diff --git a/install.ps1 b/install.ps1
index f1f16d818d..0c36046195 100644
--- a/install.ps1
+++ b/install.ps1
@@ -6,6 +6,7 @@
 
 function Install-UnslothStudio {
     $ErrorActionPreference = "Stop"
+    $script:UnslothVerbose = ($env:UNSLOTH_VERBOSE -eq "1")
 
     # ── Parse flags ──
     $StudioLocalInstall = $false
@@ -17,6 +18,8 @@ function Install-UnslothStudio {
         switch ($argList[$i]) {
             "--local"    { $StudioLocalInstall = $true }
             "--no-torch" { $SkipTorch = $true }
+            "--verbose"  { $script:UnslothVerbose = $true }
+            "-v"         { $script:UnslothVerbose = $true }
             "--package"  {
                 $i++
                 if ($i -ge $argList.Count) {
@@ -27,6 +30,12 @@ function Install-UnslothStudio {
             }
         }
     }
+    # Propagate to child processes so they also respect verbose mode.
+    # Process-scoped -- does not persist.
+    if ($script:UnslothVerbose) {
+        $env:UNSLOTH_VERBOSE = '1'
+    }
+
     if ($StudioLocalInstall) {
         $RepoRoot = (Resolve-Path (Split-Path -Parent $PSCommandPath)).Path
         if (-not (Test-Path (Join-Path $RepoRoot "pyproject.toml"))) {
@@ -39,10 +48,55 @@ function Install-UnslothStudio {
     $StudioHome = Join-Path $env:USERPROFILE ".unsloth\studio"
     $VenvDir = Join-Path $StudioHome "unsloth_studio"
 
+    $Rule = [string]::new([char]0x2500, 52)
+    $Sloth = [char]::ConvertFromUtf32(0x1F9A5)
+
+    function Enable-StudioVirtualTerminal {
+        if ($env:NO_COLOR) { return $false }
+        try {
+            if (-not ("StudioVT.Native" -as [type])) {
+                Add-Type -Namespace StudioVT -Name Native -MemberDefinition @'
+[DllImport("kernel32.dll")] public static extern IntPtr GetStdHandle(int nStdHandle);
+[DllImport("kernel32.dll")] public static extern bool GetConsoleMode(IntPtr h, out uint m);
+[DllImport("kernel32.dll")] public static extern bool SetConsoleMode(IntPtr h, uint m);
+'@ -ErrorAction Stop
+            }
+            $h = [StudioVT.Native]::GetStdHandle(-11)
+            [uint32]$mode = 0
+            if (-not [StudioVT.Native]::GetConsoleMode($h, [ref]$mode)) { return $false }
+            $mode = $mode -bor 0x0004
+            return [StudioVT.Native]::SetConsoleMode($h, $mode)
+        } catch {
+            return $false
+        }
+    }
+    $script:StudioVtOk = Enable-StudioVirtualTerminal
+
+    function Get-StudioAnsi {
+        param(
+            [Parameter(Mandatory = $true)]
+            [ValidateSet('Title', 'Dim', 'Ok', 'Warn', 'Err', 'Reset')]
+            [string]$Kind
+        )
+        $e = [char]27
+        switch ($Kind) {
+            'Title' { return "${e}[38;5;150m" }
+            'Dim'   { return "${e}[38;5;245m" }
+            'Ok'    { return "${e}[38;5;108m" }
+            'Warn'  { return "${e}[38;5;136m" }
+            'Err'   { return "${e}[91m" }
+            'Reset' { return "${e}[0m" }
+        }
+    }
+
     Write-Host ""
-    Write-Host "========================================="
-    Write-Host "   Unsloth Studio Installer (Windows)"
-    Write-Host "========================================="
+    if ($script:StudioVtOk -and -not $env:NO_COLOR) {
+        Write-Host ("  " + (Get-StudioAnsi Title) + $Sloth + " Unsloth Studio Installer (Windows)" + (Get-StudioAnsi Reset))
+        Write-Host ("  {0}{1}{2}" -f (Get-StudioAnsi Dim), $Rule, (Get-StudioAnsi Reset))
+    } else {
+        Write-Host ("  {0} Unsloth Studio Installer (Windows)" -f $Sloth) -ForegroundColor DarkGreen
+        Write-Host "  $Rule" -ForegroundColor DarkGray
+    }
     Write-Host ""
 
     # ── Helper: refresh PATH from registry (deduplicating entries) ──
@@ -62,13 +116,96 @@ function Install-UnslothStudio {
         $env:Path = $unique -join ";"
     }
 
+    function step {
+        param(
+            [Parameter(Mandatory = $true)][string]$Label,
+            [Parameter(Mandatory = $true)][string]$Value,
+            [string]$Color = "Green"
+        )
+        if ($script:StudioVtOk -and -not $env:NO_COLOR) {
+            $dim = Get-StudioAnsi Dim
+            $rst = Get-StudioAnsi Reset
+            $val = switch ($Color) {
+                'Green' { Get-StudioAnsi Ok }
+                'Yellow' { Get-StudioAnsi Warn }
+                'Red' { Get-StudioAnsi Err }
+                'DarkGray' { Get-StudioAnsi Dim }
+                default { Get-StudioAnsi Ok }
+            }
+            $padded = if ($Label.Length -ge 15) { $Label.Substring(0, 15) } else { $Label.PadRight(15) }
+            Write-Host ("  {0}{1}{2}{3}{4}{2}" -f $dim, $padded, $rst, $val, $Value)
+        } else {
+            $padded = if ($Label.Length -ge 15) { $Label.Substring(0, 15) } else { $Label.PadRight(15) }
+            Write-Host ("  {0}" -f $padded) -NoNewline -ForegroundColor DarkGray
+            $fc = switch ($Color) {
+                'Green' { 'DarkGreen' }
+                'Yellow' { 'Yellow' }
+                'Red' { 'Red' }
+                'DarkGray' { 'DarkGray' }
+                default { 'DarkGreen' }
+            }
+            Write-Host $Value -ForegroundColor $fc
+        }
+    }
+
+    function substep {
+        param(
+            [Parameter(Mandatory = $true)][string]$Message,
+            [string]$Color = "DarkGray"
+        )
+        if ($script:StudioVtOk -and -not $env:NO_COLOR) {
+            $msgCol = switch ($Color) {
+                'Yellow' { (Get-StudioAnsi Warn) }
+                'Red' { (Get-StudioAnsi Err) }
+                default { (Get-StudioAnsi Dim) }
+            }
+            $pad = "".PadRight(15)
+            Write-Host ("  {0}{1}{2}{3}" -f $msgCol, $pad, $Message, (Get-StudioAnsi Reset))
+        } else {
+            $fc = switch ($Color) {
+                'Yellow' { 'Yellow' }
+                'Red' { 'Red' }
+                default { 'DarkGray' }
+            }
+            Write-Host ("  {0,-15}{1}" -f "", $Message) -ForegroundColor $fc
+        }
+    }
+
+    # Run native commands quietly by default to match install.sh behavior.
+    # Full command output is shown only when --verbose / UNSLOTH_VERBOSE=1.
+    function Invoke-InstallCommand {
+        param(
+            [Parameter(Mandatory = $true)][ScriptBlock]$Command
+        )
+        $prevEap = $ErrorActionPreference
+        $ErrorActionPreference = "Continue"
+        try {
+            # Reset to avoid stale values from prior native commands.
+            $global:LASTEXITCODE = 0
+            if ($script:UnslothVerbose) {
+                # Merge stderr into stdout so progress/warning output stays visible
+                # without flipping $? on successful native commands (PS 5.1 treats
+                # stderr records as errors that set $? = $false even on exit code 0).
+                & $Command 2>&1 | Out-Host
+            } else {
+                $output = & $Command 2>&1 | Out-String
+                if ($LASTEXITCODE -ne 0) {
+                    Write-Host $output -ForegroundColor Red
+                }
+            }
+            return [int]$LASTEXITCODE
+        } finally {
+            $ErrorActionPreference = $prevEap
+        }
+    }
+
     function New-StudioShortcuts {
         param(
             [Parameter(Mandatory = $true)][string]$UnslothExePath
         )
 
         if (-not (Test-Path $UnslothExePath)) {
-            Write-Host "[WARN] Cannot create shortcuts: unsloth.exe not found at $UnslothExePath" -ForegroundColor Yellow
+            substep "cannot create shortcuts, unsloth.exe not found at $UnslothExePath" "Yellow"
             return
         }
         try {
@@ -81,7 +218,7 @@ function Install-UnslothStudio {
 
             $localAppDataDir = $env:LOCALAPPDATA
             if (-not $localAppDataDir -or [string]::IsNullOrWhiteSpace($localAppDataDir)) {
-                Write-Host "[WARN] LOCALAPPDATA path unavailable; skipped shortcut creation" -ForegroundColor Yellow
+                substep "LOCALAPPDATA path unavailable; skipped shortcut creation" "Yellow"
                 return
             }
             $appDir = Join-Path $localAppDataDir "Unsloth Studio"
@@ -104,10 +241,10 @@ function Install-UnslothStudio {
                 $null
             }
             if (-not $desktopLink) {
-                Write-Host "[WARN] Desktop path unavailable; skipped desktop shortcut creation" -ForegroundColor Yellow
+                substep "Desktop path unavailable; skipped desktop shortcut creation" "Yellow"
             }
             if (-not $startMenuLink) {
-                Write-Host "[WARN] APPDATA/Start Menu path unavailable; skipped Start menu shortcut creation" -ForegroundColor Yellow
+                substep "APPDATA/Start Menu path unavailable; skipped Start menu shortcut creation" "Yellow"
             }
             $iconPath = Join-Path $appDir "unsloth.ico"
             $bundledIcon = $null
@@ -362,27 +499,27 @@ shell.Run cmd, 0, False
                         $shortcut.Save()
                         $createdShortcutCount++
                     } catch {
-                        Write-Host "[WARN] Could not create shortcut at ${linkPath}: $($_.Exception.Message)" -ForegroundColor Yellow
+                        substep "could not create shortcut at ${linkPath}: $($_.Exception.Message)" "Yellow"
                     }
                 }
                 if ($createdShortcutCount -gt 0) {
-                    Write-Host "[OK] Created Unsloth Studio shortcut(s): $createdShortcutCount" -ForegroundColor Green
+                    substep "Created Unsloth Studio shortcut"
                 } else {
-                    Write-Host "[WARN] No Unsloth Studio shortcuts were created" -ForegroundColor Yellow
+                    substep "no Unsloth Studio shortcuts were created" "Yellow"
                 }
             } catch {
-                Write-Host "[WARN] Shortcut creation unavailable: $($_.Exception.Message)" -ForegroundColor Yellow
+                substep "shortcut creation unavailable: $($_.Exception.Message)" "Yellow"
             }
         } catch {
-            Write-Host "[WARN] Shortcut setup failed; skipping shortcuts: $($_.Exception.Message)" -ForegroundColor Yellow
+            substep "shortcut setup failed; skipping shortcuts: $($_.Exception.Message)" "Yellow"
         }
     }
 
     # ── Check winget ──
     if (-not (Get-Command winget -ErrorAction SilentlyContinue)) {
-        Write-Host "Error: winget is not available." -ForegroundColor Red
-        Write-Host "       Install it from https://aka.ms/getwinget" -ForegroundColor Yellow
-        Write-Host "       or install Python $PythonVersion and uv manually, then re-run." -ForegroundColor Yellow
+        step "winget" "not available" "Red"
+        substep "Install it from https://aka.ms/getwinget" "Yellow"
+        substep "or install Python $PythonVersion and uv manually, then re-run." "Yellow"
         return
     }
 
@@ -460,10 +597,10 @@ shell.Run cmd, 0, False
     # Find-CompatiblePython returns @{ Version = "3.13"; Path = "C:\...\python.exe" } or $null.
     $DetectedPython = Find-CompatiblePython
     if ($DetectedPython) {
-        Write-Host "==> Python already installed: Python $($DetectedPython.Version)"
+        step "python" "Python $($DetectedPython.Version) already installed"
     }
     if (-not $DetectedPython) {
-        Write-Host "==> Installing Python ${PythonVersion}..."
+        substep "installing Python ${PythonVersion}..."
         $pythonPackageId = "Python.Python.$PythonVersion"
         # Temporarily lower ErrorActionPreference so that winget stderr
         # (progress bars, warnings) does not become a terminating error
@@ -485,7 +622,7 @@ shell.Run cmd, 0, False
             # This handles both real failures AND "already installed" codes where
             # winget thinks Python is present but it's not actually on PATH
             # (e.g. user partially uninstalled, or installed via a different method).
-            Write-Host "    Python not found on PATH after winget. Retrying with --force..."
+            substep "Python not found on PATH after winget. Retrying with --force..." "Yellow"
             $ErrorActionPreference = "Continue"
             try {
                 winget install -e --id $pythonPackageId --accept-package-agreements --accept-source-agreements --force
@@ -507,7 +644,7 @@ shell.Run cmd, 0, False
 
     # ── Install uv if not present ──
     if (-not (Get-Command uv -ErrorAction SilentlyContinue)) {
-        Write-Host "==> Installing uv package manager..."
+        substep "installing uv package manager..."
         $prevEAP = $ErrorActionPreference
         $ErrorActionPreference = "Continue"
         try { winget install --id=astral-sh.uv -e --accept-package-agreements --accept-source-agreements } catch {}
@@ -515,15 +652,15 @@ shell.Run cmd, 0, False
         Refresh-SessionPath
         # Fallback: if winget didn't put uv on PATH, try the PowerShell installer
         if (-not (Get-Command uv -ErrorAction SilentlyContinue)) {
-            Write-Host "    Trying alternative uv installer..."
+            substep "trying alternative uv installer..." "Yellow"
             powershell -ExecutionPolicy ByPass -c "irm https://astral.sh/uv/install.ps1 | iex"
             Refresh-SessionPath
         }
     }
 
     if (-not (Get-Command uv -ErrorAction SilentlyContinue)) {
-        Write-Host "Error: uv could not be installed." -ForegroundColor Red
-        Write-Host "       Install it from https://docs.astral.sh/uv/" -ForegroundColor Yellow
+        step "uv" "could not be installed" "Red"
+        substep "Install it from https://docs.astral.sh/uv/" "Yellow"
         return
     }
 
@@ -539,13 +676,13 @@ shell.Run cmd, 0, False
 
     if (Test-Path $VenvPython) {
         # New layout already exists -- nuke for fresh install
-        Write-Host "==> Removing existing environment for fresh install..."
+        substep "removing existing environment for fresh install..."
         Remove-Item -Recurse -Force $VenvDir
     } elseif (Test-Path (Join-Path $StudioHome ".venv\Scripts\python.exe")) {
         # Old layout (~/.unsloth/studio/.venv) exists -- validate before migrating
         $OldVenv = Join-Path $StudioHome ".venv"
         $OldPy = Join-Path $OldVenv "Scripts\python.exe"
-        Write-Host "==> Found legacy Studio environment, validating..."
+        substep "found legacy Studio environment, validating..."
         $prevEAP2 = $ErrorActionPreference
         $ErrorActionPreference = "Continue"
         try {
@@ -554,32 +691,34 @@ shell.Run cmd, 0, False
         } catch { $torchOk = $false }
         $ErrorActionPreference = $prevEAP2
         if ($torchOk) {
-            Write-Host "   Legacy environment is healthy -- migrating..."
+            substep "legacy environment is healthy -- migrating..."
             Move-Item -Path $OldVenv -Destination $VenvDir -Force
-            Write-Host "   Moved .venv -> unsloth_studio"
+            substep "moved .venv -> unsloth_studio"
             $_Migrated = $true
         } else {
-            Write-Host "   Legacy environment failed validation -- creating fresh environment"
+            substep "legacy environment failed validation -- creating fresh environment" "Yellow"
             Remove-Item -Recurse -Force $OldVenv -ErrorAction SilentlyContinue
         }
     } elseif (Test-Path (Join-Path $env:USERPROFILE "unsloth_studio\Scripts\python.exe")) {
         # CWD-relative venv from old install.ps1 -- migrate to absolute path
         $CwdVenv = Join-Path $env:USERPROFILE "unsloth_studio"
-        Write-Host "==> Found CWD-relative Studio environment, migrating to $VenvDir..."
+        substep "found CWD-relative Studio environment, migrating to $VenvDir..."
         Move-Item -Path $CwdVenv -Destination $VenvDir -Force
-        Write-Host "   Moved ~/unsloth_studio -> ~/.unsloth/studio/unsloth_studio"
+        substep "moved ~/unsloth_studio -> ~/.unsloth/studio/unsloth_studio"
         $_Migrated = $true
     }
 
     if (-not (Test-Path $VenvPython)) {
-        Write-Host "==> Creating Python $($DetectedPython.Version) virtual environment ($VenvDir)..."
-        uv venv $VenvDir --python "$($DetectedPython.Path)"
-        if ($LASTEXITCODE -ne 0) {
-            Write-Host "[ERROR] Failed to create virtual environment (exit code $LASTEXITCODE)" -ForegroundColor Red
+        step "venv" "creating Python $($DetectedPython.Version) virtual environment"
+        substep "$VenvDir"
+        $venvExit = Invoke-InstallCommand { uv venv $VenvDir --python "$($DetectedPython.Path)" }
+        if ($venvExit -ne 0) {
+            Write-Host "[ERROR] Failed to create virtual environment (exit code $venvExit)" -ForegroundColor Red
             return
         }
     } else {
-        Write-Host "==> Using migrated environment at $VenvDir"
+        step "venv" "using migrated environment"
+        substep "$VenvDir"
     }
 
     # ── Detect GPU (robust: PATH + hardcoded fallback paths, mirrors setup.ps1) ──
@@ -588,7 +727,7 @@ shell.Run cmd, 0, False
     try {
         $nvSmiCmd = Get-Command nvidia-smi -ErrorAction SilentlyContinue
         if ($nvSmiCmd) {
-            & $nvSmiCmd.Source 2>&1 | Out-Null
+            & $nvSmiCmd.Source *> $null
             if ($LASTEXITCODE -eq 0) { $HasNvidiaSmi = $true; $NvidiaSmiExe = $nvSmiCmd.Source }
         }
     } catch {}
@@ -599,18 +738,18 @@ shell.Run cmd, 0, False
         )) {
             if (Test-Path $p) {
                 try {
-                    & $p 2>&1 | Out-Null
+                    & $p *> $null
                     if ($LASTEXITCODE -eq 0) { $HasNvidiaSmi = $true; $NvidiaSmiExe = $p; break }
                 } catch {}
             }
         }
     }
     if ($HasNvidiaSmi) {
-        Write-Host "[OK] NVIDIA GPU detected" -ForegroundColor Green
+        step "gpu" "NVIDIA GPU detected"
     } else {
-        Write-Host "[WARN] No NVIDIA GPU detected. Studio will run in chat-only (GGUF) mode." -ForegroundColor Yellow
-        Write-Host "       Training and GPU inference require an NVIDIA GPU with drivers installed." -ForegroundColor Yellow
-        Write-Host "       https://www.nvidia.com/Download/index.aspx" -ForegroundColor Yellow
+        step "gpu" "none (chat-only / GGUF)" "Yellow"
+        substep "Training and GPU inference require an NVIDIA GPU with drivers installed." "Yellow"
+        substep "https://www.nvidia.com/Download/index.aspx" "Yellow"
     }
 
     # ── Choose the correct PyTorch index URL based on driver CUDA version ──
@@ -630,7 +769,7 @@ shell.Run cmd, 0, False
                 return "$baseUrl/cpu"
             }
         } catch {}
-        Write-Host "[WARN] Could not determine CUDA version from nvidia-smi, defaulting to cu126" -ForegroundColor Yellow
+        substep "could not determine CUDA version from nvidia-smi, defaulting to cu126" "Yellow"
         return "$baseUrl/cu126"
     }
     $TorchIndexUrl = Get-TorchIndexUrl
@@ -677,74 +816,101 @@ shell.Run cmd, 0, False
     if ($_Migrated) {
         # Migrated env: force-reinstall unsloth+unsloth-zoo to ensure clean state
         # in the new venv location, while preserving existing torch/CUDA
-        Write-Host "==> Upgrading unsloth in migrated environment..."
+        substep "upgrading unsloth in migrated environment..."
         if ($SkipTorch) {
             # No-torch: install unsloth + unsloth-zoo with --no-deps, then
             # runtime deps (typer, safetensors, transformers, etc.) with --no-deps.
-            uv pip install --python $VenvPython --no-deps --reinstall-package unsloth --reinstall-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo
-            $NoTorchReq = Find-NoTorchRuntimeFile
-            if ($NoTorchReq) {
-                uv pip install --python $VenvPython --no-deps -r $NoTorchReq
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --no-deps --reinstall-package unsloth --reinstall-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo }
+            if ($baseInstallExit -eq 0) {
+                $NoTorchReq = Find-NoTorchRuntimeFile
+                if ($NoTorchReq) {
+                    $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --no-deps -r $NoTorchReq }
+                }
             }
         } else {
-            uv pip install --python $VenvPython --reinstall-package unsloth --reinstall-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --reinstall-package unsloth --reinstall-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo }
+        }
+        if ($baseInstallExit -ne 0) {
+            Write-Host "[ERROR] Failed to install unsloth (exit code $baseInstallExit)" -ForegroundColor Red
+            return
         }
         if ($StudioLocalInstall) {
-            Write-Host "==> Overlaying local repo (editable)..."
-            uv pip install --python $VenvPython -e $RepoRoot --no-deps
+            substep "overlaying local repo (editable)..."
+            $overlayExit = Invoke-InstallCommand { uv pip install --python $VenvPython -e $RepoRoot --no-deps }
+            if ($overlayExit -ne 0) {
+                Write-Host "[ERROR] Failed to overlay local repo (exit code $overlayExit)" -ForegroundColor Red
+                return
+            }
         }
     } elseif ($TorchIndexUrl) {
         if ($SkipTorch) {
-            Write-Host "==> Skipping PyTorch (--no-torch flag set)."
+            substep "skipping PyTorch (--no-torch flag set)." "Yellow"
         } else {
-            Write-Host "==> Installing PyTorch ($TorchIndexUrl)..."
-            uv pip install --python $VenvPython "torch>=2.4,<2.11.0" torchvision torchaudio --index-url $TorchIndexUrl
-            if ($LASTEXITCODE -ne 0) {
-                Write-Host "[ERROR] Failed to install PyTorch (exit code $LASTEXITCODE)" -ForegroundColor Red
+            substep "installing PyTorch ($TorchIndexUrl)..."
+            $torchInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython "torch>=2.4,<2.11.0" torchvision torchaudio --index-url $TorchIndexUrl }
+            if ($torchInstallExit -ne 0) {
+                Write-Host "[ERROR] Failed to install PyTorch (exit code $torchInstallExit)" -ForegroundColor Red
                 return
             }
         }
 
-        Write-Host "==> Installing unsloth (this may take a few minutes)..."
+        substep "installing unsloth (this may take a few minutes)..."
         if ($SkipTorch) {
             # No-torch: install unsloth + unsloth-zoo with --no-deps, then
             # runtime deps (typer, safetensors, transformers, etc.) with --no-deps.
-            uv pip install --python $VenvPython --no-deps --upgrade-package unsloth --upgrade-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo
-            $NoTorchReq = Find-NoTorchRuntimeFile
-            if ($NoTorchReq) {
-                uv pip install --python $VenvPython --no-deps -r $NoTorchReq
-            }
-            if ($StudioLocalInstall) {
-                Write-Host "==> Overlaying local repo (editable)..."
-                uv pip install --python $VenvPython -e $RepoRoot --no-deps
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --no-deps --upgrade-package unsloth --upgrade-package unsloth-zoo "unsloth>=2026.3.16" unsloth-zoo }
+            if ($baseInstallExit -eq 0) {
+                $NoTorchReq = Find-NoTorchRuntimeFile
+                if ($NoTorchReq) {
+                    $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --no-deps -r $NoTorchReq }
+                }
             }
         } elseif ($StudioLocalInstall) {
-            uv pip install --python $VenvPython --upgrade-package unsloth "unsloth>=2026.3.16" unsloth-zoo
-            Write-Host "==> Overlaying local repo (editable)..."
-            uv pip install --python $VenvPython -e $RepoRoot --no-deps
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --upgrade-package unsloth "unsloth>=2026.3.16" unsloth-zoo }
         } else {
-            uv pip install --python $VenvPython --upgrade-package unsloth "$PackageName"
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython --upgrade-package unsloth "$PackageName" }
+        }
+        if ($baseInstallExit -ne 0) {
+            Write-Host "[ERROR] Failed to install unsloth (exit code $baseInstallExit)" -ForegroundColor Red
+            return
+        }
+
+        if ($StudioLocalInstall) {
+            substep "overlaying local repo (editable)..."
+            $overlayExit = Invoke-InstallCommand { uv pip install --python $VenvPython -e $RepoRoot --no-deps }
+            if ($overlayExit -ne 0) {
+                Write-Host "[ERROR] Failed to overlay local repo (exit code $overlayExit)" -ForegroundColor Red
+                return
+            }
         }
     } else {
         # Fallback: GPU detection failed to produce a URL -- let uv resolve torch
-        Write-Host "==> Installing unsloth (this may take a few minutes)..."
+        substep "installing unsloth (this may take a few minutes)..."
         if ($StudioLocalInstall) {
-            uv pip install --python $VenvPython unsloth-zoo "unsloth>=2026.3.16" --torch-backend=auto
-            Write-Host "==> Overlaying local repo (editable)..."
-            uv pip install --python $VenvPython -e $RepoRoot --no-deps
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython unsloth-zoo "unsloth>=2026.3.16" --torch-backend=auto }
+            if ($baseInstallExit -ne 0) {
+                Write-Host "[ERROR] Failed to install unsloth (exit code $baseInstallExit)" -ForegroundColor Red
+                return
+            }
+            substep "overlaying local repo (editable)..."
+            $overlayExit = Invoke-InstallCommand { uv pip install --python $VenvPython -e $RepoRoot --no-deps }
+            if ($overlayExit -ne 0) {
+                Write-Host "[ERROR] Failed to overlay local repo (exit code $overlayExit)" -ForegroundColor Red
+                return
+            }
         } else {
-            uv pip install --python $VenvPython "$PackageName" --torch-backend=auto
+            $baseInstallExit = Invoke-InstallCommand { uv pip install --python $VenvPython "$PackageName" --torch-backend=auto }
+            if ($baseInstallExit -ne 0) {
+                Write-Host "[ERROR] Failed to install unsloth (exit code $baseInstallExit)" -ForegroundColor Red
+                return
+            }
         }
     }
-    if ($LASTEXITCODE -ne 0) {
-        Write-Host "[ERROR] Failed to install unsloth (exit code $LASTEXITCODE)" -ForegroundColor Red
-        return
-    }
 
     # ── Run studio setup ──
     # setup.ps1 will handle installing Git, CMake, Visual Studio Build Tools,
     # CUDA Toolkit, Node.js, and other dependencies automatically via winget.
-    Write-Host "==> Running unsloth studio setup..."
+    step "setup" "running unsloth studio setup..."
     $UnslothExe = Join-Path $VenvDir "Scripts\unsloth.exe"
     if (-not (Test-Path $UnslothExe)) {
         Write-Host "[ERROR] unsloth CLI was not installed correctly." -ForegroundColor Red
@@ -754,17 +920,27 @@ shell.Run cmd, 0, False
         return
     }
     # Tell setup.ps1 to skip base package installation (install.ps1 already did it)
-    # Tell setup.ps1 to skip base package installation (install.ps1 already did it)
     $env:SKIP_STUDIO_BASE = "1"
     $env:STUDIO_PACKAGE_NAME = $PackageName
     $env:UNSLOTH_NO_TORCH = if ($SkipTorch) { "true" } else { "false" }
+    # Always set STUDIO_LOCAL_INSTALL explicitly to avoid stale values from
+    # a previous --local run in the same PowerShell session.
     if ($StudioLocalInstall) {
         $env:STUDIO_LOCAL_INSTALL = "1"
         $env:STUDIO_LOCAL_REPO = $RepoRoot
-    }
-    & $UnslothExe studio setup
-    if ($LASTEXITCODE -ne 0) {
-        Write-Host "[ERROR] unsloth studio setup failed (exit code $LASTEXITCODE)" -ForegroundColor Red
+    } else {
+        $env:STUDIO_LOCAL_INSTALL = "0"
+        Remove-Item Env:STUDIO_LOCAL_REPO -ErrorAction SilentlyContinue
+    }
+    # Use 'studio setup' (not 'studio update') because 'update' pops
+    # SKIP_STUDIO_BASE, which would cause redundant package reinstallation
+    # and bypass the fast-path version check from PR #4667.
+    $studioArgs = @('studio', 'setup')
+    if ($script:UnslothVerbose) { $studioArgs += '--verbose' }
+    & $UnslothExe @studioArgs
+    $setupExit = $LASTEXITCODE
+    if ($setupExit -ne 0) {
+        Write-Host "[ERROR] unsloth studio setup failed (exit code $setupExit)" -ForegroundColor Red
         return
     }
 
@@ -780,27 +956,18 @@ shell.Run cmd, 0, False
             [System.Environment]::SetEnvironmentVariable("Path", "$ScriptsDir", "User")
         }
         Refresh-SessionPath
-        Write-Host "[OK] Added unsloth to PATH" -ForegroundColor Green
+        step "path" "added unsloth to PATH"
     }
 
-    Write-Host ""
-    Write-Host "========================================="
-    Write-Host "   Unsloth Studio installed!"
-    Write-Host "========================================="
-    Write-Host ""
-
     # Launch studio automatically in interactive terminals;
     # in non-interactive environments (CI, Docker) just print instructions.
     $IsInteractive = [Environment]::UserInteractive -and (-not [Console]::IsInputRedirected)
     if ($IsInteractive) {
-        Write-Host "==> Launching Unsloth Studio..."
-        Write-Host ""
         & $UnslothExe studio -H 0.0.0.0 -p 8888
     } else {
-        Write-Host "  To launch, run:"
-        Write-Host ""
-        Write-Host "    & `"$VenvDir\Scripts\Activate.ps1`""
-        Write-Host "    unsloth studio -H 0.0.0.0 -p 8888"
+        step "launch" "manual commands:"
+        substep "& `"$VenvDir\Scripts\Activate.ps1`""
+        substep "unsloth studio -H 0.0.0.0 -p 8888"
         Write-Host ""
     }
 }
diff --git a/install.sh b/install.sh
index b50256ea5a..9ea80bc161 100755
--- a/install.sh
+++ b/install.sh
@@ -8,11 +8,36 @@
 # Usage (py):    ./install.sh --python 3.12  (override auto-detected Python version)
 set -e
 
+# ── Output style (aligned with studio/setup.sh) ──
+RULE=""
+_rule_i=0
+while [ "$_rule_i" -lt 52 ]; do
+    RULE="${RULE}─"
+    _rule_i=$((_rule_i + 1))
+done
+if [ -n "${NO_COLOR:-}" ]; then
+    C_TITLE= C_DIM= C_OK= C_WARN= C_ERR= C_RST=
+elif [ -t 1 ] || [ -n "${FORCE_COLOR:-}" ]; then
+    _ESC="$(printf '\033')"
+    C_TITLE="${_ESC}[38;5;150m"
+    C_DIM="${_ESC}[38;5;245m"
+    C_OK="${_ESC}[38;5;108m"
+    C_WARN="${_ESC}[38;5;136m"
+    C_ERR="${_ESC}[91m"
+    C_RST="${_ESC}[0m"
+else
+    C_TITLE= C_DIM= C_OK= C_WARN= C_ERR= C_RST=
+fi
+
+step()    { printf "  ${C_DIM}%-15.15s${C_RST}${3:-$C_OK}%s${C_RST}\n" "$1" "$2"; }
+substep() { printf "  ${C_DIM}%-15s${2:-$C_DIM}%s${C_RST}\n" "" "$1"; }
+
 # ── Parse flags ──
 STUDIO_LOCAL_INSTALL=false
 PACKAGE_NAME="unsloth"
 _USER_PYTHON=""
 _NO_TORCH_FLAG=false
+_VERBOSE=false
 _next_is_package=false
 _next_is_python=false
 for arg in "$@"; do
@@ -31,9 +56,44 @@ for arg in "$@"; do
         --package) _next_is_package=true ;;
         --python) _next_is_python=true ;;
         --no-torch) _NO_TORCH_FLAG=true ;;
+        --verbose|-v) _VERBOSE=true ;;
     esac
 done
 
+if [ "$_VERBOSE" = true ]; then
+    export UNSLOTH_VERBOSE=1
+fi
+
+_is_verbose() {
+    [ "${UNSLOTH_VERBOSE:-0}" = "1" ]
+}
+
+run_maybe_quiet() {
+    if _is_verbose; then
+        "$@"
+    else
+        "$@" > /dev/null 2>&1
+    fi
+}
+
+run_install_cmd() {
+    _label="$1"
+    shift
+    if _is_verbose; then
+        "$@" && return 0
+        _rc=$?
+        step "error" "$_label failed (exit code $_rc)" "$C_ERR" >&2
+        return "$_rc"
+    fi
+    _log=$(mktemp)
+    "$@" >"$_log" 2>&1 && { rm -f "$_log"; return 0; }
+    _rc=$?
+    step "error" "$_label failed (exit code $_rc)" "$C_ERR" >&2
+    cat "$_log" >&2
+    rm -f "$_log"
+    return $_rc
+}
+
 if [ "$_next_is_package" = true ]; then
     echo "❌ ERROR: --package requires an argument." >&2
     exit 1
@@ -643,14 +703,13 @@ WSLPS1_EOF
     fi
 
     if [ "$_css_created" -eq 1 ]; then
-        echo "[OK] Created Unsloth Studio shortcut(s)"
+        substep "Created Unsloth Studio shortcut"
     fi
 }
 
 echo ""
-echo "========================================="
-echo "   Unsloth Studio Installer"
-echo "========================================="
+printf "  ${C_TITLE}%s${C_RST}\n" "🦥 Unsloth Studio Installer"
+printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
 echo ""
 
 # ── Detect platform ──
@@ -660,7 +719,7 @@ if [ "$(uname)" = "Darwin" ]; then
 elif grep -qi microsoft /proc/version 2>/dev/null; then
     OS="wsl"
 fi
-echo "==> Platform: $OS"
+step "platform" "$OS"
 
 # ── Architecture detection & Python version ──
 _ARCH=$(uname -m)
@@ -740,8 +799,8 @@ MISSING=$(echo "$MISSING" | sed 's/^ *//')
 
 if [ -n "$MISSING" ]; then
     echo ""
-    echo "==> Unsloth Studio needs these packages: $MISSING"
-    echo "    These are needed to build the GGUF inference engine."
+    step "deps" "missing: $MISSING" "$C_WARN"
+    substep "These are needed to build the GGUF inference engine."
 
     case "$OS" in
         macos)
@@ -766,7 +825,7 @@ if [ -n "$MISSING" ]; then
     esac
     echo ""
 else
-    echo "==> All system dependencies found."
+    step "deps" "all system dependencies found"
 fi
 
 # ── Install uv ──
@@ -812,10 +871,10 @@ _uv_version_ok() {
 }
 
 if ! command -v uv >/dev/null 2>&1 || ! _uv_version_ok uv; then
-    echo "==> Installing uv package manager..."
+    substep "installing uv package manager..."
     _uv_tmp=$(mktemp)
     download "https://astral.sh/uv/install.sh" "$_uv_tmp"
-    sh "$_uv_tmp" </dev/null
+    run_maybe_quiet sh "$_uv_tmp" </dev/null
     rm -f "$_uv_tmp"
     if [ -f "$HOME/.local/bin/env" ]; then
         . "$HOME/.local/bin/env"
@@ -833,7 +892,7 @@ if [ -x "$VENV_DIR/bin/python" ]; then
     rm -rf "$VENV_DIR"
 elif [ -x "$STUDIO_HOME/.venv/bin/python" ]; then
     # Old layout exists — validate before migrating
-    echo "==> Found legacy Studio environment, validating..."
+    substep "found legacy Studio environment, validating..."
     if "$STUDIO_HOME/.venv/bin/python" -c "
 import torch
 device = 'cuda' if torch.cuda.is_available() else 'cpu'
@@ -866,8 +925,9 @@ if [ "$SKIP_TORCH" = true ] && [ "$MAC_INTEL" = true ] && [ -z "$_USER_PYTHON" ]
 fi
 
 if [ ! -x "$VENV_DIR/bin/python" ]; then
-    echo "==> Creating Python ${PYTHON_VERSION} virtual environment (${VENV_DIR})..."
-    uv venv "$VENV_DIR" --python "$PYTHON_VERSION"
+    step "venv" "creating Python ${PYTHON_VERSION} virtual environment"
+    substep "$VENV_DIR"
+    run_install_cmd "create venv" uv venv "$VENV_DIR" --python "$PYTHON_VERSION"
 fi
 
 # Guard against Python 3.13.8 torch import bug on Apple Silicon
@@ -880,12 +940,13 @@ if [ -z "$_USER_PYTHON" ] && [ "$OS" = "macos" ] && [ "$_ARCH" = "arm64" ]; then
         echo "  Recreating venv with Python 3.12..."
         rm -rf "$VENV_DIR"
         PYTHON_VERSION="3.12"
-        uv venv "$VENV_DIR" --python "$PYTHON_VERSION"
+        run_install_cmd "recreate venv" uv venv "$VENV_DIR" --python "$PYTHON_VERSION"
     fi
 fi
 
 if [ -x "$VENV_DIR/bin/python" ]; then
-    echo "==> Using environment at ${VENV_DIR}"
+    step "venv" "using environment"
+    substep "${VENV_DIR}"
 fi
 
 # ── Resolve repo root (for --local installs) ──
@@ -960,71 +1021,71 @@ _VENV_PY="$VENV_DIR/bin/python"
 if [ "$_MIGRATED" = true ]; then
     # Migrated env: force-reinstall unsloth+unsloth-zoo to ensure clean state
     # in the new venv location, while preserving existing torch/CUDA
-    echo "==> Upgrading unsloth in migrated environment..."
+    substep "upgrading unsloth in migrated environment..."
     if [ "$SKIP_TORCH" = true ]; then
         # No-torch: install unsloth + unsloth-zoo with --no-deps (current
         # PyPI metadata still declares torch as a hard dep), then install
         # runtime deps (typer, safetensors, transformers, etc.) with --no-deps
         # to prevent transitive torch resolution.
-        uv pip install --python "$_VENV_PY" --no-deps \
+        run_install_cmd "install unsloth (migrated no-torch)" uv pip install --python "$_VENV_PY" --no-deps \
             --reinstall-package unsloth --reinstall-package unsloth-zoo \
             "unsloth>=2026.3.16" unsloth-zoo
         _NO_TORCH_RT="$(_find_no_torch_runtime)"
         if [ -n "$_NO_TORCH_RT" ]; then
-            uv pip install --python "$_VENV_PY" --no-deps -r "$_NO_TORCH_RT"
+            run_install_cmd "install no-torch runtime deps" uv pip install --python "$_VENV_PY" --no-deps -r "$_NO_TORCH_RT"
         fi
     else
-        uv pip install --python "$_VENV_PY" \
+        run_install_cmd "install unsloth (migrated)" uv pip install --python "$_VENV_PY" \
             --reinstall-package unsloth --reinstall-package unsloth-zoo \
             "unsloth>=2026.3.16" unsloth-zoo
     fi
     if [ "$STUDIO_LOCAL_INSTALL" = true ]; then
-        echo "==> Overlaying local repo (editable)..."
-        uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
+        substep "overlaying local repo (editable)..."
+        run_install_cmd "overlay local repo" uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
     fi
 elif [ -n "$TORCH_INDEX_URL" ]; then
     # Fresh: Step 1 - install torch from explicit index (skip when --no-torch or Intel Mac)
     if [ "$SKIP_TORCH" = true ]; then
-        echo "==> Skipping PyTorch (--no-torch or Intel Mac x86_64)."
+        substep "skipping PyTorch (--no-torch or Intel Mac x86_64)." "$C_WARN"
     else
-        echo "==> Installing PyTorch ($TORCH_INDEX_URL)..."
-        uv pip install --python "$_VENV_PY" "torch>=2.4,<2.11.0" torchvision torchaudio \
+        substep "installing PyTorch ($TORCH_INDEX_URL)..."
+        run_install_cmd "install PyTorch" uv pip install --python "$_VENV_PY" "torch>=2.4,<2.11.0" torchvision torchaudio \
             --index-url "$TORCH_INDEX_URL"
     fi
     # Fresh: Step 2 - install unsloth, preserving pre-installed torch
-    echo "==> Installing unsloth (this may take a few minutes)..."
+    substep "installing unsloth (this may take a few minutes)..."
     if [ "$SKIP_TORCH" = true ]; then
         # No-torch: install unsloth + unsloth-zoo with --no-deps, then
         # runtime deps (typer, safetensors, transformers, etc.) with --no-deps.
-        uv pip install --python "$_VENV_PY" --no-deps \
+        run_install_cmd "install unsloth (no-torch)" uv pip install --python "$_VENV_PY" --no-deps \
             --upgrade-package unsloth --upgrade-package unsloth-zoo \
             "unsloth>=2026.3.16" unsloth-zoo
         _NO_TORCH_RT="$(_find_no_torch_runtime)"
         if [ -n "$_NO_TORCH_RT" ]; then
-            uv pip install --python "$_VENV_PY" --no-deps -r "$_NO_TORCH_RT"
+            run_install_cmd "install no-torch runtime deps" uv pip install --python "$_VENV_PY" --no-deps -r "$_NO_TORCH_RT"
         fi
         if [ "$STUDIO_LOCAL_INSTALL" = true ]; then
-            echo "==> Overlaying local repo (editable)..."
-            uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
+            substep "overlaying local repo (editable)..."
+            run_install_cmd "overlay local repo" uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
         fi
     elif [ "$STUDIO_LOCAL_INSTALL" = true ]; then
-        uv pip install --python "$_VENV_PY" \
+        run_install_cmd "install unsloth (local)" uv pip install --python "$_VENV_PY" \
             --upgrade-package unsloth "unsloth>=2026.3.16" unsloth-zoo
-        echo "==> Overlaying local repo (editable)..."
-        uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
+        substep "overlaying local repo (editable)..."
+        run_install_cmd "overlay local repo" uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
     else
-        uv pip install --python "$_VENV_PY" \
+        run_install_cmd "install unsloth" uv pip install --python "$_VENV_PY" \
             --upgrade-package unsloth "$PACKAGE_NAME"
     fi
 else
     # Fallback: GPU detection failed to produce a URL -- let uv resolve torch
-    echo "==> Installing unsloth (this may take a few minutes)..."
+    substep "installing unsloth (this may take a few minutes)..."
     if [ "$STUDIO_LOCAL_INSTALL" = true ]; then
-        uv pip install --python "$_VENV_PY" unsloth-zoo "unsloth>=2026.3.16" --torch-backend=auto
-        echo "==> Overlaying local repo (editable)..."
-        uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
+        run_install_cmd "install unsloth (auto torch backend)" uv pip install --python "$_VENV_PY" unsloth-zoo "unsloth>=2026.3.16" --torch-backend=auto
+        substep "overlaying local repo (editable)..."
+        run_install_cmd "overlay local repo" uv pip install --python "$_VENV_PY" -e "$_REPO_ROOT" --no-deps
     else
-        uv pip install --python "$_VENV_PY" "$PACKAGE_NAME" --torch-backend=auto
+        run_install_cmd "install unsloth (auto torch backend)" uv pip install --python "$_VENV_PY" "$PACKAGE_NAME" --torch-backend=auto
     fi
 fi
 
@@ -1059,19 +1120,33 @@ if [ -n "$VENV_ABS_BIN" ]; then
     export PATH="$VENV_ABS_BIN:$PATH"
 fi
 
-echo "==> Running unsloth setup..."
+if ! command -v bash >/dev/null 2>&1; then
+    step "setup" "bash is required to run studio setup" "$C_ERR"
+    substep "Please install bash and re-run install.sh"
+    exit 1
+fi
+
+step "setup" "running unsloth studio update..."
+# install.sh already installs base packages (unsloth + unsloth-zoo) and
+# no-torch-runtime.txt above, so tell install_python_stack.py to skip
+# the base step to avoid redundant reinstallation.
+_SKIP_BASE=1
+# Run setup.sh outside set -e so that a llama.cpp build failure (exit 1)
+# does not skip PATH setup, shortcuts, and launch below.  We capture the
+# exit code and propagate it after post-install steps finish.
+_SETUP_EXIT=0
 if [ "$STUDIO_LOCAL_INSTALL" = true ]; then
-    SKIP_STUDIO_BASE=1 \
+    SKIP_STUDIO_BASE="$_SKIP_BASE" \
     STUDIO_PACKAGE_NAME="$PACKAGE_NAME" \
     STUDIO_LOCAL_INSTALL=1 \
     STUDIO_LOCAL_REPO="$_REPO_ROOT" \
     UNSLOTH_NO_TORCH="$SKIP_TORCH" \
-    bash "$SETUP_SH" </dev/null
+    bash "$SETUP_SH" </dev/null || _SETUP_EXIT=$?
 else
-    SKIP_STUDIO_BASE=1 \
+    SKIP_STUDIO_BASE="$_SKIP_BASE" \
     STUDIO_PACKAGE_NAME="$PACKAGE_NAME" \
     UNSLOTH_NO_TORCH="$SKIP_TORCH" \
-    bash "$SETUP_SH" </dev/null
+    bash "$SETUP_SH" </dev/null || _SETUP_EXIT=$?
 fi
 
 # ── Make 'unsloth' available globally via ~/.local/bin ──
@@ -1096,7 +1171,7 @@ case ":$PATH:" in
                 echo '' >> "$_SHELL_PROFILE"
                 echo '# Added by Unsloth installer' >> "$_SHELL_PROFILE"
                 echo 'export PATH="$HOME/.local/bin:$PATH"' >> "$_SHELL_PROFILE"
-                echo "==> Added ~/.local/bin to PATH in $_SHELL_PROFILE"
+                step "path" "added ~/.local/bin to PATH in $_SHELL_PROFILE"
             fi
         fi
         export PATH="$_LOCAL_BIN:$PATH"
@@ -1105,17 +1180,30 @@ esac
 
 create_studio_shortcuts "$VENV_ABS_BIN/unsloth" "$OS"
 
+# If setup.sh failed, report and exit now.
+# PATH and shortcuts are already set up so the user can fix and retry.
+if [ "$_SETUP_EXIT" -ne 0 ]; then
+    echo ""
+    step "error" "studio setup failed (exit code $_SETUP_EXIT)" "$C_ERR"
+    substep "Check the output above for details, then re-run:"
+    if [ "$STUDIO_LOCAL_INSTALL" = true ]; then
+        substep "  unsloth studio update --local"
+    else
+        substep "  unsloth studio update"
+    fi
+    echo ""
+    exit "$_SETUP_EXIT"
+fi
+
 echo ""
-echo "========================================="
-echo "   Unsloth Studio installed!"
-echo "========================================="
+printf "  ${C_TITLE}%s${C_RST}\n" "Unsloth Studio installed!"
+printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
 echo ""
 
 # Launch studio automatically in interactive terminals;
 # in non-interactive environments (Docker, CI, cloud-init) just print instructions.
 if [ -t 1 ]; then
-    echo "==> Launching Unsloth Studio..."
-    echo ""
+    step "launch" "starting Unsloth Studio..."
     "$VENV_DIR/bin/unsloth" studio -H 0.0.0.0 -p 8888
     _LAUNCH_EXIT=$?
     if [ "$_LAUNCH_EXIT" -ne 0 ] && [ "$_MIGRATED" = true ]; then
@@ -1130,13 +1218,10 @@ if [ -t 1 ]; then
     fi
     exit "$_LAUNCH_EXIT"
 else
-    echo "  To launch, run:"
-    echo ""
-    echo "    unsloth studio -H 0.0.0.0 -p 8888"
-    echo ""
-    echo "  Or activate the environment first:"
-    echo ""
-    echo "    source ${VENV_DIR}/bin/activate"
-    echo "    unsloth studio -H 0.0.0.0 -p 8888"
+    step "launch" "manual commands:"
+    substep "unsloth studio -H 0.0.0.0 -p 8888"
+    substep "or activate env first:"
+    substep "source ${VENV_DIR}/bin/activate"
+    substep "unsloth studio -H 0.0.0.0 -p 8888"
     echo ""
 fi
diff --git a/studio/backend/startup_banner.py b/studio/backend/startup_banner.py
index 54acac0540..16b41d484c 100644
--- a/studio/backend/startup_banner.py
+++ b/studio/backend/startup_banner.py
@@ -20,7 +20,7 @@ def stdout_supports_color() -> bool:
         return True
     try:
         return sys.stdout.isatty()
-    except Exception:
+    except (AttributeError, OSError, ValueError):
         return False
 
 
@@ -52,28 +52,36 @@ def style(text: str, code: str) -> str:
 
     ipv6_bind = bind_host in ("::", "::1")
     if ipv6_bind:
-        local_url = f"http://[::1]:{port}"
+        loopback_url = f"http://[::1]:{port}"
         alt_local = f"http://localhost:{port}"
     else:
-        local_url = f"http://127.0.0.1:{port}"
+        loopback_url = f"http://127.0.0.1:{port}"
         alt_local = f"http://localhost:{port}"
     if ":" in display_host:
         external_url = f"http://[{display_host}]:{port}"
     else:
         external_url = f"http://{display_host}:{port}"
+
     listen_all = bind_host in ("0.0.0.0", "::")
     loopback_bind = bind_host in ("127.0.0.1", "localhost", "::1")
-    api_base = local_url if listen_all or loopback_bind else external_url
+
+    # Use loopback URL only when the server is reachable on loopback;
+    # otherwise show the actual bound address.
+    primary_url = loopback_url if listen_all or loopback_bind else external_url
+    tip_url = alt_local if listen_all or loopback_bind else external_url
+    api_base = primary_url
 
     lines: list[str] = [
         "",
         style("🦥 Unsloth Studio is running", title),
         style("─" * 52, dim),
-        style("  On this machine — open this in your browser:", dim),
-        style(f"    {local_url}", local_url_style),
-        style(f"    (same as {alt_local})", dim),
+        style("  On this machine -- open this in your browser:", dim),
+        style(f"    {primary_url}", local_url_style),
     ]
 
+    if (listen_all or loopback_bind) and primary_url != alt_local:
+        lines.append(style(f"    (same as {alt_local})", dim))
+
     if listen_all and display_host not in (
         "127.0.0.1",
         "localhost",
@@ -88,7 +96,7 @@ def style(text: str, code: str) -> str:
                 style(f"    {external_url}", secondary),
             ]
         )
-    elif not listen_all and bind_host not in ("127.0.0.1", "localhost", "::1"):
+    elif not listen_all and not loopback_bind and external_url != primary_url:
         lines.extend(
             [
                 "",
@@ -105,7 +113,7 @@ def style(text: str, code: str) -> str:
             style(f"    {api_base}/api/health", secondary),
             style("─" * 52, dim),
             style(
-                "  Tip: if you are on the same computer, use the Local link above.",
+                f"  Tip: if you are on this computer, open {tip_url}/ in your browser.",
                 dim,
             ),
             "",
diff --git a/studio/install_python_stack.py b/studio/install_python_stack.py
index e8ae22f470..f2981ea665 100644
--- a/studio/install_python_stack.py
+++ b/studio/install_python_stack.py
@@ -110,7 +110,7 @@ def _stdout_supports_color() -> bool:
     try:
         if not sys.stdout.isatty():
             return False
-    except Exception:
+    except (AttributeError, OSError, ValueError):
         return False
     if IS_WINDOWS:
         try:
@@ -121,7 +121,7 @@ def _stdout_supports_color() -> bool:
             mode = ctypes.c_ulong()
             kernel32.GetConsoleMode(handle, ctypes.byref(mode))
             kernel32.SetConsoleMode(handle, mode.value | 0x0004)
-        except Exception:
+        except (ImportError, AttributeError, OSError):
             return False
     return True
 
@@ -460,7 +460,7 @@ def install_python_stack() -> int:
 
     # 3. Core packages: unsloth-zoo + unsloth (or custom package name)
     if skip_base:
-        print(_green(f"✅ {package_name} already installed — skipping base packages"))
+        pass
     elif NO_TORCH:
         # No-torch update path: install unsloth + unsloth-zoo with --no-deps
         # (current PyPI metadata still declares torch as a hard dep), then
diff --git a/studio/setup.ps1 b/studio/setup.ps1
index 9a1d332a60..6e19fbea83 100644
--- a/studio/setup.ps1
+++ b/studio/setup.ps1
@@ -12,9 +12,8 @@
 .NOTES
     Default output is minimal (step/substep), aligned with studio/setup.sh.
 
-    FULL / LEGACY LOGGING (defensible audit trail, multi-line [OK]/[WARN]/paths):
+    FULL / LEGACY LOGGING (defensible audit trail, detailed multi-line output):
       unsloth studio setup --verbose
-      (sets UNSLOTH_VERBOSE=1; same as install_python_stack.py)
       Or:  $env:UNSLOTH_VERBOSE='1'; powershell -File .\studio\setup.ps1
       Or:  .\setup.ps1 --verbose
 #>
@@ -23,14 +22,20 @@ $ErrorActionPreference = "Stop"
 $ScriptDir = Split-Path -Parent $MyInvocation.MyCommand.Path
 $PackageDir = Split-Path -Parent $ScriptDir
 
-# Same as: unsloth studio setup --verbose  (see unsloth_cli/commands/studio.py)
+# Verbose can be enabled either by CLI flag or by UNSLOTH_VERBOSE=1.
+$script:UnslothVerbose = ($env:UNSLOTH_VERBOSE -eq '1')
 foreach ($a in $args) {
     if ($a -eq '--verbose' -or $a -eq '-v') {
-        $env:UNSLOTH_VERBOSE = '1'
+        $script:UnslothVerbose = $true
         break
     }
 }
-$script:UnslothVerbose = ($env:UNSLOTH_VERBOSE -eq '1')
+# Propagate to child processes (e.g. install_python_stack.py) so they
+# also respect verbose mode. Process-scoped -- does not persist.
+if ($script:UnslothVerbose) {
+    $env:UNSLOTH_VERBOSE = '1'
+}
+$script:LlamaCppDegraded = $false
 
 # Detect if running from pip install (no frontend/ dir in studio)
 $FrontendDir = Join-Path $ScriptDir "frontend"
@@ -331,6 +336,51 @@ function Write-SetupVerboseDetail {
     }
 }
 
+function Invoke-SetupCommand {
+    param(
+        [Parameter(Mandatory = $true)][scriptblock]$Command,
+        [switch]$AlwaysQuiet
+    )
+    $prevEap = $ErrorActionPreference
+    $ErrorActionPreference = "Continue"
+    try {
+        # Reset to avoid stale values from prior native commands.
+        $global:LASTEXITCODE = 0
+        if ($script:UnslothVerbose -and -not $AlwaysQuiet) {
+            # Merge stderr into stdout so progress/warning output stays visible
+            # without flipping $? on successful native commands (PS 5.1 treats
+            # stderr records as errors that set $? = $false even on exit code 0).
+            & $Command 2>&1 | Out-Host
+        } else {
+            $output = & $Command 2>&1 | Out-String
+            if ($LASTEXITCODE -ne 0) {
+                Write-Host $output -ForegroundColor Red
+            }
+        }
+        return [int]$LASTEXITCODE
+    } finally {
+        $ErrorActionPreference = $prevEap
+    }
+}
+
+function Write-LlamaFailureLog {
+    param(
+        [string]$Output,
+        [int]$MaxLines = 120
+    )
+    if (-not $Output) { return }
+    $lines = @(
+        ($Output -split "`r?`n") | Where-Object { -not [string]::IsNullOrWhiteSpace($_) }
+    )
+    if ($lines.Count -eq 0) { return }
+    if ($lines.Count -gt $MaxLines) {
+        Write-Host "   Showing last $MaxLines lines:" -ForegroundColor DarkGray
+        $lines = $lines | Select-Object -Last $MaxLines
+    }
+    foreach ($line in $lines) {
+        Write-Host "   | $line" -ForegroundColor DarkGray
+    }
+}
 function step {
     param(
         [Parameter(Mandatory = $true)][string]$Label,
@@ -409,7 +459,7 @@ $NvidiaSmiExe = $null  # Absolute path -- survives Refresh-Environment
 try {
     $nvSmiCmd = Get-Command nvidia-smi -ErrorAction SilentlyContinue
     if ($nvSmiCmd) {
-        & $nvSmiCmd.Source 2>&1 | Out-Null
+        & $nvSmiCmd.Source *> $null
         if ($LASTEXITCODE -eq 0) {
             $HasNvidiaSmi = $true
             $NvidiaSmiExe = $nvSmiCmd.Source
@@ -426,7 +476,7 @@ if (-not $HasNvidiaSmi) {
     foreach ($p in $nvSmiDefaults) {
         if (Test-Path $p) {
             try {
-                & $p 2>&1 | Out-Null
+                & $p *> $null
                 if ($LASTEXITCODE -eq 0) {
                     $HasNvidiaSmi = $true
                     $NvidiaSmiExe = $p
@@ -459,7 +509,7 @@ try {
 } catch {}
 
 if ($LongPathsEnabled) {
-    Write-Host "[OK] Windows Long Paths enabled" -ForegroundColor Green
+    step "long paths" "enabled"
 } else {
     Write-Host "Windows Long Paths not enabled (required for Triton compilation and deep dependency paths)." -ForegroundColor Yellow
     Write-Host "   Requesting admin access to fix..." -ForegroundColor Yellow
@@ -470,12 +520,12 @@ if ($LongPathsEnabled) {
             -Verb RunAs -Wait -PassThru -ErrorAction Stop
         if ($proc.ExitCode -eq 0) {
             $LongPathsEnabled = $true
-            Write-Host "[OK] Windows Long Paths enabled (via UAC)" -ForegroundColor Green
+            step "long paths" "enabled (via UAC)"
         } else {
-            Write-Host "[WARN] Failed to enable Long Paths (exit code: $($proc.ExitCode))" -ForegroundColor Yellow
+            step "long paths" "failed to enable (exit code: $($proc.ExitCode))" "Yellow"
         }
     } catch {
-        Write-Host "[WARN] Could not enable Long Paths (UAC was declined or not available)" -ForegroundColor Yellow
+        step "long paths" "could not enable (UAC declined/unavailable)" "Yellow"
         Write-Host "       Run this manually in an Admin terminal:" -ForegroundColor Yellow
         Write-Host '       reg add "HKLM\SYSTEM\CurrentControlSet\Control\FileSystem" /v LongPathsEnabled /t REG_DWORD /d 1 /f' -ForegroundColor Cyan
     }
@@ -490,7 +540,7 @@ if (-not $HasGit) {
     $HasWinget = $null -ne (Get-Command winget -ErrorAction SilentlyContinue)
     if ($HasWinget) {
         try {
-            winget install Git.Git --source winget --accept-package-agreements --accept-source-agreements 2>&1 | Out-Null
+            Invoke-SetupCommand { winget install Git.Git --source winget --accept-package-agreements --accept-source-agreements } | Out-Null
             Refresh-Environment
             $HasGit = $null -ne (Get-Command git -ErrorAction SilentlyContinue)
         } catch { }
@@ -514,7 +564,7 @@ if (-not $HasCmake) {
     $HasWinget = $null -ne (Get-Command winget -ErrorAction SilentlyContinue)
     if ($HasWinget) {
         try {
-            winget install Kitware.CMake --source winget --accept-package-agreements --accept-source-agreements 2>&1 | Out-Null
+            Invoke-SetupCommand { winget install Kitware.CMake --source winget --accept-package-agreements --accept-source-agreements } | Out-Null
             Refresh-Environment
             $HasCmake = $null -ne (Get-Command cmake -ErrorAction SilentlyContinue)
         } catch { }
@@ -579,7 +629,7 @@ if ($vsResult) {
     $CmakeGenerator = $vsResult.Generator
     $VsInstallPath = $vsResult.InstallPath
     step "vs" "$CmakeGenerator ($($vsResult.Source))"
-    if ($vsResult.ClExe) { Write-Host "   cl.exe: $($vsResult.ClExe)" -ForegroundColor Gray }
+    if ($vsResult.ClExe) { substep "cl.exe: $($vsResult.ClExe)" }
 } else {
     Write-Host "[ERROR] Visual Studio Build Tools could not be found or installed." -ForegroundColor Red
     Write-Host "        Manual install:" -ForegroundColor Red
@@ -603,14 +653,14 @@ try {
     $smiOut = & $NvidiaSmiExe 2>&1 | Out-String
     if ($smiOut -match "CUDA Version:\s+([\d]+)\.([\d]+)") {
         $DriverMaxCuda = "$($Matches[1]).$($Matches[2])"
-        Write-Host "   Driver supports up to CUDA $DriverMaxCuda" -ForegroundColor Gray
+        substep "driver supports up to CUDA $DriverMaxCuda"
     }
 } catch {}
 
 # Detect compute capability early so we can validate toolkit support
 $CudaArch = Get-CudaComputeCapability
 if ($CudaArch) {
-    Write-Host "   GPU Compute Capability = $($CudaArch.Insert($CudaArch.Length-1, '.')) (sm_$CudaArch)" -ForegroundColor Gray
+    substep "GPU Compute Capability = $($CudaArch.Insert($CudaArch.Length-1, '.')) (sm_$CudaArch)"
 }
 
 # -- Find a toolkit that's compatible with the driver AND the GPU --
@@ -643,16 +693,16 @@ if ($DriverMaxCuda) {
                 if ($CudaArch) {
                     $archOk = Test-NvccArchSupport -NvccExe $candidateNvcc -Arch $CudaArch
                     if (-not $archOk) {
-                        Write-Host "   [INFO] CUDA_PATH toolkit (CUDA $tkMaj.$tkMin) does not support GPU arch sm_$CudaArch" -ForegroundColor Yellow
-                        Write-Host "          Looking for a newer toolkit..." -ForegroundColor Yellow
+                        substep "CUDA_PATH toolkit (CUDA $tkMaj.$tkMin) does not support GPU arch sm_$CudaArch" "Yellow"
+                        substep "Looking for a newer toolkit..." "Yellow"
                     }
                 }
                 if ($archOk) {
                     $NvccPath = $candidateNvcc
-                    Write-Host "   [OK] Using existing CUDA Toolkit at CUDA_PATH (nvcc: $NvccPath)" -ForegroundColor Green
+                    substep "using existing CUDA Toolkit at CUDA_PATH (nvcc: $NvccPath)"
                 }
             } else {
-                Write-Host "   [INFO] CUDA_PATH ($existingCudaPath) has CUDA $tkMaj.$tkMin which exceeds driver max $DriverMaxCuda" -ForegroundColor Yellow
+                substep "CUDA_PATH ($existingCudaPath) has CUDA $tkMaj.$tkMin which exceeds driver max $DriverMaxCuda" "Yellow"
             }
         }
     }
@@ -661,11 +711,11 @@ if ($DriverMaxCuda) {
     if (-not $NvccPath) {
         $NvccPath = Find-Nvcc -MaxVersion $DriverMaxCuda
         if ($NvccPath) {
-            Write-Host "   [OK] Found compatible CUDA Toolkit (nvcc: $NvccPath)" -ForegroundColor Green
+            substep "found compatible CUDA Toolkit (nvcc: $NvccPath)"
             if ($existingCudaPath) {
                 $selectedRoot = Split-Path (Split-Path $NvccPath -Parent) -Parent
                 if ($existingCudaPath.TrimEnd('\') -ne $selectedRoot.TrimEnd('\')) {
-                    Write-Host "   [INFO] Overriding CUDA_PATH from $existingCudaPath to $selectedRoot" -ForegroundColor Yellow
+                    substep "overriding CUDA_PATH from $existingCudaPath to $selectedRoot" "Yellow"
                 }
             }
         } else {
@@ -736,26 +786,26 @@ if (-not $NvccPath) {
             }
 
             if ($BestVersion) {
-                Write-Host "   Installing CUDA Toolkit $BestVersion via winget...  " -ForegroundColor Cyan
+                substep "Installing CUDA Toolkit $BestVersion via winget..."
                 $prevEAPCuda = $ErrorActionPreference
                 $ErrorActionPreference = "Continue"
-                winget install --id=Nvidia.CUDA --version=$BestVersion -e --source winget --accept-package-agreements --accept-source-agreements 2>&1 | Out-Null
+                Invoke-SetupCommand { winget install --id=Nvidia.CUDA --version=$BestVersion -e --source winget --accept-package-agreements --accept-source-agreements } | Out-Null
                 $ErrorActionPreference = $prevEAPCuda
                 Refresh-Environment
                 $NvccPath = Find-Nvcc -MaxVersion $DriverMaxCuda
                 if ($NvccPath) {
-                    Write-Host "   [OK] CUDA Toolkit $BestVersion installed (nvcc: $NvccPath)" -ForegroundColor Green
+                    substep "CUDA Toolkit $BestVersion installed (nvcc: $NvccPath)"
                 }
             } else {
-                Write-Host "   [WARN] No compatible CUDA Toolkit version found in winget (need <= $DriverMaxCuda)" -ForegroundColor Yellow
+                substep "no compatible CUDA Toolkit version found in winget (need <= $DriverMaxCuda)" "Yellow"
             }
         } else {
-            Write-Host "   Installing CUDA Toolkit (latest) via winget..." -ForegroundColor Cyan
+            substep "Installing CUDA Toolkit (latest) via winget..."
             winget install --id=Nvidia.CUDA -e --source winget --accept-package-agreements --accept-source-agreements
             Refresh-Environment
             $NvccPath = Find-Nvcc
             if ($NvccPath) {
-                Write-Host "   [OK] CUDA Toolkit installed (nvcc: $NvccPath)" -ForegroundColor Green
+                substep "CUDA Toolkit installed (nvcc: $NvccPath)"
             }
         }
     }
@@ -781,7 +831,7 @@ $CudaToolkitRoot = Split-Path (Split-Path $NvccPath -Parent) -Parent
 # Always persist CUDA_PATH to User registry so the compatible toolkit is used
 # in future sessions (overwrites any existing value pointing to a newer, incompatible version)
 [Environment]::SetEnvironmentVariable('CUDA_PATH', $CudaToolkitRoot, 'User')
-Write-Host "   Persisted CUDA_PATH=$CudaToolkitRoot to user environment" -ForegroundColor Gray
+substep "Persisted CUDA_PATH=$CudaToolkitRoot to user environment"
 # Clear all versioned CUDA_PATH_V* env vars in this process to prevent
 # cmake/MSBuild from discovering a conflicting CUDA installation.
 $cudaPathVars = @([Environment]::GetEnvironmentVariables('Process').Keys | Where-Object { $_ -match '^CUDA_PATH_V' })
@@ -793,7 +843,7 @@ $tkDirName = Split-Path $CudaToolkitRoot -Leaf
 if ($tkDirName -match '^v(\d+)\.(\d+)') {
     $cudaPathVerVar = "CUDA_PATH_V$($Matches[1])_$($Matches[2])"
     [Environment]::SetEnvironmentVariable($cudaPathVerVar, $CudaToolkitRoot, 'Process')
-    Write-Host "   Set $cudaPathVerVar (cleared other CUDA_PATH_V* vars)" -ForegroundColor Gray
+    substep "Set $cudaPathVerVar (cleared other CUDA_PATH_V* vars)"
 }
 # Ensure nvcc's bin dir is on PATH for this process
 $nvccBinDir = Split-Path $NvccPath -Parent
@@ -808,7 +858,7 @@ if (-not $userPath -or $userPath -notlike "*$nvccBinDir*") {
     } else {
         [Environment]::SetEnvironmentVariable('Path', "$nvccBinDir", 'User')
     }
-    Write-Host "   Persisted CUDA bin dir to user PATH" -ForegroundColor Gray
+    substep "Persisted CUDA bin dir to user PATH"
 }
 
 # -- Ensure CUDA ↔ Visual Studio integration files exist --
@@ -821,10 +871,10 @@ if ($VsInstallPath -and $CudaToolkitRoot) {
     if ((Test-Path $cudaExtras) -and (Test-Path $vsCustomizations)) {
         $hasTargets = Get-ChildItem $vsCustomizations -Filter "CUDA *.targets" -ErrorAction SilentlyContinue
         if (-not $hasTargets) {
-            Write-Host "   [INFO] CUDA VS integration missing -- copying .targets files..." -ForegroundColor Yellow
+            substep "CUDA VS integration missing -- copying .targets files..." "Yellow"
             try {
                 Copy-Item "$cudaExtras\*" $vsCustomizations -Force -ErrorAction Stop
-                Write-Host "   [OK] CUDA VS integration files installed" -ForegroundColor Green
+                substep "CUDA VS integration files installed"
             } catch {
                 # Direct copy failed (needs admin). Try elevated copy via Start-Process.
                 try {
@@ -832,17 +882,17 @@ if ($VsInstallPath -and $CudaToolkitRoot) {
                     Start-Process powershell -ArgumentList "-NoProfile -Command $copyCmd" -Verb RunAs -Wait -ErrorAction Stop
                     $hasTargetsRetry = Get-ChildItem $vsCustomizations -Filter "CUDA *.targets" -ErrorAction SilentlyContinue
                     if ($hasTargetsRetry) {
-                        Write-Host "   [OK] CUDA VS integration files installed (elevated)" -ForegroundColor Green
+                        substep "CUDA VS integration files installed (elevated)"
                     } else {
                         throw "Copy did not produce .targets files"
                     }
                 } catch {
-                    Write-Host "   [WARN] Could not copy CUDA VS integration files" -ForegroundColor Yellow
-                    Write-Host "          The llama.cpp build may fail with 'No CUDA toolset found'." -ForegroundColor Yellow
-                    Write-Host "          Manual fix: copy contents of" -ForegroundColor Yellow
-                    Write-Host "            $cudaExtras" -ForegroundColor Cyan
-                    Write-Host "          into:" -ForegroundColor Yellow
-                    Write-Host "            $vsCustomizations" -ForegroundColor Cyan
+                    substep "could not copy CUDA VS integration files" "Yellow"
+                    substep "The llama.cpp build may fail with 'No CUDA toolset found'." "Yellow"
+                    substep "Manual fix: copy contents of" "Yellow"
+                    substep "$cudaExtras"
+                    substep "into:" "Yellow"
+                    substep "$vsCustomizations"
                 }
             }
         }
@@ -850,16 +900,16 @@ if ($VsInstallPath -and $CudaToolkitRoot) {
 }
 
 step "cuda" $NvccPath
-Write-Host "   CUDA_PATH      = $CudaToolkitRoot" -ForegroundColor Gray
-Write-Host "   CudaToolkitDir = $CudaToolkitRoot\" -ForegroundColor Gray
+substep "CUDA_PATH      = $CudaToolkitRoot"
+substep "CudaToolkitDir = $CudaToolkitRoot\"
 
 # $CudaArch was detected earlier (before toolkit selection) so it could
 # influence which toolkit we picked.  Just log the final state here.
 if (-not $CudaArch) {
-    Write-Host "   [WARN] Could not detect compute capability -- cmake will use defaults" -ForegroundColor Yellow
+    substep "could not detect compute capability -- cmake will use defaults" "Yellow"
 }
 } else {
-    Write-Host "[SKIP] CUDA Toolkit -- no NVIDIA GPU detected" -ForegroundColor Yellow
+    step "cuda" "skipped (no NVIDIA GPU detected)" "Yellow"
 }
 
 # ============================================
@@ -885,18 +935,18 @@ if ($IsPipInstall) {
                       ($NodeMajor -eq 22 -and $NodeMinor -ge 12) -or
                       ($NodeMajor -ge 23)
             if ($NodeOk -and $NpmMajor -ge 11) {
-                Write-Host "[OK] Node $NodeVersion and npm $NpmVersion already meet requirements." -ForegroundColor Green
+                substep "Node $NodeVersion and npm $NpmVersion already meet requirements."
                 $NeedNode = $false
             } else {
-                Write-Host "[WARN] Node $NodeVersion / npm $NpmVersion too old." -ForegroundColor Yellow
+                substep "Node $NodeVersion / npm $NpmVersion too old." "Yellow"
             }
         }
     } catch {
-        Write-Host "[WARN] Node/npm not found." -ForegroundColor Yellow
+        substep "Node/npm not found." "Yellow"
     }
 
     if ($NeedNode) {
-        Write-Host "Installing Node.js LTS via winget..." -ForegroundColor Cyan
+        substep "installing Node.js LTS via winget..."
         try {
             winget install OpenJS.NodeJS.LTS --source winget --accept-package-agreements --accept-source-agreements
             Refresh-Environment
@@ -912,19 +962,19 @@ if ($IsPipInstall) {
     # ── bun (optional, faster package installs) ──
     # Installed via npm — Node is already guaranteed above. Works on all platforms.
     if (-not (Get-Command bun -ErrorAction SilentlyContinue)) {
-        Write-Host "   Installing bun (faster frontend package installs)..." -ForegroundColor DarkGray
+        substep "installing bun (faster frontend package installs)..."
         $prevEAP_bun = $ErrorActionPreference
         $ErrorActionPreference = "Continue"
-        npm install -g bun 2>&1 | Out-Null
+        Invoke-SetupCommand { npm install -g bun } | Out-Null
         $ErrorActionPreference = $prevEAP_bun
         Refresh-Environment
         if (Get-Command bun -ErrorAction SilentlyContinue) {
-            Write-Host "[OK] bun installed ($(bun --version))" -ForegroundColor Green
+            substep "bun installed ($(bun --version))"
         } else {
-            Write-Host "[OK] bun install skipped (npm will be used instead)" -ForegroundColor DarkGray
+            substep "bun install skipped (npm will be used instead)"
         }
     } else {
-        Write-Host "[OK] bun already installed ($(bun --version))" -ForegroundColor Green
+        substep "bun already installed ($(bun --version))"
     }
 }
 
@@ -939,7 +989,7 @@ if ($HasPython) {
     if ($PyVer -match "(\d+)\.(\d+)") {
         $PyMajor = [int]$Matches[1]; $PyMinor = [int]$Matches[2]
         if ($PyMajor -eq 3 -and $PyMinor -ge 11 -and $PyMinor -lt 14) {
-            Write-Host "[OK] Python $PyVer" -ForegroundColor Green
+            substep "Python $PyVer"
             $PythonOk = $true
         } else {
             Write-Host "[ERROR] Python $PyVer is outside supported range (need >= 3.11 and < 3.14)." -ForegroundColor Red
@@ -979,12 +1029,12 @@ if ($LASTEXITCODE -eq 0 -and $ScriptsDir -and (Test-Path $ScriptsDir)) {
         if (-not ($ProcessPathEntries | Where-Object { $_.TrimEnd('\') -eq $ScriptsDir })) {
             $env:PATH = "$ScriptsDir;$env:PATH"
         }
-        Write-Host "   Persisted Python Scripts dir to user PATH: $ScriptsDir" -ForegroundColor Gray
+        substep "Persisted Python Scripts dir to user PATH: $ScriptsDir"
     }
 }
 
 Write-Host ""
-Write-Host "--- System prerequisites ready ---" -ForegroundColor Green
+step "system" "prerequisites ready"
 Write-Host ""
 
 # ==========================================================================
@@ -1019,12 +1069,12 @@ if ($IsPipInstall) {
         $NeedFrontendBuild = $false
         step "frontend" "up to date"
     } else {
-        Write-Host "[INFO] Frontend source changed since last build -- rebuilding..." -ForegroundColor Yellow
+        substep "Frontend source changed since last build -- rebuilding..." "Yellow"
     }
 }
 if ($NeedFrontendBuild -and -not $IsPipInstall) {
     Write-Host ""
-    Write-Host "Building frontend..." -ForegroundColor Cyan
+    substep "building frontend..."
 
     # ── Tailwind v4 .gitignore workaround ──
     # Tailwind v4's oxide scanner respects .gitignore in parent directories.
@@ -1041,7 +1091,7 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
                 $hidden = "$gi._twbuild"
                 Rename-Item -Path $gi -NewName (Split-Path $hidden -Leaf) -Force
                 $HiddenGitignores += $gi
-                Write-Host "   [INFO] Temporarily hiding $gi (venv .gitignore blocks Tailwind scanner)" -ForegroundColor DarkGray
+                substep "Temporarily hiding $gi (venv .gitignore blocks Tailwind scanner)"
             }
         }
         $WalkDir = Split-Path $WalkDir -Parent
@@ -1061,8 +1111,7 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
     # the cache + retry once before falling back to npm.
     if ($UseBun) {
         Write-Host "   Using bun for package install (faster)" -ForegroundColor DarkGray
-        & bun install *> $null
-        $bunExit = $LASTEXITCODE
+        $bunExit = Invoke-SetupCommand { bun install }
         # On Windows, .bin/ entries can be tsc, tsc.cmd, or tsc.ps1
         $hasTsc = (Test-Path "node_modules\.bin\tsc") -or (Test-Path "node_modules\.bin\tsc.cmd")
         $hasVite = (Test-Path "node_modules\.bin\vite") -or (Test-Path "node_modules\.bin\vite.cmd")
@@ -1073,9 +1122,8 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
             if (Test-Path "node_modules") {
                 Remove-Item "node_modules" -Recurse -Force -ErrorAction SilentlyContinue
             }
-            & bun pm cache rm *> $null
-            & bun install *> $null
-            $bunExit = $LASTEXITCODE
+            Invoke-SetupCommand { bun pm cache rm } | Out-Null
+            $bunExit = Invoke-SetupCommand { bun install }
             $hasTsc = (Test-Path "node_modules\.bin\tsc") -or (Test-Path "node_modules\.bin\tsc.cmd")
             $hasVite = (Test-Path "node_modules\.bin\vite") -or (Test-Path "node_modules\.bin\vite.cmd")
             if ($bunExit -ne 0 -or -not $hasTsc -or -not $hasVite) {
@@ -1086,7 +1134,7 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
                 $UseBun = $false
             }
         } else {
-            Write-Host "   [WARN] bun install failed (exit $bunExit), falling back to npm" -ForegroundColor Yellow
+            substep "bun install failed (exit $bunExit), falling back to npm" "Yellow"
             if (Test-Path "node_modules") {
                 Remove-Item "node_modules" -Recurse -Force -ErrorAction SilentlyContinue
             }
@@ -1094,8 +1142,7 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
         }
     }
     if (-not $UseBun) {
-        & npm install *> $null
-        $npmExit = $LASTEXITCODE
+        $npmExit = Invoke-SetupCommand { npm install }
         if ($npmExit -ne 0) {
             Pop-Location
             $ErrorActionPreference = $prevEAP_npm
@@ -1107,8 +1154,7 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
     }
 
     # Always use npm to run the build (Node runtime — avoids bun Windows runtime issues)
-    & npm run build *> $null
-    $buildExit = $LASTEXITCODE
+    $buildExit = Invoke-SetupCommand { npm run build }
     if ($buildExit -ne 0) {
         Pop-Location
         $ErrorActionPreference = $prevEAP_npm
@@ -1135,27 +1181,27 @@ if ($NeedFrontendBuild -and -not $IsPipInstall) {
 }
 
 if (Test-Path $OxcValidatorDir) {
-    Write-Host "Installing OXC validator runtime..." -ForegroundColor Cyan
+    substep "installing OXC validator runtime..."
     $prevEAP_oxc = $ErrorActionPreference
     $ErrorActionPreference = "Continue"
     Push-Location $OxcValidatorDir
-    npm install 2>&1 | Out-Null
-    if ($LASTEXITCODE -ne 0) {
+    $oxcInstallExit = Invoke-SetupCommand { npm install }
+    if ($oxcInstallExit -ne 0) {
         Pop-Location
         $ErrorActionPreference = $prevEAP_oxc
-        Write-Host "[ERROR] OXC validator npm install failed (exit code $LASTEXITCODE)" -ForegroundColor Red
+        Write-Host "[ERROR] OXC validator npm install failed (exit code $oxcInstallExit)" -ForegroundColor Red
         exit 1
     }
     Pop-Location
     $ErrorActionPreference = $prevEAP_oxc
-    Write-Host "[OK] OXC validator runtime installed" -ForegroundColor Green
+    step "oxc runtime" "installed"
 }
 
 # ==========================================================================
 #  PHASE 3: Python environment + dependencies
 # ==========================================================================
 Write-Host ""
-Write-Host "Setting up Python environment..." -ForegroundColor Cyan
+substep "setting up Python environment..."
 
 # Find Python -- skip Anaconda/Miniconda distributions.
 # Conda-bundled CPython ships modified DLL search paths that break
@@ -1215,7 +1261,7 @@ if (-not $PythonCmd) {
                 if (-not $cmdInfo.Source) { continue }
                 if ($cmdInfo.Source -like "*\WindowsApps\*") { continue }
                 if (Test-IsConda $cmdInfo.Source) {
-                    Write-Host "   [SKIP] $($cmdInfo.Source) (conda Python breaks torch DLL loading)" -ForegroundColor Yellow
+                    substep "skipping $($cmdInfo.Source) (conda Python breaks torch DLL loading)" "Yellow"
                     continue
                 }
                 $ver = & $cmdInfo.Source --version 2>&1
@@ -1239,7 +1285,7 @@ if (-not $PythonCmd) {
     exit 1
 }
 
-Write-Host "[OK] Using $PythonCmd ($(& $PythonCmd --version 2>&1))" -ForegroundColor Green
+substep "Using $PythonCmd ($(& $PythonCmd --version 2>&1))"
 
 # The venv must already exist (created by install.ps1).
 # This script (setup.ps1 / "unsloth studio update") only updates packages.
@@ -1294,7 +1340,7 @@ if (Test-Path $VenvDir -PathType Container) {
 
     if ($shouldRebuild) {
         $reason = if ($installedTorchTag) { "torch $installedTorchTag != required $expectedTorchTag" } else { "torch could not be imported" }
-        Write-Host "   [INFO] Stale venv detected ($reason) -- rebuilding..." -ForegroundColor Yellow
+        substep "Stale venv detected ($reason) -- rebuilding..." "Yellow"
         try {
             Remove-Item $VenvDir -Recurse -Force -ErrorAction Stop
         } catch {
@@ -1311,7 +1357,7 @@ if (-not (Test-Path $VenvDir)) {
     Write-Host "        irm https://unsloth.ai/install.ps1 | iex" -ForegroundColor Yellow
     exit 1
 } else {
-    Write-Host "   Reusing existing virtual environment at $VenvDir" -ForegroundColor Green
+    substep "reusing existing virtual environment at $VenvDir"
 }
 
 # pip and python write to stderr even on success (progress bars, warnings).
@@ -1329,9 +1375,9 @@ $UseUv = $false
 if (Get-Command uv -ErrorAction SilentlyContinue) {
     $UseUv = $true
 } else {
-    Write-Host "   Installing uv package manager..." -ForegroundColor Cyan
+    substep "installing uv package manager..."
     try {
-        powershell -ExecutionPolicy ByPass -c "irm https://astral.sh/uv/install.ps1 | iex" 2>&1 | Out-Null
+        Invoke-SetupCommand { powershell -ExecutionPolicy ByPass -c "irm https://astral.sh/uv/install.ps1 | iex" } | Out-Null
         Refresh-Environment
         # Re-activate venv since Refresh-Environment rebuilds PATH from
         # registry and drops the venv's Scripts directory
@@ -1396,7 +1442,11 @@ if ($env:SKIP_STUDIO_BASE -ne "1" -and $env:STUDIO_LOCAL_INSTALL -ne "1") {
 
 if (-not $SkipPythonDeps) {
 
-Fast-Install --upgrade pip | Out-Null
+if ($script:UnslothVerbose) {
+    Fast-Install --upgrade pip
+} else {
+    Fast-Install --upgrade pip | Out-Null
+}
 
 # Pre-install PyTorch with CUDA support.
 # On Windows, the default PyPI torch wheel is CPU-only.
@@ -1411,7 +1461,7 @@ $TorchCacheDir = "C:\tc"
 if (-not (Test-Path $TorchCacheDir)) { New-Item -ItemType Directory -Path $TorchCacheDir -Force | Out-Null }
 $env:TORCHINDUCTOR_CACHE_DIR = $TorchCacheDir
 [Environment]::SetEnvironmentVariable('TORCHINDUCTOR_CACHE_DIR', $TorchCacheDir, 'User')
-Write-Host "[OK] TORCHINDUCTOR_CACHE_DIR set to $TorchCacheDir (avoids MAX_PATH issues)" -ForegroundColor Green
+substep "TORCHINDUCTOR_CACHE_DIR set to $TorchCacheDir (avoids MAX_PATH issues)"
 
 if ($HasNvidiaSmi) {
     $CuTag = Get-PytorchCudaTag
@@ -1420,36 +1470,57 @@ if ($HasNvidiaSmi) {
 }
 
 if ($CuTag -eq "cpu") {
-    Write-Host "   Installing PyTorch (CPU-only)..." -ForegroundColor Cyan
-    $output = Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/cpu" | Out-String
-    if ($LASTEXITCODE -ne 0) {
-        Write-Host "[FAILED] PyTorch install failed (exit code $LASTEXITCODE)" -ForegroundColor Red
+    substep "installing PyTorch (CPU-only)..."
+    if ($script:UnslothVerbose) {
+        Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/cpu"
+        $torchInstallExit = $LASTEXITCODE
+        $output = ""
+    } else {
+        $output = Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/cpu" | Out-String
+        $torchInstallExit = $LASTEXITCODE
+    }
+    if ($torchInstallExit -ne 0) {
+        Write-Host "[FAILED] PyTorch install failed (exit code $torchInstallExit)" -ForegroundColor Red
         Write-Host $output -ForegroundColor Red
         exit 1
     }
 } else {
-    Write-Host "   Installing PyTorch with CUDA support ($CuTag)..." -ForegroundColor Cyan
-    Write-Host "   (This download is ~2.8 GB -- may take a few minutes)" -ForegroundColor Gray
-    $output = Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/$CuTag" | Out-String
-    if ($LASTEXITCODE -ne 0) {
-        Write-Host "[FAILED] PyTorch CUDA install failed (exit code $LASTEXITCODE)" -ForegroundColor Red
+    substep "installing PyTorch with CUDA support ($CuTag)..."
+    substep "(This download is ~2.8 GB -- may take a few minutes)"
+    if ($script:UnslothVerbose) {
+        Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/$CuTag"
+        $torchInstallExit = $LASTEXITCODE
+        $output = ""
+    } else {
+        $output = Fast-Install torch torchvision torchaudio --index-url "https://download.pytorch.org/whl/$CuTag" | Out-String
+        $torchInstallExit = $LASTEXITCODE
+    }
+    if ($torchInstallExit -ne 0) {
+        Write-Host "[FAILED] PyTorch CUDA install failed (exit code $torchInstallExit)" -ForegroundColor Red
         Write-Host $output -ForegroundColor Red
         exit 1
     }
 
     # Install Triton for Windows (enables torch.compile -- without it training can hang)
-    Write-Host "   Installing Triton for Windows..." -ForegroundColor Cyan
-    $output = Fast-Install "triton-windows<3.7" | Out-String
-    if ($LASTEXITCODE -ne 0) {
-        Write-Host "[WARN] Triton install failed -- torch.compile may not work" -ForegroundColor Yellow
+    substep "installing Triton for Windows..."
+    if ($script:UnslothVerbose) {
+        Fast-Install "triton-windows<3.7"
+        $tritonInstallExit = $LASTEXITCODE
+        $output = ""
+    } else {
+        $output = Fast-Install "triton-windows<3.7" | Out-String
+        $tritonInstallExit = $LASTEXITCODE
+    }
+    if ($tritonInstallExit -ne 0) {
+        substep "Triton install failed -- torch.compile may not work" "Yellow"
         Write-Host $output -ForegroundColor Yellow
     } else {
-        Write-Host "[OK] Triton for Windows installed (enables torch.compile)" -ForegroundColor Green
+        substep "Triton for Windows installed (enables torch.compile)"
     }
 }
 
 # Ordered heavy dependency installation -- shared cross-platform script
-Write-Host "   Running ordered dependency installation..." -ForegroundColor Cyan
+substep "running ordered dependency installation..."
 python "$PSScriptRoot\install_python_stack.py"
 # Restore ErrorActionPreference after pip/python work
 $ErrorActionPreference = $prevEAP
@@ -1459,15 +1530,22 @@ $ErrorActionPreference = $prevEAP
 # at runtime (slow, ~10-15s), we pre-install into a separate directory.
 # The training subprocess just prepends .venv_t5/ to sys.path -- instant switch.
 Write-Host ""
-Write-Host "   Pre-installing transformers 5.x for newer model support..." -ForegroundColor Cyan
+substep "pre-installing transformers 5.x for newer model support..."
 $VenvT5Dir = Join-Path $env:USERPROFILE ".unsloth\studio\.venv_t5"
 if (Test-Path $VenvT5Dir) { Remove-Item -Recurse -Force $VenvT5Dir }
 New-Item -ItemType Directory -Path $VenvT5Dir -Force | Out-Null
 $prevEAP_t5 = $ErrorActionPreference
 $ErrorActionPreference = "Continue"
 foreach ($pkg in @("transformers==5.3.0", "huggingface_hub==1.7.1", "hf_xet==1.4.2")) {
-    $output = Fast-Install --target $VenvT5Dir --no-deps $pkg | Out-String
-    if ($LASTEXITCODE -ne 0) {
+    if ($script:UnslothVerbose) {
+        Fast-Install --target $VenvT5Dir --no-deps $pkg
+        $t5PkgExit = $LASTEXITCODE
+        $output = ""
+    } else {
+        $output = Fast-Install --target $VenvT5Dir --no-deps $pkg | Out-String
+        $t5PkgExit = $LASTEXITCODE
+    }
+    if ($t5PkgExit -ne 0) {
         Write-Host "[FAIL] Could not install $pkg into .venv_t5/" -ForegroundColor Red
         Write-Host $output -ForegroundColor Red
         $ErrorActionPreference = $prevEAP_t5
@@ -1476,9 +1554,16 @@ foreach ($pkg in @("transformers==5.3.0", "huggingface_hub==1.7.1", "hf_xet==1.4
 }
 # tiktoken is needed by Qwen-family tokenizers -- install with deps since
 # regex/requests may be missing on Windows
-$output = Fast-Install --target $VenvT5Dir tiktoken | Out-String
-if ($LASTEXITCODE -ne 0) {
-    Write-Host "[WARN] Could not install tiktoken into .venv_t5/ -- Qwen tokenizers may fail" -ForegroundColor Yellow
+if ($script:UnslothVerbose) {
+    Fast-Install --target $VenvT5Dir tiktoken
+    $tiktokenInstallExit = $LASTEXITCODE
+    $output = ""
+} else {
+    $output = Fast-Install --target $VenvT5Dir tiktoken | Out-String
+    $tiktokenInstallExit = $LASTEXITCODE
+}
+if ($tiktokenInstallExit -ne 0) {
+    substep "Could not install tiktoken into .venv_t5/ -- Qwen tokenizers may fail" "Yellow"
 }
 $ErrorActionPreference = $prevEAP_t5
 step "transformers" "5.x pre-installed"
@@ -1504,10 +1589,8 @@ $resolveExit = $LASTEXITCODE
 $ResolvedLlamaTag = if ($resolveOutput) { ($resolveOutput | Select-Object -Last 1).ToString().Trim() } else { "" }
 if ($resolveExit -ne 0 -or [string]::IsNullOrWhiteSpace($ResolvedLlamaTag)) {
     Write-Host ""
-    Write-Host "[WARN] Failed to resolve an installable prebuilt llama.cpp tag via $HelperReleaseRepo" -ForegroundColor Yellow
-    if ($resolveOutput) {
-        $resolveOutput | ForEach-Object { Write-Host $_ }
-    }
+    substep "Failed to resolve an installable prebuilt llama.cpp tag via $HelperReleaseRepo" "Yellow"
+    Write-LlamaFailureLog -Output ($resolveOutput | Out-String)
     # Resolve the llama.cpp tag for source-build fallback. Pass --published-repo
     # so the resolver prefers Unsloth's tested tag (e.g. b8508) over the upstream
     # bleeding-edge tag (e.g. b8514) from ggml-org/llama.cpp.
@@ -1537,20 +1620,20 @@ if ($resolveExit -ne 0 -or [string]::IsNullOrWhiteSpace($ResolvedLlamaTag)) {
 }
 
 Write-Host ""
-Write-Host "Resolved llama.cpp release tag: $ResolvedLlamaTag" -ForegroundColor Gray
+substep "Resolved llama.cpp release tag: $ResolvedLlamaTag"
 
 if ($env:UNSLOTH_LLAMA_FORCE_COMPILE -eq "1") {
     Write-Host ""
-    Write-Host "[WARN] UNSLOTH_LLAMA_FORCE_COMPILE=1 -- skipping prebuilt llama.cpp install" -ForegroundColor Yellow
+    substep "UNSLOTH_LLAMA_FORCE_COMPILE=1 -- skipping prebuilt llama.cpp install" "Yellow"
     $NeedLlamaSourceBuild = $true
 } else {
     Write-Host ""
-    Write-Host "Installing prebuilt llama.cpp bundle (preferred path)..." -ForegroundColor Cyan
+    substep "installing prebuilt llama.cpp bundle (preferred path)..."
     if (Test-Path $LlamaCppDir) {
-        Write-Host "Existing llama.cpp install detected -- validating staged prebuilt update before replacement" -ForegroundColor Gray
+        substep "Existing llama.cpp install detected -- validating staged prebuilt update before replacement"
     }
     if ($SkipPrebuiltInstall) {
-        Write-Host "[WARN] Skipping prebuilt install because prebuilt tag resolution failed -- falling back to source build" -ForegroundColor Yellow
+        substep "Skipping prebuilt install because prebuilt tag resolution failed -- falling back to source build" "Yellow"
     } else {
         $prebuiltArgs = @(
             "$PSScriptRoot\install_llama_prebuilt.py",
@@ -1563,17 +1646,28 @@ if ($env:UNSLOTH_LLAMA_FORCE_COMPILE -eq "1") {
         }
         $prevEAPPrebuilt = $ErrorActionPreference
         $ErrorActionPreference = "Continue"
-        & python @prebuiltArgs
-        $prebuiltExit = $LASTEXITCODE
+        if ($script:UnslothVerbose) {
+            # Show live output in verbose mode while still capturing for error log
+            $prebuiltLog = Join-Path $env:TEMP "unsloth-prebuilt-$PID.log"
+            & python @prebuiltArgs 2>&1 | Tee-Object -FilePath $prebuiltLog | Out-Host
+            $prebuiltExit = $LASTEXITCODE
+            $prebuiltOutput = if (Test-Path $prebuiltLog) { Get-Content $prebuiltLog -Raw } else { "" }
+            Remove-Item $prebuiltLog -ErrorAction SilentlyContinue
+        } else {
+            $prebuiltOutput = & python @prebuiltArgs 2>&1 | Out-String
+            $prebuiltExit = $LASTEXITCODE
+        }
         $ErrorActionPreference = $prevEAPPrebuilt
 
         if ($prebuiltExit -eq 0) {
             step "llama.cpp" "prebuilt installed and validated"
         } else {
+            step "llama.cpp" "prebuilt install failed (continuing)" "Yellow"
+            Write-LlamaFailureLog -Output $prebuiltOutput
             if (Test-Path $LlamaCppDir) {
-                Write-Host "[WARN] Prebuilt update failed; existing install was restored or cleaned before source build fallback" -ForegroundColor Yellow
+                substep "Prebuilt update failed; existing install was restored or cleaned before source build fallback" "Yellow"
             }
-            Write-Host "[WARN] Prebuilt llama.cpp path unavailable or failed validation -- falling back to source build" -ForegroundColor Yellow
+            substep "Prebuilt llama.cpp path unavailable or failed validation -- falling back to source build" "Yellow"
             $NeedLlamaSourceBuild = $true
         }
     }
@@ -1603,10 +1697,10 @@ if ($NeedLlamaSourceBuild) {
 
     if ($OpenSslRoot) {
         $OpenSslAvailable = $true
-        Write-Host "[OK] OpenSSL dev found at $OpenSslRoot" -ForegroundColor Green
+        substep "OpenSSL dev found at $OpenSslRoot"
     } else {
-        Write-Host "" 
-        Write-Host "Installing OpenSSL dev (for HTTPS in llama-server)..." -ForegroundColor Cyan
+        Write-Host ""
+        substep "installing OpenSSL dev (for HTTPS in llama-server)..."
         $HasWinget = $null -ne (Get-Command winget -ErrorAction SilentlyContinue)
         if ($HasWinget) {
             winget install -e --id ShiningLight.OpenSSL.Dev --accept-package-agreements --accept-source-agreements
@@ -1615,17 +1709,17 @@ if ($NeedLlamaSourceBuild) {
                 if (Test-Path (Join-Path $root 'include\openssl\ssl.h')) {
                     $OpenSslRoot = $root
                     $OpenSslAvailable = $true
-                    Write-Host "[OK] OpenSSL dev installed at $OpenSslRoot" -ForegroundColor Green
+                    substep "OpenSSL dev installed at $OpenSslRoot"
                     break
                 }
             }
         }
         if (-not $OpenSslAvailable) {
-            Write-Host "[WARN] OpenSSL dev not available -- llama-server will be built without HTTPS" -ForegroundColor Yellow
+            substep "OpenSSL dev not available -- llama-server will be built without HTTPS" "Yellow"
         }
     }
 } else {
-    Write-Host "[SKIP] OpenSSL dev install -- prebuilt llama.cpp already validated" -ForegroundColor Yellow
+    substep "OpenSSL dev install skipped -- prebuilt llama.cpp already validated" "Yellow"
 }
 
 # ==========================================================================
@@ -1671,21 +1765,22 @@ if (-not $NeedLlamaSourceBuild) {
     Write-Host ""
     if (-not $HasNvidiaSmi) {
         # CPU-only machines depend entirely on llama-server for GGUF chat -- cmake is required
-        Write-Host "[ERROR] CMake is required to build llama-server for GGUF chat mode." -ForegroundColor Red
-        Write-Host "        Install CMake from https://cmake.org/download/ and re-run setup." -ForegroundColor Yellow
-        exit 1
-    }
-    Write-Host "[SKIP] llama-server build -- cmake not available" -ForegroundColor Yellow
-    Write-Host "       GGUF inference and export will not be available." -ForegroundColor Yellow
-    Write-Host "       Install CMake from https://cmake.org/download/ and re-run setup." -ForegroundColor Yellow
+        substep "CMake is required to build llama-server for GGUF chat mode." "Yellow"
+        substep "Continuing setup without llama.cpp build." "Yellow"
+        substep "Install CMake from https://cmake.org/download/ and re-run setup." "Yellow"
+    }
+    step "llama.cpp" "build skipped (cmake not available)" "Yellow"
+    substep "GGUF inference and export will not be available." "Yellow"
+    substep "Install CMake from https://cmake.org/download/ and re-run setup." "Yellow"
+    $script:LlamaCppDegraded = $true
 } else {
     Write-Host ""
     if ($HasNvidiaSmi) {
-        Write-Host "Building llama.cpp with CUDA support..." -ForegroundColor Cyan
+        substep "building llama.cpp with CUDA support..."
     } else {
-        Write-Host "Building llama.cpp (CPU-only, no NVIDIA GPU detected)..." -ForegroundColor Cyan
+        substep "building llama.cpp (CPU-only, no NVIDIA GPU detected)..."
     }
-    Write-Host "   This typically takes 5-10 minutes on first build." -ForegroundColor Gray
+    substep "This typically takes 5-10 minutes on first build."
     Write-Host ""
 
     # Start total build timer
@@ -1725,19 +1820,19 @@ if (-not $NeedLlamaSourceBuild) {
     if (Test-Path (Join-Path $LlamaCppDir ".git")) {
         Write-Host "   Syncing llama.cpp to $ResolvedLlamaTag..." -ForegroundColor Gray
         if ($UseConcreteRef) {
-            git -C $LlamaCppDir fetch --depth 1 origin $ResolvedLlamaTag 2>&1 | Out-Null
+            $gitFetchExit = Invoke-SetupCommand -AlwaysQuiet { git -C $LlamaCppDir fetch --depth 1 origin $ResolvedLlamaTag }
         } else {
-            git -C $LlamaCppDir fetch --depth 1 origin 2>&1 | Out-Null
+            $gitFetchExit = Invoke-SetupCommand -AlwaysQuiet { git -C $LlamaCppDir fetch --depth 1 origin }
         }
-        if ($LASTEXITCODE -ne 0) {
-            Write-Host "   [WARN] git fetch failed -- using existing source" -ForegroundColor Yellow
+        if ($gitFetchExit -ne 0) {
+            substep "git fetch failed -- using existing source" "Yellow"
         } else {
-            git -C $LlamaCppDir checkout -B unsloth-llama-build FETCH_HEAD 2>&1 | Out-Null
-            if ($LASTEXITCODE -ne 0) {
+            $gitCheckoutExit = Invoke-SetupCommand -AlwaysQuiet { git -C $LlamaCppDir checkout -B unsloth-llama-build FETCH_HEAD }
+            if ($gitCheckoutExit -ne 0) {
                 $BuildOk = $false
                 $FailedStep = "git checkout"
             } else {
-                git -C $LlamaCppDir clean -fdx 2>&1 | Out-Null
+                Invoke-SetupCommand -AlwaysQuiet { git -C $LlamaCppDir clean -fdx } | Out-Null
             }
         }
     } else {
@@ -1749,8 +1844,8 @@ if (-not $NeedLlamaSourceBuild) {
             $cloneArgs += @("--branch", $ResolvedLlamaTag)
         }
         $cloneArgs += @("https://github.com/ggml-org/llama.cpp.git", $buildTmp)
-        git @cloneArgs 2>&1 | Out-Null
-        if ($LASTEXITCODE -ne 0) {
+        $cloneExit = Invoke-SetupCommand -AlwaysQuiet { git @cloneArgs }
+        if ($cloneExit -ne 0) {
             $BuildOk = $false
             $FailedStep = "git clone"
             if (Test-Path $buildTmp) { Remove-Item -Recurse -Force $buildTmp }
@@ -1808,8 +1903,8 @@ if (-not $NeedLlamaSourceBuild) {
                     $maxArch = Get-NvccMaxArch -NvccExe $NvccPath
                     if ($maxArch) {
                         $CmakeArgs += "-DCMAKE_CUDA_ARCHITECTURES=$maxArch"
-                        Write-Host "   [WARN] GPU is sm_$CudaArch but nvcc only supports up to sm_$maxArch" -ForegroundColor Yellow
-                        Write-Host "          Building with sm_$maxArch (PTX will JIT for your GPU at runtime)" -ForegroundColor Yellow
+                        substep "GPU is sm_$CudaArch but nvcc only supports up to sm_$maxArch" "Yellow"
+                        substep "Building with sm_$maxArch (PTX will JIT for your GPU at runtime)" "Yellow"
                     }
                     # else: omit flag entirely, let cmake pick defaults
                 }
@@ -1819,10 +1914,11 @@ if (-not $NeedLlamaSourceBuild) {
         }
 
         $cmakeOutput = cmake @CmakeArgs 2>&1 | Out-String
-        if ($LASTEXITCODE -ne 0) {
+        $cmakeConfigureExit = $LASTEXITCODE
+        if ($cmakeConfigureExit -ne 0) {
             $BuildOk = $false
             $FailedStep = "cmake configure"
-            Write-Host $cmakeOutput -ForegroundColor Red
+            Write-LlamaFailureLog -Output $cmakeOutput
             if ($cmakeOutput -match 'No CUDA toolset found|CUDA_TOOLKIT_ROOT_DIR|nvcc') {
                 Write-Host ""
                 Write-Host "   Hint: CUDA VS integration may be missing. Try running as admin:" -ForegroundColor Yellow
@@ -1845,10 +1941,11 @@ if (-not $NeedLlamaSourceBuild) {
         Write-Host ""
 
         $output = cmake --build $BuildDir --config Release --target llama-server -j $NumCpu 2>&1 | Out-String
-        if ($LASTEXITCODE -ne 0) {
+        $cmakeBuildServerExit = $LASTEXITCODE
+        if ($cmakeBuildServerExit -ne 0) {
             $BuildOk = $false
             $FailedStep = "cmake build (llama-server)"
-            Write-Host $output -ForegroundColor Red
+            Write-LlamaFailureLog -Output $output
         }
     }
 
@@ -1857,9 +1954,10 @@ if (-not $NeedLlamaSourceBuild) {
         Write-Host ""
         Write-Host "--- cmake build (llama-quantize) ---" -ForegroundColor Cyan
         $output = cmake --build $BuildDir --config Release --target llama-quantize -j $NumCpu 2>&1 | Out-String
-        if ($LASTEXITCODE -ne 0) {
-            Write-Host "   [WARN] llama-quantize build failed (GGUF export may be unavailable)" -ForegroundColor Yellow
-            Write-Host $output -ForegroundColor Yellow
+        $cmakeBuildQuantizeExit = $LASTEXITCODE
+        if ($cmakeBuildQuantizeExit -ne 0) {
+            substep "llama-quantize build failed (GGUF export may be unavailable)" "Yellow"
+            Write-LlamaFailureLog -Output $output
         }
     }
 
@@ -1900,9 +1998,9 @@ if (-not $NeedLlamaSourceBuild) {
             step "llama.cpp" "built"
             step "build time" "${totalMin}m ${totalSec}s" "DarkGray"
         } else {
-            step "llama.cpp" "build failed at: $FailedStep (${totalMin}m ${totalSec}s)" "Red"
+            step "llama.cpp" "build failed at: $FailedStep (${totalMin}m ${totalSec}s); continuing" "Yellow"
             substep "To retry: delete $LlamaCppDir and re-run setup." "Yellow"
-            exit 1
+            $script:LlamaCppDegraded = $true
         }
     }
 }
@@ -1913,12 +2011,28 @@ if (-not $NeedLlamaSourceBuild) {
 $DoneLabel = if ($env:SKIP_STUDIO_BASE -eq "1") { "Unsloth Studio Setup Complete" } else { "Unsloth Studio Updated" }
 if ($script:StudioVtOk -and -not $env:NO_COLOR) {
     Write-Host ("  {0}{1}{2}" -f (Get-StudioAnsi Dim), $Rule, (Get-StudioAnsi Reset))
-    Write-Host ("  " + (Get-StudioAnsi Title) + $DoneLabel + (Get-StudioAnsi Reset))
+    if ($script:LlamaCppDegraded) {
+        Write-Host ("  " + (Get-StudioAnsi Warn) + "$DoneLabel (limited: llama.cpp unavailable)" + (Get-StudioAnsi Reset))
+    } else {
+        Write-Host ("  " + (Get-StudioAnsi Title) + $DoneLabel + (Get-StudioAnsi Reset))
+    }
     Write-Host ("  {0}{1}{2}" -f (Get-StudioAnsi Dim), $Rule, (Get-StudioAnsi Reset))
 } else {
     Write-Host "  $Rule" -ForegroundColor DarkGray
-    Write-Host "  $DoneLabel" -ForegroundColor Green
+    if ($script:LlamaCppDegraded) {
+        Write-Host "  $DoneLabel (limited: llama.cpp unavailable)" -ForegroundColor Yellow
+    } else {
+        Write-Host "  $DoneLabel" -ForegroundColor Green
+    }
     Write-Host "  $Rule" -ForegroundColor DarkGray
 }
 step "launch" "unsloth studio -H 0.0.0.0 -p 8888"
 Write-Host ""
+
+# Match studio/setup.sh: exit non-zero for degraded llama.cpp when called
+# from install.ps1 (SKIP_STUDIO_BASE=1) so the installer can detect the
+# failure. Direct 'unsloth studio update' does not set SKIP_STUDIO_BASE,
+# so it keeps degraded installs successful.
+if ($script:LlamaCppDegraded -and $env:SKIP_STUDIO_BASE -eq "1") {
+    exit 1
+}
diff --git a/studio/setup.sh b/studio/setup.sh
index 7502270276..c2a6891ec0 100755
--- a/studio/setup.sh
+++ b/studio/setup.sh
@@ -28,12 +28,43 @@ fi
 step()    { printf "  ${C_DIM}%-15.15s${C_RST}${3:-$C_OK}%s${C_RST}\n" "$1" "$2"; }
 substep() { printf "  ${C_DIM}%-15s%s${C_RST}\n" "" "$1"; }
 
+_is_verbose() {
+    [ "${UNSLOTH_VERBOSE:-0}" = "1" ]
+}
+
+verbose_substep() {
+    if _is_verbose; then
+        substep "$1"
+    fi
+    return 0
+}
+
+run_maybe_quiet() {
+    if _is_verbose; then
+        "$@"
+    else
+        "$@" > /dev/null 2>&1
+    fi
+}
+
 # ── Helper: run command quietly, show output only on failure ──
 _run_quiet() {
     local on_fail=$1
     local label=$2
     shift 2
 
+    if _is_verbose; then
+        local exit_code
+        "$@" && return 0
+        exit_code=$?
+        step "error" "$label failed (exit code $exit_code)" "$C_ERR" >&2
+        if [ "$on_fail" = "exit" ]; then
+            exit "$exit_code"
+        else
+            return "$exit_code"
+        fi
+    fi
+
     local tmplog
     tmplog=$(mktemp) || {
         step "error" "Failed to create temporary file" "$C_ERR" >&2
@@ -65,11 +96,18 @@ run_quiet_no_exit() {
     _run_quiet return "$@"
 }
 
+print_llama_error_log() {
+    local log_file=$1
+    [ -s "$log_file" ] || return 0
+    substep "llama.cpp diagnostics (last 120 lines):"
+    tail -n 120 "$log_file" | sed 's/^/   | /' >&2
+}
+
 # ── Banner ──
 echo ""
 printf "  ${C_TITLE}%s${C_RST}\n" "🦥 Unsloth Studio Setup"
 printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
-
+verbose_substep "verbose diagnostics enabled"
 # ── Clean up stale caches ──
 rm -rf "$REPO_ROOT/unsloth_compiled_cache"
 rm -rf "$SCRIPT_DIR/backend/unsloth_compiled_cache"
@@ -97,6 +135,7 @@ fi
 
 if [ "$_NEED_FRONTEND_BUILD" = false ]; then
     step "frontend" "up to date"
+    verbose_substep "frontend dist is newer than source inputs"
 else
 
 # ── Node ──
@@ -117,7 +156,7 @@ if command -v node &>/dev/null && command -v npm &>/dev/null; then
             # In Colab, just upgrade npm directly - nvm doesn't work well
             if [ "$NPM_MAJOR" -lt 11 ]; then
                 substep "upgrading npm..."
-                npm install -g npm@latest > /dev/null 2>&1
+                run_maybe_quiet npm install -g npm@latest
             fi
             NEED_NODE=false
         fi
@@ -127,7 +166,11 @@ fi
 if [ "$NEED_NODE" = true ]; then
     substep "installing nvm..."
     export NODE_OPTIONS=--dns-result-order=ipv4first
-    curl -so- https://raw.githubusercontent.com/nvm-sh/nvm/v0.40.1/install.sh | bash > /dev/null 2>&1
+    if _is_verbose; then
+        curl -so- https://raw.githubusercontent.com/nvm-sh/nvm/v0.40.1/install.sh | bash
+    else
+        curl -so- https://raw.githubusercontent.com/nvm-sh/nvm/v0.40.1/install.sh | bash > /dev/null 2>&1
+    fi
 
     export NVM_DIR="$HOME/.nvm"
     set +u
@@ -141,7 +184,11 @@ if [ "$NEED_NODE" = true ]; then
 
     substep "installing Node LTS..."
     run_quiet "nvm install" nvm install --lts
-    nvm use --lts > /dev/null 2>&1
+    if _is_verbose; then
+        nvm use --lts
+    else
+        nvm use --lts > /dev/null 2>&1
+    fi
     set -u
 
     NODE_MAJOR=$(node -v | sed 's/v//' | cut -d. -f1)
@@ -158,13 +205,14 @@ if [ "$NEED_NODE" = true ]; then
 fi
 
 step "node" "$(node -v) | npm $(npm -v)"
+verbose_substep "node check: NEED_NODE=$NEED_NODE NODE_OK=${NODE_OK:-unknown} NPM_MAJOR=${NPM_MAJOR:-unknown}"
 
 # ── Install bun (optional, faster package installs) ──
 # Uses npm to install bun globally -- Node is already guaranteed above,
 # avoids platform-specific installers, PATH issues, and admin requirements.
 if ! command -v bun &>/dev/null; then
     substep "installing bun..."
-    if npm install -g bun > /dev/null 2>&1 && command -v bun &>/dev/null; then
+    if run_maybe_quiet npm install -g bun && command -v bun &>/dev/null; then
         substep "bun installed ($(bun --version))"
     else
         substep "bun install skipped (npm will be used instead)"
@@ -228,21 +276,25 @@ _try_bun_install() {
 
 _bun_install_ok=false
 if command -v bun &>/dev/null; then
-    echo "   Using bun for package install (faster)"
+    substep "using bun for package install (faster)"
     if _try_bun_install; then
         _bun_install_ok=true
     else
         # First attempt failed, likely due to corrupt cache entries.
         # Clear the cache and retry once.
         echo "   Clearing bun cache and retrying..."
-        bun pm cache rm > /dev/null 2>&1 || true
+        run_maybe_quiet bun pm cache rm || true
         if _try_bun_install; then
             _bun_install_ok=true
         fi
     fi
 fi
 if [ "$_bun_install_ok" = false ]; then
-    run_quiet "npm install" npm install
+    run_quiet_no_exit "npm install" npm install --no-fund --no-audit --loglevel=error
+    _npm_install_rc=$?
+    if [ "$_npm_install_rc" -ne 0 ]; then
+        exit "$_npm_install_rc"
+    fi
 fi
 run_quiet "npm run build" npm run build
 
@@ -265,7 +317,11 @@ fi  # end frontend build check
 # ── oxc-validator runtime ──
 if [ -d "$SCRIPT_DIR/backend/core/data_recipe/oxc-validator" ] && command -v npm &>/dev/null; then
     cd "$SCRIPT_DIR/backend/core/data_recipe/oxc-validator"
-    run_quiet "npm install (oxc validator runtime)" npm install
+    run_quiet_no_exit "npm install (oxc validator runtime)" npm install --no-fund --no-audit --loglevel=error
+    _oxc_install_rc=$?
+    if [ "$_oxc_install_rc" -ne 0 ]; then
+        exit "$_oxc_install_rc"
+    fi
     cd "$SCRIPT_DIR"
 fi
 
@@ -287,9 +343,19 @@ if [ ! -x "$VENV_DIR/bin/python" ]; then
         # packages (huggingface-hub, datasets, transformers) and only pulls
         # in genuinely missing ones (structlog, fastapi, etc.).
         substep "Colab detected, installing Studio backend dependencies..."
+        _COLAB_REQS_TMP="$(mktemp)"
         sed 's/[><=!~;].*//' "$SCRIPT_DIR/backend/requirements/studio.txt" \
-            | grep -v '^#' | grep -v '^$' \
-            | pip install -q -r /dev/stdin 2>/dev/null || true
+            | grep -v '^#' | grep -v '^$' > "$_COLAB_REQS_TMP"
+        if [ -s "$_COLAB_REQS_TMP" ]; then
+            if ! run_quiet_no_exit "install Colab backend deps" pip install -q -r "$_COLAB_REQS_TMP"; then
+                rm -f "$_COLAB_REQS_TMP"
+                step "python" "Colab backend dependency install failed" "$C_ERR"
+                exit 1
+            fi
+        else
+            step "python" "no Colab backend dependencies resolved from requirements file" "$C_WARN"
+        fi
+        rm -f "$_COLAB_REQS_TMP"
         _COLAB_NO_VENV=true
     else
         step "python" "venv not found at $VENV_DIR" "$C_ERR"
@@ -308,7 +374,13 @@ install_python_stack() {
 USE_UV=false
 if command -v uv &>/dev/null; then
     USE_UV=true
-elif curl -LsSf https://astral.sh/uv/install.sh | sh > /dev/null 2>&1; then
+elif {
+    if _is_verbose; then
+        curl -LsSf https://astral.sh/uv/install.sh | sh
+    else
+        curl -LsSf https://astral.sh/uv/install.sh | sh > /dev/null 2>&1
+    fi
+}; then
     export PATH="$HOME/.local/bin:$PATH"
     command -v uv &>/dev/null && USE_UV=true
 fi
@@ -325,7 +397,8 @@ cd "$SCRIPT_DIR"
 # On Colab without a venv, skip venv-dependent Python deps sections but
 # continue to llama.cpp install so GGUF inference is available.
 if [ "$_COLAB_NO_VENV" = true ]; then
-    echo "✅ Studio backend dependencies installed into system Python"
+    step "python" "backend deps installed into system Python"
+    substep "continuing to llama.cpp install for GGUF inference support"
 fi
 
 # ── Check if Python deps need updating ──
@@ -375,6 +448,7 @@ if [ "$_SKIP_PYTHON_DEPS" = false ]; then
     step "transformers" "5.x pre-installed"
 else
     step "python" "dependencies up to date"
+    verbose_substep "python deps check: installed=$_PKG_NAME@${INSTALLED_VER:-unknown} latest=${LATEST_VER:-unknown}"
 fi
 
 # ── 7. Prefer prebuilt llama.cpp bundles before any source build path ──
@@ -383,6 +457,7 @@ mkdir -p "$UNSLOTH_HOME"
 LLAMA_CPP_DIR="$UNSLOTH_HOME/llama.cpp"
 LLAMA_SERVER_BIN="$LLAMA_CPP_DIR/build/bin/llama-server"
 _NEED_LLAMA_SOURCE_BUILD=false
+_LLAMA_CPP_DEGRADED=false
 _LLAMA_FORCE_COMPILE="${UNSLOTH_LLAMA_FORCE_COMPILE:-0}"
 _REQUESTED_LLAMA_TAG="${UNSLOTH_LLAMA_TAG:-latest}"
 _HELPER_RELEASE_REPO="${UNSLOTH_LLAMA_RELEASE_REPO:-unslothai/llama.cpp}"
@@ -400,7 +475,7 @@ else
 fi
 if [ -z "$_RESOLVED_LLAMA_TAG" ]; then
     step "llama.cpp" "failed to resolve prebuilt tag via $_HELPER_RELEASE_REPO" "$C_WARN"
-    cat "$_RESOLVE_LLAMA_LOG" >&2 || true
+    print_llama_error_log "$_RESOLVE_LLAMA_LOG"
     set +e
     # Resolve the llama.cpp tag for source-build fallback. Pass --published-repo
     # so the resolver prefers Unsloth's tested tag (e.g. b8508) over the upstream
@@ -426,6 +501,7 @@ fi
 rm -f "$_RESOLVE_LLAMA_LOG"
 
 substep "resolved llama.cpp tag: $_RESOLVED_LLAMA_TAG"
+verbose_substep "requested llama.cpp tag: $_REQUESTED_LLAMA_TAG (repo: $_HELPER_RELEASE_REPO)"
 
 if [ "$_LLAMA_FORCE_COMPILE" = "1" ]; then
     step "llama.cpp" "UNSLOTH_LLAMA_FORCE_COMPILE=1 -- skipping prebuilt" "$C_WARN"
@@ -447,14 +523,25 @@ else
         if [ -n "${UNSLOTH_LLAMA_RELEASE_TAG:-}" ]; then
             _PREBUILT_CMD+=(--published-release-tag "$UNSLOTH_LLAMA_RELEASE_TAG")
         fi
+        _PREBUILT_LOG="$(mktemp)"
         set +e
-        "${_PREBUILT_CMD[@]}"
-        _PREBUILT_STATUS=$?
+        if _is_verbose; then
+            "${_PREBUILT_CMD[@]}" 2>&1 | tee "$_PREBUILT_LOG"
+            _PREBUILT_STATUS=${PIPESTATUS[0]}
+        else
+            "${_PREBUILT_CMD[@]}" >"$_PREBUILT_LOG" 2>&1
+            _PREBUILT_STATUS=$?
+        fi
         set -e
 
         if [ "$_PREBUILT_STATUS" -eq 0 ]; then
             step "llama.cpp" "prebuilt installed and validated"
+            verbose_substep "llama.cpp install dir: $LLAMA_CPP_DIR"
+            rm -f "$_PREBUILT_LOG"
         else
+            step "llama.cpp" "prebuilt install failed (continuing)" "$C_WARN"
+            print_llama_error_log "$_PREBUILT_LOG"
+            rm -f "$_PREBUILT_LOG"
             if [ -d "$LLAMA_CPP_DIR" ]; then
                 substep "prebuilt update failed; existing install restored"
             fi
@@ -523,12 +610,15 @@ if [ "$_NEED_LLAMA_SOURCE_BUILD" = false ]; then
     :
 elif [ "${_SKIP_GGUF_BUILD:-}" = true ]; then
     step "llama.cpp" "skipped (missing build deps)" "$C_WARN"
+    [ -f "$LLAMA_SERVER_BIN" ] || _LLAMA_CPP_DEGRADED=true
 else
 {
     if ! command -v cmake &>/dev/null; then
         step "llama.cpp" "skipped (cmake not found)" "$C_WARN"
+        [ -f "$LLAMA_SERVER_BIN" ] || _LLAMA_CPP_DEGRADED=true
     elif ! command -v git &>/dev/null; then
         step "llama.cpp" "skipped (git not found)" "$C_WARN"
+        [ -f "$LLAMA_SERVER_BIN" ] || _LLAMA_CPP_DEGRADED=true
     else
         BUILD_OK=true
         _CLONE_BRANCH_ARGS=()
@@ -691,8 +781,10 @@ else
             [ -f "$LLAMA_CPP_DIR/llama-quantize" ] && step "llama-quantize" "built"
         elif [ "$BUILD_OK" = true ]; then
             step "llama.cpp" "binary not found after build" "$C_WARN"
+            _LLAMA_CPP_DEGRADED=true
         else
             step "llama.cpp" "build failed" "$C_ERR"
+            [ -f "$LLAMA_SERVER_BIN" ] || _LLAMA_CPP_DEGRADED=true
         fi
     fi
 }
@@ -702,14 +794,35 @@ fi  # end _SKIP_GGUF_BUILD check
 if [ "$IS_COLAB" = true ]; then
     echo ""
     printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
-    printf "  ${C_TITLE}%s${C_RST}\n" "Unsloth Studio Setup Complete"
+    if [ "$_LLAMA_CPP_DEGRADED" = true ]; then
+        printf "  ${C_WARN}%s${C_RST}\n" "Unsloth Studio Setup Complete (limited: llama.cpp unavailable)"
+    else
+        printf "  ${C_TITLE}%s${C_RST}\n" "Unsloth Studio Setup Complete"
+    fi
     printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
     substep "from colab import start"
     substep "start()"
 else
     printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
-    printf "  ${C_TITLE}%s${C_RST}\n" "Unsloth Studio Installed"
+    if [ "$_LLAMA_CPP_DEGRADED" = true ]; then
+        printf "  ${C_WARN}%s${C_RST}\n" "Unsloth Studio Installed (limited: llama.cpp unavailable)"
+    else
+        printf "  ${C_TITLE}%s${C_RST}\n" "Unsloth Studio Installed"
+    fi
     printf "  ${C_DIM}%s${C_RST}\n" "$RULE"
-    printf "  ${C_DIM}%-15s${C_OK}%s${C_RST}\n" "launch" "unsloth studio -H 0.0.0.0 -p 8888"
+    if [ "$_LLAMA_CPP_DEGRADED" = true ]; then
+        printf "  ${C_DIM}%-15s${C_WARN}%s${C_RST}\n" "launch" "unsloth studio -H 0.0.0.0 -p 8888"
+    else
+        printf "  ${C_DIM}%-15s${C_OK}%s${C_RST}\n" "launch" "unsloth studio -H 0.0.0.0 -p 8888"
+    fi
 fi
 echo ""
+
+# When called from install.sh (SKIP_STUDIO_BASE=1), exit non-zero so the
+# installer can report the GGUF failure after finishing PATH/shortcut setup.
+# When called directly via 'unsloth studio update', keep the install
+# successful -- the footer above already reports the limitation and Studio
+# is still usable for non-GGUF workflows.
+if [ "$_LLAMA_CPP_DEGRADED" = true ] && [ "${SKIP_STUDIO_BASE:-0}" = "1" ]; then
+    exit 1
+fi
diff --git a/unsloth_cli/commands/studio.py b/unsloth_cli/commands/studio.py
index 135fa4c3bf..2fecb9d6b1 100644
--- a/unsloth_cli/commands/studio.py
+++ b/unsloth_cli/commands/studio.py
@@ -267,10 +267,7 @@ def setup(
         help = "Full pip/build output during setup for troubleshooting.",
     ),
 ):
-    """Deprecated: use 'unsloth studio update' or re-run install.sh."""
-    typer.echo(
-        "Note: 'unsloth studio setup' is deprecated. Use 'unsloth studio update' or re-run install.sh."
-    )
+    """Run Studio setup (called by install.ps1 / install.sh)."""
     _run_setup_script(verbose = verbose)