New Worktree from the folder menu.
+const newWorktreeFromMenu = async () => {
+  const folder = host.querySelector<HTMLButtonElement>(
+    `.acpmux-composer-context button[aria-label="${t("composer.folder")}"]`,
+  );
+  expect(folder, "no folder control").toBeTruthy();
+  await act(async () => folder!.click());
+  const action = [...doc().querySelectorAll<HTMLElement>(".acpmux-location-action")].find(
+    (item) => item.textContent?.trim() === t("worktree.new"),
+  );
+  expect(action, "no New Worktree in the folder menu").toBeTruthy();
+  await act(async () => action!.click());
+};
 
-test("previews on: New Worktree is a control beside the folder, not inside its menu", async () => {
+test("previews on: New Worktree is in the folder menu, not a control beside the folder", async () => {
   const worktrees: string[] = [];
   await mount(true, { ...inFolder, onNewWorktree: (cwd: string) => worktrees.push(cwd) });
-  const button = worktreeButton();
-  expect(button, "no New Worktree beside the folder").toBeTruthy();
-  await act(async () => button!.click());
+  expect(worktreeButton(), "a New Worktree control beside the folder").toBeUndefined();
+  await newWorktreeFromMenu();
   expect(worktrees).toEqual(["/Users/you/src/cmux"]);
 });
 
@@ -771,7 +784,7 @@ test("New Tab, previews on: New Worktree starts the chat in the worktree the hos
     return "/Users/you/wt/app-blue-fox";
   });
   expect(folderName()).toBe("app");
-  await act(async () => worktreeButton()!.click());
+  await newWorktreeFromMenu();
   expect(asked).toEqual(["/Users/you/src/app"]);
   expect(folderName()).toContain("fox");
 });
@@ -780,7 +793,7 @@ test("New Tab, previews on: the host's refusal shows above the card, and the fol
   await mountNewTab(async () => {
     throw new Error("not a git repository");
   });
-  await act(async () => worktreeButton()!.click());
+  await newWorktreeFromMenu();
   expect(host.querySelector('[role="alert"]')?.textContent).toContain("not a git repository");
   expect(folderName()).toBe("app");
 });
@@ -788,8 +801,8 @@ test("New Tab, previews on: the host's refusal shows above the card, and the fol
 test("New Tab, previews on: a slower worktree reply doesn't replace a newer choice", async () => {
   const replies: ((folder: string) => void)[] = [];
   await mountNewTab(() => new Promise<string | undefined>((resolve) => replies.push(resolve)));
-  await act(async () => worktreeButton()!.click());
-  await act(async () => worktreeButton()!.click());
+  await newWorktreeFromMenu();
+  await newWorktreeFromMenu();
   await act(async () => replies[1]!("/Users/you/wt/app-blue-fox"));
   await act(async () => replies[0]!("/Users/you/wt/app-red-owl"));
   expect(folderName()).toContain("fox");
@@ -803,7 +816,7 @@ test("New Tab, previews on: a worktree reply after a machine pick doesn't take t
     peerConnected: { devbox: true },
   });
   await mountNewTab(() => new Promise<string | undefined>((resolve) => replies.push(resolve)), snapshot);
-  await act(async () => worktreeButton()!.click());
+  await newWorktreeFromMenu();
   await openPicker();
   const devbox = machineRows().find((row) => row.textContent?.includes("devbox"))!;
   await act(async () => devbox.click());
diff --git a/webviews/test/new-tab-warm-first-frame.test.ts b/webviews/test/new-tab-warm-first-frame.test.ts
index 204e7ac8a319..66dc7fe84b7a 100644
--- a/webviews/test/new-tab-warm-first-frame.test.ts
+++ b/webviews/test/new-tab-warm-first-frame.test.ts
@@ -296,8 +296,8 @@ await requireBrowserLane("new-tab-warm-first-frame.test.ts", async () => {
         expect(painted).toHaveLength(1);
         expect(painted[0]).toContain("Fix the atlas build");
         expect(painted[0]).toContain("Older device chat");
-        // The environment picker puts New Worktree beside the folder (not behind Labs since #29059).
-        expect(painted[0]).toStartWith("atlas New Worktree cosmic-gray ::");
+        // The bar names the folder and the machine; New Worktree is in the folder menu only.
+        expect(painted[0]).toStartWith("atlas cosmic-gray ::");
       },
     );
   }
@@ -331,7 +331,7 @@ await requireBrowserLane("new-tab-warm-first-frame.test.ts", async () => {
       expect(painted).toHaveLength(1);
       expect(painted[0]).toContain("Fix the atlas build");
       // The adopting tab's project, not the spare's "Choose folder".
-      expect(painted[0]).toStartWith("atlas New Worktree cosmic-gray ::");
+      expect(painted[0]).toStartWith("atlas cosmic-gray ::");
     },
   );