diff --git a/.github/workflows/build-release.yml b/.github/workflows/build-release.yml
index a90712870..069fce06e 100644
--- a/.github/workflows/build-release.yml
+++ b/.github/workflows/build-release.yml
@@ -38,6 +38,26 @@ jobs:
       - name: Cache dependencies
         uses: Swatinem/rust-cache@v2
 
+      - name: Install x86_64 OpenSSL
+        if: matrix.target == 'x86_64-apple-darwin'
+        shell: bash
+        env:
+          NONINTERACTIVE: 1
+        run: |
+          sudo softwareupdate --install-rosetta --agree-to-license || true
+          /usr/bin/arch -x86_64 /bin/bash -lc '
+            if [[ ! -x /usr/local/bin/brew ]]; then
+              /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
+            fi
+            /usr/local/bin/brew update
+            /usr/local/bin/brew install openssl@3
+          '
+          OPENSSL_DIR=$(/usr/bin/arch -x86_64 /usr/local/bin/brew --prefix openssl@3)
+          echo "OPENSSL_DIR=$OPENSSL_DIR" >> "$GITHUB_ENV"
+          echo "OPENSSL_INCLUDE_DIR=$OPENSSL_DIR/include" >> "$GITHUB_ENV"
+          echo "OPENSSL_LIB_DIR=$OPENSSL_DIR/lib" >> "$GITHUB_ENV"
+          echo "PKG_CONFIG_PATH=$OPENSSL_DIR/lib/pkgconfig:${PKG_CONFIG_PATH:-}" >> "$GITHUB_ENV"
+
       - name: Build release binary
         run: cargo build --release --target ${{ matrix.target }}
 
diff --git a/.vtcode/tool-policy.json b/.vtcode/tool-policy.json
index 0c51e968f..59af2fc5e 100644
--- a/.vtcode/tool-policy.json
+++ b/.vtcode/tool-policy.json
@@ -37,7 +37,7 @@
     "list_pty_sessions": "allow",
     "read_pty_session": "allow",
     "resize_pty_session": "allow",
-    "send_pty_input": "prompt",
+    "send_pty_input": "allow",
     "git_diff": "allow",
     "grep_file": "allow",
     "create_file": "prompt",
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 476e8a916..6c3192dfc 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,29 @@
 All notable changes to vtcode will be documented in this file.
 
 ## [Unreleased] - Latest Improvements
+# [Version 0.38.2] - 2025-11-02$'
+
+'### Features$'
+'    - feat: Add clear screen command to session and implement related functionality$'
+
+'### Documentation$'
+'    - docs: update changelog for v0.38.1 [skip ci]
+    - docs: update changelog for v0.38.0 [skip ci]$'
+
+'### Chores$'
+'    - chore: update npm package to v0.38.2
+    - chore: update mcp-types integration and add tests for docs.rs compatibility
+    - chore: update dependencies for agent-client-protocol and related packages
+    - chore: add sudo to softwareupdate command for OpenSSL installation on macOS
+    - chore: enhance OpenSSL installation step for x86_64-apple-darwin target
+    - chore: release v0.38.1
+    - chore: update npm package to v0.38.1
+    - chore: update CI workflow to use stable Rust toolchain and add markdown linting filter
+    - chore: update dependabot configuration to monthly schedule and reduce open pull requests limit
+    - chore: release v0.38.0
+    - chore: update npm package to v0.38.0$'
+
+'
 # [Version 0.38.1] - 2025-11-02$'
 
 '### Features$'
diff --git a/Cargo.lock b/Cargo.lock
index 651836ac1..395563ac5 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -17,29 +17,32 @@ version = "2.0.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "320119579fcad9c21884f5c4861d16174d0e06250625266f50fe6898340abefa"
 
-[[package]]
-name = "aes"
-version = "0.8.4"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "b169f7a6d4742236a0a00c541b845991d0ac43e546831af1249753ab4c3aa3a0"
-dependencies = [
- "cfg-if",
- "cipher",
- "cpufeatures",
-]
-
 [[package]]
 name = "agent-client-protocol"
-version = "0.4.5"
+version = "0.7.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a5d24bcd53c5ff2c9c75c2d378e8a4efd6519e79e62eebc7dedd36f356f79f48"
+checksum = "525705e39c11cd73f7bc784e3681a9386aa30c8d0630808d3dc2237eb4f9cb1b"
 dependencies = [
+ "agent-client-protocol-schema",
  "anyhow",
  "async-broadcast",
  "async-trait",
+ "derive_more",
  "futures",
  "log",
  "parking_lot",
+ "serde",
+ "serde_json",
+]
+
+[[package]]
+name = "agent-client-protocol-schema"
+version = "0.6.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "16d08d095e8069115774caa50392e9c818e3fb1c482ef4f3153d26b4595482f2"
+dependencies = [
+ "anyhow",
+ "derive_more",
  "schemars 1.0.4",
  "serde",
  "serde_json",
@@ -182,9 +185,6 @@ name = "arbitrary"
 version = "1.4.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "c3d036a3c4ab069c7b410a2ce876bd74808d2d0888a82667669f8e783a898bf1"
-dependencies = [
- "derive_arbitrary",
-]
 
 [[package]]
 name = "arg_enum_proc_macro"
@@ -403,16 +403,6 @@ dependencies = [
  "arrayvec",
 ]
 
-[[package]]
-name = "avt"
-version = "0.16.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "156203bcce48a54533c6a718509c22825c1ebbb606e6b313a6f13e8c6097bd13"
-dependencies = [
- "rgb",
- "unicode-width 0.1.14",
-]
-
 [[package]]
 name = "backtrace"
 version = "0.3.76"
@@ -446,12 +436,6 @@ version = "0.22.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "72b3254f16251a8381aa12e40e3c4d2f0199f8c6508fbecb9d91f575e0fbb8c6"
 
-[[package]]
-name = "base64ct"
-version = "1.8.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "55248b47b0caf0546f7988906588779981c43bb1bc9d0c44087278f80cdb44ba"
-
 [[package]]
 name = "bincode"
 version = "1.3.3"
@@ -551,12 +535,6 @@ version = "1.24.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "1fbdf580320f38b612e485521afda1ee26d10cc9884efaaa750d383e13e3c5f4"
 
-[[package]]
-name = "byteorder"
-version = "1.5.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1fd0f2584146f6f2ef48085050886acf353beff7305ebd1ae69500e27c67f64b"
-
 [[package]]
 name = "byteorder-lite"
 version = "0.1.0"
@@ -569,25 +547,6 @@ version = "1.10.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d71b6127be86fdcfddb610f7182ac57211d4b18a3e9c82eb2d17662f2227ad6a"
 
-[[package]]
-name = "bzip2"
-version = "0.5.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "49ecfb22d906f800d4fe833b6282cf4dc1c298f5057ca0b5445e5c209735ca47"
-dependencies = [
- "bzip2-sys",
-]
-
-[[package]]
-name = "bzip2-sys"
-version = "0.1.13+1.0.8"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "225bff33b2141874fe80d71e07d6eec4f85c5c216453dd96388240f96e1acc14"
-dependencies = [
- "cc",
- "pkg-config",
-]
-
 [[package]]
 name = "cassowary"
 version = "0.3.0"
@@ -711,16 +670,6 @@ dependencies = [
  "half",
 ]
 
-[[package]]
-name = "cipher"
-version = "0.4.4"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "773f3b9af64447d2ce9850330c473515014aa235e6a783b02db81ff39e4a3dad"
-dependencies = [
- "crypto-common",
- "inout",
-]
-
 [[package]]
 name = "clap"
 version = "4.5.48"
@@ -838,48 +787,17 @@ dependencies = [
  "encode_unicode",
  "libc",
  "once_cell",
+ "unicode-width 0.2.0",
  "windows-sys 0.61.1",
 ]
 
 [[package]]
-name = "const-oid"
-version = "0.9.6"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c2459377285ad874054d797f3ccebf984978aa39129f6eafde5cdc8315b612f8"
-
-[[package]]
-name = "constant_time_eq"
-version = "0.3.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "7c74b8349d32d297c9134b8c88677813a227df8f779daa29bfc29c183fe3dca6"
-
-[[package]]
-name = "cookie"
-version = "0.18.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4ddef33a339a91ea89fb53151bd0a4689cfce27055c291dfa69945475d22c747"
-dependencies = [
- "percent-encoding",
- "time",
- "version_check",
-]
-
-[[package]]
-name = "cookie_store"
-version = "0.22.0"
+name = "convert_case"
+version = "0.7.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3fc4bff745c9b4c7fb1e97b25d13153da2bc7796260141df62378998d070207f"
+checksum = "bb402b8d4c85569410425650ce3eddc7d698ed96d39a73f941b08fb63082f1e7"
 dependencies = [
- "cookie",
- "document-features",
- "idna",
- "indexmap 2.11.4",
- "log",
- "serde",
- "serde_derive",
- "serde_json",
- "time",
- "url",
+ "unicode-segmentation",
 ]
 
 [[package]]
@@ -917,21 +835,6 @@ dependencies = [
  "libc",
 ]
 
-[[package]]
-name = "crc"
-version = "3.3.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9710d3b3739c2e349eb44fe848ad0b7c8cb1e42bd87ee49371df2f7acaf3e675"
-dependencies = [
- "crc-catalog",
-]
-
-[[package]]
-name = "crc-catalog"
-version = "2.4.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "19d374276b40fb8bbdee95aef7c7fa6b5316ec764510eb64b8dd0e2ed0d7e7f5"
-
 [[package]]
 name = "crc32fast"
 version = "1.5.0"
@@ -1018,6 +921,24 @@ dependencies = [
  "winapi",
 ]
 
+[[package]]
+name = "crossterm"
+version = "0.29.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d8b9f2e4c67f833b660cdb0a3523065869fb35570177239812ed4c905aeff87b"
+dependencies = [
+ "bitflags 2.9.4",
+ "crossterm_winapi",
+ "derive_more",
+ "document-features",
+ "mio",
+ "parking_lot",
+ "rustix 1.1.2",
+ "signal-hook",
+ "signal-hook-mio",
+ "winapi",
+]
+
 [[package]]
 name = "crossterm_winapi"
 version = "0.9.1"
@@ -1073,33 +994,6 @@ dependencies = [
  "windows-sys 0.59.0",
 ]
 
-[[package]]
-name = "curve25519-dalek"
-version = "4.1.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "97fb8b7c4503de7d6ae7b42ab72a5a59857b4c937ec27a3d4539dba95b5ab2be"
-dependencies = [
- "cfg-if",
- "cpufeatures",
- "curve25519-dalek-derive",
- "digest",
- "fiat-crypto",
- "rustc_version",
- "subtle",
- "zeroize",
-]
-
-[[package]]
-name = "curve25519-dalek-derive"
-version = "0.1.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f46882e17999c6cc590af592290432be3bce0428cb0d5f8b6715e4dc7b383eb3"
-dependencies = [
- "proc-macro2",
- "quote",
- "syn 2.0.106",
-]
-
 [[package]]
 name = "darling"
 version = "0.14.4"
@@ -1218,22 +1112,6 @@ dependencies = [
  "parking_lot_core",
 ]
 
-[[package]]
-name = "deflate64"
-version = "0.1.10"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "26bf8fc351c5ed29b5c2f0cbbac1b209b74f60ecd62e675a998df72c49af5204"
-
-[[package]]
-name = "der"
-version = "0.7.10"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e7c1832837b905bbfb5101e07cc24c8deddf52f93225eee6ead5f4d63d53ddcb"
-dependencies = [
- "const-oid",
- "zeroize",
-]
-
 [[package]]
 name = "deranged"
 version = "0.5.4"
@@ -1255,17 +1133,6 @@ dependencies = [
  "syn 2.0.106",
 ]
 
-[[package]]
-name = "derive_arbitrary"
-version = "1.4.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1e567bd82dcff979e4b03460c307b3cdc9e96fde3d73bed1496d2bc75d9dd62a"
-dependencies = [
- "proc-macro2",
- "quote",
- "syn 2.0.106",
-]
-
 [[package]]
 name = "derive_builder"
 version = "0.12.0"
@@ -1297,6 +1164,28 @@ dependencies = [
  "syn 1.0.109",
 ]
 
+[[package]]
+name = "derive_more"
+version = "2.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "093242cf7570c207c83073cf82f79706fe7b8317e98620a47d5be7c3d8497678"
+dependencies = [
+ "derive_more-impl",
+]
+
+[[package]]
+name = "derive_more-impl"
+version = "2.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bda628edc44c4bb645fbe0f758797143e4e07926f7ebf4e9bdfbd3d2ce621df3"
+dependencies = [
+ "convert_case",
+ "proc-macro2",
+ "quote",
+ "syn 2.0.106",
+ "unicode-xid",
+]
+
 [[package]]
 name = "derive_setters"
 version = "0.1.8"
@@ -1311,23 +1200,16 @@ dependencies = [
 
 [[package]]
 name = "dialoguer"
-version = "0.11.0"
+version = "0.12.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "658bce805d770f407bc62102fca7c2c64ceef2fbcb2b8bd19d2765ce093980de"
+checksum = "25f104b501bf2364e78d0d3974cbc774f738f5865306ed128e1e0d7499c0ad96"
 dependencies = [
- "console 0.15.11",
+ "console 0.16.1",
  "shell-words",
  "tempfile",
- "thiserror 1.0.69",
  "zeroize",
 ]
 
-[[package]]
-name = "diff"
-version = "0.1.13"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "56254986775e3233ffa9c4d7d3faaf6d36a2c09d30b20687e9f88bc8bafc16c8"
-
 [[package]]
 name = "difflib"
 version = "0.4.0"
@@ -1342,7 +1224,6 @@ checksum = "9ed9a281f7bc9b7576e61468ba615a66a5c8cfdff42420a70aa82701a3b1e292"
 dependencies = [
  "block-buffer",
  "crypto-common",
- "subtle",
 ]
 
 [[package]]
@@ -1384,7 +1265,7 @@ dependencies = [
  "libc",
  "option-ext",
  "redox_users 0.5.2",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -1437,31 +1318,6 @@ version = "1.0.20"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d0881ea181b1df73ff77ffaaf9c7544ecc11e82fba9b5f27b262a3c73a332555"
 
-[[package]]
-name = "ed25519"
-version = "2.2.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "115531babc129696a58c64a4fef0a8bf9e9698629fb97e9e40767d235cfbcd53"
-dependencies = [
- "pkcs8",
- "signature",
-]
-
-[[package]]
-name = "ed25519-dalek"
-version = "2.2.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "70e796c081cee67dc755e1a36a0a172b897fab85fc3f6bc48307991f64e4eca9"
-dependencies = [
- "curve25519-dalek",
- "ed25519",
- "serde",
- "sha2",
- "signature",
- "subtle",
- "zeroize",
-]
-
 [[package]]
 name = "either"
 version = "1.15.0"
@@ -1483,6 +1339,12 @@ dependencies = [
  "cfg-if",
 ]
 
+[[package]]
+name = "env_home"
+version = "0.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c7f84e12ccf0a7ddc17a6c41c93326024c42920d7ee630d04950e6926645c0fe"
+
 [[package]]
 name = "equator"
 version = "0.4.2"
@@ -1516,7 +1378,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "39cab71617ae0d63f51a36d69f866391735b51691dbda63cf6f96d042b63efeb"
 dependencies = [
  "libc",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -1528,17 +1390,6 @@ dependencies = [
  "cc",
 ]
 
-[[package]]
-name = "etcetera"
-version = "0.10.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "26c7b13d0780cb82722fd59f6f57f925e143427e4a75313a6c77243bf5326ae6"
-dependencies = [
- "cfg-if",
- "home",
- "windows-sys 0.59.0",
-]
-
 [[package]]
 name = "event-listener"
 version = "5.4.1"
@@ -1632,12 +1483,6 @@ dependencies = [
  "simd-adler32",
 ]
 
-[[package]]
-name = "fiat-crypto"
-version = "0.2.9"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "28dea519a9695b9977216879a3ebfddf92f1c08c05d984f8996aecd6ecdc811d"
-
 [[package]]
 name = "filedescriptor"
 version = "0.8.3"
@@ -1649,18 +1494,6 @@ dependencies = [
  "winapi",
 ]
 
-[[package]]
-name = "filetime"
-version = "0.2.26"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "bc0505cd1b6fa6580283f6bdf70a73fcf4aba1184038c90902b92b3dd0df63ed"
-dependencies = [
- "cfg-if",
- "libc",
- "libredox",
- "windows-sys 0.60.2",
-]
-
 [[package]]
 name = "find-msvc-tools"
 version = "0.1.2"
@@ -1847,15 +1680,6 @@ dependencies = [
  "version_check",
 ]
 
-[[package]]
-name = "getopts"
-version = "0.2.24"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cfe4fbac503b8d1f88e6676011885f34b7174f46e59956bba534ba83abded4df"
-dependencies = [
- "unicode-width 0.2.0",
-]
-
 [[package]]
 name = "getrandom"
 version = "0.2.16"
@@ -2024,25 +1848,7 @@ dependencies = [
  "serde",
  "serde_json",
  "thiserror 1.0.69",
- "ureq 2.12.1",
-]
-
-[[package]]
-name = "hmac"
-version = "0.12.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6c49c37c09c17a53d937dfbb742eb3a961d65a994e6bcdcf37e7399d0cc8ab5e"
-dependencies = [
- "digest",
-]
-
-[[package]]
-name = "home"
-version = "0.5.11"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "589533453244b0995c858700322199b2becb13b627df2851f64a2775d024abcf"
-dependencies = [
- "windows-sys 0.59.0",
+ "ureq",
 ]
 
 [[package]]
@@ -2419,15 +2225,6 @@ version = "2.0.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f4c7245a08504955605670dbf141fceab975f15ca21570696aebe9d2e71576bd"
 
-[[package]]
-name = "inout"
-version = "0.1.4"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "879f10e63c20629ecabbb64a8010319738c66a5cd0c29b02d63d272b03751d01"
-dependencies = [
- "generic-array",
-]
-
 [[package]]
 name = "insta"
 version = "1.43.2"
@@ -2498,7 +2295,7 @@ checksum = "3640c1c38b8e4e43584d8df18be5fc6b0aa314ce6ebf51b53313d4306cca8e46"
 dependencies = [
  "hermit-abi",
  "libc",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -2647,7 +2444,6 @@ checksum = "416f7e718bdb06000964960ffa43b4335ad4012ae8b99060261aa4a8088d5ccb"
 dependencies = [
  "bitflags 2.9.4",
  "libc",
- "redox_syscall",
 ]
 
 [[package]]
@@ -2740,27 +2536,6 @@ version = "0.1.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "112b39cec0b298b6c1999fee3e31427f74f676e4cb9879ed1a121b43661a4154"
 
-[[package]]
-name = "lzma-rs"
-version = "0.3.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "297e814c836ae64db86b36cf2a557ba54368d03f6afcd7d947c266692f71115e"
-dependencies = [
- "byteorder",
- "crc",
-]
-
-[[package]]
-name = "lzma-sys"
-version = "0.1.20"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "5fda04ab3764e6cde78b9974eec4f779acaba7c4e84b36eca3cf77c581b85d27"
-dependencies = [
- "cc",
- "libc",
- "pkg-config",
-]
-
 [[package]]
 name = "macro_rules_attribute"
 version = "0.2.2"
@@ -2799,8 +2574,6 @@ dependencies = [
 [[package]]
 name = "mcp-types"
 version = "0.1.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "23244bcaabe34f681acd8cb0522144714a7d60a7fd043cb9122391f12387e9c1"
 dependencies = [
  "prettyplease",
  "schemars 0.8.22",
@@ -3277,16 +3050,6 @@ version = "1.0.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "17359afc20d7ab31fdb42bb844c8b3bb1dabd7dcf7e68428492da7f16966fcef"
 
-[[package]]
-name = "pbkdf2"
-version = "0.12.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f8ed6a7761f76e3b9f92dfb0a60a6a6477c61024b775147ff0973a02653abaf2"
-dependencies = [
- "digest",
- "hmac",
-]
-
 [[package]]
 name = "percent-encoding"
 version = "2.3.2"
@@ -3391,16 +3154,6 @@ dependencies = [
  "futures-io",
 ]
 
-[[package]]
-name = "pkcs8"
-version = "0.10.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f950b2377845cebe5cf8b5165cb3cc1a5e0fa5cfa3e1f7f55707d8fd82e0a7b7"
-dependencies = [
- "der",
- "spki",
-]
-
 [[package]]
 name = "pkg-config"
 version = "0.3.32"
@@ -3415,7 +3168,7 @@ checksum = "740ebea15c5d1428f910cd1a5f52cebf8d25006245ed8ade92702f4943d91e07"
 dependencies = [
  "base64 0.22.1",
  "indexmap 2.11.4",
- "quick-xml 0.38.3",
+ "quick-xml",
  "serde",
  "time",
 ]
@@ -3553,16 +3306,6 @@ dependencies = [
  "termtree",
 ]
 
-[[package]]
-name = "pretty_assertions"
-version = "1.4.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3ae130e2f271fbc2ac3a40fb1d07180839cdbbe443c7a27e1e3c13c5cac0116d"
-dependencies = [
- "diff",
- "yansi",
-]
-
 [[package]]
 name = "prettyplease"
 version = "0.2.37"
@@ -3632,20 +3375,7 @@ checksum = "76979bea66e7875e7509c4ec5300112b316af87fa7a252ca91c448b32dfe3993"
 dependencies = [
  "bitflags 2.9.4",
  "memchr",
- "pulldown-cmark-escape 0.10.1",
- "unicase",
-]
-
-[[package]]
-name = "pulldown-cmark"
-version = "0.13.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1e8bbe1a966bd2f362681a44f6edce3c2310ac21e4d5067a6e7ec396297a6ea0"
-dependencies = [
- "bitflags 2.9.4",
- "getopts",
- "memchr",
- "pulldown-cmark-escape 0.11.0",
+ "pulldown-cmark-escape",
  "unicase",
 ]
 
@@ -3655,12 +3385,6 @@ version = "0.10.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "bd348ff538bc9caeda7ee8cad2d1d48236a1f443c1fa3913c6a02fe0043b1dd3"
 
-[[package]]
-name = "pulldown-cmark-escape"
-version = "0.11.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "007d8adb5ddab6f8e3f491ac63566a7d5002cc7ed73901f72057943fa71ae1ae"
-
 [[package]]
 name = "pxfm"
 version = "0.1.25"
@@ -3685,15 +3409,6 @@ version = "2.0.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "a993555f31e5a609f617c12db6250dedcac1b0a85076912c436e6fc9b2c8e6a3"
 
-[[package]]
-name = "quick-xml"
-version = "0.37.5"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "331e97a1af0bf59823e6eadffe373d7b27f485be8748f71471c662c1f269b7fb"
-dependencies = [
- "memchr",
-]
-
 [[package]]
 name = "quick-xml"
 version = "0.38.3"
@@ -3853,7 +3568,7 @@ dependencies = [
  "bitflags 2.9.4",
  "cassowary",
  "compact_str",
- "crossterm",
+ "crossterm 0.28.1",
  "indoc",
  "instability",
  "itertools 0.13.0",
@@ -4119,11 +3834,8 @@ dependencies = [
 [[package]]
 name = "rgb"
 version = "0.8.52"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "0c6a884d2998352bb4daf0183589aec883f16a6da1f4dde84d8e2e9a5409a1ce"
-dependencies = [
- "bytemuck",
-]
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0c6a884d2998352bb4daf0183589aec883f16a6da1f4dde84d8e2e9a5409a1ce"
 
 [[package]]
 name = "rig-core"
@@ -4218,19 +3930,7 @@ checksum = "0a2c585be59b6b5dd66a9d2084aa1d8bd52fbdb806eafdeffb52791147862035"
 dependencies = [
  "futures",
  "futures-timer",
- "rstest_macros 0.23.0",
- "rustc_version",
-]
-
-[[package]]
-name = "rstest"
-version = "0.25.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6fc39292f8613e913f7df8fa892b8944ceb47c247b78e1b1ae2f09e019be789d"
-dependencies = [
- "futures-timer",
- "futures-util",
- "rstest_macros 0.25.0",
+ "rstest_macros",
  "rustc_version",
 ]
 
@@ -4252,24 +3952,6 @@ dependencies = [
  "unicode-ident",
 ]
 
-[[package]]
-name = "rstest_macros"
-version = "0.25.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1f168d99749d307be9de54d23fd226628d99768225ef08f6ffb52e0182a27746"
-dependencies = [
- "cfg-if",
- "glob",
- "proc-macro-crate",
- "proc-macro2",
- "quote",
- "regex",
- "relative-path",
- "rustc_version",
- "syn 2.0.106",
- "unicode-ident",
-]
-
 [[package]]
 name = "rustc-demangle"
 version = "0.1.26"
@@ -4320,7 +4002,7 @@ dependencies = [
  "errno",
  "libc",
  "linux-raw-sys 0.11.0",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -4338,15 +4020,6 @@ dependencies = [
  "zeroize",
 ]
 
-[[package]]
-name = "rustls-pemfile"
-version = "2.2.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "dce314e5fee3f39953d46bb63bb8a46d40c2f8fb7cc5a3b6cab2bde9721d6e50"
-dependencies = [
- "rustls-pki-types",
-]
-
 [[package]]
 name = "rustls-pki-types"
 version = "1.12.0"
@@ -4505,38 +4178,6 @@ dependencies = [
  "libc",
 ]
 
-[[package]]
-name = "self-replace"
-version = "1.5.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "03ec815b5eab420ab893f63393878d89c90fdd94c0bcc44c07abb8ad95552fb7"
-dependencies = [
- "fastrand",
- "tempfile",
- "windows-sys 0.52.0",
-]
-
-[[package]]
-name = "self_update"
-version = "0.42.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d832c086ece0dacc29fb2947bb4219b8f6e12fe9e40b7108f9e57c4224e47b5c"
-dependencies = [
- "hyper",
- "indicatif 0.17.11",
- "log",
- "quick-xml 0.37.5",
- "regex",
- "reqwest",
- "self-replace",
- "semver",
- "serde_json",
- "tempfile",
- "urlencoding",
- "zip",
- "zipsign-api",
-]
-
 [[package]]
 name = "semver"
 version = "1.0.27"
@@ -4813,16 +4454,6 @@ dependencies = [
  "libc",
 ]
 
-[[package]]
-name = "signature"
-version = "2.2.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "77549399552de45a898a580c1b41d445bf730df867cc44e6c0233bbc4b8329de"
-dependencies = [
- "digest",
- "rand_core 0.6.4",
-]
-
 [[package]]
 name = "simd-adler32"
 version = "0.3.7"
@@ -4872,16 +4503,6 @@ dependencies = [
  "windows-sys 0.59.0",
 ]
 
-[[package]]
-name = "spki"
-version = "0.7.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d91ed6c858b01f942cd56b37a94b3e0a1798290327d1236e4d9cf4eaca44d29d"
-dependencies = [
- "base64ct",
- "der",
-]
-
 [[package]]
 name = "spm_precompiled"
 version = "0.1.4"
@@ -5076,17 +4697,6 @@ dependencies = [
  "version-compare",
 ]
 
-[[package]]
-name = "tar"
-version = "0.4.44"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1d863878d212c87a19c1a610eb53bb01fe12951c0501cf5a0d65f724914a667a"
-dependencies = [
- "filetime",
- "libc",
- "xattr",
-]
-
 [[package]]
 name = "target-lexicon"
 version = "0.12.16"
@@ -5103,7 +4713,7 @@ dependencies = [
  "getrandom 0.3.3",
  "once_cell",
  "rustix 1.1.2",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -5677,22 +5287,6 @@ version = "0.2.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e421abadd41a4225275504ea4d6566923418b7f05506fbc9c0fe86ba7396114b"
 
-[[package]]
-name = "tui-markdown"
-version = "0.3.5"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d10648c25931bfaaf5334ff4e7dc5f3d830e0c50d7b0119b1d5cfe771f540536"
-dependencies = [
- "ansi-to-tui",
- "itertools 0.14.0",
- "pretty_assertions",
- "pulldown-cmark 0.13.0",
- "ratatui",
- "rstest 0.25.0",
- "syntect",
- "tracing",
-]
-
 [[package]]
 name = "tui-popup"
 version = "0.6.0"
@@ -5714,28 +5308,7 @@ dependencies = [
  "itertools 0.13.0",
  "ratatui",
  "ratatui-macros",
- "rstest 0.23.0",
-]
-
-[[package]]
-name = "tui-scrollview"
-version = "0.5.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ef6e1d736488ba64c2e74637089a6b9ca666ccd2eaade3ab83854f415f1d260b"
-dependencies = [
- "indoc",
- "ratatui",
- "rstest 0.23.0",
-]
-
-[[package]]
-name = "tui-tree-widget"
-version = "0.23.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c14c4488e071617f5b5922222193cdf6725835e492c6229557af85d3c1a4e903"
-dependencies = [
- "ratatui",
- "unicode-width 0.2.0",
+ "rstest",
 ]
 
 [[package]]
@@ -5847,6 +5420,12 @@ version = "0.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "1fc81956842c57dac11422a97c3b8195a1ff727f06e85c84ed2e8aa277c9a0fd"
 
+[[package]]
+name = "unicode-xid"
+version = "0.2.6"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ebc1c04c71510c7f702b52b7c350734c9ff1295c464a03335b00bb84fc54f853"
+
 [[package]]
 name = "unicode_categories"
 version = "0.1.1"
@@ -5871,20 +5450,6 @@ version = "0.9.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "8ecb6da28b8a351d773b68d5825ac39017e680750f980f3a1a85cd8dd28a47c1"
 
-[[package]]
-name = "update-informer"
-version = "1.3.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "67b27dcf766dc6ad64c2085201626e1a7955dc1983532bfc8406d552903ace2a"
-dependencies = [
- "etcetera",
- "reqwest",
- "semver",
- "serde",
- "serde_json",
- "ureq 3.1.2",
-]
-
 [[package]]
 name = "ureq"
 version = "2.12.1"
@@ -5904,39 +5469,6 @@ dependencies = [
  "webpki-roots 0.26.11",
 ]
 
-[[package]]
-name = "ureq"
-version = "3.1.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "99ba1025f18a4a3fc3e9b48c868e9beb4f24f4b4b1a325bada26bd4119f46537"
-dependencies = [
- "base64 0.22.1",
- "cookie_store",
- "flate2",
- "log",
- "percent-encoding",
- "rustls",
- "rustls-pemfile",
- "rustls-pki-types",
- "serde",
- "serde_json",
- "ureq-proto",
- "utf-8",
- "webpki-roots 1.0.2",
-]
-
-[[package]]
-name = "ureq-proto"
-version = "0.5.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "60b4531c118335662134346048ddb0e54cc86bd7e81866757873055f0e38f5d2"
-dependencies = [
- "base64 0.22.1",
- "http",
- "httparse",
- "log",
-]
-
 [[package]]
 name = "url"
 version = "2.5.7"
@@ -5949,18 +5481,6 @@ dependencies = [
  "serde",
 ]
 
-[[package]]
-name = "urlencoding"
-version = "2.1.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "daf8dba3b7eb870caf1ddeed7bc9d2a049f3cfdfae7cb521b087cc33ae4c49da"
-
-[[package]]
-name = "utf-8"
-version = "0.7.6"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "09cc8ee72d2a9becf2f2febe0205bbed8fc6615b7cb429ad062dc7b7ddd036a9"
-
 [[package]]
 name = "utf8_iter"
 version = "1.0.4"
@@ -6020,9 +5540,21 @@ version = "0.9.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "0b928f33d975fc6ad9f86c8f283853ad26bdd5b10b7f1542aa2fa15e2289105a"
 
+[[package]]
+name = "vt100"
+version = "0.15.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "84cd863bf0db7e392ba3bd04994be3473491b31e66340672af5d11943c6274de"
+dependencies = [
+ "itoa",
+ "log",
+ "unicode-width 0.1.14",
+ "vte",
+]
+
 [[package]]
 name = "vtcode"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "agent-client-protocol",
  "anstyle",
@@ -6033,7 +5565,7 @@ dependencies = [
  "clap",
  "colorchoice",
  "criterion",
- "crossterm",
+ "crossterm 0.29.0",
  "dialoguer",
  "dotenvy",
  "futures",
@@ -6045,13 +5577,11 @@ dependencies = [
  "libc",
  "memchr",
  "once_cell",
- "parking_lot",
  "path-clean",
  "percent-encoding",
  "rand 0.8.5",
  "ratatui",
  "regex",
- "self_update",
  "serde",
  "serde_json",
  "shell-words",
@@ -6063,7 +5593,6 @@ dependencies = [
  "toml 0.9.8",
  "tracing",
  "tracing-subscriber",
- "update-informer",
  "url",
  "uuid",
  "vtcode-acp-client",
@@ -6076,14 +5605,14 @@ dependencies = [
 
 [[package]]
 name = "vtcode-acp-client"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "agent-client-protocol",
 ]
 
 [[package]]
 name = "vtcode-bash-runner"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "path-clean",
@@ -6096,14 +5625,14 @@ dependencies = [
 
 [[package]]
 name = "vtcode-commons"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
 ]
 
 [[package]]
 name = "vtcode-config"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "dirs 6.0.0",
@@ -6124,7 +5653,7 @@ dependencies = [
 
 [[package]]
 name = "vtcode-core"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "ansi-to-tui",
  "anstream",
@@ -6136,15 +5665,12 @@ dependencies = [
  "async-process",
  "async-stream",
  "async-trait",
- "avt",
  "base64 0.21.7",
- "bytes",
- "bzip2",
  "catppuccin",
  "chrono",
  "clap",
  "colorchoice-clap",
- "crossterm",
+ "crossterm 0.29.0",
  "curl",
  "dashmap",
  "dialoguer",
@@ -6154,11 +5680,9 @@ dependencies = [
  "flate2",
  "futures",
  "futures-lite",
- "futures-util",
  "glob",
  "humantime",
  "iana-time-zone",
- "ignore",
  "indexmap 2.11.4",
  "is-terminal",
  "itertools 0.14.0",
@@ -6172,7 +5696,7 @@ dependencies = [
  "parking_lot",
  "perg",
  "portable-pty",
- "pulldown-cmark 0.10.3",
+ "pulldown-cmark",
  "quick_cache",
  "rand 0.8.5",
  "ratatui",
@@ -6181,15 +5705,12 @@ dependencies = [
  "rig-core",
  "rmcp",
  "roff",
- "self_update",
- "semver",
  "serde",
  "serde_json",
  "serde_yaml",
  "sha2",
  "shell-words",
  "syntect",
- "tar",
  "tempfile",
  "terminal_size",
  "thiserror 2.0.16",
@@ -6208,15 +5729,12 @@ dependencies = [
  "tree-sitter-rust",
  "tree-sitter-swift",
  "tree-sitter-typescript",
- "tui-markdown",
  "tui-popup",
  "tui-prompts",
- "tui-scrollview",
- "tui-tree-widget",
  "unicode-segmentation",
  "unicode-width 0.2.0",
- "update-informer",
  "url",
+ "vt100",
  "vtcode-commons",
  "vtcode-config",
  "vtcode-exec-events",
@@ -6224,13 +5742,11 @@ dependencies = [
  "vtcode-markdown-store",
  "vte",
  "walkdir",
- "xz2",
- "zip",
 ]
 
 [[package]]
 name = "vtcode-exec-events"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "log",
  "schemars 0.8.22",
@@ -6241,7 +5757,7 @@ dependencies = [
 
 [[package]]
 name = "vtcode-indexer"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "ignore",
@@ -6252,7 +5768,7 @@ dependencies = [
 
 [[package]]
 name = "vtcode-llm"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -6264,7 +5780,7 @@ dependencies = [
 
 [[package]]
 name = "vtcode-markdown-store"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "fs2",
@@ -6278,7 +5794,7 @@ dependencies = [
 
 [[package]]
 name = "vtcode-tools"
-version = "0.38.1"
+version = "0.38.2"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -6509,15 +6025,13 @@ checksum = "a751b3277700db47d3e574514de2eced5e54dc8a5436a3bf7a0b248b2cee16f3"
 
 [[package]]
 name = "which"
-version = "5.0.0"
+version = "8.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9bf3ea8596f3a0dd5980b46430f2058dfe2c36a27ccfbb1845d6fbfcd9ba6e14"
+checksum = "d3fabb953106c3c8eea8306e4393700d7657561cb43122571b172bbfb7c7ba1d"
 dependencies = [
- "either",
- "home",
- "once_cell",
- "rustix 0.38.44",
- "windows-sys 0.48.0",
+ "env_home",
+ "rustix 1.1.2",
+ "winsafe",
 ]
 
 [[package]]
@@ -6542,7 +6056,7 @@ version = "0.1.11"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "c2a7b1c03c876122aa43f3020e6c3c3ee5c05081c9a00739faf7503aeba10d22"
 dependencies = [
- "windows-sys 0.59.0",
+ "windows-sys 0.61.1",
 ]
 
 [[package]]
@@ -7025,6 +6539,12 @@ dependencies = [
  "winapi",
 ]
 
+[[package]]
+name = "winsafe"
+version = "0.0.19"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d135d17ab770252ad95e9a872d365cf3090e3be864a34ab46f48555993efc904"
+
 [[package]]
 name = "wit-bindgen"
 version = "0.46.0"
@@ -7037,25 +6557,6 @@ version = "0.6.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ea2f10b9bb0928dfb1b42b65e1f9e36f7f54dbdf08457afefb38afcdec4fa2bb"
 
-[[package]]
-name = "xattr"
-version = "1.6.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "32e45ad4206f6d2479085147f02bc2ef834ac85886624a23575ae137c8aa8156"
-dependencies = [
- "libc",
- "rustix 1.1.2",
-]
-
-[[package]]
-name = "xz2"
-version = "0.1.7"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "388c44dc09d76f1536602ead6d325eb532f5c122f17782bd57fb47baeeb767e2"
-dependencies = [
- "lzma-sys",
-]
-
 [[package]]
 name = "yaml-rust"
 version = "0.4.5"
@@ -7065,12 +6566,6 @@ dependencies = [
  "linked-hash-map",
 ]
 
-[[package]]
-name = "yansi"
-version = "1.0.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cfe53a6657fd280eaa890a3bc59152892ffa3e30101319d168b781ed6529b049"
-
 [[package]]
 name = "yoke"
 version = "0.8.0"
@@ -7141,20 +6636,6 @@ name = "zeroize"
 version = "1.8.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ced3678a2879b30306d323f4542626697a464a97c0a07c9aebf7ebca65cd4dde"
-dependencies = [
- "zeroize_derive",
-]
-
-[[package]]
-name = "zeroize_derive"
-version = "1.4.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ce36e65b0d2999d2aafac989fb249189a141aee1f53c612c1f37d72631959f69"
-dependencies = [
- "proc-macro2",
- "quote",
- "syn 2.0.106",
-]
 
 [[package]]
 name = "zerotrie"
@@ -7189,86 +6670,6 @@ dependencies = [
  "syn 2.0.106",
 ]
 
-[[package]]
-name = "zip"
-version = "2.4.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "fabe6324e908f85a1c52063ce7aa26b68dcb7eb6dbc83a2d148403c9bc3eba50"
-dependencies = [
- "aes",
- "arbitrary",
- "bzip2",
- "constant_time_eq",
- "crc32fast",
- "crossbeam-utils",
- "deflate64",
- "displaydoc",
- "flate2",
- "getrandom 0.3.3",
- "hmac",
- "indexmap 2.11.4",
- "lzma-rs",
- "memchr",
- "pbkdf2",
- "sha1",
- "thiserror 2.0.16",
- "time",
- "xz2",
- "zeroize",
- "zopfli",
- "zstd",
-]
-
-[[package]]
-name = "zipsign-api"
-version = "0.1.5"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "dba6063ff82cdbd9a765add16d369abe81e520f836054e997c2db217ceca40c0"
-dependencies = [
- "ed25519-dalek",
- "thiserror 2.0.16",
-]
-
-[[package]]
-name = "zopfli"
-version = "0.8.2"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "edfc5ee405f504cd4984ecc6f14d02d55cfda60fa4b689434ef4102aae150cd7"
-dependencies = [
- "bumpalo",
- "crc32fast",
- "log",
- "simd-adler32",
-]
-
-[[package]]
-name = "zstd"
-version = "0.13.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e91ee311a569c327171651566e07972200e76fcfe2242a4fa446149a3881c08a"
-dependencies = [
- "zstd-safe",
-]
-
-[[package]]
-name = "zstd-safe"
-version = "7.2.4"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8f49c4d5f0abb602a93fb8736af2a4f4dd9512e36f7f570d66e65ff867ed3b9d"
-dependencies = [
- "zstd-sys",
-]
-
-[[package]]
-name = "zstd-sys"
-version = "2.0.16+zstd.1.5.7"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "91e19ebc2adc8f83e43039e79776e3fda8ca919132d68a1fed6a5faca2683748"
-dependencies = [
- "cc",
- "pkg-config",
-]
-
 [[package]]
 name = "zune-core"
 version = "0.4.12"
diff --git a/Cargo.toml b/Cargo.toml
index 74aa477f2..16d92733a 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "A Rust-based terminal coding agent with modular architecture supporting multiple LLM providers"
@@ -43,6 +43,7 @@ vtcode-markdown-store = { path = "vtcode-markdown-store" }
 vtcode-indexer = { path = "vtcode-indexer" }
 vtcode-bash-runner = { path = "vtcode-bash-runner" }
 vtcode-exec-events = { path = "vtcode-exec-events" }
+mcp-types = { path = "third-party/mcp-types" }
 
 [workspace.lints]
 rust = {}
@@ -85,8 +86,8 @@ unwrap_used = "deny"
 
 
 [dependencies]
-vtcode-acp-client = { path = "vtcode-acp-client", version = "0.38.1" }
-vtcode-core = { path = "vtcode-core", version = "0.38.1" }
+vtcode-acp-client = { path = "vtcode-acp-client", version = "0.38.2" }
+vtcode-core = { path = "vtcode-core", version = "0.38.2" }
 anyhow = "1.0"
 clap = { version = "4.5", features = ["derive"] }
 serde_json = "1.0"
@@ -105,12 +106,6 @@ toml = "0.9.8"
 futures = "0.3"
 walkdir = "2.5"
 itertools = "0.14.0"
-update-informer = { version = "1.3.0", features = ["github"] }
-self_update = { version = "0.42.0", features = [
-    "archive-zip",
-    "compression-zip-deflate",
-    "rustls",
-] }
 memchr = "2.7"
 tempfile = "3.0"
 once_cell = "1.19"
@@ -130,20 +125,19 @@ dotenvy = "0.15"
 anstyle = "1.0"
 sysinfo = "0.37.0"
 colorchoice = "1.0"
-agent-client-protocol = "0.4.5"
+agent-client-protocol = "0.7.0"
 percent-encoding = "2.3"
 url = "2.5"
 shell-words = "1.1"
-dialoguer = "0.11"
-crossterm = "0.28"
+dialoguer = "0.12.0"
+crossterm = "0.29.0"
 ratatui = { version = "0.29", default-features = false, features = [
     "crossterm",
 ] }
-which = "5.0"
+which = "8.0.0"
 regex = "1.10"
 smallvec = "1.13"
 uuid = { version = "1.8.0", features = ["v4", "fast-rng"] }
-parking_lot = { version = "0.12.1", features = ["send_guard"] }
 
 [features]
 default = ["tool-chat"]
@@ -188,7 +182,7 @@ windows-sys = { version = "0.61", features = [
 ] }
 
 [package.metadata.cargo-machete]
-ignored = ["self_update", "update-informer", "criterion"]
+ignored = ["criterion"]
 
 [package.metadata.docs.rs]
 all-features = true
diff --git a/docs/guides/zed-acp.md b/docs/guides/zed-acp.md
index 2ddab5712..c73be6d80 100644
--- a/docs/guides/zed-acp.md
+++ b/docs/guides/zed-acp.md
@@ -110,6 +110,98 @@ Edit `settings.json` (Command Palette → `zed: open settings`) and add a custom
    tool proxies to Zed's `fs.readTextFile` capability and streams results back into the turn, while
    `list_files` uses VT Code's workspace indexer for directory exploration.
 
+## Package VT Code as a Zed Agent Server Extension
+
+When you are ready to distribute VT Code to other Zed users, wrap the ACP bridge inside an Agent
+Server Extension. Extensions bundle both metadata and platform-specific binaries so users can install
+VT Code from Zed's marketplace without touching `settings.json`. This repository ships a ready-to-edit
+manifest at `zed-extension/extension.toml`; customize it for each release and publish the directory as
+the Zed extension package.
+
+### Extension manifest layout
+
+Add the VT Code agent definition under the `[agent_servers]` table in `extension.toml`. The copy in
+`zed-extension/extension.toml` uses the latest published macOS artifacts as a baseline:
+
+```toml
+[agent_servers.vtcode]
+name = "VT Code"
+icon = "icons/vtcode.svg"            # Optional, 16x16 monochrome SVG recommended
+
+[agent_servers.vtcode.env]
+VT_ACP_ENABLED = "1"
+VT_ACP_ZED_ENABLED = "1"
+
+[agent_servers.vtcode.targets.darwin-aarch64]
+archive = "https://github.com/vtcode-org/vtcode/releases/download/v1.2.0/vtcode-darwin-aarch64.tar.gz"
+cmd = "./vtcode"
+args = ["acp"]
+sha256 = "replace-with-real-sha256"
+
+[agent_servers.vtcode.targets.darwin-x86_64]
+archive = "https://github.com/vtcode-org/vtcode/releases/download/v1.2.0/vtcode-darwin-x86_64.tar.gz"
+cmd = "./vtcode"
+args = ["acp"]
+sha256 = "replace-with-real-sha256"
+
+[agent_servers.vtcode.targets.linux-x86_64]
+archive = "https://github.com/vtcode-org/vtcode/releases/download/v1.2.0/vtcode-linux-x86_64.tar.gz"
+cmd = "./vtcode"
+args = ["acp"]
+sha256 = "replace-with-real-sha256"
+
+[agent_servers.vtcode.targets.windows-x86_64]
+archive = "https://github.com/vtcode-org/vtcode/releases/download/v1.2.0/vtcode-windows-x86_64.zip"
+cmd = "./vtcode.exe"
+args = ["acp"]
+sha256 = "replace-with-real-sha256"
+```
+
+- `name` controls the label shown in Zed menus.
+- Each `{os}-{arch}` target block supplies a download URL, the command to launch, and optional
+  arguments. The example above reuses the `acp` entry-point so the extension behaves like the manual
+  setup described earlier in this guide.
+- The checked-in manifest currently declares macOS targets (`darwin-aarch64`, `darwin-x86_64`).
+  Add Linux or Windows target tables when you start publishing those builds.
+- Set `sha256` to the checksum of the published archive to harden supply-chain trust. The release
+  script (`./scripts/release.sh`) regenerates these values automatically after the binaries are
+  built; you can also run `shasum -a 256 <archive>` on macOS/Linux or
+  `certutil -hashfile <archive> SHA256` on Windows to verify them manually.
+- Provide an optional `[agent_servers.vtcode.env]` section when you need to carry configuration such
+  as ACP toggles or provider credentials. Avoid hard-coding secrets; rely on Zed's environment
+  overlays or documented setup steps instead.
+
+### Building and publishing the archives
+
+1. Produce release builds for every platform you intend to support (see `scripts/` for cross-compiling
+   helpers). Bundle the artifacts as `.tar.gz` or `.zip` archives that include the `vtcode` binary at
+   the root, plus any support files (for example `vtcode.toml.example`).
+2. Create a GitHub release and upload each archive. Copy the asset URLs into `zed-extension/extension.toml`.
+3. Run `./scripts/release.sh` to execute the automated release flow. It rebuilds the binaries,
+   uploads release assets, and rewrites `zed-extension/extension.toml` with fresh SHA-256 checksums
+   for every archive that exists in `dist/`.
+4. Confirm each target you ship is represented in the manifest; add new target tables as you
+   introduce additional builds.
+5. Commit the extension assets alongside `extension.toml`. Keep the directory structure stable so
+   future updates can reuse the same icon and metadata.
+
+### Local testing workflow
+
+1. Use the Command Palette (`Cmd-Shift-P`) → `zed: install dev extension` to load the local
+   workspace as an extension.
+2. Open the Agent panel, pick the **VT Code** entry, and confirm the download succeeds on your
+   platform.
+3. Exercise ACP capabilities (tool calls, workspace prompts, cancellation) while watching Zed’s ACP
+   logs to ensure the packaged binary behaves the same as your development build.
+4. Repeat on every supported platform (macOS, Linux, Windows) before publishing the extension to the
+   marketplace, verifying the correct archive is fetched and the shell wrapper behaves as expected.
+
+### Keep protocol alignment
+
+- Review the [ACP initialization contract](https://agentclientprotocol.com/protocol/initialization) when updating handshake fields so `agent_capabilities`, `agent_info`, and auth methods stay in sync with the spec. 
+- Cross-check `NewSession` behaviour with Zed’s expectations outlined in the [session setup flow](https://agentclientprotocol.com/workflows/session/new) before changing session lifecycle code.
+- Tool routing (for example `fs.readTextFile`) should continue to follow the [tools guidance](https://agentclientprotocol.com/protocol/tools) so capability negotiation and permission prompts remain interoperable.
+
 ## Runtime behaviour
 
 - **Session management** – Each prompt owns a dedicated ACP session with history maintained in VT
diff --git a/docs/vtcode_docs_map.md b/docs/vtcode_docs_map.md
index e4e1965c8..b068bbda7 100644
--- a/docs/vtcode_docs_map.md
+++ b/docs/vtcode_docs_map.md
@@ -155,6 +155,17 @@ This document serves as an index of all VT Code documentation. When users ask qu
   - **Topics**: VS Code extension, integration issues, setup problems
   - **User Questions**: "How do I use VT Code with my IDE?", "What IDE integrations exist?"
 
+### Editor Integrations
+
+- **File**: `docs/guides/zed-acp.md`
+  - **Content**: Zed Agent Client Protocol setup, including Agent Server Extension packaging
+  - **Topics**: ACP bridge configuration, Zed-specific environment settings, extension manifest layout, release packaging, local testing
+  - **User Questions**: "How do I run VT Code inside Zed?", "Can I ship VT Code as a Zed extension?", "What ACP settings does VT Code require?"
+- **Directory**: `zed-extension/`
+  - **Content**: Ready-to-publish Zed extension manifest and icon
+  - **Topics**: Agent Server Extension packaging, release asset wiring, checksum management
+  - **User Questions**: "Where is the Zed extension manifest?", "How do I update checksums for a new release?"
+
 ### Implementation & Updates
 
 - **File**: `docs/IMPLEMENTATION_COMPLETE.md`
@@ -343,4 +354,4 @@ When users ask questions about VT Code itself:
 
 ---
 
-**Note**: This enhanced documentation map is designed for VT Code's self-documentation system. When users ask questions about VT Code itself, the system should fetch this document and use it to provide accurate, up-to-date information about VT Code's capabilities and features. The expanded trigger questions and response patterns ensure comprehensive coverage of user questions and consistent, helpful responses.
\ No newline at end of file
+**Note**: This enhanced documentation map is designed for VT Code's self-documentation system. When users ask questions about VT Code itself, the system should fetch this document and use it to provide accurate, up-to-date information about VT Code's capabilities and features. The expanded trigger questions and response patterns ensure comprehensive coverage of user questions and consistent, helpful responses.
diff --git a/npm/package.json b/npm/package.json
index 3b39c7697..4c7c94981 100644
--- a/npm/package.json
+++ b/npm/package.json
@@ -1,6 +1,6 @@
 {
   "name": "vtcode",
-  "version": "0.38.1",
+  "version": "0.38.2",
   "description": "A Rust-based terminal coding agent with modular architecture supporting multiple LLM providers",
   "keywords": [
     "ai",
diff --git a/scripts/release.sh b/scripts/release.sh
index 6533b552e..b9a42801d 100755
--- a/scripts/release.sh
+++ b/scripts/release.sh
@@ -580,6 +580,62 @@ build_and_upload_binaries() {
     print_success 'Binaries built and distributed successfully'
 }
 
+update_zed_extension_checksums() {
+    local version=$1
+    local manifest="zed-extension/extension.toml"
+    local dist_dir="dist"
+
+    if [[ ! -f "$manifest" ]]; then
+        print_warning "Zed extension manifest not found at $manifest; skipping checksum update"
+        return 0
+    fi
+
+    if [[ ! -d "$dist_dir" ]]; then
+        print_warning "Distribution directory $dist_dir missing; skipping checksum update"
+        return 0
+    fi
+
+    print_distribution "Updating Zed extension checksums from $dist_dir"
+
+    python3 <<'PYTHON' "$version" "$manifest" "$dist_dir"
+import re
+import subprocess
+import sys
+from pathlib import Path
+
+version, manifest_path, dist_dir = sys.argv[1], Path(sys.argv[2]), Path(sys.argv[3])
+
+targets = {
+    "darwin-aarch64": f"vtcode-v{version}-aarch64-apple-darwin.tar.gz",
+    "darwin-x86_64": f"vtcode-v{version}-x86_64-apple-darwin.tar.gz",
+}
+
+text = manifest_path.read_text()
+updated = False
+
+for target, filename in targets.items():
+    archive = dist_dir / filename
+    if not archive.exists():
+        print(f"WARNING: Archive {archive} not found; leaving sha256 unchanged for {target}", file=sys.stderr)
+        continue
+
+    sha = subprocess.check_output(["shasum", "-a", "256", str(archive)], text=True).split()[0]
+    pattern = re.compile(rf"(\[agent_servers\.vtcode\.targets\.{re.escape(target)}\][^\[]*?sha256 = \")([^\"]*)(\")", re.DOTALL)
+    new_text, count = pattern.subn(rf"\1{sha}\3", text, count=1)
+    if count == 0:
+        print(f"WARNING: sha256 entry not found for target {target}", file=sys.stderr)
+    else:
+        text = new_text
+        updated = True
+        print(f"INFO: Updated {target} checksum to {sha}")
+
+if updated:
+    manifest_path.write_text(text)
+else:
+    print("WARNING: No sha256 fields updated in Zed extension manifest", file=sys.stderr)
+PYTHON
+}
+
 run_release() {
     local release_argument=$1
     local dry_run_flag=$2
@@ -897,10 +953,11 @@ main() {
     fi
 
     build_and_upload_binaries "$released_version" "$skip_homebrew"
+    update_zed_extension_checksums "$released_version"
 
     print_success 'Release process finished'
     print_info "GitHub Release should now contain changelog notes generated by cargo-release"
     print_info "All commits, tags, and releases have been pushed to the remote repository"
 }
 
-main "$@"
\ No newline at end of file
+main "$@"
diff --git a/src/acp/zed.rs b/src/acp/zed.rs
index 7486b408e..06dabf3a2 100644
--- a/src/acp/zed.rs
+++ b/src/acp/zed.rs
@@ -97,6 +97,21 @@ const WORKSPACE_TRUST_ALREADY_SATISFIED_LOG: &str = "ACP workspace trust level a
 const WORKSPACE_TRUST_DOWNGRADE_SKIPPED_LOG: &str =
     "ACP workspace trust downgrade skipped because workspace is fully trusted";
 
+fn text_chunk(text: impl Into<String>) -> acp::ContentChunk {
+    acp::ContentChunk {
+        content: acp::ContentBlock::from(text.into()),
+        meta: None,
+    }
+}
+
+fn agent_implementation_info() -> acp::Implementation {
+    acp::Implementation {
+        name: "vtcode".to_string(),
+        title: Some("VTCode".to_string()),
+        version: env!("CARGO_PKG_VERSION").to_string(),
+    }
+}
+
 enum ToolRuntime<'a> {
     Enabled,
     Disabled(ToolDisableReason<'a>),
@@ -739,9 +754,7 @@ impl ZedAgent {
 
         self.send_update(
             session_id,
-            acp::SessionUpdate::AgentThoughtChunk {
-                content: combined.into(),
-            },
+            acp::SessionUpdate::AgentThoughtChunk(text_chunk(combined)),
         )
         .await
     }
@@ -1662,6 +1675,7 @@ impl acp::Agent for ZedAgent {
             protocol_version: acp::V1,
             agent_capabilities: capabilities,
             auth_methods: Vec::new(),
+            agent_info: Some(agent_implementation_info()),
             meta: None,
         })
     }
@@ -1795,22 +1809,20 @@ impl acp::Agent for ZedAgent {
                     LLMStreamEvent::Token { delta } => {
                         if !delta.is_empty() {
                             assistant_message.push_str(&delta);
+                            let chunk = text_chunk(delta);
                             self.send_update(
                                 &args.session_id,
-                                acp::SessionUpdate::AgentMessageChunk {
-                                    content: delta.into(),
-                                },
+                                acp::SessionUpdate::AgentMessageChunk(chunk),
                             )
                             .await?;
                         }
                     }
                     LLMStreamEvent::Reasoning { delta } => {
                         if !delta.is_empty() {
+                            let chunk = text_chunk(delta);
                             self.send_update(
                                 &args.session_id,
-                                acp::SessionUpdate::AgentThoughtChunk {
-                                    content: delta.into(),
-                                },
+                                acp::SessionUpdate::AgentThoughtChunk(chunk),
                             )
                             .await?;
                         }
@@ -1820,11 +1832,10 @@ impl acp::Agent for ZedAgent {
                             && let Some(content) = response.content
                         {
                             if !content.is_empty() {
+                                let chunk = text_chunk(content.clone());
                                 self.send_update(
                                     &args.session_id,
-                                    acp::SessionUpdate::AgentMessageChunk {
-                                        content: content.clone().into(),
-                                    },
+                                    acp::SessionUpdate::AgentMessageChunk(chunk),
                                 )
                                 .await?;
                             }
@@ -1834,11 +1845,10 @@ impl acp::Agent for ZedAgent {
                         if let Some(reasoning) =
                             response.reasoning.filter(|reasoning| !reasoning.is_empty())
                         {
+                            let chunk = text_chunk(reasoning);
                             self.send_update(
                                 &args.session_id,
-                                acp::SessionUpdate::AgentThoughtChunk {
-                                    content: reasoning.into(),
-                                },
+                                acp::SessionUpdate::AgentThoughtChunk(chunk),
                             )
                             .await?;
                         }
@@ -1930,11 +1940,10 @@ impl acp::Agent for ZedAgent {
                             stop_reason = acp::StopReason::Cancelled;
                             break;
                         }
+                        let chunk = text_chunk(content.clone());
                         self.send_update(
                             &args.session_id,
-                            acp::SessionUpdate::AgentMessageChunk {
-                                content: content.clone().into(),
-                            },
+                            acp::SessionUpdate::AgentMessageChunk(chunk),
                         )
                         .await?;
                     }
@@ -1948,11 +1957,10 @@ impl acp::Agent for ZedAgent {
                         stop_reason = acp::StopReason::Cancelled;
                         break;
                     }
+                    let chunk = text_chunk(reasoning);
                     self.send_update(
                         &args.session_id,
-                        acp::SessionUpdate::AgentThoughtChunk {
-                            content: reasoning.into(),
-                        },
+                        acp::SessionUpdate::AgentThoughtChunk(chunk),
                     )
                     .await?;
                 }
diff --git a/src/agent/runloop/slash_commands.rs b/src/agent/runloop/slash_commands.rs
index 15f24d274..6ce7abe71 100644
--- a/src/agent/runloop/slash_commands.rs
+++ b/src/agent/runloop/slash_commands.rs
@@ -59,21 +59,11 @@ pub enum SlashCommandOutcome {
     ManageSandbox {
         action: SandboxAction,
     },
-    CheckForUpdates {
-        action: UpdateAction,
-    },
     SubmitPrompt {
         prompt: String,
     },
 }
 
-#[derive(Clone, Debug)]
-pub enum UpdateAction {
-    Check,
-    Install,
-    Status,
-}
-
 #[derive(Clone, Debug)]
 pub enum McpCommandAction {
     Overview,
@@ -565,23 +555,6 @@ pub async fn handle_slash_command(
             }
             Ok(SlashCommandOutcome::Handled)
         }
-        "update" => {
-            let action = if args.is_empty() {
-                UpdateAction::Check
-            } else {
-                match args.trim().to_ascii_lowercase().as_str() {
-                    "check" => UpdateAction::Check,
-                    "install" => UpdateAction::Install,
-                    "status" => UpdateAction::Status,
-                    _ => {
-                        renderer
-                            .line(MessageStyle::Error, "Usage: /update [check|install|status]")?;
-                        return Ok(SlashCommandOutcome::Handled);
-                    }
-                }
-            };
-            Ok(SlashCommandOutcome::CheckForUpdates { action })
-        }
         "new" => {
             if !args.is_empty() {
                 renderer.line(MessageStyle::Error, "Usage: /new")?;
diff --git a/src/agent/runloop/tool_output/files.rs b/src/agent/runloop/tool_output/files.rs
index 1db771785..af938e371 100644
--- a/src/agent/runloop/tool_output/files.rs
+++ b/src/agent/runloop/tool_output/files.rs
@@ -134,7 +134,7 @@ pub(crate) fn render_write_file_preview(
 pub(crate) fn render_list_dir_output(
     renderer: &mut AnsiRenderer,
     val: &Value,
-    ls_styles: &LsStyles,
+    _ls_styles: &LsStyles,
 ) -> Result<()> {
     if let Some(path) = val.get("path").and_then(|v| v.as_str()) {
         renderer.line(MessageStyle::Info, &format!("  {}", path))?;
@@ -170,11 +170,7 @@ pub(crate) fn render_list_dir_output(
                         format!("  {}", display_name)
                     };
 
-                    if let Some(style) = ls_styles.style_for_line(&display_name) {
-                        renderer.line_with_style(style, &display)?;
-                    } else {
-                        renderer.line(MessageStyle::Response, &display)?;
-                    }
+                    renderer.line(MessageStyle::Response, &display)?;
                 }
             }
         }
diff --git a/src/agent/runloop/unified/turn.rs b/src/agent/runloop/unified/turn.rs
index 901af08de..bfec7a38e 100644
--- a/src/agent/runloop/unified/turn.rs
+++ b/src/agent/runloop/unified/turn.rs
@@ -1362,11 +1362,6 @@ pub(crate) async fn run_single_agent_loop_unified(
                                 renderer.line_if_not_empty(MessageStyle::Output)?;
                                 continue;
                             }
-                            SlashCommandOutcome::CheckForUpdates { action } => {
-                                handle_update_command_async(&mut renderer, action).await?;
-                                renderer.line_if_not_empty(MessageStyle::Output)?;
-                                continue;
-                            }
                             SlashCommandOutcome::NewSession => {
                                 renderer.line(MessageStyle::Info, "Starting new session...")?;
                                 session_end_reason = SessionEndReason::NewSession;
@@ -2949,138 +2944,3 @@ mod tests {
         assert_eq!(result, "Text with  partial tags");
     }
 }
-
-/// Handle the /update slash command
-async fn handle_update_command_async(
-    renderer: &mut AnsiRenderer,
-    action: crate::agent::runloop::slash_commands::UpdateAction,
-) -> Result<()> {
-    use crate::agent::runloop::slash_commands::UpdateAction;
-    use vtcode_core::update::{UpdateConfig, UpdateManager};
-
-    match action {
-        UpdateAction::Check => {
-            renderer.line(MessageStyle::Info, "Checking for updates...")?;
-
-            let config = match UpdateConfig::from_env() {
-                Ok(cfg) => cfg,
-                Err(e) => {
-                    renderer.line(
-                        MessageStyle::Error,
-                        &format!("Failed to load update configuration: {}", e),
-                    )?;
-                    return Ok(());
-                }
-            };
-
-            let manager = match UpdateManager::new(config) {
-                Ok(mgr) => mgr,
-                Err(e) => {
-                    renderer.line(
-                        MessageStyle::Error,
-                        &format!("Failed to create update manager: {}", e),
-                    )?;
-                    return Ok(());
-                }
-            };
-
-            match manager.check_for_updates().await {
-                Ok(status) => {
-                    renderer.line(
-                        MessageStyle::Info,
-                        &format!("Current version: {}", status.current_version),
-                    )?;
-
-                    if let Some(latest) = &status.latest_version {
-                        renderer
-                            .line(MessageStyle::Info, &format!("Latest version:  {}", latest))?;
-                    }
-
-                    if status.update_available {
-                        renderer.line(MessageStyle::Status, "An update is available!")?;
-
-                        if let Some(notes) = &status.release_notes {
-                            let lines: Vec<&str> = notes.lines().take(5).collect();
-                            if !lines.is_empty() {
-                                renderer.line(MessageStyle::Info, "Release highlights:")?;
-                                for line in lines {
-                                    if !line.trim().is_empty() {
-                                        renderer.line(
-                                            MessageStyle::Info,
-                                            &format!("  {}", line.trim()),
-                                        )?;
-                                    }
-                                }
-                            }
-                        }
-
-                        renderer.line(
-                            MessageStyle::Info,
-                            "Run '/update install' or 'vtcode update install' to install the update.",
-                        )?;
-                    } else {
-                        renderer
-                            .line(MessageStyle::Status, "You are running the latest version.")?;
-                    }
-                }
-                Err(e) => {
-                    renderer.line(
-                        MessageStyle::Error,
-                        &format!("Failed to check for updates: {}", e),
-                    )?;
-                }
-            }
-        }
-        UpdateAction::Install => {
-            renderer.line(
-                MessageStyle::Info,
-                "Installing updates from within a session is not recommended.",
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                "Please exit and run 'vtcode update install' from your terminal.",
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                "This ensures a clean update process and proper restart.",
-            )?;
-        }
-        UpdateAction::Status => {
-            renderer.line(MessageStyle::Info, "Update system status:")?;
-
-            let config = match UpdateConfig::from_env() {
-                Ok(cfg) => cfg,
-                Err(e) => {
-                    renderer.line(
-                        MessageStyle::Error,
-                        &format!("Failed to load configuration: {}", e),
-                    )?;
-                    return Ok(());
-                }
-            };
-
-            renderer.line(
-                MessageStyle::Info,
-                &format!("  Enabled: {}", config.enabled),
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                &format!("  Channel: {}", config.channel),
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                &format!("  Frequency: {:?}", config.frequency),
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                &format!("  Auto-download: {}", config.auto_download),
-            )?;
-            renderer.line(
-                MessageStyle::Info,
-                &format!("  Auto-install: {}", config.auto_install),
-            )?;
-        }
-    }
-
-    Ok(())
-}
diff --git a/src/cli/mod.rs b/src/cli/mod.rs
index 61f5ddcba..6da038af5 100644
--- a/src/cli/mod.rs
+++ b/src/cli/mod.rs
@@ -15,7 +15,6 @@ pub mod init;
 pub mod init_project;
 pub mod man;
 pub mod mcp;
-pub mod performance;
 pub mod revert;
 pub mod sessions;
 pub mod snapshots;
@@ -37,7 +36,6 @@ pub use init::handle_init_command;
 pub use init_project::handle_init_project_command;
 pub use man::handle_man_command;
 pub use mcp::handle_mcp_command;
-pub use performance::handle_performance_command;
 pub use revert::handle_revert_command;
 pub use sessions::handle_resume_session_command;
 pub use snapshots::{handle_cleanup_snapshots_command, handle_snapshots_command};
diff --git a/src/cli/performance.rs b/src/cli/performance.rs
deleted file mode 100644
index eeef064d0..000000000
--- a/src/cli/performance.rs
+++ /dev/null
@@ -1,45 +0,0 @@
-use anyhow::Result;
-use sysinfo::System;
-use vtcode_core::utils::colors::style;
-
-/// Handle the performance command
-pub async fn handle_performance_command() -> Result<()> {
-    println!("{}", style("Performance Metrics").blue().bold());
-
-    let mut sys = System::new_all();
-    sys.refresh_all();
-
-    println!("\nSystem:");
-    println!("  OS: {}", std::env::consts::OS);
-    println!("  Arch: {}", std::env::consts::ARCH);
-    println!("  Family: {}", std::env::consts::FAMILY);
-
-    println!("\nMemory:");
-    println!(
-        "  Total: {:.2} GB",
-        sys.total_memory() as f64 / 1024.0 / 1024.0 / 1024.0
-    );
-    println!(
-        "  Used: {:.2} GB",
-        sys.used_memory() as f64 / 1024.0 / 1024.0 / 1024.0
-    );
-    println!(
-        "  Available: {:.2} GB",
-        sys.available_memory() as f64 / 1024.0 / 1024.0 / 1024.0
-    );
-
-    println!("\nCPU:");
-    println!("  Cores: {}", sys.cpus().len());
-    println!("  Usage: {:.1}%", sys.global_cpu_usage());
-
-    println!("\nProcesses: {}", sys.processes().len());
-    if let Some(process) = sys.process(sysinfo::Pid::from_u32(std::process::id())) {
-        println!(
-            "  Self RSS: {:.2} MB",
-            process.memory() as f64 / 1024.0 / 1024.0
-        );
-        println!("  Self CPU: {:.1}%", process.cpu_usage());
-    }
-
-    Ok(())
-}
diff --git a/src/main.rs b/src/main.rs
index b757f976e..f85d8bbf9 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -54,14 +54,6 @@ async fn main() -> Result<()> {
     let skip_confirmations = startup.skip_confirmations;
     let full_auto_requested = startup.full_auto_requested;
 
-    // Check for updates on startup (only for interactive commands)
-    if vtcode::startup::update_check::should_check_for_updates() && args.command.is_none() {
-        // Run update check before starting interactive session
-        if let Err(e) = vtcode::startup::update_check::check_for_updates_on_startup().await {
-            tracing::debug!("Update check failed: {}", e);
-        }
-    }
-
     if let Some(print_value) = print_mode {
         let prompt = build_print_prompt(print_value)?;
         cli::handle_ask_single_command(core_cfg, &prompt, cli::AskCommandOptions::default())
@@ -125,9 +117,6 @@ async fn main() -> Result<()> {
         Some(Commands::Analyze) => {
             cli::handle_analyze_command(core_cfg).await?;
         }
-        Some(Commands::Performance) => {
-            cli::handle_performance_command().await?;
-        }
         Some(Commands::Trajectory { file, top }) => {
             cli::handle_trajectory_logs_command(core_cfg, file.clone(), *top).await?;
         }
@@ -176,9 +165,6 @@ async fn main() -> Result<()> {
         Some(Commands::Man { command, output }) => {
             cli::handle_man_command(command.clone(), output.clone()).await?;
         }
-        Some(Commands::Update { command }) => {
-            vtcode_core::cli::handle_update_command(command.clone()).await?;
-        }
         _ => {
             // Default to chat
             cli::handle_chat_command(core_cfg, skip_confirmations, full_auto_requested).await?;
diff --git a/src/main_modular.rs b/src/main_modular.rs
index 8ccb3d2a0..cf9389b7d 100644
--- a/src/main_modular.rs
+++ b/src/main_modular.rs
@@ -77,8 +77,6 @@ pub enum Commands {
         #[arg(long)]
         output: Option<PathBuf>,
     },
-    /// Show performance metrics
-    Performance,
 }
 
 #[tokio::main]
@@ -201,13 +199,6 @@ async fn main() -> Result<()> {
         Commands::Config { output } => {
             handle_config_command(output.as_deref()).await?;
         }
-        Commands::Performance => {
-            println!(
-                "{}",
-                style("Performance metrics mode selected").blue().bold()
-            );
-            handle_performance_command().await?;
-        }
     }
 
     if args.verbose {
diff --git a/src/startup/mod.rs b/src/startup/mod.rs
index dace5c1c8..96f110a7e 100644
--- a/src/startup/mod.rs
+++ b/src/startup/mod.rs
@@ -6,7 +6,6 @@ use toml::Value as TomlValue;
 use toml::value::Table as TomlTable;
 
 mod first_run;
-pub mod update_check;
 
 use first_run::maybe_run_first_run_setup;
 use vtcode_core::cli::args::Cli;
diff --git a/src/startup/update_check.rs b/src/startup/update_check.rs
deleted file mode 100644
index ea770a537..000000000
--- a/src/startup/update_check.rs
+++ /dev/null
@@ -1,355 +0,0 @@
-//! Startup update check functionality
-//!
-//! This module handles checking for updates on application startup and
-//! prompting users to update when new versions are available.
-
-use anyhow::Result;
-use vtcode_core::update::{UpdateConfig, UpdateManager, UpdateStatus};
-use vtcode_core::utils::colors::style;
-
-/// Check for updates on startup and prompt user if available
-pub async fn check_for_updates_on_startup() -> Result<()> {
-    // Check if update checks are disabled via environment variable
-    if std::env::var("VT_UPDATE_CHECK")
-        .unwrap_or_else(|_| "true".to_string())
-        .to_lowercase()
-        == "false"
-    {
-        return Ok(());
-    }
-
-    // Load update configuration
-    let config = match UpdateConfig::from_env() {
-        Ok(cfg) => cfg,
-        Err(_) => {
-            // Silently fail if config can't be loaded
-            return Ok(());
-        }
-    };
-
-    // Skip if updates are disabled
-    if !config.enabled {
-        return Ok(());
-    }
-
-    // Create update manager
-    let manager = match UpdateManager::new(config) {
-        Ok(mgr) => mgr,
-        Err(_) => {
-            // Silently fail if manager can't be created
-            return Ok(());
-        }
-    };
-
-    // Check for updates (non-blocking, with timeout)
-    let status = match tokio::time::timeout(
-        std::time::Duration::from_secs(5),
-        manager.check_for_updates(),
-    )
-    .await
-    {
-        Ok(Ok(status)) => status,
-        _ => {
-            // Silently fail on timeout or error
-            return Ok(());
-        }
-    };
-
-    // Display update notification if available
-    if status.update_available {
-        display_update_notification(&status)?;
-        prompt_for_update(manager, &status).await?;
-    }
-
-    Ok(())
-}
-
-/// Display a prominent update notification
-fn display_update_notification(status: &UpdateStatus) -> Result<()> {
-    let current = &status.current_version;
-    let latest = status.latest_version.as_deref().unwrap_or("unknown");
-
-    // Print prominent header
-    println!();
-    println!("{}", style("═".repeat(80)).cyan().bold());
-    println!("{}", style("  UPDATE AVAILABLE").cyan().bold().on_black());
-    println!("{}", style("═".repeat(80)).cyan().bold());
-    println!();
-    println!(
-        "  {} {}",
-        style("Current version:").dim(),
-        style(current).yellow()
-    );
-    println!(
-        "  {} {}",
-        style("Latest version: ").dim(),
-        style(latest).green().bold()
-    );
-    println!();
-
-    // Show release notes if available
-    if let Some(notes) = &status.release_notes {
-        let lines: Vec<&str> = notes.lines().take(5).collect();
-        if !lines.is_empty() {
-            println!("  {}", style("Release highlights:").dim());
-            for line in lines {
-                if !line.trim().is_empty() {
-                    println!("    {}", style(line.trim()).dim());
-                }
-            }
-            println!();
-        }
-    }
-
-    println!(
-        "  {} {}",
-        style("→").cyan(),
-        style("Run 'vtcode update install' to update").dim()
-    );
-    println!("{}", style("═".repeat(80)).cyan().bold());
-    println!();
-
-    Ok(())
-}
-
-/// Prompt user to install update
-async fn prompt_for_update(manager: UpdateManager, status: &UpdateStatus) -> Result<()> {
-    // Check if we're in an interactive terminal
-    if !is_terminal::is_terminal(&std::io::stdin()) {
-        return Ok(());
-    }
-
-    // Check if auto-install is enabled
-    if manager.config().auto_install {
-        println!(
-            "  {} Auto-install is enabled. Installing update...",
-            style("→").cyan()
-        );
-        return perform_update(manager, status).await;
-    }
-
-    // Prompt user
-    use dialoguer::Confirm;
-
-    let prompt = Confirm::new()
-        .with_prompt("Would you like to install this update now?")
-        .default(false)
-        .interact_opt()?;
-
-    match prompt {
-        Some(true) => {
-            perform_update(manager, status).await?;
-        }
-        Some(false) => {
-            println!(
-                "  {} Update skipped. Run 'vtcode update install' later to update.",
-                style("ℹ").blue()
-            );
-        }
-        None => {
-            // User cancelled (Ctrl+C)
-            return Ok(());
-        }
-    }
-
-    Ok(())
-}
-
-/// Perform the update installation
-async fn perform_update(mut manager: UpdateManager, _status: &UpdateStatus) -> Result<()> {
-    println!();
-    println!("  {} Downloading update...", style("→").cyan());
-
-    // Show progress indicator
-    let spinner = indicatif::ProgressBar::new_spinner();
-    spinner.set_message("Downloading and verifying update...");
-    spinner.enable_steady_tick(std::time::Duration::from_millis(100));
-
-    // Perform update
-    let result = manager.perform_update().await;
-
-    spinner.finish_and_clear();
-
-    match result {
-        Ok(update_result) => {
-            if update_result.success {
-                println!();
-                println!(
-                    "  {} Update installed successfully!",
-                    style("✓").green().bold()
-                );
-                println!(
-                    "  {} Updated from {} to {}",
-                    style("→").cyan(),
-                    style(&update_result.old_version).yellow(),
-                    style(&update_result.new_version).green().bold()
-                );
-
-                if let Some(backup) = update_result.backup_path {
-                    println!(
-                        "  {} Backup created at: {}",
-                        style("ℹ").blue(),
-                        style(backup.display()).dim()
-                    );
-                }
-
-                if update_result.requires_restart {
-                    println!();
-                    println!(
-                        "  {} Please restart vtcode to use the new version.",
-                        style("⚠").yellow()
-                    );
-                    println!(
-                        "  {} Run 'vtcode --version' to verify the update.",
-                        style("→").cyan()
-                    );
-                }
-
-                println!();
-            } else {
-                println!("  {} Update installation failed.", style("✗").red().bold());
-            }
-        }
-        Err(e) => {
-            println!(
-                "  {} Update failed: {}",
-                style("✗").red().bold(),
-                style(e).red()
-            );
-            println!(
-                "  {} Your previous version has been restored.",
-                style("ℹ").blue()
-            );
-            println!(
-                "  {} Try again later with 'vtcode update install'",
-                style("→").cyan()
-            );
-        }
-    }
-
-    Ok(())
-}
-
-/// Check if we should show the update prompt based on frequency
-pub fn should_check_for_updates() -> bool {
-    // Check environment variable
-    if std::env::var("VT_UPDATE_CHECK")
-        .unwrap_or_else(|_| "true".to_string())
-        .to_lowercase()
-        == "false"
-    {
-        return false;
-    }
-
-    // Check if we're in a CI/CD environment
-    if is_ci_environment() {
-        return false;
-    }
-
-    // Check if we're in a non-interactive environment
-    if !is_terminal::is_terminal(&std::io::stdin()) {
-        return false;
-    }
-
-    true
-}
-
-/// Detect if we're running in a CI/CD environment
-fn is_ci_environment() -> bool {
-    std::env::var("CI").is_ok()
-        || std::env::var("CONTINUOUS_INTEGRATION").is_ok()
-        || std::env::var("GITHUB_ACTIONS").is_ok()
-        || std::env::var("GITLAB_CI").is_ok()
-        || std::env::var("CIRCLECI").is_ok()
-        || std::env::var("TRAVIS").is_ok()
-        || std::env::var("JENKINS_URL").is_ok()
-}
-
-/// Display a minimal update notification (non-interactive)
-pub fn display_minimal_update_notification(status: &UpdateStatus) {
-    if !status.update_available {
-        return;
-    }
-
-    let current = &status.current_version;
-    let latest = status.latest_version.as_deref().unwrap_or("unknown");
-
-    eprintln!(
-        "{} Update available: {} → {} (run 'vtcode update install')",
-        style("ℹ").blue(),
-        style(current).yellow(),
-        style(latest).green()
-    );
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_should_check_for_updates() {
-        // Should return a boolean
-        let result = should_check_for_updates();
-        assert!(result || !result); // Always true
-    }
-
-    #[test]
-    fn test_is_ci_environment() {
-        // Save current CI environment variables
-        let ci_vars = [
-            "CI",
-            "CONTINUOUS_INTEGRATION",
-            "GITHUB_ACTIONS",
-            "GITLAB_CI",
-            "CIRCLECI",
-            "TRAVIS",
-            "JENKINS_URL",
-        ];
-        let saved_values: Vec<_> = ci_vars
-            .iter()
-            .map(|var| (*var, std::env::var(var).ok()))
-            .collect();
-
-        // Test CI detection when no CI vars are set
-        unsafe {
-            // SAFETY: Tests run single-threaded here and clean up the mutation immediately.
-            for var in &ci_vars {
-                std::env::remove_var(var);
-            }
-        }
-        assert!(!is_ci_environment());
-
-        // Test CI detection when CI var is set
-        unsafe {
-            // SAFETY: The test owns this temporary CI value and restores it right after use.
-            std::env::set_var("CI", "true");
-        }
-        assert!(is_ci_environment());
-
-        // Restore original environment
-        unsafe {
-            // SAFETY: Restores the environment to its previous state for subsequent tests.
-            for (var, value) in saved_values {
-                match value {
-                    Some(v) => std::env::set_var(var, v),
-                    None => std::env::remove_var(var),
-                }
-            }
-        }
-    }
-
-    #[test]
-    fn test_display_minimal_notification() {
-        let status = UpdateStatus {
-            current_version: "0.33.1".to_string(),
-            latest_version: Some("0.34.0".to_string()),
-            update_available: true,
-            download_url: None,
-            release_notes: None,
-            last_checked: None,
-        };
-
-        // Should not panic
-        display_minimal_update_notification(&status);
-    }
-}
diff --git a/test_docs_rs_fix.sh b/test_docs_rs_fix.sh
new file mode 100755
index 000000000..7fbc32276
--- /dev/null
+++ b/test_docs_rs_fix.sh
@@ -0,0 +1,27 @@
+#!/bin/bash
+
+# Test script to verify the docs.rs fix for mcp-types build script
+echo "Testing docs.rs fix for mcp-types build script..."
+
+# Test 1: Normal build (should generate files if not exists or in normal mode)
+echo "Test 1: Running normal build..."
+cd third-party/mcp-types
+cargo build --release
+if [ $? -eq 0 ]; then
+    echo "✓ Normal build succeeded"
+else
+    echo "✗ Normal build failed"
+    exit 1
+fi
+
+# Test 2: Simulate docs.rs environment (should skip generation)
+echo "Test 2: Simulating docs.rs build..."
+DOCS_RS=1 cargo build --release
+if [ $? -eq 0 ]; then
+    echo "✓ docs.rs simulation succeeded (build script skipped file generation)"
+else
+    echo "✗ docs.rs simulation failed"
+    exit 1
+fi
+
+echo "All tests passed! The docs.rs fix is working correctly."
\ No newline at end of file
diff --git a/third-party/mcp-types/build.rs b/third-party/mcp-types/build.rs
index 880b57326..cac1487b3 100644
--- a/third-party/mcp-types/build.rs
+++ b/third-party/mcp-types/build.rs
@@ -1,4 +1,4 @@
-use std::{env, fs, io, path::Path};
+use std::{env, fs, path::Path};
 use typify::{TypeSpace, TypeSpaceSettings};
 
 fn main() {
@@ -6,6 +6,15 @@ fn main() {
 }
 
 fn generate(version: &str) {
+    let is_docsrs = env::var_os("DOCS_RS").is_some();
+    
+    // Don't regenerate schema when building on docs.rs
+    if is_docsrs {
+        println!("cargo:warning=docs.rs build detected, skipping schema regeneration");
+        println!("cargo:warning=Using existing generated sources");
+        return;
+    }
+
     let schema_path = format!("./spec/{}-schema.json", version);
     let content = std::fs::read_to_string(schema_path).unwrap();
     let schema = serde_json::from_str::<schemars::schema::RootSchema>(&content).unwrap();
@@ -24,15 +33,5 @@ fn generate(version: &str) {
     let mut out_file = Path::new(&env::var("CARGO_MANIFEST_DIR").unwrap()).to_path_buf();
     out_file.push(file_name);
 
-    if let Err(err) = fs::write(&out_file, contents) {
-        let is_docsrs = env::var_os("DOCS_RS").is_some();
-        let is_read_only = err.kind() == io::ErrorKind::PermissionDenied
-            || err.raw_os_error() == Some(30);
-        if is_docsrs || is_read_only {
-            println!("cargo:warning=skipping schema regeneration: {err}");
-            println!("cargo:warning=Using existing generated sources at {}", out_file.display());
-        } else {
-            panic!("failed to write generated bindings to {}: {err}", out_file.display());
-        }
-    }
+    fs::write(&out_file, contents).unwrap();
 }
diff --git a/vtcode-acp-client/Cargo.toml b/vtcode-acp-client/Cargo.toml
index 0cfeae8a4..dab18449d 100644
--- a/vtcode-acp-client/Cargo.toml
+++ b/vtcode-acp-client/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-acp-client"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Shared utilities for managing Agent Client Protocol client connections"
@@ -10,4 +10,4 @@ homepage = "https://github.com/vinhnx/vtcode"
 documentation = "https://docs.rs/vtcode-acp-client"
 
 [dependencies]
-agent-client-protocol = "0.4.5"
+agent-client-protocol = "0.7.0"
diff --git a/vtcode-bash-runner/Cargo.toml b/vtcode-bash-runner/Cargo.toml
index e8c530223..83c6d6aa0 100644
--- a/vtcode-bash-runner/Cargo.toml
+++ b/vtcode-bash-runner/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-bash-runner"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 description = "Cross-platform shell execution helpers extracted from VTCode"
 license = "MIT"
@@ -20,9 +20,9 @@ exec-events = ["dep:vtcode-exec-events"]
 anyhow = "1.0"
 path-clean = "1.0"
 shell-escape = "0.1"
-vtcode-commons = { path = "../vtcode-commons", version = "0.38.1" }
+vtcode-commons = { path = "../vtcode-commons", version = "0.38.2" }
 serde = { version = "1.0", features = ["derive"], optional = true }
-vtcode-exec-events = { path = "../vtcode-exec-events", version = "0.38.1", optional = true }
+vtcode-exec-events = { path = "../vtcode-exec-events", version = "0.38.2", optional = true }
 
 [lints]
 workspace = true
diff --git a/vtcode-commons/Cargo.toml b/vtcode-commons/Cargo.toml
index 2b1cbbe0c..52a93462e 100644
--- a/vtcode-commons/Cargo.toml
+++ b/vtcode-commons/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-commons"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2021"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Shared traits for paths, telemetry, and error reporting reused across VTCode component extractions"
diff --git a/vtcode-config/Cargo.toml b/vtcode-config/Cargo.toml
index 6680abc26..b588efc96 100644
--- a/vtcode-config/Cargo.toml
+++ b/vtcode-config/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-config"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Config loader components shared across VTCode and downstream adopters"
@@ -24,7 +24,7 @@ serde_json = "1.0"
 toml = "0.9.8"
 toml_edit = "0.22"
 tracing = "0.1"
-vtcode-commons = { path = "../vtcode-commons", version = "0.38.1" }
+vtcode-commons = { path = "../vtcode-commons", version = "0.38.2" }
 dotenvy = "0.15"
 schemars = { version = "0.8", optional = true, features = ["indexmap"] }
 
diff --git a/vtcode-config/src/constants.rs b/vtcode-config/src/constants.rs
index 3c0720471..7727fb99d 100644
--- a/vtcode-config/src/constants.rs
+++ b/vtcode-config/src/constants.rs
@@ -344,9 +344,6 @@ pub mod model_helpers {
 
 /// Environment variable names shared across the application.
 pub mod env {
-    /// Toggle automatic update checks in the onboarding banner.
-    pub const UPDATE_CHECK: &str = "VT_UPDATE_CHECK";
-
     /// Agent Client Protocol specific environment keys
     pub mod acp {
         #[derive(Debug, Clone, Copy)]
diff --git a/vtcode-config/src/root.rs b/vtcode-config/src/root.rs
index 906ca11cc..340eb471c 100644
--- a/vtcode-config/src/root.rs
+++ b/vtcode-config/src/root.rs
@@ -116,6 +116,10 @@ pub struct PtyConfig {
     /// Maximum number of scrollback lines retained per PTY session
     #[serde(default = "default_scrollback_lines")]
     pub scrollback_lines: usize,
+
+    /// Preferred shell program for PTY sessions (falls back to environment when unset)
+    #[serde(default)]
+    pub preferred_shell: Option<String>,
 }
 
 impl Default for PtyConfig {
@@ -128,6 +132,7 @@ impl Default for PtyConfig {
             command_timeout_seconds: default_pty_timeout(),
             stdout_tail_lines: default_stdout_tail_lines(),
             scrollback_lines: default_scrollback_lines(),
+            preferred_shell: None,
         }
     }
 }
diff --git a/vtcode-core/Cargo.toml b/vtcode-core/Cargo.toml
index f86c9de67..a6b42c22e 100644
--- a/vtcode-core/Cargo.toml
+++ b/vtcode-core/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-core"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Core library for VTCode - a Rust-based terminal coding agent"
@@ -43,14 +43,12 @@ tokio-util = { version = "0.7", features = ["codec"] }
 async-process = "2.2"
 futures = "0.3"
 futures-lite = "2.3"
-futures-util = "0.3"
 async-stream = "0.3"
-bytes = "1.0"
 base64 = "0.21"
 walkdir = "2.5"
 glob = "0.3"
 thiserror = "2.0"
-dialoguer = "0.11"
+dialoguer = "0.12.0"
 regex = "1.10"
 shell-words = "1.1"
 tree-sitter = "0.25"
@@ -97,20 +95,14 @@ roff = "0.2"
 syntect = "5.2"
 unicode-segmentation = "1.11"
 unicode-width = "0.2.0"
-crossterm = "0.28"
+crossterm = "0.29.0"
 ratatui = { version = "0.29", default-features = false, features = [
     "crossterm",
     "unstable-rendered-line-info",
     "unstable-widget-ref",
 ] }
-tui-markdown = { version = "0.3.5", default-features = false, features = [
-    "highlight-code",
-] }
-tui-scrollview = "0.5.1"
-tui-tree-widget = "0.23"
 tui-popup = "0.6"
 tui-prompts = "0.5"
-ignore = "0.4"
 perg = "0.6.1"
 nucleo-matcher = "0.3"
 line-clipping = "0.3"
@@ -122,35 +114,18 @@ dissimilar = "1.0"
 rig = { package = "rig-core", version = "0.21", default-features = false, features = [
     "reqwest-rustls",
 ] }
-avt = "0.16.0"
+vt100 = "0.15.2"
 portable-pty = "0.9.0"
 ansi-to-tui = "7.0.0"
-vtcode-commons = { path = "../vtcode-commons", version = "0.38.1" }
-vtcode-exec-events = { path = "../vtcode-exec-events", version = "0.38.1" }
-vtcode-config = { path = "../vtcode-config", version = "0.38.1" }
-vtcode-markdown-store = { path = "../vtcode-markdown-store", version = "0.38.1" }
-vtcode-indexer = { path = "../vtcode-indexer", version = "0.38.1" }
-
-# Self-update dependencies
-zip = "2.2"
-tar = "0.4"
-bzip2 = "0.5"
-xz2 = "0.1"
-self_update = { version = "0.42.0", features = [
-    "archive-zip",
-    "compression-zip-deflate",
-    "rustls",
-] }
+vtcode-commons = { path = "../vtcode-commons", version = "0.38.2" }
+vtcode-exec-events = { path = "../vtcode-exec-events", version = "0.38.2" }
+vtcode-config = { path = "../vtcode-config", version = "0.38.2" }
+vtcode-markdown-store = { path = "../vtcode-markdown-store", version = "0.38.2" }
+vtcode-indexer = { path = "../vtcode-indexer", version = "0.38.2" }
 
 # Token counting for attention budget management
 tokenizers = { version = "0.15", features = ["http"] }
 
-# Version parsing
-semver = "1.0"
-
-# Update notifier
-update-informer = { version = "1.3.0", features = ["github"] }
-
 # MCP (Model Context Protocol) support
 rmcp = { version = "0.7.0", features = [
     "client",
@@ -162,7 +137,7 @@ openai-harmony = "0.0.3"
 url = "2.5"
 
 [build-dependencies]
-vtcode-config = { path = "../vtcode-config", version = "0.38.1" }
+vtcode-config = { path = "../vtcode-config", version = "0.38.2" }
 
 [target.'cfg(unix)'.dependencies]
 
@@ -187,7 +162,7 @@ version = "0.7.1"
 optional = true
 
 [package.metadata.cargo-machete]
-ignored = ["dotenvy", "itertools", "toml_edit", "dissimilar"]
+ignored = ["dotenvy", "itertools", "toml_edit"]
 
 [package.metadata.docs.rs]
 all-features = true
diff --git a/vtcode-core/embedded_assets_source/docs/vtcode_docs_map.md b/vtcode-core/embedded_assets_source/docs/vtcode_docs_map.md
index e4e1965c8..b068bbda7 100644
--- a/vtcode-core/embedded_assets_source/docs/vtcode_docs_map.md
+++ b/vtcode-core/embedded_assets_source/docs/vtcode_docs_map.md
@@ -155,6 +155,17 @@ This document serves as an index of all VT Code documentation. When users ask qu
   - **Topics**: VS Code extension, integration issues, setup problems
   - **User Questions**: "How do I use VT Code with my IDE?", "What IDE integrations exist?"
 
+### Editor Integrations
+
+- **File**: `docs/guides/zed-acp.md`
+  - **Content**: Zed Agent Client Protocol setup, including Agent Server Extension packaging
+  - **Topics**: ACP bridge configuration, Zed-specific environment settings, extension manifest layout, release packaging, local testing
+  - **User Questions**: "How do I run VT Code inside Zed?", "Can I ship VT Code as a Zed extension?", "What ACP settings does VT Code require?"
+- **Directory**: `zed-extension/`
+  - **Content**: Ready-to-publish Zed extension manifest and icon
+  - **Topics**: Agent Server Extension packaging, release asset wiring, checksum management
+  - **User Questions**: "Where is the Zed extension manifest?", "How do I update checksums for a new release?"
+
 ### Implementation & Updates
 
 - **File**: `docs/IMPLEMENTATION_COMPLETE.md`
@@ -343,4 +354,4 @@ When users ask questions about VT Code itself:
 
 ---
 
-**Note**: This enhanced documentation map is designed for VT Code's self-documentation system. When users ask questions about VT Code itself, the system should fetch this document and use it to provide accurate, up-to-date information about VT Code's capabilities and features. The expanded trigger questions and response patterns ensure comprehensive coverage of user questions and consistent, helpful responses.
\ No newline at end of file
+**Note**: This enhanced documentation map is designed for VT Code's self-documentation system. When users ask questions about VT Code itself, the system should fetch this document and use it to provide accurate, up-to-date information about VT Code's capabilities and features. The expanded trigger questions and response patterns ensure comprehensive coverage of user questions and consistent, helpful responses.
diff --git a/vtcode-core/src/cli/args.rs b/vtcode-core/src/cli/args.rs
index d176adc0e..80c14a0cb 100644
--- a/vtcode-core/src/cli/args.rs
+++ b/vtcode-core/src/cli/args.rs
@@ -99,16 +99,6 @@ pub struct Cli {
     #[arg(long, global = true)]
     pub enable_tree_sitter: bool,
 
-    /// **Enable performance monitoring**
-    ///
-    /// Tracks:
-    ///   • Token usage and API costs
-    ///   • Response times and latency
-    ///   • Tool execution metrics
-    ///   • Memory usage patterns
-    #[arg(long, global = true)]
-    pub performance_monitoring: bool,
-
     /// **Enable research-preview features**
     ///
     /// Includes:
@@ -326,7 +316,6 @@ pub enum Commands {
         #[arg(long = "output-format", value_enum, value_name = "FORMAT")]
         output_format: Option<AskOutputFormat>,
     },
-
     /// **Headless execution mode** mirroring Codex exec semantics
     ///
     /// Features:
@@ -374,9 +363,6 @@ pub enum Commands {
     /// Usage: vtcode analyze
     Analyze,
 
-    /// **Display performance metrics** and system status\n\n**Shows:**\n• Token usage and API costs\n• Response times and latency\n• Tool execution statistics\n• Memory usage patterns\n\n**Usage:** vtcode performance
-    Performance,
-
     /// Pretty-print trajectory logs and show basic analytics
     ///
     /// Sources:
@@ -623,12 +609,6 @@ pub enum Commands {
         #[arg(short, long)]
         output: Option<std::path::PathBuf>,
     },
-
-    /// **Self-update management** - check for and install updates\n\n**Features:**\n• Automatic version checking from GitHub releases\n• Secure download with checksum verification\n• Automatic backup before updates\n• Rollback support for failed updates\n• Cross-platform support (Linux, macOS, Windows)\n\n**Examples:**\n  vtcode update check\n  vtcode update install\n  vtcode update config --channel beta\n  vtcode update rollback
-    Update {
-        #[command(subcommand)]
-        command: crate::cli::update_commands::UpdateCommands,
-    },
 }
 
 /// Supported Agent Client Protocol clients
@@ -778,7 +758,6 @@ impl Default for Cli {
             api_key_env: "GEMINI_API_KEY".to_string(),
             workspace: None,
             enable_tree_sitter: false,
-            performance_monitoring: false,
             research_preview: false,
             security_level: "moderate".to_string(),
             show_file_diffs: false,
@@ -990,10 +969,6 @@ impl Cli {
     }
 
     /// Check if performance monitoring is enabled
-    pub fn is_performance_monitoring_enabled(&self) -> bool {
-        self.performance_monitoring
-    }
-
     /// Check if research-preview features are enabled
     pub fn is_research_preview_enabled(&self) -> bool {
         self.research_preview
diff --git a/vtcode-core/src/cli/mod.rs b/vtcode-core/src/cli/mod.rs
index 2dede0a5e..ac827a473 100644
--- a/vtcode-core/src/cli/mod.rs
+++ b/vtcode-core/src/cli/mod.rs
@@ -9,7 +9,6 @@ pub mod mcp_commands;
 pub mod models_commands;
 pub mod rate_limiter;
 pub mod tool_policy_commands;
-pub mod update_commands;
 
 pub use args::*;
 pub use commands::*;
@@ -18,4 +17,3 @@ pub use mcp_commands::*;
 pub use models_commands::*;
 pub use rate_limiter::*;
 pub use tool_policy_commands::*;
-pub use update_commands::*;
diff --git a/vtcode-core/src/cli/update_commands.rs b/vtcode-core/src/cli/update_commands.rs
deleted file mode 100644
index f9203804d..000000000
--- a/vtcode-core/src/cli/update_commands.rs
+++ /dev/null
@@ -1,369 +0,0 @@
-//! CLI commands for self-update functionality
-
-use crate::update::{UpdateChannel, UpdateConfig, UpdateFrequency, UpdateManager};
-use anyhow::{Context, Result};
-use clap::Subcommand;
-
-#[derive(Debug, Clone, Subcommand)]
-pub enum UpdateCommands {
-    /// Check for available updates
-    Check {
-        /// Show detailed information
-        #[arg(short, long)]
-        verbose: bool,
-    },
-
-    /// Install available updates
-    Install {
-        /// Skip confirmation prompt
-        #[arg(short = 'y', long)]
-        yes: bool,
-
-        /// Force reinstall even if no update is available
-        #[arg(short, long)]
-        force: bool,
-    },
-
-    /// Configure update settings
-    Config {
-        /// Enable or disable automatic updates
-        #[arg(long)]
-        enabled: Option<bool>,
-
-        /// Set update channel (stable, beta, nightly)
-        #[arg(long)]
-        channel: Option<String>,
-
-        /// Set update frequency (always, daily, weekly, never)
-        #[arg(long)]
-        frequency: Option<String>,
-
-        /// Enable or disable automatic downloads
-        #[arg(long)]
-        auto_download: Option<bool>,
-
-        /// Enable or disable automatic installation
-        #[arg(long)]
-        auto_install: Option<bool>,
-    },
-
-    /// List available backups
-    Backups,
-
-    /// Rollback to a previous version
-    Rollback {
-        /// Backup file to rollback to
-        backup: Option<String>,
-    },
-
-    /// Clean up old backups
-    Cleanup,
-}
-
-/// Handle update-related commands
-pub async fn handle_update_command(command: UpdateCommands) -> Result<()> {
-    match command {
-        UpdateCommands::Check { verbose } => handle_check_command(verbose).await,
-        UpdateCommands::Install { yes, force } => handle_install_command(yes, force).await,
-        UpdateCommands::Config {
-            enabled,
-            channel,
-            frequency,
-            auto_download,
-            auto_install,
-        } => handle_config_command(enabled, channel, frequency, auto_download, auto_install).await,
-        UpdateCommands::Backups => handle_backups_command().await,
-        UpdateCommands::Rollback { backup } => handle_rollback_command(backup).await,
-        UpdateCommands::Cleanup => handle_cleanup_command().await,
-    }
-}
-
-/// Check for available updates
-async fn handle_check_command(verbose: bool) -> Result<()> {
-    let config = UpdateConfig::from_env()?;
-    let manager = UpdateManager::new(config)?;
-
-    println!("Checking for updates...");
-
-    let status = manager
-        .check_for_updates()
-        .await
-        .context("Failed to check for updates")?;
-
-    println!("\nCurrent version: {}", status.current_version);
-
-    if let Some(latest) = &status.latest_version {
-        println!("Latest version:  {}", latest);
-    }
-
-    if status.update_available {
-        println!("\nAn update is available!");
-
-        if verbose {
-            if let Some(notes) = &status.release_notes {
-                println!("\nRelease notes:");
-                println!("{}", notes);
-            }
-
-            if let Some(url) = &status.download_url {
-                println!("\nDownload URL: {}", url);
-            }
-        }
-
-        println!("\nRun 'vtcode update install' to install the update.");
-    } else {
-        println!("\nYou are running the latest version.");
-    }
-
-    Ok(())
-}
-
-/// Install available updates
-async fn handle_install_command(yes: bool, force: bool) -> Result<()> {
-    let config = UpdateConfig::from_env()?;
-    let mut manager = UpdateManager::new(config)?;
-
-    // Check for updates first
-    let status = manager
-        .check_for_updates()
-        .await
-        .context("Failed to check for updates")?;
-
-    if !status.update_available && !force {
-        println!("No update available. You are running the latest version.");
-        return Ok(());
-    }
-
-    if !yes {
-        println!(
-            "This will update vtcode from {} to {}.",
-            status.current_version,
-            status.latest_version.as_deref().unwrap_or("unknown")
-        );
-        println!("A backup will be created before updating.");
-        print!("Continue? [y/N] ");
-
-        use std::io::{self, Write};
-        io::stdout().flush()?;
-
-        let mut input = String::new();
-        io::stdin().read_line(&mut input)?;
-
-        if !input.trim().eq_ignore_ascii_case("y") {
-            println!("Update cancelled.");
-            return Ok(());
-        }
-    }
-
-    println!("Downloading and installing update...");
-
-    let result = manager
-        .perform_update()
-        .await
-        .context("Failed to perform update")?;
-
-    if result.success {
-        println!("\nUpdate installed successfully!");
-        println!(
-            "Updated from {} to {}",
-            result.old_version, result.new_version
-        );
-
-        if let Some(backup) = result.backup_path {
-            println!("Backup created at: {:?}", backup);
-        }
-
-        if result.requires_restart {
-            println!("\nPlease restart vtcode to use the new version.");
-        }
-    } else {
-        anyhow::bail!("Update installation failed");
-    }
-
-    Ok(())
-}
-
-/// Configure update settings
-async fn handle_config_command(
-    enabled: Option<bool>,
-    channel: Option<String>,
-    frequency: Option<String>,
-    auto_download: Option<bool>,
-    auto_install: Option<bool>,
-) -> Result<()> {
-    let mut config = UpdateConfig::from_env()?;
-
-    let mut changed = false;
-
-    if let Some(val) = enabled {
-        config.enabled = val;
-        changed = true;
-        println!(
-            "Automatic updates: {}",
-            if val { "enabled" } else { "disabled" }
-        );
-    }
-
-    if let Some(val) = channel {
-        config.channel = match val.to_lowercase().as_str() {
-            "stable" => UpdateChannel::Stable,
-            "beta" => UpdateChannel::Beta,
-            "nightly" => UpdateChannel::Nightly,
-            _ => anyhow::bail!(
-                "Invalid channel: {}. Use 'stable', 'beta', or 'nightly'.",
-                val
-            ),
-        };
-        changed = true;
-        println!("Update channel: {}", config.channel);
-    }
-
-    if let Some(val) = frequency {
-        config.frequency = match val.to_lowercase().as_str() {
-            "always" => UpdateFrequency::Always,
-            "daily" => UpdateFrequency::Daily,
-            "weekly" => UpdateFrequency::Weekly,
-            "never" => UpdateFrequency::Never,
-            _ => anyhow::bail!(
-                "Invalid frequency: {}. Use 'always', 'daily', 'weekly', or 'never'.",
-                val
-            ),
-        };
-        changed = true;
-        println!("Update frequency: {:?}", config.frequency);
-    }
-
-    if let Some(val) = auto_download {
-        config.auto_download = val;
-        changed = true;
-        println!(
-            "Automatic downloads: {}",
-            if val { "enabled" } else { "disabled" }
-        );
-    }
-
-    if let Some(val) = auto_install {
-        config.auto_install = val;
-        changed = true;
-        println!(
-            "Automatic installation: {}",
-            if val { "enabled" } else { "disabled" }
-        );
-    }
-
-    if !changed {
-        println!("Current update configuration:");
-        println!("  Enabled: {}", config.enabled);
-        println!("  Channel: {}", config.channel);
-        println!("  Frequency: {:?}", config.frequency);
-        println!("  Auto-download: {}", config.auto_download);
-        println!("  Auto-install: {}", config.auto_install);
-    }
-
-    Ok(())
-}
-
-/// List available backups
-async fn handle_backups_command() -> Result<()> {
-    let config = UpdateConfig::from_env()?;
-    let manager = UpdateManager::new(config)?;
-
-    let backups = manager
-        .config()
-        .backup_dir
-        .read_dir()
-        .context("Failed to read backup directory")?
-        .filter_map(|entry| entry.ok())
-        .filter(|entry| {
-            entry
-                .file_name()
-                .to_string_lossy()
-                .starts_with("vtcode_backup_")
-        })
-        .collect::<Vec<_>>();
-
-    if backups.is_empty() {
-        println!("No backups found.");
-        return Ok(());
-    }
-
-    println!("Available backups:");
-    for backup in backups {
-        let path = backup.path();
-        let metadata = std::fs::metadata(&path)?;
-        let size = metadata.len();
-        let modified = metadata.modified()?;
-
-        println!(
-            "  {} ({} bytes, modified: {:?})",
-            path.display(),
-            size,
-            modified
-        );
-    }
-
-    Ok(())
-}
-
-/// Rollback to a previous version
-async fn handle_rollback_command(backup: Option<String>) -> Result<()> {
-    let config = UpdateConfig::from_env()?;
-    let manager = UpdateManager::new(config)?;
-
-    let backup_path = if let Some(path) = backup {
-        std::path::PathBuf::from(path)
-    } else {
-        // Find the most recent backup
-        let backups = manager
-            .config()
-            .backup_dir
-            .read_dir()
-            .context("Failed to read backup directory")?
-            .filter_map(|entry| entry.ok())
-            .filter(|entry| {
-                entry
-                    .file_name()
-                    .to_string_lossy()
-                    .starts_with("vtcode_backup_")
-            })
-            .max_by_key(|entry| {
-                entry
-                    .metadata()
-                    .and_then(|m| m.modified())
-                    .unwrap_or(std::time::SystemTime::UNIX_EPOCH)
-            });
-
-        if let Some(backup) = backups {
-            backup.path()
-        } else {
-            anyhow::bail!("No backups found");
-        }
-    };
-
-    println!("Rolling back to: {:?}", backup_path);
-
-    manager
-        .rollback_to_backup(&backup_path)
-        .context("Failed to rollback")?;
-
-    println!("Rollback completed successfully!");
-    println!("Please restart vtcode to use the restored version.");
-
-    Ok(())
-}
-
-/// Clean up old backups
-async fn handle_cleanup_command() -> Result<()> {
-    let config = UpdateConfig::from_env()?;
-    let manager = UpdateManager::new(config)?;
-
-    println!("Cleaning up old backups...");
-
-    manager
-        .cleanup_old_backups()
-        .context("Failed to cleanup backups")?;
-
-    println!("Cleanup completed successfully!");
-
-    Ok(())
-}
diff --git a/vtcode-core/src/core/agent/mod.rs b/vtcode-core/src/core/agent/mod.rs
index 61f6a1cdc..693dacfca 100644
--- a/vtcode-core/src/core/agent/mod.rs
+++ b/vtcode-core/src/core/agent/mod.rs
@@ -10,7 +10,6 @@ pub mod engine;
 pub mod events;
 pub mod examples;
 pub mod intelligence;
-pub mod performance;
 pub mod runner;
 pub mod semantic;
 pub mod snapshots;
diff --git a/vtcode-core/src/core/agent/performance.rs b/vtcode-core/src/core/agent/performance.rs
deleted file mode 100644
index 5cc2cffd9..000000000
--- a/vtcode-core/src/core/agent/performance.rs
+++ /dev/null
@@ -1,563 +0,0 @@
-//! Performance optimization and caching systems for the coding agent
-//!
-//! This module implements Research-preview performance features including:
-//! - Intelligent caching with LRU eviction
-//! - Parallel processing for large codebases
-//! - Memory-efficient data structures
-//! - Response time optimization
-
-use crate::tools::tree_sitter::CodeAnalysis;
-use anyhow::Result;
-use serde::{Deserialize, Serialize};
-use std::collections::{HashMap, VecDeque};
-use std::path::{Path, PathBuf};
-use std::sync::Arc;
-use std::time::{Duration, Instant};
-use tokio::sync::RwLock;
-
-/// Intelligent caching system with LRU eviction
-pub struct IntelligentCache<T> {
-    cache: Arc<RwLock<HashMap<String, CacheEntry<T>>>>,
-    access_order: Arc<RwLock<VecDeque<String>>>,
-    max_size: usize,
-    ttl: Duration,
-}
-
-#[derive(Debug, Clone)]
-struct CacheEntry<T> {
-    data: T,
-    timestamp: Instant,
-    access_count: usize,
-    size_estimate: usize,
-}
-
-impl<T> IntelligentCache<T> {
-    pub fn new(max_size: usize, ttl: Duration) -> Self {
-        Self {
-            cache: Arc::new(RwLock::new(HashMap::new())),
-            access_order: Arc::new(RwLock::new(VecDeque::new())),
-            max_size,
-            ttl,
-        }
-    }
-
-    pub async fn get(&self, key: &str) -> Option<T>
-    where
-        T: Clone,
-    {
-        let mut cache = self.cache.write().await;
-        let mut access_order = self.access_order.write().await;
-
-        if let Some(entry) = cache.get_mut(key) {
-            // Check if entry has expired
-            if entry.timestamp.elapsed() > self.ttl {
-                cache.remove(key);
-                access_order.retain(|k| k != key);
-                return None;
-            }
-
-            // Update access statistics
-            entry.access_count += 1;
-
-            // Move to front of access order
-            access_order.retain(|k| k != key);
-            access_order.push_front(key.to_string());
-
-            Some(entry.data.clone())
-        } else {
-            None
-        }
-    }
-
-    pub async fn put(&self, key: String, value: T, size_estimate: usize) {
-        let mut cache = self.cache.write().await;
-        let mut access_order = self.access_order.write().await;
-
-        // Remove existing entry if present
-        if cache.contains_key(&key) {
-            cache.remove(&key);
-            access_order.retain(|k| k != &key);
-        }
-
-        // Evict entries if cache is full
-        while cache.len() >= self.max_size {
-            if let Some(evict_key) = access_order.pop_back() {
-                cache.remove(&evict_key);
-            }
-        }
-
-        // Add new entry
-        let entry = CacheEntry {
-            data: value,
-            timestamp: Instant::now(),
-            access_count: 1,
-            size_estimate,
-        };
-
-        cache.insert(key.clone(), entry);
-        access_order.push_front(key);
-    }
-
-    pub async fn clear(&self) {
-        let mut cache = self.cache.write().await;
-        let mut access_order = self.access_order.write().await;
-        cache.clear();
-        access_order.clear();
-    }
-
-    pub async fn stats(&self) -> CacheStats {
-        let cache = self.cache.read().await;
-        let _access_order = self.access_order.read().await;
-
-        let total_entries = cache.len();
-        let total_accesses: usize = cache.values().map(|e| e.access_count).sum();
-        let total_size: usize = cache.values().map(|e| e.size_estimate).sum();
-        let avg_access_count = if total_entries > 0 {
-            total_accesses as f64 / total_entries as f64
-        } else {
-            0.0
-        };
-
-        CacheStats {
-            total_entries,
-            total_accesses,
-            total_size_bytes: total_size,
-            avg_access_count,
-            hit_rate: 0.0, // Would need to track hits/misses separately
-        }
-    }
-}
-
-/// Cache statistics
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct CacheStats {
-    pub total_entries: usize,
-    pub total_accesses: usize,
-    pub total_size_bytes: usize,
-    pub avg_access_count: f64,
-    pub hit_rate: f64,
-}
-
-/// Parallel processing engine for large codebases
-pub struct ParallelProcessor {
-    max_concurrent_tasks: usize,
-}
-
-impl ParallelProcessor {
-    pub fn new(max_concurrent_tasks: usize) -> Self {
-        Self {
-            max_concurrent_tasks,
-        }
-    }
-
-    /// Process multiple files in parallel
-    pub async fn process_files<F, Fut, T>(
-        &self,
-        files: Vec<PathBuf>,
-        processor: F,
-    ) -> Result<Vec<T>>
-    where
-        F: Fn(PathBuf) -> Fut + Send + Sync + Clone,
-        Fut: std::future::Future<Output = Result<T>> + Send,
-        T: Send,
-    {
-        use futures::stream::{self, StreamExt};
-
-        let results: Vec<Result<T>> = stream::iter(files)
-            .map(|file| {
-                let processor = processor.clone();
-                async move { processor(file).await }
-            })
-            .buffer_unordered(self.max_concurrent_tasks)
-            .collect()
-            .await;
-
-        // Collect successful results, propagating first error
-        let mut successful_results = Vec::new();
-        for result in results {
-            successful_results.push(result?);
-        }
-
-        Ok(successful_results)
-    }
-
-    /// Process files with priority-based scheduling
-    pub async fn process_with_priority<F, Fut, T, P>(
-        &self,
-        files_with_priority: Vec<(PathBuf, P)>,
-        processor: F,
-    ) -> Result<Vec<T>>
-    where
-        F: Fn(PathBuf) -> Fut + Send + Sync + Clone,
-        Fut: std::future::Future<Output = Result<T>> + Send,
-        T: Send,
-        P: Ord + Send,
-    {
-        // Sort by priority (highest first)
-        let mut sorted_files: Vec<_> = files_with_priority;
-        sorted_files.sort_by(|a, b| b.1.cmp(&a.1));
-
-        let files: Vec<PathBuf> = sorted_files.into_iter().map(|(file, _)| file).collect();
-
-        self.process_files(files, processor).await
-    }
-}
-
-/// Memory-efficient code analysis storage
-pub struct MemoryEfficientStorage {
-    analyses: Arc<RwLock<HashMap<String, CompressedAnalysis>>>,
-    max_memory_mb: usize,
-    current_memory_usage: Arc<RwLock<usize>>,
-}
-
-#[derive(Debug, Clone, Serialize, Deserialize)]
-struct CompressedAnalysis {
-    symbols: Vec<u8>,      // Compressed symbol data
-    dependencies: Vec<u8>, // Compressed dependency data
-    metrics: Vec<u8>,      // Compressed metrics data
-    original_size: usize,
-    compressed_size: usize,
-}
-
-impl MemoryEfficientStorage {
-    pub fn new(max_memory_mb: usize) -> Self {
-        Self {
-            analyses: Arc::new(RwLock::new(HashMap::new())),
-            max_memory_mb: max_memory_mb * 1024 * 1024, // Convert to bytes
-            current_memory_usage: Arc::new(RwLock::new(0)),
-        }
-    }
-
-    pub async fn store_analysis(&self, file_path: &Path, analysis: CodeAnalysis) -> Result<()> {
-        let compressed = self.compress_analysis(analysis).await?;
-        let key = file_path.to_string_lossy().to_string();
-
-        let mut analyses = self.analyses.write().await;
-        let mut memory_usage = self.current_memory_usage.write().await;
-
-        // Remove old entry if exists
-        if let Some(old_entry) = analyses.remove(&key) {
-            *memory_usage = memory_usage.saturating_sub(old_entry.compressed_size);
-        }
-
-        // Evict entries if needed
-        while *memory_usage + compressed.compressed_size > self.max_memory_mb {
-            if let Some((_, entry)) = analyses.iter().next() {
-                let entry_size = entry.compressed_size;
-                analyses.retain(|_, e| e.compressed_size != entry_size);
-                *memory_usage = memory_usage.saturating_sub(entry_size);
-                break;
-            }
-        }
-
-        analyses.insert(key, compressed.clone());
-        *memory_usage += compressed.compressed_size;
-
-        Ok(())
-    }
-
-    pub async fn get_analysis(&self, file_path: &Path) -> Result<Option<CodeAnalysis>> {
-        let analyses = self.analyses.read().await;
-        let key = file_path.to_string_lossy().to_string();
-
-        if let Some(compressed) = analyses.get(&key) {
-            let analysis = self.decompress_analysis(compressed).await?;
-            Ok(Some(analysis))
-        } else {
-            Ok(None)
-        }
-    }
-
-    async fn compress_analysis(&self, analysis: CodeAnalysis) -> Result<CompressedAnalysis> {
-        use flate2::{Compression, write::GzEncoder};
-        use std::io::Write;
-
-        let serialize_and_compress = |data: &serde_json::Value| -> Result<Vec<u8>> {
-            let json = serde_json::to_vec(data)?;
-            let mut encoder = GzEncoder::new(Vec::new(), Compression::default());
-            encoder.write_all(&json)?;
-            Ok(encoder.finish()?)
-        };
-
-        let symbols = serialize_and_compress(&serde_json::to_value(&analysis.symbols)?)?;
-        let dependencies = serialize_and_compress(&serde_json::to_value(&analysis.dependencies)?)?;
-        let metrics = serialize_and_compress(&serde_json::to_value(&analysis.metrics)?)?;
-
-        let original_size = analysis.symbols.len()
-            + analysis.dependencies.len()
-            + std::mem::size_of_val(&analysis.metrics);
-        let compressed_size = symbols.len() + dependencies.len() + metrics.len();
-
-        Ok(CompressedAnalysis {
-            symbols,
-            dependencies,
-            metrics,
-            original_size,
-            compressed_size,
-        })
-    }
-
-    async fn decompress_analysis(&self, compressed: &CompressedAnalysis) -> Result<CodeAnalysis> {
-        use flate2::read::GzDecoder;
-        use std::io::Read;
-
-        let decompress_and_deserialize = |data: &[u8]| -> Result<serde_json::Value> {
-            let mut decoder = GzDecoder::new(data);
-            let mut decompressed = Vec::new();
-            decoder.read_to_end(&mut decompressed)?;
-            Ok(serde_json::from_slice(&decompressed)?)
-        };
-
-        let symbols: Vec<crate::tools::tree_sitter::languages::SymbolInfo> =
-            decompress_and_deserialize(&compressed.symbols)?
-                .as_array()
-                .unwrap_or(&vec![])
-                .iter()
-                .filter_map(|v| serde_json::from_value(v.clone()).ok())
-                .collect();
-
-        let _dependencies: Vec<String> = decompress_and_deserialize(&compressed.dependencies)?
-            .as_array()
-            .unwrap_or(&vec![])
-            .iter()
-            .filter_map(|v| v.as_str().map(|s| s.to_string()))
-            .collect();
-
-        let metrics: crate::tools::tree_sitter::CodeMetrics =
-            decompress_and_deserialize(&compressed.metrics)?
-                .as_object()
-                .and_then(|obj| serde_json::from_value(serde_json::Value::Object(obj.clone())).ok())
-                .unwrap_or_default();
-
-        Ok(CodeAnalysis {
-            file_path: String::new(), // Would need to be stored separately
-            language: crate::tools::tree_sitter::analyzer::LanguageSupport::Rust, // Default to Rust
-            symbols,
-            dependencies: Vec::new(), // Would need proper deserialization
-            metrics,
-            issues: Vec::new(),
-            complexity: Default::default(),
-            structure: Default::default(),
-        })
-    }
-}
-
-/// Response time optimizer
-pub struct ResponseOptimizer {
-    response_times: Arc<RwLock<HashMap<String, Vec<Duration>>>>,
-    optimization_strategies: Arc<RwLock<HashMap<String, OptimizationStrategy>>>,
-}
-
-#[derive(Debug, Clone)]
-pub enum OptimizationStrategy {
-    CacheFrequentlyAccessed,
-    PrecomputeResults,
-    ParallelProcessing,
-    ReducePayloadSize,
-    StreamResponse,
-}
-
-impl ResponseOptimizer {
-    pub fn new() -> Self {
-        Self {
-            response_times: Arc::new(RwLock::new(HashMap::new())),
-            optimization_strategies: Arc::new(RwLock::new(HashMap::new())),
-        }
-    }
-
-    /// Record response time for a specific operation
-    pub async fn record_response_time(&self, operation: &str, duration: Duration) {
-        let mut response_times = self.response_times.write().await;
-
-        let times = response_times
-            .entry(operation.to_string())
-            .or_insert_with(Vec::new);
-        times.push(duration);
-
-        // Keep only last 100 measurements
-        if times.len() > 100 {
-            times.remove(0);
-        }
-
-        // Analyze and update optimization strategies
-        self.analyze_and_optimize(operation, times).await;
-    }
-
-    /// Get optimized response strategy for an operation
-    pub async fn get_optimization_strategy(&self, operation: &str) -> OptimizationStrategy {
-        let strategies = self.optimization_strategies.read().await;
-
-        strategies
-            .get(operation)
-            .cloned()
-            .unwrap_or(OptimizationStrategy::CacheFrequentlyAccessed)
-    }
-
-    async fn analyze_and_optimize(&self, operation: &str, times: &[Duration]) {
-        if times.len() < 10 {
-            return; // Need more data
-        }
-
-        let avg_time: Duration = times.iter().sum::<Duration>() / times.len() as u32;
-        let recent_avg: Duration = times.iter().rev().take(5).sum::<Duration>() / 5;
-
-        let mut strategies = self.optimization_strategies.write().await;
-
-        let strategy = if avg_time > Duration::from_millis(1000) {
-            // Slow operation - use parallel processing
-            OptimizationStrategy::ParallelProcessing
-        } else if recent_avg > avg_time * 2 {
-            // Performance degrading - precompute results
-            OptimizationStrategy::PrecomputeResults
-        } else if times.len() > 50 {
-            // Frequently called - cache results
-            OptimizationStrategy::CacheFrequentlyAccessed
-        } else {
-            // Default strategy
-            OptimizationStrategy::CacheFrequentlyAccessed
-        };
-
-        strategies.insert(operation.to_string(), strategy);
-    }
-
-    /// Get performance statistics
-    pub async fn get_performance_stats(&self) -> HashMap<String, PerformanceStats> {
-        let response_times = self.response_times.read().await;
-        let mut stats = HashMap::new();
-
-        for (operation, times) in response_times.iter() {
-            if times.is_empty() {
-                continue;
-            }
-
-            let avg_time = times.iter().sum::<Duration>() / times.len() as u32;
-            let min_time = times.iter().min().unwrap();
-            let max_time = times.iter().max().unwrap();
-
-            stats.insert(
-                operation.clone(),
-                PerformanceStats {
-                    operation: operation.clone(),
-                    avg_response_time: avg_time,
-                    min_response_time: *min_time,
-                    max_response_time: *max_time,
-                    total_calls: times.len(),
-                    p95_response_time: self.calculate_percentile(times, 95),
-                },
-            );
-        }
-
-        stats
-    }
-
-    fn calculate_percentile(&self, times: &[Duration], percentile: u8) -> Duration {
-        if times.is_empty() {
-            return Duration::from_millis(0);
-        }
-
-        let mut sorted_times = times.to_vec();
-        sorted_times.sort();
-
-        let index = (percentile as f64 / 100.0 * (sorted_times.len() - 1) as f64) as usize;
-        sorted_times[index]
-    }
-}
-
-/// Performance statistics for operations
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct PerformanceStats {
-    pub operation: String,
-    pub avg_response_time: Duration,
-    pub min_response_time: Duration,
-    pub max_response_time: Duration,
-    pub total_calls: usize,
-    pub p95_response_time: Duration,
-}
-
-/// Performance monitoring system
-pub struct PerformanceMonitor {
-    start_time: Instant,
-    operation_counts: Arc<RwLock<HashMap<String, usize>>>,
-    error_counts: Arc<RwLock<HashMap<String, usize>>>,
-    memory_usage: Arc<RwLock<Vec<(Instant, usize)>>>,
-}
-
-impl PerformanceMonitor {
-    pub fn new() -> Self {
-        Self {
-            start_time: Instant::now(),
-            operation_counts: Arc::new(RwLock::new(HashMap::new())),
-            error_counts: Arc::new(RwLock::new(HashMap::new())),
-            memory_usage: Arc::new(RwLock::new(Vec::new())),
-        }
-    }
-
-    /// Record operation execution
-    pub async fn record_operation(&self, operation: &str) {
-        let mut counts = self.operation_counts.write().await;
-        *counts.entry(operation.to_string()).or_insert(0) += 1;
-    }
-
-    /// Record error occurrence
-    pub async fn record_error(&self, operation: &str) {
-        let mut counts = self.error_counts.write().await;
-        *counts.entry(operation.to_string()).or_insert(0) += 1;
-    }
-
-    /// Record memory usage
-    pub async fn record_memory_usage(&self, usage_bytes: usize) {
-        let mut memory_usage = self.memory_usage.write().await;
-        memory_usage.push((Instant::now(), usage_bytes));
-
-        // Keep only last 1000 measurements
-        if memory_usage.len() > 1000 {
-            memory_usage.remove(0);
-        }
-    }
-
-    /// Generate comprehensive performance report
-    pub async fn generate_report(&self) -> PerformanceReport {
-        let operation_counts = self.operation_counts.read().await;
-        let error_counts = self.error_counts.read().await;
-        let memory_usage = self.memory_usage.read().await;
-
-        let total_operations: usize = operation_counts.values().sum();
-        let total_errors: usize = error_counts.values().sum();
-
-        let avg_memory_usage = if !memory_usage.is_empty() {
-            memory_usage.iter().map(|(_, usage)| usage).sum::<usize>() / memory_usage.len()
-        } else {
-            0
-        };
-
-        let uptime = self.start_time.elapsed();
-
-        PerformanceReport {
-            uptime,
-            total_operations,
-            total_errors,
-            error_rate: if total_operations > 0 {
-                total_errors as f64 / total_operations as f64
-            } else {
-                0.0
-            },
-            avg_memory_usage,
-            operations_per_second: total_operations as f64 / uptime.as_secs_f64(),
-            operation_breakdown: operation_counts.clone(),
-            error_breakdown: error_counts.clone(),
-        }
-    }
-}
-
-/// Comprehensive performance report
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct PerformanceReport {
-    pub uptime: Duration,
-    pub total_operations: usize,
-    pub total_errors: usize,
-    pub error_rate: f64,
-    pub avg_memory_usage: usize,
-    pub operations_per_second: f64,
-    pub operation_breakdown: HashMap<String, usize>,
-    pub error_breakdown: HashMap<String, usize>,
-}
diff --git a/vtcode-core/src/core/mod.rs b/vtcode-core/src/core/mod.rs
index 5988ba4b2..6c7106f5f 100644
--- a/vtcode-core/src/core/mod.rs
+++ b/vtcode-core/src/core/mod.rs
@@ -1,7 +1,7 @@
 //! # Core Agent Architecture
 //!
 //! This module contains the core components of the VTCode agent system,
-//! implementing the main agent loop, context management, and performance monitoring.
+//! implementing the main agent loop, context management, and supporting infrastructure.
 //!
 //! ## Architecture Overview
 //!
@@ -9,7 +9,6 @@
 //!
 //! - **Agent**: Main agent implementation with conversation management
 //! - **Context Compression**: Intelligent context management and summarization
-//! - **Performance Monitoring**: Real-time metrics and benchmarking
 //! - **Prompt Caching**: Strategic caching for improved response times
 //! - **Decision Tracking**: Audit trail of agent decisions and actions
 //! - **Error Recovery**: Intelligent error handling with context preservation
@@ -40,16 +39,6 @@
 //! let compressed = compressor.compress(&conversation_history)?;
 //! ```
 //!
-//! ### Performance Monitoring
-//! ```rust,no_run
-//! use vtcode_core::core::performance_profiler::PerformanceProfiler;
-//!
-//! let profiler = PerformanceProfiler::new();
-//! profiler.start_operation("tool_execution");
-//! // ... execute tool ...
-//! let metrics = profiler.end_operation("tool_execution");
-//! ```
-
 pub mod agent;
 pub mod context_compression;
 pub mod context_curator;
@@ -58,8 +47,6 @@ pub mod decision_tracker;
 pub mod error_recovery;
 pub mod interfaces;
 pub mod orchestrator_retry;
-pub mod performance_monitor;
-pub mod performance_profiler;
 pub mod prompt_caching;
 pub mod router;
 pub mod timeout_detector;
diff --git a/vtcode-core/src/core/performance_monitor.rs b/vtcode-core/src/core/performance_monitor.rs
deleted file mode 100644
index 1471c34c9..000000000
--- a/vtcode-core/src/core/performance_monitor.rs
+++ /dev/null
@@ -1,236 +0,0 @@
-use once_cell::sync::Lazy;
-use std::collections::HashMap;
-use std::sync::Arc;
-use std::time::{Duration, Instant};
-use tokio::sync::RwLock;
-
-/// Performance metrics for the vtcode system
-#[derive(Debug, Clone, serde::Serialize, serde::Deserialize)]
-pub struct PerformanceMetrics {
-    pub response_times: Vec<Duration>,
-    pub cache_hit_rate: f64,
-    pub memory_usage: usize,
-    pub error_rate: f64,
-    pub throughput: usize, // requests per second
-    pub context_accuracy: f64,
-}
-
-/// Performance monitor for tracking system metrics
-pub struct PerformanceMonitor {
-    metrics: Arc<RwLock<PerformanceMetrics>>,
-    operation_start_times: Arc<RwLock<HashMap<String, Instant>>>,
-    total_requests: Arc<RwLock<usize>>,
-    successful_requests: Arc<RwLock<usize>>,
-    context_predictions: Arc<RwLock<usize>>,
-    context_correct: Arc<RwLock<usize>>,
-}
-
-impl PerformanceMonitor {
-    pub fn new() -> Self {
-        Self {
-            metrics: Arc::new(RwLock::new(PerformanceMetrics {
-                response_times: Vec::new(),
-                cache_hit_rate: 0.0,
-                memory_usage: 0,
-                error_rate: 0.0,
-                throughput: 0,
-                context_accuracy: 0.0,
-            })),
-            operation_start_times: Arc::new(RwLock::new(HashMap::new())),
-            total_requests: Arc::new(RwLock::new(0)),
-            successful_requests: Arc::new(RwLock::new(0)),
-            context_predictions: Arc::new(RwLock::new(0)),
-            context_correct: Arc::new(RwLock::new(0)),
-        }
-    }
-
-    /// Start tracking an operation
-    pub async fn start_operation(&self, operation_id: String) {
-        let mut start_times = self.operation_start_times.write().await;
-        start_times.insert(operation_id, Instant::now());
-
-        let mut total = self.total_requests.write().await;
-        *total += 1;
-    }
-
-    /// End tracking an operation and record response time
-    pub async fn end_operation(&self, operation_id: String, success: bool) {
-        let start_time = {
-            let mut start_times = self.operation_start_times.write().await;
-            start_times.remove(&operation_id)
-        };
-
-        if let Some(start) = start_time {
-            let duration = start.elapsed();
-
-            let mut metrics = self.metrics.write().await;
-            metrics.response_times.push(duration);
-
-            // Keep only last 1000 measurements
-            if metrics.response_times.len() > 1000 {
-                metrics.response_times.remove(0);
-            }
-
-            // Update success rate
-            if success {
-                let mut successful = self.successful_requests.write().await;
-                *successful += 1;
-            }
-
-            // Update error rate
-            let total = *self.total_requests.read().await;
-            let successful = *self.successful_requests.read().await;
-            metrics.error_rate = if total > 0 {
-                (total - successful) as f64 / total as f64
-            } else {
-                0.0
-            };
-        }
-    }
-
-    /// Record context prediction result
-    pub async fn record_context_prediction(&self, correct: bool) {
-        let mut predictions = self.context_predictions.write().await;
-        *predictions += 1;
-
-        if correct {
-            let mut correct_predictions = self.context_correct.write().await;
-            *correct_predictions += 1;
-        }
-
-        // Update context accuracy
-        let predictions = *self.context_predictions.read().await;
-        let correct = *self.context_correct.read().await;
-
-        let mut metrics = self.metrics.write().await;
-        metrics.context_accuracy = if predictions > 0 {
-            correct as f64 / predictions as f64
-        } else {
-            0.0
-        };
-    }
-
-    /// Update cache hit rate
-    pub async fn update_cache_hit_rate(&self, hit_rate: f64) {
-        let mut metrics = self.metrics.write().await;
-        metrics.cache_hit_rate = hit_rate;
-    }
-
-    /// Update memory usage
-    pub async fn update_memory_usage(&self, memory_mb: usize) {
-        let mut metrics = self.metrics.write().await;
-        metrics.memory_usage = memory_mb;
-    }
-
-    /// Get current performance metrics
-    pub async fn get_metrics(&self) -> PerformanceMetrics {
-        let metrics = self.metrics.read().await;
-        metrics.clone()
-    }
-
-    /// Calculate average response time
-    pub async fn average_response_time(&self) -> Duration {
-        let metrics = self.metrics.read().await;
-        if metrics.response_times.is_empty() {
-            Duration::from_millis(0)
-        } else {
-            let total: Duration = metrics.response_times.iter().sum();
-            total / metrics.response_times.len() as u32
-        }
-    }
-
-    /// Calculate 95th percentile response time
-    pub async fn percentile_95_response_time(&self) -> Duration {
-        let metrics = self.metrics.read().await;
-        if metrics.response_times.is_empty() {
-            Duration::from_millis(0)
-        } else {
-            let mut times = metrics.response_times.clone();
-            times.sort();
-            let index = (times.len() as f64 * 0.95) as usize;
-            let safe_index = index.min(times.len() - 1);
-            times[safe_index]
-        }
-    }
-
-    /// Check if Phase 1 performance targets are met
-    pub async fn check_phase1_targets(&self) -> Phase1Status {
-        let avg_response = self.average_response_time().await;
-        let p95_response = self.percentile_95_response_time().await;
-        let metrics = self.get_metrics().await;
-
-        Phase1Status {
-            response_time_target: avg_response < Duration::from_millis(500),
-            p95_response_time: p95_response,
-            memory_target: metrics.memory_usage < 100,
-            cache_target: metrics.cache_hit_rate >= 0.6,
-            error_recovery_target: metrics.error_rate <= 0.1,
-            context_target: metrics.context_accuracy >= 0.8,
-        }
-    }
-
-    /// Generate performance report
-    pub async fn generate_report(&self) -> String {
-        let avg_response = self.average_response_time().await;
-        let p95_response = self.percentile_95_response_time().await;
-        let metrics = self.get_metrics().await;
-
-        format!(
-            "Performance Report - Phase 1 Targets\n\n\
-             Response Times:\n\
-             • Average: {:.2}ms (Target: <500ms)\n\
-             • 95th percentile: {:.2}ms\n\n\
-             💾 Resource Usage:\n\
-             • Memory: {}MB (Target: <100MB)\n\
-             • Cache Hit Rate: {:.1}% (Target: ≥60%)\n\n\
-              System Health:\n\
-             • Error Rate: {:.1}% (Target: ≤10%)\n\
-             • Context Accuracy: {:.1}% (Target: ≥80%)\n\n\
-             Throughput: {} req/sec",
-            avg_response.as_millis(),
-            p95_response.as_millis(),
-            metrics.memory_usage,
-            metrics.cache_hit_rate * 100.0,
-            metrics.error_rate * 100.0,
-            metrics.context_accuracy * 100.0,
-            metrics.throughput
-        )
-    }
-}
-
-/// Phase 1 target status
-#[derive(Debug, Clone)]
-pub struct Phase1Status {
-    pub response_time_target: bool,
-    pub p95_response_time: Duration,
-    pub memory_target: bool,
-    pub cache_target: bool,
-    pub error_recovery_target: bool,
-    pub context_target: bool,
-}
-
-impl Phase1Status {
-    pub fn all_targets_met(&self) -> bool {
-        self.response_time_target
-            && self.memory_target
-            && self.cache_target
-            && self.error_recovery_target
-            && self.context_target
-    }
-
-    pub fn completion_percentage(&self) -> f64 {
-        let targets = [
-            self.response_time_target,
-            self.memory_target,
-            self.cache_target,
-            self.error_recovery_target,
-            self.context_target,
-        ];
-
-        let met = targets.iter().filter(|&&t| t).count();
-        met as f64 / targets.len() as f64
-    }
-}
-
-/// Global performance monitor instance
-pub static PERFORMANCE_MONITOR: Lazy<PerformanceMonitor> = Lazy::new(PerformanceMonitor::new);
diff --git a/vtcode-core/src/core/performance_profiler.rs b/vtcode-core/src/core/performance_profiler.rs
deleted file mode 100644
index b529df410..000000000
--- a/vtcode-core/src/core/performance_profiler.rs
+++ /dev/null
@@ -1,395 +0,0 @@
-use once_cell::sync::Lazy;
-use std::collections::HashMap;
-use std::sync::Arc;
-use std::time::{Duration, Instant};
-
-/// Performance metrics for different operations
-#[derive(Debug, Clone)]
-pub struct PerformanceMetrics {
-    pub operation_count: u64,
-    pub total_duration: Duration,
-    pub min_duration: Duration,
-    pub max_duration: Duration,
-    pub avg_duration: Duration,
-    pub p50_duration: Duration,
-    pub p95_duration: Duration,
-    pub p99_duration: Duration,
-    pub error_count: u64,
-    pub cache_hit_rate: f64,
-    pub memory_usage_mb: f64,
-}
-
-/// Global performance profiler instance
-pub static PROFILER: Lazy<Arc<PerformanceProfiler>> =
-    Lazy::new(|| Arc::new(PerformanceProfiler::new()));
-
-/// Performance profiler for tracking system metrics
-pub struct PerformanceProfiler {
-    metrics: Arc<dashmap::DashMap<String, PerformanceMetrics>>,
-    active_operations: Arc<dashmap::DashMap<String, Instant>>,
-}
-
-impl PerformanceProfiler {
-    pub fn new() -> Self {
-        Self {
-            metrics: Arc::new(dashmap::DashMap::new()),
-            active_operations: Arc::new(dashmap::DashMap::new()),
-        }
-    }
-
-    /// Start tracking an operation
-    pub fn start_operation(&self, operation: &str) -> OperationTimer {
-        let start_time = Instant::now();
-        self.active_operations
-            .insert(operation.to_string(), start_time);
-        OperationTimer {
-            operation: operation.to_string(),
-            start_time,
-            profiler: Arc::clone(&self.metrics),
-        }
-    }
-
-    /// Record a completed operation
-    pub fn record_operation(&self, operation: &str, duration: Duration, success: bool) {
-        let mut entry = self
-            .metrics
-            .entry(operation.to_string())
-            .or_insert_with(|| PerformanceMetrics {
-                operation_count: 0,
-                total_duration: Duration::ZERO,
-                min_duration: Duration::MAX,
-                max_duration: Duration::ZERO,
-                avg_duration: Duration::ZERO,
-                p50_duration: Duration::ZERO,
-                p95_duration: Duration::ZERO,
-                p99_duration: Duration::ZERO,
-                error_count: 0,
-                cache_hit_rate: 0.0,
-                memory_usage_mb: 0.0,
-            });
-
-        entry.operation_count += 1;
-        entry.total_duration += duration;
-        entry.min_duration = entry.min_duration.min(duration);
-        entry.max_duration = entry.max_duration.max(duration);
-
-        if !success {
-            entry.error_count += 1;
-        }
-
-        entry.avg_duration = entry.total_duration / entry.operation_count as u32;
-
-        // Update memory usage
-        entry.memory_usage_mb = self.get_current_memory_mb();
-    }
-
-    /// Get current memory usage in MB
-    pub fn get_current_memory_mb(&self) -> f64 {
-        // Simple heuristic - in a real system, you'd use system APIs
-        let _base_memory = 50.0; // Base memory usage
-        let _operation_count = self.metrics.len() as f64;
-        let _active_count = self.active_operations.len() as f64;
-        // Enhanced memory calculation with more accurate tracking
-        let base_memory = 35.0; // Reduced base memory usage
-        let operation_count = self.metrics.len() as f64;
-        let active_count = self.active_operations.len() as f64;
-
-        // More accurate memory calculation
-        let metrics_memory = operation_count * 0.3; // Memory per stored metric
-        let active_memory = active_count * 0.1; // Memory per active operation
-        let cache_memory = self.estimate_cache_memory(); // Cache memory usage
-
-        let total = base_memory + metrics_memory + active_memory + cache_memory;
-
-        // Cap at reasonable maximum to prevent unrealistic estimates
-        total.min(150.0)
-    }
-
-    /// Estimate cache memory usage
-    fn estimate_cache_memory(&self) -> f64 {
-        // Estimate based on typical cache sizes
-        let cache_entries = self.metrics.len() as f64;
-        let avg_entry_size_kb = 5.0; // Estimated KB per cache entry
-        (cache_entries * avg_entry_size_kb) / 1024.0 // Convert to MB
-    }
-
-    /// Get memory optimization recommendations
-    pub fn get_memory_recommendations(&self) -> Vec<String> {
-        let mut recommendations = Vec::new();
-        let current_memory = self.get_current_memory_mb();
-
-        if current_memory > 100.0 {
-            recommendations.push("Memory usage exceeds 100MB target".to_string());
-            recommendations.push(" Consider using ClientConfig::low_memory()".to_string());
-        }
-
-        if current_memory > 50.0 {
-            recommendations.push("Memory usage > 50MB, monitor closely".to_string());
-        }
-
-        let active_ops = self.active_operations.len();
-        if active_ops > 10 {
-            recommendations.push(format!(
-                "{} active operations may impact memory",
-                active_ops
-            ));
-        }
-
-        let total_ops = self
-            .metrics
-            .iter()
-            .map(|entry| entry.value().operation_count)
-            .sum::<u64>();
-        if total_ops > 1000 {
-            recommendations.push("🗂️ Consider clearing old metrics to reduce memory".to_string());
-        }
-
-        if recommendations.is_empty() {
-            recommendations.push("Memory usage is within acceptable limits".to_string());
-        }
-
-        recommendations
-    }
-
-    /// Get metrics for an operation
-    pub fn get_metrics(&self, operation: &str) -> Option<PerformanceMetrics> {
-        self.metrics.get(operation).map(|m| m.clone())
-    }
-
-    /// Get all metrics
-    pub fn get_all_metrics(&self) -> HashMap<String, PerformanceMetrics> {
-        self.metrics
-            .iter()
-            .map(|entry| (entry.key().clone(), entry.value().clone()))
-            .collect()
-    }
-
-    /// Check if operation meets performance targets
-    pub fn check_performance_targets(&self, operation: &str) -> PerformanceStatus {
-        let metrics = match self.get_metrics(operation) {
-            Some(m) => m,
-            None => return PerformanceStatus::Unknown,
-        };
-
-        // Target: < 500ms for common operations
-        let target_duration = Duration::from_millis(500);
-        let error_rate = metrics.error_count as f64 / metrics.operation_count as f64;
-
-        if metrics.avg_duration > target_duration {
-            PerformanceStatus::Slow(metrics.avg_duration)
-        } else if error_rate > 0.1 {
-            // 10% error rate threshold
-            PerformanceStatus::HighErrorRate(error_rate)
-        } else if metrics.memory_usage_mb > 100.0 {
-            PerformanceStatus::HighMemoryUsage(metrics.memory_usage_mb)
-        } else {
-            PerformanceStatus::Good
-        }
-    }
-
-    /// Generate performance report
-    pub fn generate_report(&self) -> String {
-        let mut report = String::new();
-        report.push_str("Performance Report\n");
-        report.push_str("====================\n\n");
-
-        for entry in self.metrics.iter() {
-            let operation = entry.key();
-            let metrics = entry.value();
-            let status = self.check_performance_targets(operation);
-            let status_icon = match status {
-                PerformanceStatus::Good => "",
-                PerformanceStatus::Slow(_) => "🐌",
-                PerformanceStatus::HighErrorRate(_) => "",
-                PerformanceStatus::HighMemoryUsage(_) => "[MEM]",
-                PerformanceStatus::Unknown => "❓",
-            };
-
-            report.push_str(&format!(
-                "{} {}: {:.1}ms avg ({} ops, {:.1}% errors)\n",
-                status_icon,
-                operation,
-                metrics.avg_duration.as_millis(),
-                metrics.operation_count,
-                (metrics.error_count as f64 / metrics.operation_count as f64) * 100.0
-            ));
-
-            if matches!(
-                status,
-                PerformanceStatus::Slow(_)
-                    | PerformanceStatus::HighErrorRate(_)
-                    | PerformanceStatus::HighMemoryUsage(_)
-            ) {
-                report.push_str(&format!("    Needs optimization\n"));
-            }
-        }
-
-        report.push_str(&format!(
-            "\nMemory Usage: {:.1}MB\n",
-            self.get_current_memory_mb()
-        ));
-        report
-    }
-}
-
-/// Performance status of an operation
-#[derive(Debug, Clone)]
-pub enum PerformanceStatus {
-    Good,
-    Slow(Duration),
-    HighErrorRate(f64),
-    HighMemoryUsage(f64),
-    Unknown,
-}
-
-/// Timer for measuring operation duration
-pub struct OperationTimer {
-    operation: String,
-    start_time: Instant,
-    profiler: Arc<dashmap::DashMap<String, PerformanceMetrics>>,
-}
-
-impl OperationTimer {
-    /// Complete the operation with success
-    pub fn complete(self, success: bool) {
-        let duration = self.start_time.elapsed();
-
-        if let Some(mut metrics) = self.profiler.get_mut(&self.operation) {
-            metrics.operation_count += 1;
-            metrics.total_duration += duration;
-            metrics.min_duration = metrics.min_duration.min(duration);
-            metrics.max_duration = metrics.max_duration.max(duration);
-
-            if !success {
-                metrics.error_count += 1;
-            }
-
-            metrics.avg_duration = metrics.total_duration / metrics.operation_count as u32;
-        }
-    }
-}
-
-impl Drop for OperationTimer {
-    fn drop(&mut self) {
-        // Auto-complete with success if not manually completed
-        let duration = self.start_time.elapsed();
-
-        if let Some(mut metrics) = self.profiler.get_mut(&self.operation) {
-            metrics.operation_count += 1;
-            metrics.total_duration += duration;
-            metrics.min_duration = metrics.min_duration.min(duration);
-            metrics.max_duration = metrics.max_duration.max(duration);
-            metrics.avg_duration = metrics.total_duration / metrics.operation_count as u32;
-        }
-    }
-}
-
-/// Performance targets checker
-pub struct PerformanceTargets {
-    pub response_time_target_ms: u64,
-    pub context_accuracy_target: f64,
-    pub completion_acceptance_target: f64,
-    pub memory_target_mb: f64,
-    pub cache_hit_target: f64,
-    pub error_recovery_target: f64,
-}
-
-impl Default for PerformanceTargets {
-    fn default() -> Self {
-        Self {
-            response_time_target_ms: 500,
-            context_accuracy_target: 0.8,      // 80%
-            completion_acceptance_target: 0.7, // 70%
-            memory_target_mb: 100.0,
-            cache_hit_target: 0.6,      // 60%
-            error_recovery_target: 0.9, // 90%
-        }
-    }
-}
-
-impl PerformanceTargets {
-    /// Check if current metrics meet targets
-    pub fn check_targets(&self, profiler: &PerformanceProfiler) -> TargetsStatus {
-        let mut status = TargetsStatus::default();
-        let all_metrics = profiler.get_all_metrics();
-
-        // Check response times
-        for (operation, metrics) in &all_metrics {
-            if operation.contains("api") || operation.contains("tool") {
-                if metrics.avg_duration > Duration::from_millis(self.response_time_target_ms) {
-                    status.response_time_met = false;
-                }
-            }
-        }
-
-        // Check memory usage
-        if profiler.get_current_memory_mb() > self.memory_target_mb {
-            status.memory_target_met = false;
-        }
-
-        // Check error rates
-        for metrics in all_metrics.values() {
-            let error_rate = metrics.error_count as f64 / metrics.operation_count as f64;
-            if error_rate > (1.0 - self.error_recovery_target) {
-                status.error_recovery_met = false;
-                break;
-            }
-        }
-
-        status
-    }
-}
-
-/// Status of performance targets
-#[derive(Debug, Default)]
-pub struct TargetsStatus {
-    pub response_time_met: bool,
-    pub context_accuracy_met: bool,
-    pub completion_acceptance_met: bool,
-    pub memory_target_met: bool,
-    pub cache_hit_met: bool,
-    pub error_recovery_met: bool,
-}
-
-impl TargetsStatus {
-    pub fn all_met(&self) -> bool {
-        self.response_time_met
-            && self.context_accuracy_met
-            && self.completion_acceptance_met
-            && self.memory_target_met
-            && self.cache_hit_met
-            && self.error_recovery_met
-    }
-
-    pub fn generate_report(&self) -> String {
-        let mut report = String::new();
-        report.push_str(" Performance Targets Status\n");
-        report.push_str("==============================\n");
-
-        let targets = [
-            ("Response Time < 500ms", self.response_time_met),
-            ("Context Accuracy > 80%", self.context_accuracy_met),
-            (
-                "Completion Acceptance > 70%",
-                self.completion_acceptance_met,
-            ),
-            ("Memory Usage < 100MB", self.memory_target_met),
-            ("Cache Hit Rate > 60%", self.cache_hit_met),
-            ("Error Recovery > 90%", self.error_recovery_met),
-        ];
-
-        for (target, met) in &targets {
-            let icon = if *met { "" } else { "" };
-            report.push_str(&format!("{} {}\n", icon, target));
-        }
-
-        let overall_status = if self.all_met() {
-            "All targets met!"
-        } else {
-            " Some targets need improvement"
-        };
-        report.push_str(&format!("\n{}", overall_status));
-
-        report
-    }
-}
diff --git a/vtcode-core/src/lib.rs b/vtcode-core/src/lib.rs
index a2330e4fb..1295b6ed1 100644
--- a/vtcode-core/src/lib.rs
+++ b/vtcode-core/src/lib.rs
@@ -147,7 +147,6 @@ pub mod tool_policy;
 pub mod tools;
 pub mod types;
 pub mod ui;
-pub mod update;
 pub mod utils;
 
 // New MCP enhancement modules
@@ -174,7 +173,6 @@ pub use core::context_compression::{
     CompressedContext, ContextCompressionConfig, ContextCompressor,
 };
 pub use core::conversation_summarizer::ConversationSummarizer;
-pub use core::performance_profiler::PerformanceProfiler;
 pub use core::prompt_caching::{CacheStats, PromptCache, PromptCacheConfig, PromptOptimizer};
 pub use core::timeout_detector::TimeoutDetector;
 pub use exec::events::{
@@ -199,9 +197,6 @@ pub use tools::{
     build_function_declarations_for_level, build_function_declarations_with_mode,
 };
 pub use ui::diff_renderer::DiffRenderer;
-pub use update::{
-    UpdateChannel, UpdateConfig, UpdateFrequency, UpdateManager, UpdateResult, UpdateStatus,
-};
 pub use utils::dot_config::{
     CacheConfig, DotConfig, DotManager, ProviderConfigs, UiConfig, UserPreferences,
     WorkspaceTrustRecord, WorkspaceTrustStore, initialize_dot_folder, load_user_config,
diff --git a/vtcode-core/src/tools/pty.rs b/vtcode-core/src/tools/pty.rs
index 699878a06..eb36fb7ef 100644
--- a/vtcode-core/src/tools/pty.rs
+++ b/vtcode-core/src/tools/pty.rs
@@ -1,16 +1,17 @@
 use std::collections::{HashMap, VecDeque};
 use std::io::{Read, Write};
 use std::path::{Component, Path, PathBuf};
+use std::sync::Arc;
 use std::sync::mpsc;
-use std::sync::{Arc, Mutex};
 use std::thread::{self, JoinHandle};
 use std::time::{Duration, Instant};
 
 use anyhow::{Context, Result, anyhow};
-use avt::Vt;
+use parking_lot::Mutex;
 use portable_pty::{Child, CommandBuilder, MasterPty, PtySize, native_pty_system};
 use shell_words::join;
 use tracing::{debug, warn};
+use vt100::Parser;
 
 use crate::config::PtyConfig;
 use crate::sandbox::SandboxProfile;
@@ -48,8 +49,7 @@ impl PtyScrollback {
         }
     }
 
-    fn push(&mut self, chunk: &[u8]) {
-        let text = String::from_utf8_lossy(chunk);
+    fn push_text(&mut self, text: &str) {
         for part in text.split_inclusive('\n') {
             self.partial.push_str(part);
             self.pending_partial.push_str(part);
@@ -68,6 +68,45 @@ impl PtyScrollback {
         }
     }
 
+    fn push_utf8(&mut self, buffer: &mut Vec<u8>, eof: bool) {
+        loop {
+            match std::str::from_utf8(buffer) {
+                Ok(valid) => {
+                    if !valid.is_empty() {
+                        self.push_text(valid);
+                    }
+                    buffer.clear();
+                    break;
+                }
+                Err(error) => {
+                    let valid_up_to = error.valid_up_to();
+                    if valid_up_to > 0 {
+                        if let Ok(valid) = std::str::from_utf8(&buffer[..valid_up_to]) {
+                            if !valid.is_empty() {
+                                self.push_text(valid);
+                            }
+                        }
+                        buffer.drain(..valid_up_to);
+                        continue;
+                    }
+
+                    if let Some(error_len) = error.error_len() {
+                        self.push_text("\u{FFFD}");
+                        buffer.drain(..error_len);
+                        continue;
+                    }
+
+                    if eof && !buffer.is_empty() {
+                        self.push_text("\u{FFFD}");
+                        buffer.clear();
+                    }
+
+                    break;
+                }
+            }
+        }
+    }
+
     fn snapshot(&self) -> String {
         let mut output = String::new();
         for line in &self.lines {
@@ -103,7 +142,7 @@ struct PtySessionHandle {
     master: Mutex<Box<dyn MasterPty + Send>>,
     child: Mutex<Box<dyn Child + Send>>,
     writer: Mutex<Option<Box<dyn Write + Send>>>,
-    terminal: Arc<Mutex<Vt>>,
+    terminal: Arc<Mutex<Parser>>,
     scrollback: Arc<Mutex<PtyScrollback>>,
     reader_thread: Mutex<Option<JoinHandle<()>>>,
     metadata: VTCodePtySession,
@@ -112,17 +151,20 @@ struct PtySessionHandle {
 impl PtySessionHandle {
     fn snapshot_metadata(&self) -> VTCodePtySession {
         let mut metadata = self.metadata.clone();
-        if let Ok(master) = self.master.lock() {
+        {
+            let master = self.master.lock();
             if let Ok(size) = master.get_size() {
                 metadata.rows = size.rows;
                 metadata.cols = size.cols;
             }
         }
-        if let Ok(terminal) = self.terminal.lock() {
-            let contents = terminal.text().join("\n");
+        {
+            let parser = self.terminal.lock();
+            let contents = parser.screen().contents();
             metadata.screen_contents = Some(contents);
         }
-        if let Ok(scrollback) = self.scrollback.lock() {
+        {
+            let scrollback = self.scrollback.lock();
             let contents = scrollback.snapshot();
             if !contents.is_empty() {
                 metadata.scrollback = Some(contents);
@@ -132,7 +174,7 @@ impl PtySessionHandle {
     }
 
     fn read_output(&self, drain: bool) -> Option<String> {
-        let mut scrollback = self.scrollback.lock().ok()?;
+        let mut scrollback = self.scrollback.lock();
         let text = if drain {
             scrollback.take_pending()
         } else {
@@ -175,9 +217,8 @@ impl PtyManager {
     }
 
     pub fn set_sandbox_profile(&self, profile: Option<SandboxProfile>) {
-        if let Ok(mut slot) = self.sandbox_profile.lock() {
-            *slot = profile;
-        }
+        let mut slot = self.sandbox_profile.lock();
+        *slot = profile;
     }
 
     pub fn sandbox_profile(&self) -> Option<SandboxProfile> {
@@ -185,10 +226,7 @@ impl PtyManager {
     }
 
     fn current_sandbox_profile(&self) -> Option<SandboxProfile> {
-        self.sandbox_profile
-            .lock()
-            .ok()
-            .and_then(|value| value.clone())
+        self.sandbox_profile.lock().clone()
     }
 
     pub fn describe_working_dir(&self, path: &Path) -> String {
@@ -403,11 +441,7 @@ impl PtyManager {
             return Err(anyhow!("PTY session command cannot be empty"));
         }
 
-        let mut sessions = self
-            .inner
-            .sessions
-            .lock()
-            .expect("PTY session mutex poisoned");
+        let mut sessions = self.inner.sessions.lock();
         if sessions.contains_key(&session_id) {
             return Err(anyhow!("PTY session '{}' already exists", session_id));
         }
@@ -465,12 +499,13 @@ impl PtyManager {
             .context("failed to clone PTY reader")?;
         let writer = master.take_writer().context("failed to take PTY writer")?;
 
-        let vt = Arc::new(Mutex::new(Vt::new(
-            usize::from(size.cols),
-            usize::from(size.rows),
+        let parser = Arc::new(Mutex::new(Parser::new(
+            size.rows,
+            size.cols,
+            self.config.scrollback_lines,
         )));
         let scrollback = Arc::new(Mutex::new(PtyScrollback::new(self.config.scrollback_lines)));
-        let vt_clone = Arc::clone(&vt);
+        let parser_clone = Arc::clone(&parser);
         let scrollback_clone = Arc::clone(&scrollback);
         let session_name = session_id.clone();
         let reader_thread = thread::Builder::new()
@@ -481,47 +516,24 @@ impl PtyManager {
                 loop {
                     match reader.read(&mut buffer) {
                         Ok(0) => {
+                            if !utf8_buffer.is_empty() {
+                                let mut scrollback = scrollback_clone.lock();
+                                scrollback.push_utf8(&mut utf8_buffer, true);
+                            }
                             debug!("PTY session '{}' reader reached EOF", session_name);
                             break;
                         }
                         Ok(bytes_read) => {
                             let chunk = &buffer[..bytes_read];
-                            utf8_buffer.extend_from_slice(chunk);
-                            if let Ok(mut terminal) = vt_clone.lock() {
-                                loop {
-                                    match std::str::from_utf8(&utf8_buffer) {
-                                        Ok(valid) => {
-                                            if !valid.is_empty() {
-                                                let _ = terminal.feed_str(valid);
-                                            }
-                                            utf8_buffer.clear();
-                                            break;
-                                        }
-                                        Err(error) => {
-                                            let valid_up_to = error.valid_up_to();
-                                            if valid_up_to > 0 {
-                                                if let Ok(valid) =
-                                                    std::str::from_utf8(&utf8_buffer[..valid_up_to])
-                                                {
-                                                    let _ = terminal.feed_str(valid);
-                                                }
-                                                utf8_buffer.drain(..valid_up_to);
-                                                continue;
-                                            }
-
-                                            if let Some(error_len) = error.error_len() {
-                                                let _ = terminal.feed_str("\u{FFFD}");
-                                                utf8_buffer.drain(..error_len);
-                                                continue;
-                                            }
-
-                                            break;
-                                        }
-                                    }
-                                }
+                            {
+                                let mut parser = parser_clone.lock();
+                                parser.process(chunk);
                             }
-                            if let Ok(mut scrollback) = scrollback_clone.lock() {
-                                scrollback.push(chunk);
+
+                            utf8_buffer.extend_from_slice(chunk);
+                            {
+                                let mut scrollback = scrollback_clone.lock();
+                                scrollback.push_utf8(&mut utf8_buffer, false);
                             }
                         }
                         Err(error) => {
@@ -550,7 +562,7 @@ impl PtyManager {
                 master: Mutex::new(master),
                 child: Mutex::new(child),
                 writer: Mutex::new(Some(writer)),
-                terminal: vt,
+                terminal: parser,
                 scrollback,
                 reader_thread: Mutex::new(Some(reader_thread)),
                 metadata: metadata.clone(),
@@ -561,11 +573,7 @@ impl PtyManager {
     }
 
     pub fn list_sessions(&self) -> Vec<VTCodePtySession> {
-        let sessions = self
-            .inner
-            .sessions
-            .lock()
-            .expect("PTY session mutex poisoned");
+        let sessions = self.inner.sessions.lock();
         sessions
             .values()
             .map(|handle| handle.snapshot_metadata())
@@ -589,7 +597,7 @@ impl PtyManager {
         append_newline: bool,
     ) -> Result<usize> {
         let handle = self.session_handle(session_id)?;
-        let mut writer_guard = handle.writer.lock().expect("PTY writer mutex poisoned");
+        let mut writer_guard = handle.writer.lock();
         let writer = writer_guard
             .as_mut()
             .ok_or_else(|| anyhow!("PTY session '{}' is no longer writable", session_id))?;
@@ -614,17 +622,19 @@ impl PtyManager {
     pub fn resize_session(&self, session_id: &str, size: PtySize) -> Result<VTCodePtySession> {
         let handle = self.session_handle(session_id)?;
         {
-            let master = handle.master.lock().expect("PTY master mutex poisoned");
+            let master = handle.master.lock();
             master
                 .resize(size)
                 .context("failed to resize PTY session")?;
         }
+        let mut parser = handle.terminal.lock();
+        parser.set_size(size.rows, size.cols);
         Ok(handle.snapshot_metadata())
     }
 
     pub fn is_session_completed(&self, session_id: &str) -> Result<Option<i32>> {
         let handle = self.session_handle(session_id)?;
-        let mut child = handle.child.lock().expect("PTY child mutex poisoned");
+        let mut child = handle.child.lock();
         Ok(
             if let Some(status) = child
                 .try_wait()
@@ -639,24 +649,21 @@ impl PtyManager {
 
     pub fn close_session(&self, session_id: &str) -> Result<VTCodePtySession> {
         let handle = {
-            let mut sessions = self
-                .inner
-                .sessions
-                .lock()
-                .expect("PTY session mutex poisoned");
+            let mut sessions = self.inner.sessions.lock();
             sessions
                 .remove(session_id)
                 .ok_or_else(|| anyhow!("PTY session '{}' not found", session_id))?
         };
 
-        if let Ok(mut writer_guard) = handle.writer.lock() {
+        {
+            let mut writer_guard = handle.writer.lock();
             if let Some(mut writer) = writer_guard.take() {
                 let _ = writer.write_all(b"exit\n");
                 let _ = writer.flush();
             }
         }
 
-        let mut child = handle.child.lock().expect("PTY child mutex poisoned");
+        let mut child = handle.child.lock();
         if child
             .try_wait()
             .context("failed to poll PTY session status")?
@@ -666,7 +673,8 @@ impl PtyManager {
             let _ = child.wait();
         }
 
-        if let Ok(mut thread_guard) = handle.reader_thread.lock() {
+        {
+            let mut thread_guard = handle.reader_thread.lock();
             if let Some(reader_thread) = thread_guard.take() {
                 if let Err(panic) = reader_thread.join() {
                     warn!(
@@ -689,11 +697,7 @@ impl PtyManager {
     }
 
     fn session_handle(&self, session_id: &str) -> Result<Arc<PtySessionHandle>> {
-        let sessions = self
-            .inner
-            .sessions
-            .lock()
-            .expect("PTY session mutex poisoned");
+        let sessions = self.inner.sessions.lock();
         sessions
             .get(session_id)
             .cloned()
@@ -756,6 +760,12 @@ fn set_command_environment(
     builder.env("LINES", size.rows.to_string());
     builder.env("WORKSPACE_DIR", workspace_root.as_os_str());
 
+    // Disable automatic color output from ls and other commands
+    builder.env("CLICOLOR", "0");
+    builder.env("CLICOLOR_FORCE", "0");
+    builder.env("LS_COLORS", "");
+    builder.env("NO_COLOR", "1");
+
     if let Some(profile) = sandbox_profile {
         builder.env("VT_SANDBOX_RUNTIME", profile.runtime_kind().as_str());
         builder.env("VT_SANDBOX_SETTINGS", profile.settings().as_os_str());
diff --git a/vtcode-core/src/tools/registry/executors.rs b/vtcode-core/src/tools/registry/executors.rs
index 0f88e7e76..d7254c117 100644
--- a/vtcode-core/src/tools/registry/executors.rs
+++ b/vtcode-core/src/tools/registry/executors.rs
@@ -5,15 +5,17 @@ use futures::future::BoxFuture;
 use portable_pty::PtySize;
 use serde::Deserialize;
 use serde_json::{Map, Value, json};
-use shell_words::split;
+use shell_words::{join, split};
 use std::{
     borrow::Cow,
+    env,
     path::{Path, PathBuf},
     time::{Duration, Instant},
 };
 use tokio::time::sleep;
 use vte::{Parser, Perform};
 
+use crate::config::PtyConfig;
 use crate::tools::apply_patch::Patch;
 use crate::tools::grep_file::GrepSearchInput;
 use crate::tools::traits::Tool;
@@ -429,12 +431,57 @@ impl ToolRegistry {
         &self,
         payload: &Map<String, Value>,
     ) -> Result<PtyCommandSetup> {
-        let command = parse_command_parts(
+        let mut command = parse_command_parts(
             payload,
             "run_pty_cmd requires a 'command' value",
             "PTY command cannot be empty",
         )?;
 
+        let raw_command = payload
+            .get("raw_command")
+            .and_then(|value| value.as_str())
+            .map(|value| value.to_string());
+        let shell = resolve_shell_preference(
+            payload.get("shell").and_then(|value| value.as_str()),
+            self.pty_config(),
+        );
+        let login_shell = payload
+            .get("login")
+            .and_then(|value| value.as_bool())
+            .unwrap_or(false);
+
+        if let Some(shell_program) = shell {
+            let normalized_shell = normalized_shell_name(&shell_program);
+            let existing_shell = command
+                .first()
+                .map(|existing| normalized_shell_name(existing));
+            if existing_shell != Some(normalized_shell.clone()) {
+                let command_string =
+                    build_shell_command_string(raw_command.as_deref(), &command, &shell_program);
+
+                let mut shell_invocation = Vec::with_capacity(4);
+                shell_invocation.push(shell_program.clone());
+
+                if login_shell && !should_use_windows_command_tokenizer(Some(&shell_program)) {
+                    shell_invocation.push("-l".to_string());
+                }
+
+                let command_flag = if should_use_windows_command_tokenizer(Some(&shell_program)) {
+                    match normalized_shell.as_str() {
+                        "cmd" | "cmd.exe" => "/C".to_string(),
+                        "powershell" | "powershell.exe" | "pwsh" => "-Command".to_string(),
+                        _ => "-c".to_string(),
+                    }
+                } else {
+                    "-c".to_string()
+                };
+
+                shell_invocation.push(command_flag);
+                shell_invocation.push(command_string);
+                command = shell_invocation;
+            }
+        }
+
         let timeout_secs = parse_timeout_secs(
             payload.get("timeout_secs"),
             self.pty_config().command_timeout_seconds,
@@ -541,12 +588,36 @@ impl ToolRegistry {
         let session_id =
             parse_session_id(payload, "create_pty_session requires a 'session_id' string")?;
 
-        let command_parts = parse_command_parts(
+        let mut command_parts = parse_command_parts(
             payload,
             "create_pty_session requires a 'command' value",
             "PTY session command cannot be empty",
         )?;
 
+        let login_shell = payload
+            .get("login")
+            .and_then(|value| value.as_bool())
+            .unwrap_or(false);
+
+        if let Some(shell_program) = resolve_shell_preference(
+            payload.get("shell").and_then(|value| value.as_str()),
+            self.pty_config(),
+        ) {
+            let should_replace = payload.get("shell").is_some()
+                || (command_parts.len() == 1 && is_default_shell_placeholder(&command_parts[0]));
+            if should_replace {
+                command_parts = vec![shell_program];
+            }
+        }
+
+        if login_shell
+            && !command_parts.is_empty()
+            && !should_use_windows_command_tokenizer(Some(&command_parts[0]))
+            && !command_parts.iter().skip(1).any(|arg| arg == "-l")
+        {
+            command_parts.push("-l".to_string());
+        }
+
         // Check if this is a development toolchain command in sandbox mode
         if !command_parts.is_empty() {
             let program = &command_parts[0];
@@ -991,6 +1062,15 @@ fn build_pty_args_from_terminal(args: &Value, command_vec: &[String]) -> Map<Str
     if let Some(cols) = args.get("cols").cloned() {
         pty_args.insert("cols".to_string(), cols);
     }
+    if let Some(shell) = args.get("shell").cloned() {
+        pty_args.insert("shell".to_string(), shell);
+    }
+    if let Some(login) = args.get("login").cloned() {
+        pty_args.insert("login".to_string(), login);
+    }
+    if let Some(raw_command) = args.get("raw_command").cloned() {
+        pty_args.insert("raw_command".to_string(), raw_command);
+    }
 
     pty_args
 }
@@ -1474,6 +1554,26 @@ mod tests {
         assert!(err.to_string().contains("unterminated"));
     }
 
+    #[test]
+    fn windows_join_quotes_arguments_with_spaces() {
+        let parts = vec![
+            r"C:\Program Files\Git\bin\git.exe".to_string(),
+            "--version".to_string(),
+        ];
+        let joined = join_windows_command(&parts);
+        assert_eq!(
+            joined,
+            r#""C:\Program Files\Git\bin\git.exe" --version"#.to_string()
+        );
+    }
+
+    #[test]
+    fn windows_join_leaves_simple_arguments_unquoted() {
+        let parts = vec!["cmd".to_string(), "/C".to_string(), "dir".to_string()];
+        let joined = join_windows_command(&parts);
+        assert_eq!(joined, "cmd /C dir");
+    }
+
     #[test]
     fn tokenizer_uses_posix_rules_for_posix_shells() {
         let tokens =
@@ -1489,6 +1589,22 @@ mod tests {
         assert!(should_use_windows_command_tokenizer(Some("pwsh")));
         assert_eq!(normalized_shell_name("/bin/bash"), "bash");
     }
+
+    #[test]
+    fn resolve_shell_preference_uses_explicit_value() {
+        let mut config = PtyConfig::default();
+        config.preferred_shell = Some("/bin/bash".to_string());
+        let resolved = super::resolve_shell_preference(Some("/custom/zsh"), &config);
+        assert_eq!(resolved.as_deref(), Some("/custom/zsh"));
+    }
+
+    #[test]
+    fn resolve_shell_preference_uses_config_value() {
+        let mut config = PtyConfig::default();
+        config.preferred_shell = Some("/bin/zsh".to_string());
+        let resolved = super::resolve_shell_preference(None, &config);
+        assert_eq!(resolved.as_deref(), Some("/bin/zsh"));
+    }
 }
 
 struct PtySessionViewArgs {
@@ -1646,7 +1762,7 @@ fn build_ephemeral_pty_response(
     json!({
         "success": true,
         "command": setup.command.clone(),
-        "output": output,
+        "output": strip_ansi(&output),
         "code": code,
         "mode": "pty",
         "session_id": session_reference,
@@ -1660,6 +1776,74 @@ fn build_ephemeral_pty_response(
     })
 }
 
+fn build_shell_command_string(
+    raw_command: Option<&str>,
+    parts: &[String],
+    shell_hint: &str,
+) -> String {
+    if let Some(raw) = raw_command {
+        return raw.to_string();
+    }
+
+    if should_use_windows_command_tokenizer(Some(shell_hint)) {
+        return join_windows_command(parts);
+    }
+
+    join(parts.iter().map(|part| part.as_str()))
+}
+
+fn join_windows_command(parts: &[String]) -> String {
+    parts
+        .iter()
+        .map(|part| quote_windows_argument(part))
+        .collect::<Vec<_>>()
+        .join(" ")
+}
+
+fn quote_windows_argument(arg: &str) -> String {
+    if arg.is_empty() {
+        return "\"\"".to_string();
+    }
+
+    let requires_quotes = arg
+        .chars()
+        .any(|c| c.is_whitespace() || c == '"' || c == '\t');
+    if !requires_quotes {
+        return arg.to_string();
+    }
+
+    let mut result = String::with_capacity(arg.len() + 2);
+    result.push('"');
+
+    let mut backslashes = 0;
+    for ch in arg.chars() {
+        match ch {
+            '\\' => {
+                backslashes += 1;
+            }
+            '"' => {
+                result.extend(std::iter::repeat('\\').take(backslashes * 2 + 1));
+                result.push('"');
+                backslashes = 0;
+            }
+            _ => {
+                if backslashes > 0 {
+                    result.extend(std::iter::repeat('\\').take(backslashes));
+                    backslashes = 0;
+                }
+                result.push(ch);
+            }
+        }
+    }
+
+    if backslashes > 0 {
+        result.extend(std::iter::repeat('\\').take(backslashes * 2));
+    }
+
+    result.push('"');
+    result
+}
+
 fn sanitize_command_string(command: &str) -> Cow<'_, str> {
     let trimmed = command.trim_end_matches(char::is_whitespace);
 
@@ -1745,6 +1929,59 @@ fn tokenize_windows_command(command: &str) -> Result<Vec<String>> {
     Ok(tokens)
 }
 
+fn resolve_shell_preference(explicit: Option<&str>, config: &PtyConfig) -> Option<String> {
+    explicit
+        .and_then(sanitize_shell_candidate)
+        .or_else(|| {
+            config
+                .preferred_shell
+                .as_deref()
+                .and_then(sanitize_shell_candidate)
+        })
+        .or_else(|| {
+            env::var("SHELL")
+                .ok()
+                .and_then(|value| sanitize_shell_candidate(&value))
+        })
+        .or_else(detect_posix_shell_candidate)
+}
+
+fn sanitize_shell_candidate(shell: &str) -> Option<String> {
+    let trimmed = shell.trim();
+    if trimmed.is_empty() {
+        None
+    } else {
+        Some(trimmed.to_string())
+    }
+}
+
+fn detect_posix_shell_candidate() -> Option<String> {
+    if cfg!(windows) {
+        return None;
+    }
+
+    const CANDIDATES: [&str; 6] = [
+        "/bin/zsh",
+        "/usr/bin/zsh",
+        "/bin/bash",
+        "/usr/bin/bash",
+        "/bin/sh",
+        "/usr/bin/sh",
+    ];
+
+    for candidate in CANDIDATES {
+        if Path::new(candidate).exists() {
+            return Some(candidate.to_string());
+        }
+    }
+
+    None
+}
+
+fn is_default_shell_placeholder(program: &str) -> bool {
+    matches!(normalized_shell_name(program).as_str(), "bash" | "sh")
+}
+
 fn is_windows_shell(shell: &str) -> bool {
     matches!(
         normalized_shell_name(shell).as_str(),
diff --git a/vtcode-core/src/ui/tui/session.rs b/vtcode-core/src/ui/tui/session.rs
index e53f778d2..a3fa474f6 100644
--- a/vtcode-core/src/ui/tui/session.rs
+++ b/vtcode-core/src/ui/tui/session.rs
@@ -1,4 +1,4 @@
-use std::{cmp::min, fmt::Write, mem, path::Path, time::Instant};
+use std::{cmp::min, fmt::Write, mem, time::Instant};
 
 use ansi_to_tui::IntoText;
 use anstyle::{AnsiColor, Color as AnsiColorEnum, RgbColor};
@@ -10,7 +10,7 @@ use line_clipping::cohen_sutherland::clip_line;
 use line_clipping::{LineSegment, Point, Window};
 use ratatui::{
     Frame,
-    layout::{Constraint, Layout, Position, Rect},
+    layout::{Constraint, Layout, Rect},
     style::{Color, Modifier, Style},
     symbols::border,
     text::{Line, Span, Text},
@@ -18,7 +18,6 @@ use ratatui::{
 };
 use tokio::sync::mpsc::UnboundedSender;
 use tui_popup::{Popup, PopupState, SizedWrapper};
-use tui_scrollview::ScrollViewState;
 use unicode_segmentation::UnicodeSegmentation;
 use unicode_width::UnicodeWidthStr;
 
@@ -30,7 +29,6 @@ use super::types::{
 use crate::config::constants::{prompts, ui};
 
 mod file_palette;
-mod file_tree;
 mod input;
 mod message;
 mod modal;
@@ -132,7 +130,7 @@ pub struct Session {
     scroll_offset: usize,
     transcript_rows: u16,
     transcript_width: u16,
-    transcript_scroll: ScrollViewState,
+    transcript_view_top: usize,
     cached_max_scroll_offset: usize,
     scroll_metrics_dirty: bool,
     transcript_cache: Option<TranscriptReflowCache>,
@@ -198,7 +196,7 @@ impl Session {
             scroll_offset: 0,
             transcript_rows: initial_transcript_rows,
             transcript_width: 0,
-            transcript_scroll: ScrollViewState::default(),
+            transcript_view_top: 0,
             cached_max_scroll_offset: 0,
             scroll_metrics_dirty: true,
             transcript_cache: None,
@@ -1343,9 +1341,7 @@ impl Session {
 
         self.apply_transcript_rows(inner.height);
 
-        let available_padding =
-            ui::INLINE_SCROLLBAR_EDGE_PADDING.min(inner.width.saturating_sub(1));
-        let content_width = inner.width.saturating_sub(available_padding);
+        let content_width = inner.width;
         if content_width == 0 {
             return;
         }
@@ -1355,13 +1351,10 @@ impl Session {
         let padding = usize::from(ui::INLINE_TRANSCRIPT_BOTTOM_PADDING);
         let effective_padding = padding.min(viewport_rows.saturating_sub(1));
         let total_rows = self.total_transcript_rows(content_width) + effective_padding;
-        let (top_offset, _total_rows) = self.prepare_transcript_scroll(total_rows, viewport_rows);
+        let (top_offset, _clamped_total_rows) =
+            self.prepare_transcript_scroll(total_rows, viewport_rows);
         let vertical_offset = top_offset.min(self.cached_max_scroll_offset);
-        let clamped_offset = vertical_offset.min(u16::MAX as usize) as u16;
-        self.transcript_scroll.set_offset(Position {
-            x: 0,
-            y: clamped_offset,
-        });
+        self.transcript_view_top = vertical_offset;
 
         let visible_start = vertical_offset;
         let scroll_area = Rect::new(inner.x, inner.y, content_width, inner.height);
@@ -1369,27 +1362,15 @@ impl Session {
             self.collect_transcript_window(content_width, visible_start, viewport_rows);
         let fill_count = viewport_rows.saturating_sub(visible_lines.len());
         if fill_count > 0 {
-            visible_lines
-                .extend((0..fill_count).map(|_| self.blank_transcript_line(content_width)));
+            let target_len = visible_lines.len() + fill_count;
+            visible_lines.resize_with(target_len, Line::default);
         }
         self.overlay_queue_lines(&mut visible_lines, content_width);
-        self.pad_lines_to_width(&mut visible_lines, content_width);
         let paragraph = Paragraph::new(visible_lines)
             .style(self.default_style())
-            .wrap(Wrap { trim: false });
+            .wrap(Wrap { trim: true });
         frame.render_widget(Clear, scroll_area);
         frame.render_widget(paragraph, scroll_area);
-
-        if inner.width > content_width {
-            let padding_width = inner.width - content_width;
-            let padding_area = Rect::new(
-                scroll_area.x + content_width,
-                scroll_area.y,
-                padding_width,
-                inner.height,
-            );
-            frame.render_widget(Clear, padding_area);
-        }
     }
 
     fn set_plan(&mut self, plan: TaskPlan) {
@@ -1397,37 +1378,6 @@ impl Session {
         self.mark_dirty();
     }
 
-    fn blank_transcript_line(&self, width: u16) -> Line<'static> {
-        if width == 0 {
-            return Line::default();
-        }
-
-        let spaces = " ".repeat(width as usize);
-        Line::from(vec![Span::raw(spaces)])
-    }
-
-    fn pad_lines_to_width(&self, lines: &mut [Line<'static>], width: u16) {
-        let target = width as usize;
-        if target == 0 {
-            return;
-        }
-
-        for line in lines.iter_mut() {
-            let current = line.spans.iter().map(|span| span.width()).sum::<usize>();
-            if current >= target {
-                continue;
-            }
-
-            if current == 0 {
-                line.spans
-                    .push(Span::styled(" ".repeat(target), Style::default()));
-            } else {
-                line.spans
-                    .push(Span::styled(" ".repeat(target - current), Style::default()));
-            }
-        }
-    }
-
     fn render_slash_palette(&mut self, frame: &mut Frame<'_>, viewport: Rect) {
         if viewport.height == 0 || viewport.width == 0 || self.modal.is_some() {
             self.slash_palette.clear_visible_rows();
@@ -1551,14 +1501,11 @@ impl Session {
         let area = compute_modal_area(viewport, width_hint, modal_height, 0, 0, true);
 
         frame.render_widget(Clear, area);
-        let title = match palette.display_mode() {
-            file_palette::DisplayMode::List => format!(
-                "File Browser (Page {}/{})",
-                palette.current_page_number(),
-                palette.total_pages()
-            ),
-            file_palette::DisplayMode::Tree => "File Browser (Tree View)".to_string(),
-        };
+        let title = format!(
+            "File Browser (Page {}/{})",
+            palette.current_page_number(),
+            palette.total_pages()
+        );
         let block = Block::default()
             .title(title)
             .borders(Borders::ALL)
@@ -1578,106 +1525,52 @@ impl Session {
             frame.render_widget(paragraph, text_area);
         }
 
-        // Check display mode and render accordingly
-        match palette.display_mode() {
-            file_palette::DisplayMode::List => {
-                let mut list_items: Vec<ListItem> = items
-                    .iter()
-                    .map(|(_, entry, is_selected)| {
-                        let base_style = if *is_selected {
-                            self.modal_list_highlight_style()
-                        } else {
-                            self.default_style()
-                        };
-
-                        // Add visual distinction for directories
-                        let style = if entry.is_dir {
-                            base_style.add_modifier(Modifier::BOLD)
-                        } else {
-                            base_style
-                        };
-
-                        // Add icon prefix
-                        let prefix = if entry.is_dir {
-                            "↳  " // Folder indicator
-                        } else {
-                            "  · " // Indent files
-                        };
-
-                        let display_text = format!("{}{}", prefix, entry.display_name);
-
-                        ListItem::new(Line::from(Span::styled(display_text, style)))
-                    })
-                    .collect();
-
-                // Add continuation indicator if there are more items
-                if palette.has_more_items() {
-                    let continuation_text = format!(
-                        "  ... ({} more items)",
-                        palette.total_items() - (palette.current_page_number() * 20)
-                    );
-                    let continuation_style = self
-                        .default_style()
-                        .add_modifier(Modifier::DIM | Modifier::ITALIC);
-                    list_items.push(ListItem::new(Line::from(Span::styled(
-                        continuation_text,
-                        continuation_style,
-                    ))));
-                }
-
-                let list = List::new(list_items).style(self.default_style());
-                frame.render_widget(list, layout.list_area);
-            }
-            file_palette::DisplayMode::Tree => {
-                // Render tree view (no need to pass items, tree uses all filtered files)
-                self.render_file_tree(frame, layout.list_area);
-            }
-        }
-    }
-
-    fn render_file_tree(&mut self, frame: &mut Frame<'_>, area: Rect) {
-        use tui_tree_widget::Tree;
+        let mut list_items: Vec<ListItem> = items
+            .iter()
+            .map(|(_, entry, is_selected)| {
+                let base_style = if *is_selected {
+                    self.modal_list_highlight_style()
+                } else {
+                    self.default_style()
+                };
 
-        // Get styles first (before any mutable borrows)
-        let default_style = self.default_style();
-        let highlight_style = self.modal_list_highlight_style();
+                // Add visual distinction for directories
+                let style = if entry.is_dir {
+                    base_style.add_modifier(Modifier::BOLD)
+                } else {
+                    base_style
+                };
 
-        let Some(palette) = self.file_palette.as_mut() else {
-            return;
-        };
+                // Add icon prefix
+                let prefix = if entry.is_dir {
+                    "↳  " // Folder indicator
+                } else {
+                    "  · " // Indent files
+                };
 
-        if !palette.has_files() {
-            return;
-        }
+                let display_text = format!("{}{}", prefix, entry.display_name);
 
-        // Get cached tree items (clone to avoid borrow conflicts)
-        let tree_items: Vec<_> = palette.get_tree_items().to_vec();
+                ListItem::new(Line::from(Span::styled(display_text, style)))
+            })
+            .collect();
 
-        if tree_items.is_empty() {
-            let dim_style = default_style.add_modifier(Modifier::DIM);
-            let paragraph = Paragraph::new("No files to display").style(dim_style);
-            frame.render_widget(paragraph, area);
-            return;
+        // Add continuation indicator if there are more items
+        if palette.has_more_items() {
+            let continuation_text = format!(
+                "  ... ({} more items)",
+                palette.total_items() - (palette.current_page_number() * 20)
+            );
+            let continuation_style = self
+                .default_style()
+                .add_modifier(Modifier::DIM | Modifier::ITALIC);
+            list_items.push(ListItem::new(Line::from(Span::styled(
+                continuation_text,
+                continuation_style,
+            ))));
         }
 
-        // Tree::new returns a Result, handle it
-        match Tree::new(&tree_items) {
-            Ok(tree) => {
-                let styled_tree = tree
-                    .style(default_style)
-                    .highlight_style(highlight_style)
-                    .highlight_symbol("");
-
-                // Render tree widget with state for expand/collapse
-                frame.render_stateful_widget(styled_tree, area, palette.tree_state_mut());
-            }
-            Err(_) => {
-                // Fallback to empty display if tree creation fails
-                let dim_style = default_style.add_modifier(Modifier::DIM);
-                let paragraph = Paragraph::new("Error displaying tree view").style(dim_style);
-                frame.render_widget(paragraph, area);
-            }
-        }
+        let list = List::new(list_items).style(self.default_style());
+        frame.render_widget(list, layout.list_area);
     }
 
     fn render_file_palette_loading(&self, frame: &mut Frame<'_>, viewport: Rect) {
@@ -1721,33 +1614,16 @@ impl Session {
                 format!("{} files", total)
             };
 
-            let mode_text = match palette.display_mode() {
-                file_palette::DisplayMode::List => "List",
-                file_palette::DisplayMode::Tree => "Tree",
-            };
-
-            let nav_text = match palette.display_mode() {
-                file_palette::DisplayMode::List => {
-                    "↑↓ Navigate · PgUp/PgDn Page · Tab/Enter Select"
-                }
-                file_palette::DisplayMode::Tree => {
-                    "↑↓ Navigate · ←→ Expand · Tab Select (Enter=expand)"
-                }
-            };
+            let nav_text = "↑↓ Navigate · PgUp/PgDn Page · Tab/Enter Select";
 
             lines.push(Line::from(vec![Span::styled(
-                format!("{} · Ctrl+t Toggle View · Esc Close", nav_text),
+                format!("{} · Esc Close", nav_text),
                 self.default_style(),
             )]));
 
-            let note = match palette.display_mode() {
-                file_palette::DisplayMode::List => "",
-                file_palette::DisplayMode::Tree => " • Tree: read-only, use List for selection",
-            };
-
             lines.push(Line::from(vec![
                 Span::styled(
-                    format!("Showing {} ({} view){}", count_text, mode_text, note),
+                    format!("Showing {}", count_text),
                     self.default_style().add_modifier(Modifier::DIM),
                 ),
                 Span::styled(
@@ -3083,83 +2959,23 @@ impl Session {
                 true
             }
             KeyCode::Tab => {
-                // Get selected file based on current display mode
-                let file_path = if matches!(palette.display_mode(), file_palette::DisplayMode::Tree)
-                {
-                    // In tree mode, get selection from tree state
-                    palette.get_tree_selected().and_then(|path| {
-                        // Convert absolute path to relative path
-                        let workspace = palette.workspace_root();
-                        Path::new(&path)
-                            .strip_prefix(workspace)
-                            .ok()
-                            .map(|p| p.to_string_lossy().to_string())
-                    })
-                } else {
-                    // In list mode, get selection from list
-                    palette
-                        .get_selected()
-                        .map(|entry| entry.relative_path.clone())
-                };
-
-                if let Some(path) = file_path {
+                if let Some(entry) = palette.get_selected() {
+                    let path = entry.relative_path.clone();
                     self.insert_file_reference(&path);
                     self.close_file_palette();
                     self.mark_dirty();
                 }
                 true
             }
-            KeyCode::Left => {
-                if matches!(palette.display_mode(), file_palette::DisplayMode::Tree) {
-                    palette.tree_state_mut().key_left();
-                    self.mark_dirty();
-                }
-                true
-            }
-            KeyCode::Right => {
-                if matches!(palette.display_mode(), file_palette::DisplayMode::Tree) {
-                    palette.tree_state_mut().key_right();
-                    self.mark_dirty();
-                }
-                true
-            }
             KeyCode::Enter => {
-                match palette.display_mode() {
-                    file_palette::DisplayMode::Tree => {
-                        // In tree mode: select files, toggle folders
-                        if let Some((is_file, relative_path)) = palette.get_tree_selection_info() {
-                            if is_file {
-                                // It's a file - insert reference and close
-                                self.insert_file_reference(&relative_path);
-                                self.close_file_palette();
-                            } else {
-                                // It's a directory - toggle expand/collapse
-                                palette.tree_state_mut().toggle_selected();
-                            }
-                            self.mark_dirty();
-                        } else {
-                            // No selection or can't determine - just toggle
-                            palette.tree_state_mut().toggle_selected();
-                            self.mark_dirty();
-                        }
-                    }
-                    file_palette::DisplayMode::List => {
-                        // In list mode, insert file reference and close modal
-                        if let Some(entry) = palette.get_selected() {
-                            let path = entry.relative_path.clone();
-                            self.insert_file_reference(&path);
-                            self.close_file_palette();
-                            self.mark_dirty();
-                        }
-                    }
+                if let Some(entry) = palette.get_selected() {
+                    let path = entry.relative_path.clone();
+                    self.insert_file_reference(&path);
+                    self.close_file_palette();
+                    self.mark_dirty();
                 }
                 true
             }
-            KeyCode::Char('t') if key.modifiers.contains(KeyModifiers::CONTROL) => {
-                palette.toggle_display_mode();
-                self.mark_dirty();
-                true
-            }
             _ => false,
         }
     }
@@ -5227,7 +5043,7 @@ mod tests {
 
         let width = session.transcript_width;
         let viewport = session.viewport_height();
-        let offset = usize::from(session.transcript_scroll.offset().y);
+        let offset = session.transcript_view_top;
         let lines = session.reflow_transcript_lines(width);
 
         let start = offset.min(lines.len());
diff --git a/vtcode-core/src/ui/tui/session/file_palette.rs b/vtcode-core/src/ui/tui/session/file_palette.rs
index 5fc25394a..1b452b609 100644
--- a/vtcode-core/src/ui/tui/session/file_palette.rs
+++ b/vtcode-core/src/ui/tui/session/file_palette.rs
@@ -1,7 +1,6 @@
 use nucleo_matcher::pattern::{CaseMatching, Normalization, Pattern};
 use nucleo_matcher::{Config, Matcher, Utf32Str};
 use std::path::{Path, PathBuf};
-use tui_tree_widget::TreeState;
 
 const PAGE_SIZE: usize = 20;
 
@@ -13,12 +12,6 @@ pub struct FileEntry {
     pub is_dir: bool,
 }
 
-#[derive(Debug, Clone, Copy)]
-pub enum DisplayMode {
-    List,
-    Tree,
-}
-
 pub struct FilePalette {
     all_files: Vec<FileEntry>,
     filtered_files: Vec<FileEntry>,
@@ -27,23 +20,10 @@ pub struct FilePalette {
     filter_query: String,
     workspace_root: PathBuf,
     filter_cache: std::collections::HashMap<String, Vec<FileEntry>>,
-    display_mode: DisplayMode,
-    tree_state: TreeState<String>,
-    cached_tree_items: Option<Vec<tui_tree_widget::TreeItem<'static, String>>>,
 }
 
 impl FilePalette {
     pub fn new(workspace_root: PathBuf) -> Self {
-        Self::with_display_mode(workspace_root, None)
-    }
-
-    pub fn with_display_mode(workspace_root: PathBuf, default_view: Option<&str>) -> Self {
-        let display_mode = match default_view {
-            Some("list") => DisplayMode::List,
-            Some("tree") => DisplayMode::Tree,
-            _ => DisplayMode::List, // Default to list view (Enter works reliably)
-        };
-
         Self {
             all_files: Vec::new(),
             filtered_files: Vec::new(),
@@ -52,76 +32,24 @@ impl FilePalette {
             filter_query: String::new(),
             workspace_root,
             filter_cache: std::collections::HashMap::new(),
-            display_mode,
-            tree_state: TreeState::default(),
-            cached_tree_items: None,
         }
     }
 
-    pub fn toggle_display_mode(&mut self) {
-        self.display_mode = match self.display_mode {
-            DisplayMode::List => DisplayMode::Tree,
-            DisplayMode::Tree => DisplayMode::List,
-        };
-        // Invalidate tree cache when switching modes
-        self.cached_tree_items = None;
-    }
-
-    pub fn display_mode(&self) -> &DisplayMode {
-        &self.display_mode
-    }
-
     /// Reset selection and filter (call when opening file browser)
     pub fn reset(&mut self) {
         self.selected_index = 0;
         self.current_page = 0;
         self.filter_query.clear();
-        self.tree_state.select_first();
-        self.cached_tree_items = None;
         self.apply_filter(); // Refresh filtered_files to show all
     }
 
     /// Clean up resources to free memory (call when closing file browser)
     pub fn cleanup(&mut self) {
         self.filter_cache.clear();
-        self.cached_tree_items = None;
         self.filtered_files.clear();
         self.filtered_files.shrink_to_fit();
     }
 
-    pub fn tree_state_mut(&mut self) -> &mut TreeState<String> {
-        &mut self.tree_state
-    }
-
-    pub fn workspace_root(&self) -> &PathBuf {
-        &self.workspace_root
-    }
-
-    /// Get or build tree items for current filtered files
-    pub fn get_tree_items(&mut self) -> &[tui_tree_widget::TreeItem<'static, String>] {
-        use crate::ui::tui::session::file_tree::FileTreeNode;
-
-        if self.cached_tree_items.is_none() {
-            // Build tree from filtered files
-            let file_paths: Vec<String> =
-                self.filtered_files.iter().map(|f| f.path.clone()).collect();
-            let tree_root = FileTreeNode::build_tree(file_paths, &self.workspace_root);
-            self.cached_tree_items = Some(tree_root.to_tree_items());
-
-            // Ensure tree has a selection when first built
-            if self.tree_state.selected().is_empty()
-                && !self.cached_tree_items.as_ref().unwrap().is_empty()
-            {
-                self.tree_state.select_first();
-            }
-        }
-
-        self.cached_tree_items
-            .as_ref()
-            .map(|v| v.as_slice())
-            .unwrap_or(&[])
-    }
-
     /// SECURITY: Check if a file should be excluded from the file browser
     /// Always excludes .env files, .git directories, and other sensitive data
     fn should_exclude_file(path: &Path) -> bool {
@@ -222,9 +150,6 @@ impl FilePalette {
     }
 
     fn apply_filter(&mut self) {
-        // Invalidate tree cache when filter changes
-        self.cached_tree_items = None;
-
         if self.filter_query.is_empty() {
             // Avoid cloning when no filter - just reference all files
             self.filtered_files = self.all_files.clone();
@@ -361,101 +286,52 @@ impl FilePalette {
         if self.filtered_files.is_empty() {
             return;
         }
-        match self.display_mode {
-            DisplayMode::List => {
-                if self.selected_index > 0 {
-                    self.selected_index -= 1;
-                } else {
-                    self.selected_index = self.filtered_files.len().saturating_sub(1);
-                }
-                self.update_page_from_selection();
-            }
-            DisplayMode::Tree => {
-                self.tree_state.key_up();
-            }
+        if self.selected_index > 0 {
+            self.selected_index -= 1;
+        } else {
+            self.selected_index = self.filtered_files.len().saturating_sub(1);
         }
+        self.update_page_from_selection();
     }
 
     pub fn move_selection_down(&mut self) {
         if self.filtered_files.is_empty() {
             return;
         }
-        match self.display_mode {
-            DisplayMode::List => {
-                if self.selected_index + 1 < self.filtered_files.len() {
-                    self.selected_index += 1;
-                } else {
-                    self.selected_index = 0;
-                }
-                self.update_page_from_selection();
-            }
-            DisplayMode::Tree => {
-                self.tree_state.key_down();
-            }
+        if self.selected_index + 1 < self.filtered_files.len() {
+            self.selected_index += 1;
+        } else {
+            self.selected_index = 0;
         }
+        self.update_page_from_selection();
     }
 
     pub fn move_to_first(&mut self) {
         if !self.filtered_files.is_empty() {
-            match self.display_mode {
-                DisplayMode::List => {
-                    self.selected_index = 0;
-                    self.current_page = 0;
-                }
-                DisplayMode::Tree => {
-                    self.tree_state.select_first();
-                }
-            }
+            self.selected_index = 0;
+            self.current_page = 0;
         }
     }
 
     pub fn move_to_last(&mut self) {
         if !self.filtered_files.is_empty() {
-            match self.display_mode {
-                DisplayMode::List => {
-                    self.selected_index = self.filtered_files.len().saturating_sub(1);
-                    self.update_page_from_selection();
-                }
-                DisplayMode::Tree => {
-                    // Tree doesn't have select_last, use key_down repeatedly
-                    // This is a limitation of tui-tree-widget
-                }
-            }
+            self.selected_index = self.filtered_files.len().saturating_sub(1);
+            self.update_page_from_selection();
         }
     }
 
     pub fn page_up(&mut self) {
-        match self.display_mode {
-            DisplayMode::List => {
-                if self.current_page > 0 {
-                    self.current_page -= 1;
-                    self.selected_index = self.current_page * PAGE_SIZE;
-                }
-            }
-            DisplayMode::Tree => {
-                // In tree mode, PageUp = collapse all (close selected node and its parents)
-                if let Some(selected) = self.tree_state.selected().first() {
-                    self.tree_state.close(&[selected.clone()]);
-                }
-            }
+        if self.current_page > 0 {
+            self.current_page -= 1;
+            self.selected_index = self.current_page * PAGE_SIZE;
         }
     }
 
     pub fn page_down(&mut self) {
-        match self.display_mode {
-            DisplayMode::List => {
-                let total_pages = self.total_pages();
-                if self.current_page + 1 < total_pages {
-                    self.current_page += 1;
-                    self.selected_index = self.current_page * PAGE_SIZE;
-                }
-            }
-            DisplayMode::Tree => {
-                // In tree mode, PageDown = expand current node
-                if let Some(selected) = self.tree_state.selected().first() {
-                    self.tree_state.open(vec![selected.clone()]);
-                }
-            }
+        let total_pages = self.total_pages();
+        if self.current_page + 1 < total_pages {
+            self.current_page += 1;
+            self.selected_index = self.current_page * PAGE_SIZE;
         }
     }
 
@@ -467,49 +343,6 @@ impl FilePalette {
         self.filtered_files.get(self.selected_index)
     }
 
-    /// Get the selected file path from tree state (for tree mode)
-    pub fn get_tree_selected(&self) -> Option<String> {
-        self.tree_state.selected().first().cloned()
-    }
-
-    /// Check if the tree selection is a file (not a directory)
-    /// Returns (is_file, relative_path) if something is selected
-    pub fn get_tree_selection_info(&self) -> Option<(bool, String)> {
-        let selected = self.tree_state.selected().first()?.clone();
-        let selected_path = Path::new(&selected);
-
-        // Robustly compute relative path (handle both absolute and relative IDs)
-        let relative_path = if selected_path.is_absolute() {
-            // Try strip_prefix first
-            match selected_path.strip_prefix(&self.workspace_root) {
-                Ok(p) => p.to_string_lossy().to_string(),
-                Err(_) => {
-                    // Fallback: look up by absolute path in all_files
-                    self.all_files
-                        .iter()
-                        .find(|e| e.path == selected)
-                        .map(|e| e.relative_path.clone())?
-                }
-            }
-        } else {
-            // Already relative
-            selected.clone()
-        };
-
-        // Prefer model data to determine file vs directory
-        let is_dir = self
-            .all_files
-            .iter()
-            .find(|e| e.relative_path == relative_path || e.path == selected)
-            .map(|e| e.is_dir)
-            .unwrap_or_else(|| {
-                // Fallback: files have extensions, directories don't
-                Path::new(&relative_path).extension().is_none()
-            });
-
-        Some((!is_dir, relative_path))
-    }
-
     pub fn current_page_items(&self) -> Vec<(usize, &FileEntry, bool)> {
         let start = self.current_page * PAGE_SIZE;
         let end = (start + PAGE_SIZE).min(self.filtered_files.len());
@@ -641,9 +474,6 @@ mod tests {
     #[test]
     fn test_pagination() {
         let mut palette = FilePalette::new(PathBuf::from("/workspace"));
-        // Force list mode for pagination test
-        palette.display_mode = DisplayMode::List;
-
         let files: Vec<String> = (0..50).map(|i| format!("file{}.rs", i)).collect();
         palette.load_files(files);
 
@@ -714,9 +544,6 @@ mod tests {
     #[test]
     fn test_circular_navigation() {
         let mut palette = FilePalette::new(PathBuf::from("/workspace"));
-        // Force list mode for navigation test
-        palette.display_mode = DisplayMode::List;
-
         let files = vec!["a.rs".to_string(), "b.rs".to_string(), "c.rs".to_string()];
         palette.load_files(files);
 
@@ -896,36 +723,6 @@ mod tests {
         assert_eq!(items[5].1.relative_path, "zebra.txt");
     }
 
-    #[test]
-    fn test_tree_selection_info() {
-        let mut palette = FilePalette::new(PathBuf::from("/workspace"));
-
-        // Add some actual test files
-        palette.all_files = vec![
-            FileEntry {
-                path: "/workspace/src/main.rs".to_string(),
-                display_name: "src/main.rs".to_string(),
-                relative_path: "src/main.rs".to_string(),
-                is_dir: false,
-            },
-            FileEntry {
-                path: "/workspace/src".to_string(),
-                display_name: "src/".to_string(),
-                relative_path: "src".to_string(),
-                is_dir: true,
-            },
-        ];
-        palette.filtered_files = palette.all_files.clone();
-
-        // Simulate tree selection by manually setting state
-        // Note: In real usage, tree_state is managed by widget
-
-        // Test that extension detection works
-        let info1 = FilePalette::new(PathBuf::from("/workspace")).get_tree_selection_info();
-        // Without selection, should return None or handle gracefully
-        assert!(info1.is_none() || info1.is_some());
-    }
-
     #[test]
     fn test_simple_fuzzy_match() {
         // Test basic fuzzy matching
diff --git a/vtcode-core/src/ui/tui/session/file_tree.rs b/vtcode-core/src/ui/tui/session/file_tree.rs
index 1d5b3ee3e..9c91161cb 100644
--- a/vtcode-core/src/ui/tui/session/file_tree.rs
+++ b/vtcode-core/src/ui/tui/session/file_tree.rs
@@ -1,195 +1,3 @@
-use std::path::Path;
-use tui_tree_widget::TreeItem;
-
-#[derive(Debug, Clone)]
-pub struct FileTreeNode {
-    pub name: String,
-    pub path: String,
-    pub is_dir: bool,
-    pub children: Vec<FileTreeNode>,
-}
-
-impl FileTreeNode {
-    /// Build a tree structure from a flat list of file paths
-    pub fn build_tree(files: Vec<String>, workspace: &Path) -> Self {
-        let mut root = FileTreeNode {
-            name: ".".to_string(),
-            path: workspace.to_string_lossy().to_string(),
-            is_dir: true,
-            children: Vec::new(),
-        };
-
-        for file_path in files {
-            root.insert_file(&file_path, workspace);
-        }
-
-        root.sort_children_recursive();
-        root
-    }
-
-    /// Insert a file into the tree
-    fn insert_file(&mut self, file_path: &str, workspace: &Path) {
-        let path = Path::new(file_path);
-        let relative = path.strip_prefix(workspace).unwrap_or(path);
-
-        let components: Vec<&str> = relative
-            .components()
-            .filter_map(|c| c.as_os_str().to_str())
-            .collect();
-
-        if !components.is_empty() {
-            self.insert_components(&components, file_path, workspace);
-        }
-    }
-
-    /// Recursively insert path components
-    fn insert_components(&mut self, components: &[&str], full_path: &str, workspace: &Path) {
-        if components.is_empty() {
-            return;
-        }
-
-        let name = components[0];
-        let is_last = components.len() == 1;
-
-        // Find or create child node
-        let child = self.children.iter_mut().find(|c| c.name == name);
-
-        if let Some(child) = child {
-            if !is_last {
-                child.insert_components(&components[1..], full_path, workspace);
-            }
-        } else {
-            // Construct unique path for this node (needed for TreeItem identifier)
-            let node_path = if is_last {
-                full_path.to_string()
-            } else {
-                // For directories, construct the path from parent path + name
-                let parent_path = &self.path;
-                if parent_path.is_empty() || parent_path == &workspace.to_string_lossy().to_string()
-                {
-                    workspace.join(name).to_string_lossy().to_string()
-                } else {
-                    Path::new(parent_path)
-                        .join(name)
-                        .to_string_lossy()
-                        .to_string()
-                }
-            };
-
-            // Create new node
-            let mut new_node = FileTreeNode {
-                name: name.to_string(),
-                path: node_path,
-                is_dir: !is_last,
-                children: Vec::new(),
-            };
-
-            if !is_last {
-                new_node.insert_components(&components[1..], full_path, workspace);
-            }
-
-            self.children.push(new_node);
-        }
-    }
-
-    /// Sort children recursively (directories first, then alphabetically)
-    fn sort_children_recursive(&mut self) {
-        self.children.sort_by(|a, b| match (a.is_dir, b.is_dir) {
-            (true, false) => std::cmp::Ordering::Less,
-            (false, true) => std::cmp::Ordering::Greater,
-            _ => a.name.to_lowercase().cmp(&b.name.to_lowercase()),
-        });
-
-        for child in &mut self.children {
-            child.sort_children_recursive();
-        }
-    }
-
-    /// Convert to TreeItem for tui-tree-widget
-    pub fn to_tree_items(&self) -> Vec<TreeItem<'static, String>> {
-        self.children
-            .iter()
-            .map(|child| child.to_tree_item())
-            .collect()
-    }
-
-    fn to_tree_item(&self) -> TreeItem<'static, String> {
-        let display_text = if self.is_dir {
-            // Tree widget adds its own arrow, just add folder indicator
-            format!("{}/", self.name)
-        } else {
-            self.name.clone()
-        };
-
-        if self.is_dir && !self.children.is_empty() {
-            let children: Vec<TreeItem<'static, String>> = self
-                .children
-                .iter()
-                .map(|child| child.to_tree_item())
-                .collect();
-            TreeItem::new(self.path.clone(), display_text, children)
-                .expect("Failed to create tree item")
-        } else {
-            TreeItem::new_leaf(self.path.clone(), display_text)
-        }
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-    use std::path::PathBuf;
-
-    #[test]
-    fn test_tree_building() {
-        let workspace = PathBuf::from("/workspace");
-        let files = vec![
-            "/workspace/src/main.rs".to_string(),
-            "/workspace/src/lib.rs".to_string(),
-            "/workspace/tests/test.rs".to_string(),
-            "/workspace/README.md".to_string(),
-        ];
-
-        let tree = FileTreeNode::build_tree(files, &workspace);
-
-        assert_eq!(tree.children.len(), 3); // src/, tests/, README.md
-        assert!(tree.children[0].is_dir); // src/
-        assert!(tree.children[1].is_dir); // tests/
-        assert!(!tree.children[2].is_dir); // README.md
-    }
-
-    #[test]
-    fn test_sorting() {
-        let workspace = PathBuf::from("/workspace");
-        let files = vec![
-            "/workspace/file.txt".to_string(),
-            "/workspace/src/main.rs".to_string(),
-            "/workspace/another.txt".to_string(),
-        ];
-
-        let tree = FileTreeNode::build_tree(files, &workspace);
-
-        // Directories should come first
-        assert!(tree.children[0].is_dir);
-        assert_eq!(tree.children[0].name, "src");
-
-        // Then files alphabetically
-        assert_eq!(tree.children[1].name, "another.txt");
-        assert_eq!(tree.children[2].name, "file.txt");
-    }
-
-    #[test]
-    fn test_nested_directories() {
-        let workspace = PathBuf::from("/workspace");
-        let files = vec![
-            "/workspace/src/agent/mod.rs".to_string(),
-            "/workspace/src/agent/runloop.rs".to_string(),
-        ];
-
-        let tree = FileTreeNode::build_tree(files, &workspace);
-
-        assert_eq!(tree.children.len(), 1); // src/
-        assert_eq!(tree.children[0].children.len(), 1); // agent/
-        assert_eq!(tree.children[0].children[0].children.len(), 2); // mod.rs, runloop.rs
-    }
-}
+//! Legacy file tree module intentionally left empty after removing the
+//! tui-tree-widget dependency. Retained only so older build artifacts that
+//! reference the module path continue to compile cleanly.
diff --git a/vtcode-core/src/update/README.md b/vtcode-core/src/update/README.md
deleted file mode 100644
index ae089cc62..000000000
--- a/vtcode-core/src/update/README.md
+++ /dev/null
@@ -1,250 +0,0 @@
-# Self-Update Module
-
-This module provides a robust self-update mechanism for vtcode, allowing users to easily keep their installation up to date with the latest features and bug fixes.
-
-## Architecture
-
-The update system is composed of several key components:
-
-### Core Components
-
-1. **UpdateManager** (`mod.rs`)
-   - Main coordinator for all update operations
-   - Orchestrates checking, downloading, installing, and rolling back updates
-   - Provides a high-level API for update operations
-
-2. **UpdateChecker** (`checker.rs`)
-   - Checks for available updates from GitHub releases
-   - Compares versions and determines if an update is available
-   - Handles update frequency and caching
-   - Finds appropriate binary for the current platform
-
-3. **UpdateDownloader** (`downloader.rs`)
-   - Downloads update files from GitHub releases
-   - Supports streaming downloads with progress tracking
-   - Downloads checksums and signatures for verification
-
-4. **UpdateVerifier** (`verifier.rs`)
-   - Verifies downloaded binaries using SHA256 checksums
-   - Validates signatures (when available)
-   - Ensures executable permissions on Unix systems
-
-5. **UpdateInstaller** (`installer.rs`)
-   - Installs downloaded updates
-   - Handles archive extraction (ZIP, TAR, etc.)
-   - Replaces the current executable
-   - Platform-specific installation logic
-
-6. **RollbackManager** (`rollback.rs`)
-   - Creates backups before updates
-   - Manages backup retention
-   - Provides rollback functionality
-   - Cleans up old backups
-
-7. **UpdateConfig** (`config.rs`)
-   - Configuration for the update system
-   - Update channels (stable, beta, nightly)
-   - Update frequency settings
-   - Directory management
-
-## Features
-
-### Version Checking
-
-- Automatic version checking from GitHub releases
-- Configurable check frequency (always, daily, weekly, never)
-- Caching of check results to avoid rate limiting
-- Support for pre-releases and beta channels
-
-### Secure Downloads
-
-- HTTPS downloads from GitHub releases
-- SHA256 checksum verification
-- Signature verification (when available)
-- Streaming downloads with progress tracking
-- Automatic retry on failure
-
-### Safe Installation
-
-- Automatic backup before installation
-- Atomic replacement of executable
-- Platform-specific installation logic
-- Rollback on installation failure
-- Verification of installed binary
-
-### Backup Management
-
-- Automatic backup creation
-- Configurable backup retention
-- Backup metadata tracking
-- Easy rollback to previous versions
-
-### Cross-Platform Support
-
-- Linux (x86_64, aarch64)
-- macOS (x86_64, aarch64)
-- Windows (x86_64, aarch64)
-- Automatic platform detection
-- Platform-specific binary selection
-
-## Usage
-
-### Basic Usage
-
-```rust
-use vtcode_core::update::{UpdateConfig, UpdateManager};
-
-#[tokio::main]
-async fn main() -> anyhow::Result<()> {
-    // Create update manager with default configuration
-    let config = UpdateConfig::from_env()?;
-    let mut manager = UpdateManager::new(config)?;
-
-    // Check for updates
-    let status = manager.check_for_updates().await?;
-
-    if status.update_available {
-        println!("Update available: {}", status.latest_version.unwrap());
-
-        // Perform update
-        let result = manager.perform_update().await?;
-
-        if result.success {
-            println!("Update successful!");
-        }
-    }
-
-    Ok(())
-}
-```
-
-### Configuration
-
-```rust
-use vtcode_core::update::{UpdateChannel, UpdateConfig, UpdateFrequency};
-
-let mut config = UpdateConfig::default();
-config.channel = UpdateChannel::Beta;
-config.frequency = UpdateFrequency::Weekly;
-config.auto_download = true;
-config.max_backups = 5;
-```
-
-### Environment Variables
-
-```bash
-export VTCODE_UPDATE_ENABLED=true
-export VTCODE_UPDATE_CHANNEL=stable
-export VTCODE_UPDATE_FREQUENCY=daily
-export VTCODE_UPDATE_AUTO_DOWNLOAD=false
-export VTCODE_UPDATE_MAX_BACKUPS=3
-```
-
-## Security
-
-### Checksum Verification
-
-All downloads are verified using SHA256 checksums:
-
-1. Download the binary
-2. Download the `.sha256` file
-3. Calculate the SHA256 hash of the binary
-4. Compare with the expected hash
-5. Fail if hashes don't match
-
-### Signature Verification
-
-Binary signatures are verified when available:
-
-1. Download the binary
-2. Download the `.sig` file
-3. Verify the signature using a public key
-4. Fail if signature is invalid
-
-### HTTPS Downloads
-
-All downloads use HTTPS to prevent man-in-the-middle attacks.
-
-### Automatic Backups
-
-A backup is automatically created before each update, allowing rollback if needed.
-
-## Error Handling
-
-The update system implements comprehensive error handling:
-
-- Network errors: Retry with exponential backoff
-- Verification errors: Fail and cleanup
-- Installation errors: Automatic rollback
-- Rollback errors: Manual recovery instructions
-
-## Testing
-
-The module includes comprehensive tests:
-
-- Unit tests for each component
-- Integration tests for the full update workflow
-- Platform-specific tests
-- Error handling tests
-
-Run tests with:
-
-```bash
-cargo test --package vtcode-core --lib update
-```
-
-## CLI Integration
-
-The update system is integrated into the vtcode CLI:
-
-```bash
-# Check for updates
-vtcode update check
-
-# Install updates
-vtcode update install
-
-# Configure updates
-vtcode update config --channel beta
-
-# List backups
-vtcode update backups
-
-# Rollback
-vtcode update rollback
-
-# Cleanup old backups
-vtcode update cleanup
-```
-
-## Future Enhancements
-
-Potential future improvements:
-
-1. Delta updates for faster downloads
-2. Peer-to-peer distribution
-3. Automatic update scheduling
-4. Update notifications
-5. Rollback to specific versions
-6. Update history tracking
-7. Bandwidth throttling
-8. Resume interrupted downloads
-9. Multi-source downloads
-10. Update verification using multiple checksums
-
-## Contributing
-
-When contributing to the update module:
-
-1. Follow the existing code style
-2. Add tests for new functionality
-3. Update documentation
-4. Test on all supported platforms
-5. Consider security implications
-6. Handle errors gracefully
-
-## See Also
-
-- [Self-Update Guide](../../../docs/guides/self-update.md)
-- [Security Guide](../../../docs/guides/security.md)
-- [CLI Documentation](../cli/README.md)
diff --git a/vtcode-core/src/update/checker.rs b/vtcode-core/src/update/checker.rs
deleted file mode 100644
index 0b292f1bc..000000000
--- a/vtcode-core/src/update/checker.rs
+++ /dev/null
@@ -1,418 +0,0 @@
-//! Version checking and update detection
-
-use super::{
-    CURRENT_VERSION, GITHUB_REPO_NAME, GITHUB_REPO_OWNER, UpdateStatus, config::UpdateConfig,
-};
-use anyhow::{Context, Result};
-use serde::Deserialize;
-use std::path::PathBuf;
-use tracing::debug;
-use update_informer::{Check, registry};
-
-/// GitHub release information
-#[derive(Debug, Deserialize)]
-#[allow(dead_code)]
-struct GitHubRelease {
-    tag_name: String,
-    name: String,
-    body: Option<String>,
-    prerelease: bool,
-    draft: bool,
-    assets: Vec<GitHubAsset>,
-    published_at: String,
-    #[serde(default)]
-    tarball_url: Option<String>,
-    #[serde(default)]
-    zipball_url: Option<String>,
-}
-
-#[derive(Debug, Deserialize)]
-#[allow(dead_code)]
-struct GitHubAsset {
-    name: String,
-    browser_download_url: String,
-    size: u64,
-}
-
-/// Handles checking for available updates
-pub struct UpdateChecker {
-    config: UpdateConfig,
-    // Keep reqwest client for other operations like downloading release notes
-    client: reqwest::Client,
-    last_check_file: PathBuf,
-}
-
-impl UpdateChecker {
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        let client = reqwest::Client::builder()
-            .timeout(std::time::Duration::from_secs(30))
-            .user_agent(format!("vtcode/{}", CURRENT_VERSION))
-            .build()?;
-
-        let last_check_file = config.update_dir.join("last_check.json");
-
-        Ok(Self {
-            config,
-            client,
-            last_check_file,
-        })
-    }
-
-    /// Check if an update is available
-    pub async fn check_for_updates(&self) -> Result<UpdateStatus> {
-        // Check if we should skip based on frequency
-        if !self.should_check()? {
-            return self.load_cached_status();
-        }
-
-        // Use update-informer to check for the latest version from GitHub
-        let update_informer = update_informer::new(
-            registry::GitHub,
-            format!("{}/{}", GITHUB_REPO_OWNER, GITHUB_REPO_NAME),
-            CURRENT_VERSION,
-        )
-        .interval(std::time::Duration::from_secs(60 * 60 * 24));
-
-        let mut fallback_release: Option<GitHubRelease> = None;
-
-        let informer_result = update_informer
-            .check_version()
-            .map_err(|err| err.to_string());
-
-        let latest_version = match informer_result {
-            Ok(Some(latest_version)) => latest_version.to_string(),
-            Ok(None) => {
-                // No newer version available
-                let status = UpdateStatus {
-                    current_version: CURRENT_VERSION.to_string(),
-                    latest_version: Some(CURRENT_VERSION.to_string()),
-                    update_available: false,
-                    download_url: None,
-                    release_notes: None,
-                    last_checked: Some(chrono::Utc::now()),
-                };
-
-                self.save_status(&status)?;
-                return Ok(status);
-            }
-            Err(err) => {
-                debug!(
-                    "update-informer check failed; falling back to GitHub API: {}",
-                    err
-                );
-
-                let release = self.fetch_latest_release().await?;
-                let tag_name = release.tag_name.clone();
-                fallback_release = Some(release);
-                tag_name
-            }
-        };
-
-        let current_version = semver::Version::parse(CURRENT_VERSION.trim_start_matches('v'))
-            .map_err(|e| anyhow::anyhow!("Failed to parse current version: {}", e))?;
-
-        let latest_version_parsed = semver::Version::parse(latest_version.trim_start_matches('v'))
-            .map_err(|e| anyhow::anyhow!("Failed to parse latest version: {}", e))?;
-
-        let update_available = latest_version_parsed > current_version;
-
-        let (download_url, release_notes) = if update_available {
-            let release = match fallback_release {
-                Some(release) => release,
-                None => self.fetch_latest_release_by_tag(&latest_version).await?,
-            };
-
-            let download_url = if release.assets.is_empty() {
-                tracing::warn!(
-                    "No binary assets found for release {}, only source distribution available",
-                    release.tag_name
-                );
-                None
-            } else {
-                self.find_platform_asset(&release.assets)?
-            };
-
-            let release_notes = release.body;
-            (download_url, release_notes)
-        } else {
-            (None, None)
-        };
-
-        let status = UpdateStatus {
-            current_version: CURRENT_VERSION.to_string(),
-            latest_version: Some(latest_version),
-            update_available,
-            download_url,
-            release_notes,
-            last_checked: Some(chrono::Utc::now()),
-        };
-
-        // Cache the status
-        self.save_status(&status)?;
-
-        Ok(status)
-    }
-
-    /// Fetch a specific release by tag from GitHub
-    async fn fetch_latest_release_by_tag(&self, tag: &str) -> Result<GitHubRelease> {
-        let url = format!(
-            "{}/repos/{}/{}/releases/tags/{}",
-            self.config.github_api_base(),
-            GITHUB_REPO_OWNER,
-            GITHUB_REPO_NAME,
-            tag
-        );
-
-        let mut request = self.client.get(&url);
-
-        // Add authentication if token is available
-        if let Some(token) = &self.config.github_token {
-            request = request.header("Authorization", format!("Bearer {}", token));
-        }
-
-        let response = request
-            .send()
-            .await
-            .context("Failed to fetch release information")?;
-
-        if !response.status().is_success() {
-            anyhow::bail!("GitHub API returned error: {}", response.status());
-        }
-
-        let release: GitHubRelease = response
-            .json()
-            .await
-            .context("Failed to parse release information")?;
-
-        Ok(release)
-    }
-
-    /// Fetch the latest release from GitHub (fallback method)
-    async fn fetch_latest_release(&self) -> Result<GitHubRelease> {
-        let url = format!(
-            "{}/repos/{}/{}/releases/latest",
-            self.config.github_api_base(),
-            GITHUB_REPO_OWNER,
-            GITHUB_REPO_NAME
-        );
-
-        let mut request = self.client.get(&url);
-
-        // Add authentication if token is available
-        if let Some(token) = &self.config.github_token {
-            request = request.header("Authorization", format!("Bearer {}", token));
-        }
-
-        let response = request
-            .send()
-            .await
-            .context("Failed to fetch release information")?;
-
-        if !response.status().is_success() {
-            anyhow::bail!("GitHub API returned error: {}", response.status());
-        }
-
-        let release: GitHubRelease = response
-            .json()
-            .await
-            .context("Failed to parse release information")?;
-
-        // Filter based on channel
-        if release.draft {
-            anyhow::bail!("Latest release is a draft");
-        }
-
-        if release.prerelease && self.config.channel == super::config::UpdateChannel::Stable {
-            anyhow::bail!("Latest release is a pre-release but stable channel is configured");
-        }
-
-        Ok(release)
-    }
-
-    /// Find the appropriate asset for the current platform
-    fn find_platform_asset(&self, assets: &[GitHubAsset]) -> Result<Option<String>> {
-        let target = self.get_target_triple();
-
-        // Try exact target match first
-        for asset in assets {
-            if asset.name.contains(&target) {
-                tracing::debug!("Found matching asset for target {}: {}", target, asset.name);
-                return Ok(Some(asset.browser_download_url.clone()));
-            }
-        }
-
-        // Fallback: try to find by OS and architecture
-        let (os, arch) = self.get_os_arch();
-        for asset in assets {
-            let name_lower = asset.name.to_lowercase();
-            if name_lower.contains(os) && name_lower.contains(arch) {
-                tracing::debug!("Found matching asset for {}-{}: {}", os, arch, asset.name);
-                return Ok(Some(asset.browser_download_url.clone()));
-            }
-        }
-
-        tracing::warn!(
-            "No matching asset found for platform {} ({}-{}). Available assets: {:?}",
-            target,
-            os,
-            arch,
-            assets.iter().map(|a| &a.name).collect::<Vec<_>>()
-        );
-
-        Ok(None)
-    }
-
-    /// Get the target triple for the current platform
-    fn get_target_triple(&self) -> String {
-        #[cfg(all(target_os = "linux", target_arch = "x86_64"))]
-        return "x86_64-unknown-linux-gnu".to_string();
-
-        #[cfg(all(target_os = "linux", target_arch = "aarch64"))]
-        return "aarch64-unknown-linux-gnu".to_string();
-
-        #[cfg(all(target_os = "macos", target_arch = "x86_64"))]
-        return "x86_64-apple-darwin".to_string();
-
-        #[cfg(all(target_os = "macos", target_arch = "aarch64"))]
-        return "aarch64-apple-darwin".to_string();
-
-        #[cfg(all(target_os = "windows", target_arch = "x86_64"))]
-        return "x86_64-pc-windows-msvc".to_string();
-
-        #[cfg(all(target_os = "windows", target_arch = "aarch64"))]
-        return "aarch64-pc-windows-msvc".to_string();
-
-        #[allow(unreachable_code)]
-        "unknown".to_string()
-    }
-
-    /// Get OS and architecture as separate strings
-    fn get_os_arch(&self) -> (&'static str, &'static str) {
-        let os = if cfg!(target_os = "linux") {
-            "linux"
-        } else if cfg!(target_os = "macos") {
-            "macos"
-        } else if cfg!(target_os = "windows") {
-            "windows"
-        } else {
-            "unknown"
-        };
-
-        let arch = if cfg!(target_arch = "x86_64") {
-            "x86_64"
-        } else if cfg!(target_arch = "aarch64") {
-            "aarch64"
-        } else {
-            "unknown"
-        };
-
-        (os, arch)
-    }
-
-    /// Parse a version string into a comparable tuple
-    #[cfg_attr(not(test), allow(dead_code))]
-    fn parse_version(&self, version: &str) -> Result<(u32, u32, u32)> {
-        let version = version.trim_start_matches('v');
-        let parts: Vec<&str> = version.split('.').collect();
-
-        if parts.len() < 3 {
-            anyhow::bail!("Invalid version format: {}", version);
-        }
-
-        let major = parts[0].parse::<u32>().context("Invalid major version")?;
-        let minor = parts[1].parse::<u32>().context("Invalid minor version")?;
-        let patch = parts[2].parse::<u32>().context("Invalid patch version")?;
-
-        Ok((major, minor, patch))
-    }
-
-    /// Check if we should perform an update check based on frequency
-    fn should_check(&self) -> Result<bool> {
-        use super::config::UpdateFrequency;
-
-        match self.config.frequency {
-            UpdateFrequency::Never => return Ok(false),
-            UpdateFrequency::Always => return Ok(true),
-            _ => {}
-        }
-
-        // Load last check time
-        let last_check = match self.load_last_check_time() {
-            Ok(time) => time,
-            Err(_) => return Ok(true), // No previous check, so check now
-        };
-
-        let now = chrono::Utc::now();
-        let duration = now.signed_duration_since(last_check);
-
-        let should_check = match self.config.frequency {
-            UpdateFrequency::Daily => duration.num_hours() >= 24,
-            UpdateFrequency::Weekly => duration.num_days() >= 7,
-            _ => true,
-        };
-
-        Ok(should_check)
-    }
-
-    /// Load the last check time from cache
-    fn load_last_check_time(&self) -> Result<chrono::DateTime<chrono::Utc>> {
-        let status = self.load_cached_status()?;
-        status
-            .last_checked
-            .context("No last check time in cached status")
-    }
-
-    /// Load cached update status
-    fn load_cached_status(&self) -> Result<UpdateStatus> {
-        let content = std::fs::read_to_string(&self.last_check_file)
-            .context("Failed to read cached status")?;
-        let status: UpdateStatus =
-            serde_json::from_str(&content).context("Failed to parse cached status")?;
-        Ok(status)
-    }
-
-    /// Save update status to cache
-    fn save_status(&self, status: &UpdateStatus) -> Result<()> {
-        self.config.ensure_directories()?;
-        let content = serde_json::to_string_pretty(status)?;
-        std::fs::write(&self.last_check_file, content)?;
-        Ok(())
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_parse_version() {
-        let config = UpdateConfig::default();
-        let checker = UpdateChecker::new(config).unwrap();
-
-        assert_eq!(checker.parse_version("1.2.3").unwrap(), (1, 2, 3));
-        assert_eq!(checker.parse_version("v1.2.3").unwrap(), (1, 2, 3));
-        assert_eq!(checker.parse_version("0.33.1").unwrap(), (0, 33, 1));
-    }
-
-    #[test]
-    fn test_version_comparison() {
-        let config = UpdateConfig::default();
-        let checker = UpdateChecker::new(config).unwrap();
-
-        let v1 = checker.parse_version("0.33.1").unwrap();
-        let v2 = checker.parse_version("0.34.0").unwrap();
-        assert!(v2 > v1);
-
-        let v3 = checker.parse_version("1.0.0").unwrap();
-        assert!(v3 > v2);
-    }
-
-    #[test]
-    fn test_get_target_triple() {
-        let config = UpdateConfig::default();
-        let checker = UpdateChecker::new(config).unwrap();
-        let target = checker.get_target_triple();
-        assert!(!target.is_empty());
-        assert_ne!(target, "unknown");
-    }
-}
diff --git a/vtcode-core/src/update/config.rs b/vtcode-core/src/update/config.rs
deleted file mode 100644
index 5de3f6269..000000000
--- a/vtcode-core/src/update/config.rs
+++ /dev/null
@@ -1,215 +0,0 @@
-//! Configuration for the self-update mechanism
-
-use anyhow::Result;
-use serde::{Deserialize, Serialize};
-use std::path::PathBuf;
-
-/// Update channel selection
-#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize)]
-#[serde(rename_all = "lowercase")]
-pub enum UpdateChannel {
-    /// Stable releases only
-    Stable,
-    /// Beta releases (pre-releases)
-    Beta,
-    /// Development builds (nightly)
-    Nightly,
-}
-
-impl Default for UpdateChannel {
-    fn default() -> Self {
-        Self::Stable
-    }
-}
-
-impl std::fmt::Display for UpdateChannel {
-    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
-        match self {
-            Self::Stable => write!(f, "stable"),
-            Self::Beta => write!(f, "beta"),
-            Self::Nightly => write!(f, "nightly"),
-        }
-    }
-}
-
-/// Update frequency configuration
-#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize)]
-#[serde(rename_all = "lowercase")]
-pub enum UpdateFrequency {
-    /// Check on every launch
-    Always,
-    /// Check once per day
-    Daily,
-    /// Check once per week
-    Weekly,
-    /// Never check automatically
-    Never,
-}
-
-impl Default for UpdateFrequency {
-    fn default() -> Self {
-        Self::Daily
-    }
-}
-
-/// Configuration for the update system
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct UpdateConfig {
-    /// Whether automatic updates are enabled
-    pub enabled: bool,
-
-    /// Update channel to use
-    pub channel: UpdateChannel,
-
-    /// How often to check for updates
-    pub frequency: UpdateFrequency,
-
-    /// Whether to automatically download updates
-    pub auto_download: bool,
-
-    /// Whether to automatically install updates
-    pub auto_install: bool,
-
-    /// Directory for storing update files
-    pub update_dir: PathBuf,
-
-    /// Directory for storing backups
-    pub backup_dir: PathBuf,
-
-    /// Maximum number of backups to keep
-    pub max_backups: usize,
-
-    /// Timeout for download operations (in seconds)
-    pub download_timeout_secs: u64,
-
-    /// Whether to verify signatures
-    pub verify_signatures: bool,
-
-    /// Whether to verify checksums
-    pub verify_checksums: bool,
-
-    /// GitHub API token for authenticated requests (optional)
-    pub github_token: Option<String>,
-
-    /// Custom GitHub API base URL (for enterprise)
-    pub github_api_base: Option<String>,
-}
-
-impl Default for UpdateConfig {
-    fn default() -> Self {
-        let home_dir = dirs::home_dir().unwrap_or_else(|| PathBuf::from("."));
-        let vtcode_dir = home_dir.join(".vtcode");
-
-        Self {
-            enabled: false,
-            channel: UpdateChannel::default(),
-            frequency: UpdateFrequency::default(),
-            auto_download: false,
-            auto_install: false,
-            update_dir: vtcode_dir.join("updates"),
-            backup_dir: vtcode_dir.join("backups"),
-            max_backups: 3,
-            download_timeout_secs: 300,
-            verify_signatures: true,
-            verify_checksums: true,
-            github_token: None,
-            github_api_base: None,
-        }
-    }
-}
-
-impl UpdateConfig {
-    /// Load configuration from environment variables and defaults
-    pub fn from_env() -> Result<Self> {
-        let mut config = Self::default();
-
-        // Check environment variables
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_ENABLED") {
-            config.enabled = val.parse().unwrap_or(false);
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_CHANNEL") {
-            config.channel = match val.to_lowercase().as_str() {
-                "beta" => UpdateChannel::Beta,
-                "nightly" => UpdateChannel::Nightly,
-                _ => UpdateChannel::Stable,
-            };
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_FREQUENCY") {
-            config.frequency = match val.to_lowercase().as_str() {
-                "always" => UpdateFrequency::Always,
-                "weekly" => UpdateFrequency::Weekly,
-                "never" => UpdateFrequency::Never,
-                _ => UpdateFrequency::Daily,
-            };
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_AUTO_DOWNLOAD") {
-            config.auto_download = val.parse().unwrap_or(false);
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_AUTO_INSTALL") {
-            config.auto_install = val.parse().unwrap_or(false);
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_DIR") {
-            config.update_dir = PathBuf::from(val);
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_BACKUP_DIR") {
-            config.backup_dir = PathBuf::from(val);
-        }
-
-        if let Ok(val) = std::env::var("VTCODE_UPDATE_MAX_BACKUPS") {
-            config.max_backups = val.parse().unwrap_or(3);
-        }
-
-        if let Ok(val) = std::env::var("GITHUB_TOKEN") {
-            config.github_token = Some(val);
-        }
-
-        if let Ok(val) = std::env::var("GITHUB_API_BASE") {
-            config.github_api_base = Some(val);
-        }
-
-        Ok(config)
-    }
-
-    /// Ensure required directories exist
-    pub fn ensure_directories(&self) -> Result<()> {
-        std::fs::create_dir_all(&self.update_dir)?;
-        std::fs::create_dir_all(&self.backup_dir)?;
-        Ok(())
-    }
-
-    /// Get the GitHub API base URL
-    pub fn github_api_base(&self) -> &str {
-        self.github_api_base
-            .as_deref()
-            .unwrap_or("https://api.github.com")
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_update_channel_display() {
-        assert_eq!(UpdateChannel::Stable.to_string(), "stable");
-        assert_eq!(UpdateChannel::Beta.to_string(), "beta");
-        assert_eq!(UpdateChannel::Nightly.to_string(), "nightly");
-    }
-
-    #[test]
-    fn test_default_config() {
-        let config = UpdateConfig::default();
-        assert!(!config.enabled);
-        assert_eq!(config.channel, UpdateChannel::Stable);
-        assert_eq!(config.frequency, UpdateFrequency::Daily);
-        assert!(!config.auto_download);
-        assert!(!config.auto_install);
-        assert_eq!(config.max_backups, 3);
-    }
-}
diff --git a/vtcode-core/src/update/downloader.rs b/vtcode-core/src/update/downloader.rs
deleted file mode 100644
index 76d7d9acf..000000000
--- a/vtcode-core/src/update/downloader.rs
+++ /dev/null
@@ -1,187 +0,0 @@
-//! Download manager for update files
-
-use super::config::UpdateConfig;
-use anyhow::{Context, Result};
-use std::path::PathBuf;
-use tokio::io::AsyncWriteExt;
-
-/// Handles downloading update files
-pub struct UpdateDownloader {
-    config: UpdateConfig,
-    client: reqwest::Client,
-}
-
-impl UpdateDownloader {
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        let client = reqwest::Client::builder()
-            .timeout(std::time::Duration::from_secs(config.download_timeout_secs))
-            .user_agent(format!("vtcode/{}", super::CURRENT_VERSION))
-            .build()?;
-
-        Ok(Self { config, client })
-    }
-
-    /// Download an update from the given URL
-    pub async fn download(&self, url: &str) -> Result<PathBuf> {
-        self.config.ensure_directories()?;
-
-        // Extract filename from URL
-        let filename = url.split('/').last().context("Invalid download URL")?;
-
-        let download_path = self.config.update_dir.join(filename);
-
-        // Download the file
-        tracing::info!("Downloading update from: {}", url);
-
-        let response = self
-            .client
-            .get(url)
-            .send()
-            .await
-            .context("Failed to initiate download")?;
-
-        if !response.status().is_success() {
-            anyhow::bail!("Download failed with status: {}", response.status());
-        }
-
-        let total_size = response.content_length().unwrap_or(0);
-        tracing::info!("Download size: {} bytes", total_size);
-
-        // Stream the response to a file
-        let mut file = tokio::fs::File::create(&download_path)
-            .await
-            .context("Failed to create download file")?;
-
-        let mut downloaded: u64 = 0;
-        let mut stream = response.bytes_stream();
-
-        use futures::StreamExt;
-        while let Some(chunk) = stream.next().await {
-            let chunk = chunk.context("Failed to read download chunk")?;
-            file.write_all(&chunk)
-                .await
-                .context("Failed to write download chunk")?;
-
-            downloaded += chunk.len() as u64;
-
-            if total_size > 0 {
-                let progress = (downloaded as f64 / total_size as f64) * 100.0;
-                tracing::debug!("Download progress: {:.1}%", progress);
-            }
-        }
-
-        file.flush()
-            .await
-            .context("Failed to flush download file")?;
-
-        tracing::info!("Download completed: {:?}", download_path);
-
-        // Download checksum file if available
-        if self.config.verify_checksums {
-            let checksum_url = format!("{}.sha256", url);
-            if let Ok(checksum_path) = self.download_checksum(&checksum_url).await {
-                tracing::info!("Downloaded checksum file: {:?}", checksum_path);
-            }
-        }
-
-        // Download signature file if available
-        if self.config.verify_signatures {
-            let signature_url = format!("{}.sig", url);
-            if let Ok(signature_path) = self.download_signature(&signature_url).await {
-                tracing::info!("Downloaded signature file: {:?}", signature_path);
-            }
-        }
-
-        Ok(download_path)
-    }
-
-    /// Download checksum file
-    async fn download_checksum(&self, url: &str) -> Result<PathBuf> {
-        let filename = url.split('/').last().context("Invalid checksum URL")?;
-
-        let checksum_path = self.config.update_dir.join(filename);
-
-        let response = self
-            .client
-            .get(url)
-            .send()
-            .await
-            .context("Failed to download checksum")?;
-
-        if !response.status().is_success() {
-            anyhow::bail!("Checksum download failed");
-        }
-
-        let content = response
-            .bytes()
-            .await
-            .context("Failed to read checksum content")?;
-
-        tokio::fs::write(&checksum_path, content)
-            .await
-            .context("Failed to write checksum file")?;
-
-        Ok(checksum_path)
-    }
-
-    /// Download signature file
-    async fn download_signature(&self, url: &str) -> Result<PathBuf> {
-        let filename = url.split('/').last().context("Invalid signature URL")?;
-
-        let signature_path = self.config.update_dir.join(filename);
-
-        let response = self
-            .client
-            .get(url)
-            .send()
-            .await
-            .context("Failed to download signature")?;
-
-        if !response.status().is_success() {
-            anyhow::bail!("Signature download failed");
-        }
-
-        let content = response
-            .bytes()
-            .await
-            .context("Failed to read signature content")?;
-
-        tokio::fs::write(&signature_path, content)
-            .await
-            .context("Failed to write signature file")?;
-
-        Ok(signature_path)
-    }
-
-    /// Clean up downloaded files
-    pub fn cleanup(&self, path: &PathBuf) -> Result<()> {
-        if path.exists() {
-            std::fs::remove_file(path).context("Failed to remove download file")?;
-        }
-
-        // Also remove checksum and signature files
-        let checksum_path = path.with_extension("sha256");
-        if checksum_path.exists() {
-            std::fs::remove_file(checksum_path).ok();
-        }
-
-        let signature_path = path.with_extension("sig");
-        if signature_path.exists() {
-            std::fs::remove_file(signature_path).ok();
-        }
-
-        Ok(())
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_downloader_creation() {
-        let config = UpdateConfig::default();
-        let downloader = UpdateDownloader::new(config);
-        assert!(downloader.is_ok());
-    }
-}
diff --git a/vtcode-core/src/update/installer.rs b/vtcode-core/src/update/installer.rs
deleted file mode 100644
index df416191e..000000000
--- a/vtcode-core/src/update/installer.rs
+++ /dev/null
@@ -1,333 +0,0 @@
-//! Installation manager for updates
-
-use super::config::UpdateConfig;
-use anyhow::{Context, Result};
-use std::path::Path;
-
-/// Handles installation of downloaded updates
-pub struct UpdateInstaller {
-    config: UpdateConfig,
-}
-
-impl UpdateInstaller {
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        Ok(Self { config })
-    }
-
-    /// Install an update from the given path
-    pub async fn install(&self, update_path: &Path) -> Result<()> {
-        tracing::info!("Installing update from: {:?}", update_path);
-
-        // Always handle as a file path since the downloader has already downloaded the file
-        // Use self_update's binary replacement functionality for cross-platform compatibility
-        match self_update::self_replace::self_replace(update_path) {
-            Ok(_) => {
-                tracing::info!("Successfully replaced binary with new version");
-            }
-            Err(e) => {
-                tracing::warn!(
-                    "Failed to use self_replace, falling back to manual replacement: {}",
-                    e
-                );
-                // Fallback to original file-based installation
-                self.install_from_file(update_path).await?;
-            }
-        }
-
-        tracing::info!("Update installation completed successfully");
-
-        Ok(())
-    }
-
-    /// Internal method to install from a local file path (original logic)
-    async fn install_from_file(&self, update_path: &Path) -> Result<()> {
-        // Get the current executable path
-        let current_exe =
-            std::env::current_exe().context("Failed to get current executable path")?;
-
-        tracing::info!("Current executable: {:?}", current_exe);
-
-        // Extract the update if it's an archive
-        let binary_path = if self.is_archive(update_path) {
-            self.extract_archive(update_path).await?
-        } else {
-            update_path.to_path_buf()
-        };
-
-        // Set executable permissions on Unix
-        #[cfg(unix)]
-        self.set_executable_permissions(&binary_path)?;
-
-        // Replace the current executable
-        self.replace_executable(&binary_path, &current_exe)
-            .await
-            .context("Failed to replace executable")?;
-
-        Ok(())
-    }
-
-    /// Check if the file is an archive
-    fn is_archive(&self, path: &Path) -> bool {
-        if let Some(ext) = path.extension() {
-            let ext = ext.to_string_lossy().to_lowercase();
-            matches!(ext.as_str(), "tar" | "gz" | "tgz" | "zip" | "bz2" | "xz")
-        } else {
-            false
-        }
-    }
-
-    /// Extract an archive and return the path to the binary
-    async fn extract_archive(&self, archive_path: &Path) -> Result<std::path::PathBuf> {
-        let extract_dir = self.config.update_dir.join("extracted");
-        tokio::fs::create_dir_all(&extract_dir)
-            .await
-            .context("Failed to create extraction directory")?;
-
-        tracing::info!("Extracting archive to: {:?}", extract_dir);
-
-        // Determine archive type and extract
-        if let Some(ext) = archive_path.extension() {
-            let ext = ext.to_string_lossy().to_lowercase();
-
-            match ext.as_str() {
-                "zip" => self.extract_zip(archive_path, &extract_dir).await?,
-                "tar" | "tgz" | "gz" | "bz2" | "xz" => {
-                    self.extract_tar(archive_path, &extract_dir).await?
-                }
-                _ => anyhow::bail!("Unsupported archive format: {}", ext),
-            }
-        } else {
-            anyhow::bail!("Archive has no extension");
-        }
-
-        // Find the binary in the extracted files
-        self.find_binary_in_dir(&extract_dir)
-            .await
-            .context("Failed to find binary in extracted archive")
-    }
-
-    /// Extract a ZIP archive
-    async fn extract_zip(&self, archive_path: &Path, extract_dir: &Path) -> Result<()> {
-        let file = std::fs::File::open(archive_path).context("Failed to open ZIP archive")?;
-        let mut archive = zip::ZipArchive::new(file).context("Failed to read ZIP archive")?;
-
-        for i in 0..archive.len() {
-            let mut file = archive.by_index(i).context("Failed to read ZIP entry")?;
-            let outpath = extract_dir.join(file.name());
-
-            if file.is_dir() {
-                tokio::fs::create_dir_all(&outpath)
-                    .await
-                    .context("Failed to create directory")?;
-            } else {
-                if let Some(parent) = outpath.parent() {
-                    tokio::fs::create_dir_all(parent)
-                        .await
-                        .context("Failed to create parent directory")?;
-                }
-
-                let mut outfile =
-                    std::fs::File::create(&outpath).context("Failed to create output file")?;
-                std::io::copy(&mut file, &mut outfile).context("Failed to extract file")?;
-            }
-
-            // Set permissions on Unix
-            #[cfg(unix)]
-            {
-                use std::os::unix::fs::PermissionsExt;
-                if let Some(mode) = file.unix_mode() {
-                    std::fs::set_permissions(&outpath, std::fs::Permissions::from_mode(mode)).ok();
-                }
-            }
-        }
-
-        Ok(())
-    }
-
-    /// Extract a TAR archive (including compressed variants)
-    async fn extract_tar(&self, archive_path: &Path, extract_dir: &Path) -> Result<()> {
-        let file = std::fs::File::open(archive_path).context("Failed to open TAR archive")?;
-
-        // Determine if the archive is compressed
-        let ext = archive_path
-            .extension()
-            .and_then(|e| e.to_str())
-            .unwrap_or("");
-
-        let decoder: Box<dyn std::io::Read> = match ext {
-            "gz" | "tgz" => Box::new(flate2::read::GzDecoder::new(file)),
-            "bz2" => Box::new(bzip2::read::BzDecoder::new(file)),
-            "xz" => Box::new(xz2::read::XzDecoder::new(file)),
-            _ => Box::new(file),
-        };
-
-        let mut archive = tar::Archive::new(decoder);
-        archive
-            .unpack(extract_dir)
-            .context("Failed to extract TAR archive")?;
-
-        Ok(())
-    }
-
-    /// Find the binary executable in a directory
-    async fn find_binary_in_dir(&self, dir: &Path) -> Result<std::path::PathBuf> {
-        Box::pin(self.find_binary_in_dir_impl(dir)).await
-    }
-
-    /// Implementation of find_binary_in_dir with proper boxing for recursion
-    fn find_binary_in_dir_impl<'a>(
-        &'a self,
-        dir: &'a Path,
-    ) -> std::pin::Pin<Box<dyn std::future::Future<Output = Result<std::path::PathBuf>> + 'a>> {
-        Box::pin(async move {
-            let mut entries = tokio::fs::read_dir(dir)
-                .await
-                .context("Failed to read extraction directory")?;
-
-            while let Some(entry) = entries
-                .next_entry()
-                .await
-                .context("Failed to read directory entry")?
-            {
-                let path = entry.path();
-
-                if path.is_file() {
-                    // Check if it's an executable
-                    #[cfg(unix)]
-                    {
-                        use std::os::unix::fs::PermissionsExt;
-                        let metadata = tokio::fs::metadata(&path).await?;
-                        if metadata.permissions().mode() & 0o111 != 0 {
-                            // Check if filename matches "vtcode"
-                            if let Some(name) = path.file_name() {
-                                if name.to_string_lossy().starts_with("vtcode") {
-                                    return Ok(path);
-                                }
-                            }
-                        }
-                    }
-
-                    #[cfg(windows)]
-                    {
-                        if let Some(name) = path.file_name() {
-                            let name = name.to_string_lossy();
-                            if name.starts_with("vtcode") && name.ends_with(".exe") {
-                                return Ok(path);
-                            }
-                        }
-                    }
-                } else if path.is_dir() {
-                    // Recursively search subdirectories
-                    if let Ok(binary) = self.find_binary_in_dir_impl(&path).await {
-                        return Ok(binary);
-                    }
-                }
-            }
-
-            anyhow::bail!("Binary not found in extracted archive")
-        })
-    }
-
-    /// Set executable permissions (Unix only)
-    #[cfg(unix)]
-    fn set_executable_permissions(&self, path: &Path) -> Result<()> {
-        use std::os::unix::fs::PermissionsExt;
-
-        let metadata = std::fs::metadata(path)?;
-        let mut permissions = metadata.permissions();
-        permissions.set_mode(0o755);
-        std::fs::set_permissions(path, permissions)?;
-
-        tracing::info!("Set executable permissions: {:?}", path);
-
-        Ok(())
-    }
-
-    /// Replace the current executable with the new one
-    async fn replace_executable(&self, new_binary: &Path, current_exe: &Path) -> Result<()> {
-        // On Windows, we can't replace a running executable directly
-        // We need to use a different approach
-        #[cfg(windows)]
-        {
-            self.replace_executable_windows(new_binary, current_exe)
-                .await
-        }
-
-        // On Unix, we can replace the executable directly
-        #[cfg(unix)]
-        {
-            self.replace_executable_unix(new_binary, current_exe).await
-        }
-    }
-
-    /// Replace executable on Unix systems
-    #[cfg(unix)]
-    async fn replace_executable_unix(&self, new_binary: &Path, current_exe: &Path) -> Result<()> {
-        // Copy the new binary over the current one
-        tokio::fs::copy(new_binary, current_exe)
-            .await
-            .context("Failed to copy new binary")?;
-
-        tracing::info!("Replaced executable: {:?}", current_exe);
-
-        Ok(())
-    }
-
-    /// Replace executable on Windows systems
-    #[cfg(windows)]
-    async fn replace_executable_windows(
-        &self,
-        new_binary: &Path,
-        current_exe: &Path,
-    ) -> Result<()> {
-        // On Windows, we need to rename the current executable and then copy the new one
-        let backup_path = current_exe.with_extension("exe.old");
-
-        // Remove old backup if it exists
-        if backup_path.exists() {
-            tokio::fs::remove_file(&backup_path).await.ok();
-        }
-
-        // Rename current executable
-        tokio::fs::rename(current_exe, &backup_path)
-            .await
-            .context("Failed to rename current executable")?;
-
-        // Copy new binary
-        match tokio::fs::copy(new_binary, current_exe).await {
-            Ok(_) => {
-                tracing::info!("Replaced executable: {:?}", current_exe);
-                Ok(())
-            }
-            Err(e) => {
-                // Restore backup on failure
-                tokio::fs::rename(&backup_path, current_exe).await.ok();
-                Err(e).context("Failed to copy new binary")
-            }
-        }
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_is_archive() {
-        let config = UpdateConfig::default();
-        let installer = UpdateInstaller::new(config).unwrap();
-
-        assert!(installer.is_archive(Path::new("file.tar.gz")));
-        assert!(installer.is_archive(Path::new("file.zip")));
-        assert!(installer.is_archive(Path::new("file.tgz")));
-        assert!(!installer.is_archive(Path::new("file.bin")));
-        assert!(!installer.is_archive(Path::new("file")));
-    }
-
-    #[test]
-    fn test_installer_creation() {
-        let config = UpdateConfig::default();
-        let installer = UpdateInstaller::new(config);
-        assert!(installer.is_ok());
-    }
-}
diff --git a/vtcode-core/src/update/mod.rs b/vtcode-core/src/update/mod.rs
deleted file mode 100644
index 5f404d7e0..000000000
--- a/vtcode-core/src/update/mod.rs
+++ /dev/null
@@ -1,204 +0,0 @@
-//! Self-update mechanism for vtcode
-//!
-//! This module provides automatic version checking, downloading updates from GitHub releases,
-//! verifying binary integrity, managing backups and rollbacks, and handling cross-platform
-//! compatibility.
-
-use anyhow::{Context, Result};
-use serde::{Deserialize, Serialize};
-use std::path::PathBuf;
-
-mod checker;
-mod config;
-mod downloader;
-mod installer;
-mod rollback;
-mod verifier;
-
-pub use checker::UpdateChecker;
-pub use config::{UpdateChannel, UpdateConfig, UpdateFrequency};
-pub use downloader::UpdateDownloader;
-pub use installer::UpdateInstaller;
-pub use rollback::RollbackManager;
-pub use verifier::UpdateVerifier;
-
-/// Current version of vtcode
-pub const CURRENT_VERSION: &str = env!("CARGO_PKG_VERSION");
-
-/// GitHub repository for releases
-pub const GITHUB_REPO_OWNER: &str = "vinhnx";
-pub const GITHUB_REPO_NAME: &str = "vtcode";
-
-/// Update status information
-#[derive(Debug, Clone, Serialize, Deserialize)]
-pub struct UpdateStatus {
-    pub current_version: String,
-    pub latest_version: Option<String>,
-    pub update_available: bool,
-    pub download_url: Option<String>,
-    pub release_notes: Option<String>,
-    pub last_checked: Option<chrono::DateTime<chrono::Utc>>,
-}
-
-/// Update result after installation
-#[derive(Debug, Clone)]
-pub struct UpdateResult {
-    pub success: bool,
-    pub old_version: String,
-    pub new_version: String,
-    pub backup_path: Option<PathBuf>,
-    pub requires_restart: bool,
-}
-
-/// Main update manager coordinating all update operations
-pub struct UpdateManager {
-    config: UpdateConfig,
-    checker: UpdateChecker,
-    downloader: UpdateDownloader,
-    installer: UpdateInstaller,
-    verifier: UpdateVerifier,
-    rollback: RollbackManager,
-}
-
-impl UpdateManager {
-    /// Create a new update manager with the given configuration
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        let checker = UpdateChecker::new(config.clone())?;
-        let downloader = UpdateDownloader::new(config.clone())?;
-        let installer = UpdateInstaller::new(config.clone())?;
-        let verifier = UpdateVerifier::new(config.clone())?;
-        let rollback = RollbackManager::new(config.clone())?;
-
-        Ok(Self {
-            config,
-            checker,
-            downloader,
-            installer,
-            verifier,
-            rollback,
-        })
-    }
-
-    /// Check if an update is available
-    pub async fn check_for_updates(&self) -> Result<UpdateStatus> {
-        self.checker.check_for_updates().await
-    }
-
-    /// Download and install an available update
-    pub async fn perform_update(&mut self) -> Result<UpdateResult> {
-        // Check for updates
-        let status = self.check_for_updates().await?;
-
-        if !status.update_available {
-            anyhow::bail!("No update available");
-        }
-
-        // Some GitHub Release payloads may omit a top-level download_url.
-        // Try a graceful fallback by inspecting release assets for a downloadable URL.
-        let download_url = status
-            .download_url
-            .clone()
-            .with_context(|| {
-                // Provide a more helpful error message
-                if status.latest_version.is_some() {
-                    let latest_version = status.latest_version.as_ref().unwrap();
-                    format!(
-                        "No download URL available for version {}. This may be because:\n\
-                         1. Pre-compiled binaries are not attached to this GitHub release\n\
-                         2. No matching binary asset was found for your platform\n\
-                         \n\
-                         You can:\n\
-                         - Check for binaries manually at: https://github.com/vinhnx/vtcode/releases/tag/{}\n\
-                         - Build from source: cargo install vtcode\n\
-                         - Download source code and compile manually", 
-                        latest_version, latest_version
-                    )
-                } else {
-                    "No download URL available".to_string()
-                }
-            })?;
-        let new_version = status
-            .latest_version
-            .context("No version information available")?;
-
-        // Create backup before updating
-        let backup_path = self
-            .rollback
-            .create_backup()
-            .context("Failed to create backup")?;
-
-        // Download the update
-        let download_path = self
-            .downloader
-            .download(&download_url)
-            .await
-            .context("Failed to download update")?;
-
-        // Verify the downloaded binary
-        self.verifier
-            .verify(&download_path)
-            .await
-            .context("Failed to verify update")?;
-
-        // Install the update
-        match self.installer.install(&download_path).await {
-            Ok(_) => Ok(UpdateResult {
-                success: true,
-                old_version: CURRENT_VERSION.to_string(),
-                new_version,
-                backup_path: Some(backup_path),
-                requires_restart: true,
-            }),
-            Err(e) => {
-                // Rollback on failure
-                self.rollback
-                    .rollback(&backup_path)
-                    .context("Failed to rollback after installation failure")?;
-                Err(e).context("Update installation failed and was rolled back")
-            }
-        }
-    }
-
-    /// Rollback to a previous version
-    pub fn rollback_to_backup(&self, backup_path: &PathBuf) -> Result<()> {
-        self.rollback.rollback(backup_path)
-    }
-
-    /// Clean up old backups
-    pub fn cleanup_old_backups(&self) -> Result<()> {
-        self.rollback.cleanup_old_backups()
-    }
-
-    /// Get the current configuration
-    pub fn config(&self) -> &UpdateConfig {
-        &self.config
-    }
-
-    /// Update the configuration
-    pub fn set_config(&mut self, config: UpdateConfig) -> Result<()> {
-        self.config = config.clone();
-        self.checker = UpdateChecker::new(config.clone())?;
-        self.downloader = UpdateDownloader::new(config.clone())?;
-        self.installer = UpdateInstaller::new(config.clone())?;
-        self.verifier = UpdateVerifier::new(config.clone())?;
-        self.rollback = RollbackManager::new(config)?;
-        Ok(())
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_current_version() {
-        assert!(!CURRENT_VERSION.is_empty());
-        assert!(CURRENT_VERSION.contains('.'));
-    }
-
-    #[test]
-    fn test_github_repo_constants() {
-        assert_eq!(GITHUB_REPO_OWNER, "vinhnx");
-        assert_eq!(GITHUB_REPO_NAME, "vtcode");
-    }
-}
diff --git a/vtcode-core/src/update/rollback.rs b/vtcode-core/src/update/rollback.rs
deleted file mode 100644
index 3cec9da44..000000000
--- a/vtcode-core/src/update/rollback.rs
+++ /dev/null
@@ -1,244 +0,0 @@
-//! Backup and rollback management
-
-use super::config::UpdateConfig;
-use anyhow::{Context, Result};
-use std::path::PathBuf;
-
-/// Manages backups and rollback operations
-pub struct RollbackManager {
-    config: UpdateConfig,
-}
-
-impl RollbackManager {
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        Ok(Self { config })
-    }
-
-    /// Create a backup of the current executable
-    pub fn create_backup(&self) -> Result<PathBuf> {
-        self.config.ensure_directories()?;
-
-        let current_exe = std::env::current_exe().context("Failed to get current executable")?;
-
-        // Generate backup filename with timestamp
-        let timestamp = chrono::Utc::now().format("%Y%m%d_%H%M%S");
-        let backup_filename = format!("vtcode_backup_{}", timestamp);
-
-        #[cfg(windows)]
-        let backup_filename = format!("{}.exe", backup_filename);
-
-        let backup_path = self.config.backup_dir.join(backup_filename);
-
-        tracing::info!("Creating backup: {:?}", backup_path);
-
-        // Copy current executable to backup location
-        std::fs::copy(&current_exe, &backup_path).context("Failed to create backup")?;
-
-        // Set executable permissions on Unix
-        #[cfg(unix)]
-        {
-            let metadata = std::fs::metadata(&current_exe)?;
-            let permissions = metadata.permissions();
-            std::fs::set_permissions(&backup_path, permissions)?;
-        }
-
-        tracing::info!("Backup created successfully");
-
-        // Clean up old backups
-        self.cleanup_old_backups()?;
-
-        Ok(backup_path)
-    }
-
-    /// Rollback to a previous backup
-    pub fn rollback(&self, backup_path: &PathBuf) -> Result<()> {
-        if !backup_path.exists() {
-            anyhow::bail!("Backup file does not exist: {:?}", backup_path);
-        }
-
-        let current_exe = std::env::current_exe().context("Failed to get current executable")?;
-
-        tracing::info!("Rolling back to: {:?}", backup_path);
-
-        // On Windows, we need special handling
-        #[cfg(windows)]
-        {
-            self.rollback_windows(backup_path, &current_exe)?;
-        }
-
-        // On Unix, we can directly replace
-        #[cfg(unix)]
-        {
-            self.rollback_unix(backup_path, &current_exe)?;
-        }
-
-        tracing::info!("Rollback completed successfully");
-
-        Ok(())
-    }
-
-    /// Rollback on Unix systems
-    #[cfg(unix)]
-    fn rollback_unix(&self, backup_path: &PathBuf, current_exe: &PathBuf) -> Result<()> {
-        std::fs::copy(backup_path, current_exe).context("Failed to restore backup")?;
-
-        // Restore executable permissions
-        let metadata = std::fs::metadata(backup_path)?;
-        let permissions = metadata.permissions();
-        std::fs::set_permissions(current_exe, permissions)?;
-
-        Ok(())
-    }
-
-    /// Rollback on Windows systems
-    #[cfg(windows)]
-    fn rollback_windows(&self, backup_path: &PathBuf, current_exe: &PathBuf) -> Result<()> {
-        let temp_path = current_exe.with_extension("exe.tmp");
-
-        // Remove temp file if it exists
-        if temp_path.exists() {
-            std::fs::remove_file(&temp_path).ok();
-        }
-
-        // Rename current executable to temp
-        std::fs::rename(current_exe, &temp_path).context("Failed to rename current executable")?;
-
-        // Copy backup to current location
-        match std::fs::copy(backup_path, current_exe) {
-            Ok(_) => {
-                // Remove temp file
-                std::fs::remove_file(&temp_path).ok();
-                Ok(())
-            }
-            Err(e) => {
-                // Restore from temp on failure
-                std::fs::rename(&temp_path, current_exe).ok();
-                Err(e).context("Failed to restore backup")
-            }
-        }
-    }
-
-    /// Clean up old backups, keeping only the most recent ones
-    pub fn cleanup_old_backups(&self) -> Result<()> {
-        let backup_dir = &self.config.backup_dir;
-
-        if !backup_dir.exists() {
-            return Ok(());
-        }
-
-        // Get all backup files
-        let mut backups: Vec<_> = std::fs::read_dir(backup_dir)
-            .context("Failed to read backup directory")?
-            .filter_map(|entry| entry.ok())
-            .filter(|entry| {
-                entry
-                    .file_name()
-                    .to_string_lossy()
-                    .starts_with("vtcode_backup_")
-            })
-            .collect();
-
-        // Sort by modification time (newest first)
-        backups.sort_by_key(|entry| {
-            entry
-                .metadata()
-                .and_then(|m| m.modified())
-                .unwrap_or(std::time::SystemTime::UNIX_EPOCH)
-        });
-        backups.reverse();
-
-        // Remove old backups beyond max_backups
-        if backups.len() > self.config.max_backups {
-            for backup in backups.iter().skip(self.config.max_backups) {
-                let path = backup.path();
-                tracing::info!("Removing old backup: {:?}", path);
-                std::fs::remove_file(&path).ok();
-            }
-        }
-
-        Ok(())
-    }
-
-    /// List all available backups
-    pub fn list_backups(&self) -> Result<Vec<PathBuf>> {
-        let backup_dir = &self.config.backup_dir;
-
-        if !backup_dir.exists() {
-            return Ok(Vec::new());
-        }
-
-        let mut backups: Vec<_> = std::fs::read_dir(backup_dir)
-            .context("Failed to read backup directory")?
-            .filter_map(|entry| entry.ok())
-            .filter(|entry| {
-                entry
-                    .file_name()
-                    .to_string_lossy()
-                    .starts_with("vtcode_backup_")
-            })
-            .map(|entry| entry.path())
-            .collect();
-
-        // Sort by modification time (newest first)
-        backups.sort_by_key(|path| {
-            std::fs::metadata(path)
-                .and_then(|m| m.modified())
-                .unwrap_or(std::time::SystemTime::UNIX_EPOCH)
-        });
-        backups.reverse();
-
-        Ok(backups)
-    }
-
-    /// Get information about a backup
-    pub fn get_backup_info(&self, backup_path: &PathBuf) -> Result<BackupInfo> {
-        let metadata = std::fs::metadata(backup_path).context("Failed to read backup metadata")?;
-
-        let size = metadata.len();
-        let modified = metadata
-            .modified()
-            .context("Failed to get modification time")?;
-
-        let filename = backup_path
-            .file_name()
-            .and_then(|n| n.to_str())
-            .unwrap_or("unknown")
-            .to_string();
-
-        Ok(BackupInfo {
-            path: backup_path.clone(),
-            filename,
-            size,
-            modified,
-        })
-    }
-}
-
-/// Information about a backup
-#[derive(Debug, Clone)]
-pub struct BackupInfo {
-    pub path: PathBuf,
-    pub filename: String,
-    pub size: u64,
-    pub modified: std::time::SystemTime,
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-
-    #[test]
-    fn test_rollback_manager_creation() {
-        let config = UpdateConfig::default();
-        let manager = RollbackManager::new(config);
-        assert!(manager.is_ok());
-    }
-
-    #[test]
-    fn test_list_backups_empty() {
-        let config = UpdateConfig::default();
-        let manager = RollbackManager::new(config).unwrap();
-        let backups = manager.list_backups().unwrap();
-        assert!(backups.is_empty() || !backups.is_empty()); // May have existing backups
-    }
-}
diff --git a/vtcode-core/src/update/verifier.rs b/vtcode-core/src/update/verifier.rs
deleted file mode 100644
index a503a7247..000000000
--- a/vtcode-core/src/update/verifier.rs
+++ /dev/null
@@ -1,182 +0,0 @@
-//! Binary verification for downloaded updates
-
-use super::config::UpdateConfig;
-use anyhow::{Context, Result};
-use sha2::{Digest, Sha256};
-use std::path::Path;
-
-/// Handles verification of downloaded update files
-pub struct UpdateVerifier {
-    config: UpdateConfig,
-}
-
-impl UpdateVerifier {
-    pub fn new(config: UpdateConfig) -> Result<Self> {
-        Ok(Self { config })
-    }
-
-    /// Verify the integrity of a downloaded update
-    pub async fn verify(&self, path: &Path) -> Result<()> {
-        tracing::info!("Verifying update file: {:?}", path);
-
-        // Check if file exists
-        if !path.exists() {
-            anyhow::bail!("Update file does not exist: {:?}", path);
-        }
-
-        // Verify checksum if enabled
-        if self.config.verify_checksums {
-            self.verify_checksum(path)
-                .await
-                .context("Checksum verification failed")?;
-        }
-
-        // Verify signature if enabled
-        if self.config.verify_signatures {
-            self.verify_signature(path)
-                .await
-                .context("Signature verification failed")?;
-        }
-
-        // Verify the binary is executable (on Unix)
-        #[cfg(unix)]
-        self.verify_executable(path)?;
-
-        tracing::info!("Update file verification successful");
-
-        Ok(())
-    }
-
-    /// Verify the checksum of the downloaded file
-    async fn verify_checksum(&self, path: &Path) -> Result<()> {
-        let checksum_path = path.with_extension("sha256");
-
-        if !checksum_path.exists() {
-            tracing::warn!("Checksum file not found, skipping verification");
-            return Ok(());
-        }
-
-        // Read expected checksum
-        let expected_checksum = tokio::fs::read_to_string(&checksum_path)
-            .await
-            .context("Failed to read checksum file")?;
-
-        let expected_checksum = expected_checksum
-            .split_whitespace()
-            .next()
-            .context("Invalid checksum format")?
-            .trim();
-
-        // Calculate actual checksum
-        let actual_checksum = self.calculate_sha256(path).await?;
-
-        if actual_checksum.to_lowercase() != expected_checksum.to_lowercase() {
-            anyhow::bail!(
-                "Checksum mismatch: expected {}, got {}",
-                expected_checksum,
-                actual_checksum
-            );
-        }
-
-        tracing::info!("Checksum verification passed");
-
-        Ok(())
-    }
-
-    /// Calculate SHA256 checksum of a file
-    async fn calculate_sha256(&self, path: &Path) -> Result<String> {
-        let content = tokio::fs::read(path)
-            .await
-            .context("Failed to read file for checksum")?;
-
-        let mut hasher = Sha256::new();
-        hasher.update(&content);
-        let result = hasher.finalize();
-
-        Ok(format!("{:x}", result))
-    }
-
-    /// Verify the signature of the downloaded file
-    async fn verify_signature(&self, path: &Path) -> Result<()> {
-        let signature_path = path.with_extension("sig");
-
-        if !signature_path.exists() {
-            tracing::warn!("Signature file not found, skipping verification");
-            return Ok(());
-        }
-
-        // For now, we just check that the signature file exists
-        // In a production implementation, you would use a proper signature verification library
-        // such as `ed25519-dalek` or `rsa` to verify the signature against a public key
-
-        tracing::warn!(
-            "Signature verification not fully implemented - signature file exists but not verified"
-        );
-
-        Ok(())
-    }
-
-    /// Verify the binary is executable (Unix only)
-    #[cfg(unix)]
-    fn verify_executable(&self, path: &Path) -> Result<()> {
-        use std::os::unix::fs::PermissionsExt;
-
-        let metadata = std::fs::metadata(path).context("Failed to read file metadata")?;
-        let permissions = metadata.permissions();
-
-        // Check if the file has execute permissions
-        if permissions.mode() & 0o111 == 0 {
-            tracing::warn!("Binary is not executable, attempting to set permissions");
-            self.make_executable(path)?;
-        }
-
-        Ok(())
-    }
-
-    /// Make a file executable (Unix only)
-    #[cfg(unix)]
-    fn make_executable(&self, path: &Path) -> Result<()> {
-        use std::os::unix::fs::PermissionsExt;
-
-        let metadata = std::fs::metadata(path)?;
-        let mut permissions = metadata.permissions();
-        permissions.set_mode(permissions.mode() | 0o111);
-        std::fs::set_permissions(path, permissions)?;
-
-        tracing::info!("Set executable permissions on binary");
-
-        Ok(())
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-    use std::io::Write;
-
-    #[tokio::test]
-    async fn test_calculate_sha256() {
-        let config = UpdateConfig::default();
-        let verifier = UpdateVerifier::new(config).unwrap();
-
-        // Create a temporary file
-        let temp_dir = tempfile::tempdir().unwrap();
-        let file_path = temp_dir.path().join("test.txt");
-        let mut file = std::fs::File::create(&file_path).unwrap();
-        file.write_all(b"test content").unwrap();
-
-        // Calculate checksum
-        let checksum = verifier.calculate_sha256(&file_path).await.unwrap();
-
-        // Verify it's a valid SHA256 hash (64 hex characters)
-        assert_eq!(checksum.len(), 64);
-        assert!(checksum.chars().all(|c| c.is_ascii_hexdigit()));
-    }
-
-    #[test]
-    fn test_verifier_creation() {
-        let config = UpdateConfig::default();
-        let verifier = UpdateVerifier::new(config);
-        assert!(verifier.is_ok());
-    }
-}
diff --git a/vtcode-core/src/utils/ansi.rs b/vtcode-core/src/utils/ansi.rs
index 7deaa608c..37a938ba6 100644
--- a/vtcode-core/src/utils/ansi.rs
+++ b/vtcode-core/src/utils/ansi.rs
@@ -15,7 +15,6 @@ use anstyle_query::{clicolor, clicolor_force, no_color, term_supports_color};
 use anyhow::{Result, anyhow};
 use ratatui::style::{Color as RatColor, Modifier as RatModifier, Style as RatatuiStyle};
 use std::io::{self, Write};
-use tui_markdown::from_str as parse_markdown_text;
 
 /// Styles available for rendering messages
 #[derive(Clone, Copy)]
@@ -557,106 +556,66 @@ impl InlineSink {
         base_style: Style,
     ) -> (Vec<Vec<InlineSegment>>, Vec<String>, bool) {
         let fallback = self.resolve_fallback_style(base_style);
-        let parsed = parse_markdown_text(text);
-        let mut prepared = Vec::new();
-        let mut plain = Vec::new();
+        let theme_styles = theme::active_styles();
+        let mut rendered = render_markdown_to_lines(text, base_style, &theme_styles, None);
 
-        for line in parsed.lines.into_iter() {
+        if rendered.is_empty() {
+            rendered.push(MarkdownLine::default());
+        }
+
+        let mut prepared = Vec::with_capacity(rendered.len());
+        let mut plain = Vec::with_capacity(rendered.len());
+
+        for line in rendered {
             let mut segments = Vec::new();
             let mut plain_line = String::new();
-            let line_style = RatatuiStyle::default()
-                .patch(parsed.style)
-                .patch(line.style);
 
-            for span in line.spans.into_iter() {
-                let content = span.content.into_owned();
-                if content.is_empty() {
-                    continue;
-                }
-                let span_style = line_style.patch(span.style);
-                let inline_style = self.inline_style_from_ratatui(span_style, &fallback);
-                plain_line.push_str(&content);
+            let has_content = line
+                .segments
+                .iter()
+                .any(|segment| !segment.text.trim().is_empty());
+
+            if !indent.is_empty() && has_content {
                 segments.push(InlineSegment {
-                    text: content,
-                    style: inline_style,
+                    text: indent.to_string(),
+                    style: fallback.clone(),
                 });
+                plain_line.push_str(indent);
             }
 
-            if !indent.is_empty() && !plain_line.is_empty() {
-                segments.insert(
-                    0,
-                    InlineSegment {
-                        text: indent.to_string(),
-                        style: fallback.clone(),
-                    },
-                );
-                plain_line.insert_str(0, indent);
-            }
-
-            prepared.push(segments);
-            plain.push(plain_line);
-        }
-
-        let mut filtered_prepared = Vec::new();
-        let mut filtered_plain = Vec::new();
-        let mut in_code_fence = false;
-
-        for (segments, plain_line) in prepared.into_iter().zip(plain.into_iter()) {
-            let trimmed = plain_line.trim();
-
-            if trimmed.starts_with("```") {
-                let inline_candidate = trimmed.ends_with("```") && trimmed.len() > 6;
-                if inline_candidate {
-                    let inner = trimmed
-                        .trim_start_matches("```")
-                        .trim_end_matches("```")
-                        .trim();
-
-                    if !inner.is_empty() {
-                        let mut code_style = fallback.clone();
-                        code_style.bold = true;
-                        filtered_prepared.push(vec![InlineSegment {
-                            text: inner.to_string(),
-                            style: code_style.clone(),
-                        }]);
-                        filtered_plain.push(inner.to_string());
-                    } else {
-                        filtered_prepared.push(Vec::new());
-                        filtered_plain.push(String::new());
-                    }
+            for segment in line.segments {
+                if segment.text.is_empty() {
                     continue;
                 }
-
-                if in_code_fence {
-                    in_code_fence = false;
-                    continue;
-                } else {
-                    in_code_fence = true;
-                    continue;
+                let converted = convert_to_inline_style(segment.style);
+                let mut inline_style = fallback.clone();
+                if let Some(color) = converted.color {
+                    inline_style.color = Some(color);
                 }
+                inline_style.bold = converted.bold;
+                inline_style.italic = converted.italic;
+                plain_line.push_str(&segment.text);
+                segments.push(InlineSegment {
+                    text: segment.text,
+                    style: inline_style,
+                });
             }
 
-            if in_code_fence {
-                filtered_prepared.push(segments);
-                filtered_plain.push(plain_line);
-                continue;
-            }
-
-            filtered_prepared.push(segments);
-            filtered_plain.push(plain_line);
+            prepared.push(segments);
+            plain.push(plain_line);
         }
 
-        if filtered_prepared.is_empty() {
-            filtered_prepared.push(Vec::new());
-            filtered_plain.push(String::new());
+        if prepared.is_empty() {
+            prepared.push(Vec::new());
+            plain.push(String::new());
         }
 
-        let last_empty = filtered_plain
+        let last_empty = plain
             .last()
             .map(|line| line.trim().is_empty())
             .unwrap_or(true);
 
-        (filtered_prepared, filtered_plain, last_empty)
+        (prepared, plain, last_empty)
     }
 
     fn write_markdown(
diff --git a/vtcode-core/src/utils/dot_config.rs b/vtcode-core/src/utils/dot_config.rs
index 0319139eb..a9eec984a 100644
--- a/vtcode-core/src/utils/dot_config.rs
+++ b/vtcode-core/src/utils/dot_config.rs
@@ -82,12 +82,6 @@ pub struct UiConfig {
     pub syntax_highlighting: bool,
     pub auto_complete: bool,
     pub history_size: usize,
-    #[serde(default = "default_file_browser_view")]
-    pub file_browser_default_view: String, // "tree" or "list"
-}
-
-fn default_file_browser_view() -> String {
-    "tree".to_string()
 }
 
 impl Default for DotConfig {
@@ -141,7 +135,6 @@ impl Default for UiConfig {
             syntax_highlighting: true,
             auto_complete: true,
             history_size: 1000,
-            file_browser_default_view: "list".to_string(),
         }
     }
 }
diff --git a/vtcode-core/tests/pty_test.rs b/vtcode-core/tests/pty_test.rs
index 8d02b8898..1f02ca83d 100644
--- a/vtcode-core/tests/pty_test.rs
+++ b/vtcode-core/tests/pty_test.rs
@@ -5,14 +5,16 @@ use vtcode_core::tools::ToolRegistry;
 #[tokio::test]
 async fn test_pty_functionality() {
     let mut registry = ToolRegistry::new(PathBuf::from(".")).await;
+    registry.allow_all_tools().await.ok();
 
-    // Test a simple echo command
+    // Run an allow-listed command and verify output is captured
     let result = registry
         .execute_tool(
             "run_pty_cmd",
             json!({
-                "command": "echo",
-                "args": ["hello world"]
+                "mode": "pty",
+                "command": "ls",
+                "args": ["Cargo.toml"],
             }),
         )
         .await;
@@ -21,21 +23,23 @@ async fn test_pty_functionality() {
     let response = result.unwrap();
 
     assert_eq!(response["success"], true);
-    let output = response["output"].as_str().unwrap();
-    assert!(output.contains("hello world"));
+    let output = response["output"].as_str().unwrap_or_default();
+    assert!(output.contains("Cargo.toml"));
 }
 
 #[tokio::test]
 async fn test_pty_functionality_with_exit_code() {
     let mut registry = ToolRegistry::new(PathBuf::from(".")).await;
+    registry.allow_all_tools().await.ok();
 
-    // Test a command that exits with code 1
+    // Run an allow-listed command that exits with a non-zero code
     let result = registry
         .execute_tool(
             "run_pty_cmd",
             json!({
-                "command": "sh",
-                "args": ["-c", "exit 1"]
+                "mode": "pty",
+                "command": "ls",
+                "args": ["this_file_does_not_exist"],
             }),
         )
         .await;
@@ -46,4 +50,99 @@ async fn test_pty_functionality_with_exit_code() {
     // The command should execute successfully (no error in execution)
     // but the exit code should be 1
     assert_eq!(response["success"], true);
+    assert_eq!(response["code"].as_i64(), Some(1));
+}
+
+#[cfg(unix)]
+#[tokio::test]
+async fn test_pty_shell_option_runs_through_requested_shell() {
+    let mut registry = ToolRegistry::new(PathBuf::from(".")).await;
+    registry.allow_all_tools().await.ok();
+
+    let result = registry
+        .execute_tool(
+            "run_pty_cmd",
+            json!({
+                "mode": "pty",
+                "shell": "sh",
+                "command": "echo shell-check",
+            }),
+        )
+        .await
+        .expect("shell run result");
+
+    assert_eq!(result["success"], true);
+    let output = result["output"].as_str().unwrap_or_default();
+    assert!(output.contains("shell-check"));
+}
+
+#[cfg(unix)]
+#[tokio::test]
+async fn test_create_pty_session_uses_requested_shell() {
+    let mut registry = ToolRegistry::new(PathBuf::from(".")).await;
+    registry.allow_all_tools().await.ok();
+
+    let create_result = registry
+        .execute_tool(
+            "create_pty_session",
+            json!({
+                "session_id": "shell-session",
+                "command": "bash",
+                "shell": "/bin/sh"
+            }),
+        )
+        .await
+        .expect("create session result");
+
+    assert_eq!(create_result["success"], true);
+    assert_eq!(create_result["session_id"], "shell-session");
+    let command = create_result["command"].as_str().unwrap_or_default();
+    assert!(command.contains("sh"));
+
+    registry
+        .execute_tool(
+            "close_pty_session",
+            json!({
+                "session_id": "shell-session"
+            }),
+        )
+        .await
+        .expect("close session result");
+}
+
+#[tokio::test]
+async fn test_pty_output_has_no_ansi_codes() {
+    let mut registry = ToolRegistry::new(PathBuf::from(".")).await;
+    registry.allow_all_tools().await.ok();
+
+    let result = registry
+        .execute_tool(
+            "run_pty_cmd",
+            json!({
+                "mode": "pty",
+                "command": "ls",
+                "args": ["-a"],
+            }),
+        )
+        .await
+        .expect("ls result");
+
+    assert_eq!(result["success"], true);
+    let output = result["output"].as_str().unwrap_or_default();
+
+    // Check that output doesn't contain ANSI escape sequences
+    assert!(
+        !output.contains("\x1b["),
+        "Output should not contain ANSI escape codes"
+    );
+    assert!(
+        !output.contains("\u{001b}["),
+        "Output should not contain ANSI escape codes"
+    );
+
+    // Verify we got actual file names
+    assert!(
+        output.contains("Cargo.toml") || output.contains("cargo") || output.len() > 10,
+        "Output should contain actual filenames, not just escape codes"
+    );
 }
diff --git a/vtcode-core/tests/update_tests.rs b/vtcode-core/tests/update_tests.rs
deleted file mode 100644
index 2bc924a81..000000000
--- a/vtcode-core/tests/update_tests.rs
+++ /dev/null
@@ -1,297 +0,0 @@
-//! Integration tests for the self-update functionality
-
-use anyhow::Result;
-use vtcode_core::update::{UpdateChannel, UpdateConfig, UpdateFrequency, UpdateManager};
-
-fn set_env_var(key: &str, value: &str) {
-    // SAFETY: tests run in isolation and only touch process-local env vars.
-    unsafe {
-        std::env::set_var(key, value);
-    }
-}
-
-fn remove_env_var(key: &str) {
-    // SAFETY: reverting env changes made in this test scope.
-    unsafe {
-        std::env::remove_var(key);
-    }
-}
-
-#[test]
-fn test_update_config_default() {
-    let config = UpdateConfig::default();
-
-    assert!(!config.enabled);
-    assert_eq!(config.channel, UpdateChannel::Stable);
-    assert_eq!(config.frequency, UpdateFrequency::Daily);
-    assert!(!config.auto_download);
-    assert!(!config.auto_install);
-    assert_eq!(config.max_backups, 3);
-    assert!(config.verify_signatures);
-    assert!(config.verify_checksums);
-}
-
-#[test]
-fn test_update_config_from_env() {
-    // Set environment variables
-    unsafe {
-        // SAFETY: The test controls these variables and resets them before finishing.
-        std::env::set_var("VTCODE_UPDATE_ENABLED", "false");
-        std::env::set_var("VTCODE_UPDATE_CHANNEL", "beta");
-        std::env::set_var("VTCODE_UPDATE_FREQUENCY", "weekly");
-        std::env::set_var("VTCODE_UPDATE_AUTO_DOWNLOAD", "true");
-        std::env::set_var("VTCODE_UPDATE_MAX_BACKUPS", "5");
-    }
-
-    let config = UpdateConfig::from_env().unwrap();
-
-    assert!(!config.enabled);
-    assert_eq!(config.channel, UpdateChannel::Beta);
-    assert_eq!(config.frequency, UpdateFrequency::Weekly);
-    assert!(config.auto_download);
-    assert_eq!(config.max_backups, 5);
-
-    // Clean up
-    unsafe {
-        // SAFETY: Restores the environment to the state it had before the test mutated it.
-        std::env::remove_var("VTCODE_UPDATE_ENABLED");
-        std::env::remove_var("VTCODE_UPDATE_CHANNEL");
-        std::env::remove_var("VTCODE_UPDATE_FREQUENCY");
-        std::env::remove_var("VTCODE_UPDATE_AUTO_DOWNLOAD");
-        std::env::remove_var("VTCODE_UPDATE_MAX_BACKUPS");
-    }
-}
-
-#[test]
-fn test_update_channel_display() {
-    assert_eq!(UpdateChannel::Stable.to_string(), "stable");
-    assert_eq!(UpdateChannel::Beta.to_string(), "beta");
-    assert_eq!(UpdateChannel::Nightly.to_string(), "nightly");
-}
-
-#[test]
-fn test_update_manager_creation() {
-    let config = UpdateConfig::default();
-    let manager = UpdateManager::new(config);
-    assert!(manager.is_ok());
-}
-
-#[tokio::test]
-async fn test_update_checker_version_parsing() {
-    use vtcode_core::update::UpdateChecker;
-
-    let config = UpdateConfig::default();
-    let checker = UpdateChecker::new(config).unwrap();
-
-    // Test version parsing through reflection (if methods are public)
-    // This is a simplified test - in practice you'd need to expose the parse_version method
-    // or test it indirectly through the public API
-}
-
-#[test]
-fn test_update_config_ensure_directories() {
-    let temp_dir = tempfile::tempdir().unwrap();
-    let mut config = UpdateConfig::default();
-    config.update_dir = temp_dir.path().join("updates");
-    config.backup_dir = temp_dir.path().join("backups");
-
-    assert!(config.ensure_directories().is_ok());
-    assert!(config.update_dir.exists());
-    assert!(config.backup_dir.exists());
-}
-
-#[test]
-fn test_update_frequency_variants() {
-    let frequencies = vec![
-        UpdateFrequency::Always,
-        UpdateFrequency::Daily,
-        UpdateFrequency::Weekly,
-        UpdateFrequency::Never,
-    ];
-
-    for freq in frequencies {
-        // Just ensure they can be created and compared
-        assert_eq!(freq, freq);
-    }
-}
-
-#[test]
-fn test_update_channel_variants() {
-    let channels = vec![
-        UpdateChannel::Stable,
-        UpdateChannel::Beta,
-        UpdateChannel::Nightly,
-    ];
-
-    for channel in channels {
-        // Just ensure they can be created and compared
-        assert_eq!(channel, channel);
-    }
-}
-
-#[test]
-fn test_github_api_base_url() {
-    let config = UpdateConfig::default();
-    assert_eq!(config.github_api_base(), "https://api.github.com");
-
-    let mut config_custom = UpdateConfig::default();
-    config_custom.github_api_base = Some("https://github.company.com/api/v3".to_string());
-    assert_eq!(
-        config_custom.github_api_base(),
-        "https://github.company.com/api/v3"
-    );
-}
-
-#[tokio::test]
-async fn test_rollback_manager_creation() {
-    use vtcode_core::update::RollbackManager;
-
-    let config = UpdateConfig::default();
-    let manager = RollbackManager::new(config);
-    assert!(manager.is_ok());
-}
-
-#[tokio::test]
-async fn test_rollback_manager_list_backups() {
-    use vtcode_core::update::RollbackManager;
-
-    let temp_dir = tempfile::tempdir().unwrap();
-    let mut config = UpdateConfig::default();
-    config.backup_dir = temp_dir.path().join("backups");
-    config.ensure_directories().unwrap();
-
-    let manager = RollbackManager::new(config).unwrap();
-    let backups = manager.list_backups().unwrap();
-
-    // Should be empty initially
-    assert!(backups.is_empty());
-}
-
-#[test]
-fn test_update_config_serialization() {
-    let config = UpdateConfig::default();
-
-    // Test that config can be serialized
-    let json = serde_json::to_string(&config);
-    assert!(json.is_ok());
-}
-
-#[test]
-fn test_update_status_serialization() {
-    use vtcode_core::update::UpdateStatus;
-
-    let status = UpdateStatus {
-        current_version: "0.33.1".to_string(),
-        latest_version: Some("0.34.0".to_string()),
-        update_available: true,
-        download_url: Some("https://example.com/download".to_string()),
-        release_notes: Some("New features".to_string()),
-        last_checked: Some(chrono::Utc::now()),
-    };
-
-    // Test serialization
-    let json = serde_json::to_string(&status);
-    assert!(json.is_ok());
-
-    // Test deserialization
-    let json_str = json.unwrap();
-    let deserialized: Result<UpdateStatus, _> = serde_json::from_str(&json_str);
-    assert!(deserialized.is_ok());
-}
-
-#[tokio::test]
-async fn test_update_verifier_creation() {
-    use vtcode_core::update::UpdateVerifier;
-
-    let config = UpdateConfig::default();
-    let verifier = UpdateVerifier::new(config);
-    assert!(verifier.is_ok());
-}
-
-#[tokio::test]
-async fn test_update_downloader_creation() {
-    use vtcode_core::update::UpdateDownloader;
-
-    let config = UpdateConfig::default();
-    let downloader = UpdateDownloader::new(config);
-    assert!(downloader.is_ok());
-}
-
-#[tokio::test]
-async fn test_update_installer_creation() {
-    use vtcode_core::update::UpdateInstaller;
-
-    let config = UpdateConfig::default();
-    let installer = UpdateInstaller::new(config);
-    assert!(installer.is_ok());
-}
-
-#[test]
-fn test_current_version_constant() {
-    use vtcode_core::update::CURRENT_VERSION;
-
-    assert!(!CURRENT_VERSION.is_empty());
-    assert!(CURRENT_VERSION.contains('.'));
-
-    // Should be a valid semver
-    let parts: Vec<&str> = CURRENT_VERSION.split('.').collect();
-    assert!(parts.len() >= 3);
-}
-
-#[test]
-fn test_github_repo_constants() {
-    use vtcode_core::update::{GITHUB_REPO_NAME, GITHUB_REPO_OWNER};
-
-    assert_eq!(GITHUB_REPO_OWNER, "vinhnx");
-    assert_eq!(GITHUB_REPO_NAME, "vtcode");
-}
-
-#[test]
-fn test_update_config_modification() {
-    let mut config = UpdateConfig::default();
-
-    // Test modifying configuration
-    config.enabled = false;
-    config.channel = UpdateChannel::Beta;
-    config.frequency = UpdateFrequency::Weekly;
-    config.auto_download = true;
-    config.auto_install = true;
-    config.max_backups = 10;
-
-    assert!(!config.enabled);
-    assert_eq!(config.channel, UpdateChannel::Beta);
-    assert_eq!(config.frequency, UpdateFrequency::Weekly);
-    assert!(config.auto_download);
-    assert!(config.auto_install);
-    assert_eq!(config.max_backups, 10);
-}
-
-#[tokio::test]
-async fn test_update_manager_config_access() {
-    let config = UpdateConfig::default();
-    let manager = UpdateManager::new(config.clone()).unwrap();
-
-    // Test that we can access the configuration
-    let manager_config = manager.config();
-    assert_eq!(manager_config.enabled, config.enabled);
-    assert_eq!(manager_config.channel, config.channel);
-}
-
-#[tokio::test]
-async fn test_update_manager_config_update() {
-    let config = UpdateConfig::default();
-    let mut manager = UpdateManager::new(config).unwrap();
-
-    // Create a new configuration
-    let mut new_config = UpdateConfig::default();
-    new_config.channel = UpdateChannel::Beta;
-    new_config.frequency = UpdateFrequency::Weekly;
-
-    // Update the manager's configuration
-    let result = manager.set_config(new_config.clone());
-    assert!(result.is_ok());
-
-    // Verify the configuration was updated
-    assert_eq!(manager.config().channel, UpdateChannel::Beta);
-    assert_eq!(manager.config().frequency, UpdateFrequency::Weekly);
-}
diff --git a/vtcode-exec-events/Cargo.toml b/vtcode-exec-events/Cargo.toml
index 9e07b3044..1dfec0171 100644
--- a/vtcode-exec-events/Cargo.toml
+++ b/vtcode-exec-events/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-exec-events"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 description = "Structured execution telemetry event schema used across VTCode crates."
 license = "MIT OR Apache-2.0"
diff --git a/vtcode-indexer/Cargo.toml b/vtcode-indexer/Cargo.toml
index 10867b01a..2bb95301a 100644
--- a/vtcode-indexer/Cargo.toml
+++ b/vtcode-indexer/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-indexer"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Workspace-friendly code indexer extracted from VTCode"
diff --git a/vtcode-llm/Cargo.toml b/vtcode-llm/Cargo.toml
index 9ff0ccb7d..9f99aa564 100644
--- a/vtcode-llm/Cargo.toml
+++ b/vtcode-llm/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-llm"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Prototype extraction of VTCode's unified LLM client layer"
@@ -37,7 +37,7 @@ mock = ["dep:async-trait"]
 [dependencies]
 anyhow = "1.0"
 async-trait = { version = "0.1", optional = true }
-vtcode-commons = { path = "../vtcode-commons", version = "0.38.1" }
+vtcode-commons = { path = "../vtcode-commons", version = "0.38.2" }
 vtcode-core = { path = "../vtcode-core" }
 
 [dev-dependencies]
diff --git a/vtcode-markdown-store/Cargo.toml b/vtcode-markdown-store/Cargo.toml
index 3d35b24ac..33848164d 100644
--- a/vtcode-markdown-store/Cargo.toml
+++ b/vtcode-markdown-store/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-markdown-store"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Markdown-backed storage utilities extracted from VTCode"
diff --git a/vtcode-tools/Cargo.toml b/vtcode-tools/Cargo.toml
index b49d9e401..d0e64d912 100644
--- a/vtcode-tools/Cargo.toml
+++ b/vtcode-tools/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "vtcode-tools"
-version = "0.38.1"
+version = "0.38.2"
 edition = "2024"
 authors = ["vinhnx <vinhnx@users.noreply.github.com>"]
 description = "Prototype extraction of VTCode's modular tool registry"
@@ -18,7 +18,7 @@ policies = []
 examples = []
 
 [dependencies]
-vtcode-commons = { path = "../vtcode-commons", version = "0.38.1" }
+vtcode-commons = { path = "../vtcode-commons", version = "0.38.2" }
 vtcode-core = { path = "../vtcode-core" }
 
 [dev-dependencies]
diff --git a/vtcode.toml b/vtcode.toml
index 90bb46358..4f51ea10f 100644
--- a/vtcode.toml
+++ b/vtcode.toml
@@ -5,13 +5,13 @@
 # Core agent behavior; see docs/config/CONFIGURATION_PRECEDENCE.md.
 [agent]
 # Primary LLM provider to use (e.g., "openai", "gemini", "anthropic", "openrouter")
-provider = "openai"
+provider = "ollama"
 
 # Environment variable containing the API key for the provider
-api_key_env = "OPENAI_API_KEY"
+api_key_env = "OLLAMA_API_KEY"
 
 # Default model to use when no specific model is specified
-default_model = "gpt-5-nano"
+default_model = "gpt-oss:120b-cloud"
 
 # Visual theme for the terminal interface
 theme = "ciapre-dark"
@@ -279,6 +279,9 @@ stdout_tail_lines = 20
 # Total lines to keep in PTY scrollback buffer
 scrollback_lines = 400
 
+# Preferred shell program for PTY sessions (defaults to $SHELL or auto-detect)
+# preferred_shell = "/bin/zsh"
+
 # Context management configuration - Controls conversation memory
 [context]
 # Maximum number of tokens to keep in context (affects model cost and performance)
@@ -362,15 +365,15 @@ llm_router_model = ""
 # Model mapping for different task types
 [router.models]
 # Model for simple queries
-simple = "gpt-5-nano"
+simple = "gpt-oss:120b-cloud"
 # Model for standard tasks
-standard = "gpt-5-nano"
+standard = "gpt-oss:120b-cloud"
 # Model for complex tasks
-complex = "gpt-5-nano"
+complex = "gpt-oss:120b-cloud"
 # Model for code generation heavy tasks
-codegen_heavy = "gpt-5-nano"
+codegen_heavy = "gpt-oss:120b-cloud"
 # Model for information retrieval heavy tasks
-retrieval_heavy = "gpt-5-nano"
+retrieval_heavy = "gpt-oss:120b-cloud"
 
 # Router budget settings (if applicable)
 [router.budgets]
@@ -604,12 +607,24 @@ workspace_trust = "full_auto"
 
 [mcp.allowlist.default]
 
+[mcp.security]
+auth_enabled = false
+
+[mcp.security.rate_limit]
+requests_per_minute = 100
+concurrent_requests = 10
+
 [acp.zed.tools]
 read_file = true
 list_files = true
 
 [mcp.allowlist.providers]
 
+[mcp.security.validation]
+schema_validation_enabled = true
+path_traversal_protection = true
+max_argument_size = 1048576
+
 [hooks.lifecycle]
 session_start = []
 session_end = []
diff --git a/vtcode.toml.example b/vtcode.toml.example
index 95414d0b8..9f4704f78 100644
--- a/vtcode.toml.example
+++ b/vtcode.toml.example
@@ -242,11 +242,6 @@ inline_viewport_rows = 16
 # Show timeline navigation panel (displays plan when available, timeline otherwise)
 show_timeline_pane = true
 
-# File browser default view mode
-# "list" - Show files in flat list (default, reliable Enter selection)
-# "tree" - Show files in tree structure (toggle with 't' key)
-file_browser_default_view = "list"
-
 # Status line configuration
 [ui.status_line]
 # Status line mode ("auto", "command", "hidden")
@@ -281,6 +276,9 @@ stdout_tail_lines = 20
 # Total lines to keep in PTY scrollback buffer
 scrollback_lines = 400
 
+# Preferred shell program for PTY sessions (defaults to $SHELL or auto-detect)
+# preferred_shell = "/bin/zsh"
+
 # Context management configuration - Controls conversation memory
 [context]
 # Maximum number of tokens to keep in context (affects model cost and performance)
diff --git a/zed-extension/README.md b/zed-extension/README.md
new file mode 100644
index 000000000..5fc0cbb4e
--- /dev/null
+++ b/zed-extension/README.md
@@ -0,0 +1,29 @@
+# VT Code Zed Agent Server Extension
+
+This directory packages VT Code as a Zed Agent Server Extension so users can install the binary directly from Zed's marketplace or as a local dev extension.
+
+## Contents
+
+- `extension.toml` – Manifest that registers the VT Code agent server with Zed.
+- `icons/vtcode.svg` – Monochrome icon displayed in Zed's menus.
+
+## Updating for a New Release
+
+1. Build and upload platform archives via `./scripts/release.sh` (or manually produce the `dist/` artifacts).
+2. Update the `version` field in `extension.toml` to match the new tag.
+3. Replace the `archive` URLs so they point at the freshly published GitHub release assets.
+4. Run `./scripts/release.sh` to execute the automated release workflow. It rebuilds binaries, uploads release assets, and rewrites `extension.toml` with fresh SHA-256 checksums for every available target.
+5. Commit the updated files and include them in the release PR.
+
+## Local Testing
+
+1. From Zed, run the Command Palette command `zed: install dev extension` and select this directory.
+2. Choose **VT Code** from the Agent panel and confirm the download succeeds.
+3. Exercise ACP features (tool calls, cancellations) to verify the packaged binary works as expected.
+
+After verification, push the manifest changes and publish the release so the extension can be listed publicly.
+
+## Next Steps
+
+- When you add Linux or Windows builds, extend `extension.toml` with the appropriate target tables and rerun the release script so their checksums are captured automatically.
+- Re-run `zed: install dev extension` after each release to confirm download, checksum validation, and ACP negotiation succeed with the updated manifest.
diff --git a/zed-extension/extension.toml b/zed-extension/extension.toml
new file mode 100644
index 000000000..a41d7275c
--- /dev/null
+++ b/zed-extension/extension.toml
@@ -0,0 +1,30 @@
+[package]
+name = "vtcode-agent-server"
+version = "0.37.1"
+description = "VT Code packaged as a Zed Agent Server Extension."
+repository = "https://github.com/vinhnx/vtcode"
+
+[package.metadata]
+readme = "README.md"
+
+[agent_servers.vtcode]
+name = "VT Code"
+icon = "icons/vtcode.svg"
+
+[agent_servers.vtcode.env]
+VT_ACP_ENABLED = "1"
+VT_ACP_ZED_ENABLED = "1"
+VT_ACP_ZED_TOOLS_READ_FILE_ENABLED = "1"
+VT_ACP_ZED_TOOLS_LIST_FILES_ENABLED = "1"
+
+[agent_servers.vtcode.targets.darwin-aarch64]
+archive = "https://github.com/vinhnx/vtcode/releases/download/v0.37.1/vtcode-v0.37.1-aarch64-apple-darwin.tar.gz"
+cmd = "./vtcode"
+args = ["acp"]
+sha256 = "b8132619b0dbbaa62326b52ecf7bdacf6b589b33f82ca85a82cbcae0bb7c3125"
+
+[agent_servers.vtcode.targets.darwin-x86_64]
+archive = "https://github.com/vinhnx/vtcode/releases/download/v0.37.1/vtcode-v0.37.1-x86_64-apple-darwin.tar.gz"
+cmd = "./vtcode"
+args = ["acp"]
+sha256 = "cdf59c45c13da137cb5783eb5d78ae35b982e87af647d4779b9fd2543f017a3c"
diff --git a/zed-extension/icons/vtcode.svg b/zed-extension/icons/vtcode.svg
new file mode 100644
index 000000000..409bc070d
--- /dev/null
+++ b/zed-extension/icons/vtcode.svg
@@ -0,0 +1,3 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" viewBox="0 0 16 16">
+  <path fill="currentColor" d="M3 3h2l3 8 3-8h2l-4 10h-2z"/>
+</svg>