@machina.ai/cell-cli 1.0.21-rc4 → 1.4.0-rc1

package/dist/src/config/settings.js

@@ -3,90 +3,271 @@
  * Copyright 2025 Google LLC
  * SPDX-License-Identifier: Apache-2.0
  */
-import * as fs from 'fs';
-import * as path from 'path';
-import { homedir, platform } from 'os';
+import * as fs from 'node:fs';
+import * as path from 'node:path';
+import { homedir, platform } from 'node:os';
 import * as dotenv from 'dotenv';
-import { GEMINI_CONFIG_DIR as GEMINI_DIR, getErrorMessage, } from '@machina.ai/cell-cli-core';
+import process from 'node:process';
+import { FatalConfigError, CELL_CONFIG_DIR as CELL_DIR, getErrorMessage, Storage, } from '@google/gemini-cli-core';
+/*
 import { loadYamlConfig } from '@machina.ai/config-yaml';
+*/
 import stripJsonComments from 'strip-json-comments';
 import { DefaultLight } from '../ui/themes/default-light.js';
 import { DefaultDark } from '../ui/themes/default.js';
+import { isWorkspaceTrusted } from './trustedFolders.js';
+import { SETTINGS_SCHEMA, } from './settingsSchema.js';
+import { resolveEnvVarsInObject } from '../utils/envVarResolver.js';
+import { customDeepMerge } from '../utils/deepMerge.js';
+function getMergeStrategyForPath(path) {
+    let current = undefined;
+    let currentSchema = SETTINGS_SCHEMA;
+    for (const key of path) {
+        if (!currentSchema || !currentSchema[key]) {
+            return undefined;
+        }
+        current = currentSchema[key];
+        currentSchema = current.properties;
+    }
+    return current?.mergeStrategy;
+}
 export const SETTINGS_DIRECTORY_NAME = '.cell-cli';
-export const USER_SETTINGS_DIR = path.join(homedir(), SETTINGS_DIRECTORY_NAME);
-export const USER_SETTINGS_PATH = path.join(USER_SETTINGS_DIR, 'settings.json');
+export const USER_SETTINGS_PATH = Storage.getGlobalSettingsPath();
+export const USER_SETTINGS_DIR = path.dirname(USER_SETTINGS_PATH);
 export const DEFAULT_EXCLUDED_ENV_VARS = ['DEBUG', 'DEBUG_MODE'];
+const MIGRATE_V2_OVERWRITE = false;
+const MIGRATION_MAP = {
+    accessibility: 'ui.accessibility',
+    allowedTools: 'tools.allowed',
+    allowMCPServers: 'mcp.allowed',
+    autoAccept: 'tools.autoAccept',
+    autoConfigureMaxOldSpaceSize: 'advanced.autoConfigureMemory',
+    bugCommand: 'advanced.bugCommand',
+    chatCompression: 'model.chatCompression',
+    checkpointing: 'general.checkpointing',
+    coreTools: 'tools.core',
+    contextFileName: 'context.fileName',
+    customThemes: 'ui.customThemes',
+    debugKeystrokeLogging: 'general.debugKeystrokeLogging',
+    disableAutoUpdate: 'general.disableAutoUpdate',
+    disableUpdateNag: 'general.disableUpdateNag',
+    dnsResolutionOrder: 'advanced.dnsResolutionOrder',
+    enablePromptCompletion: 'general.enablePromptCompletion',
+    enforcedAuthType: 'security.auth.enforcedType',
+    excludeTools: 'tools.exclude',
+    excludeMCPServers: 'mcp.excluded',
+    excludedProjectEnvVars: 'advanced.excludedEnvVars',
+    extensionManagement: 'experimental.extensionManagement',
+    extensions: 'extensions',
+    fileFiltering: 'context.fileFiltering',
+    folderTrustFeature: 'security.folderTrust.featureEnabled',
+    folderTrust: 'security.folderTrust.enabled',
+    hasSeenIdeIntegrationNudge: 'ide.hasSeenNudge',
+    hideWindowTitle: 'ui.hideWindowTitle',
+    hideTips: 'ui.hideTips',
+    hideBanner: 'ui.hideBanner',
+    hideFooter: 'ui.hideFooter',
+    hideCWD: 'ui.footer.hideCWD',
+    hideSandboxStatus: 'ui.footer.hideSandboxStatus',
+    hideModelInfo: 'ui.footer.hideModelInfo',
+    hideContextSummary: 'ui.hideContextSummary',
+    showMemoryUsage: 'ui.showMemoryUsage',
+    showLineNumbers: 'ui.showLineNumbers',
+    showCitations: 'ui.showCitations',
+    ideMode: 'ide.enabled',
+    includeDirectories: 'context.includeDirectories',
+    loadMemoryFromIncludeDirectories: 'context.loadFromIncludeDirectories',
+    maxSessionTurns: 'model.maxSessionTurns',
+    mcpServers: 'mcpServers',
+    mcpServerCommand: 'mcp.serverCommand',
+    memoryImportFormat: 'context.importFormat',
+    memoryDiscoveryMaxDirs: 'context.discoveryMaxDirs',
+    model: 'model.name',
+    preferredEditor: 'general.preferredEditor',
+    sandbox: 'tools.sandbox',
+    selectedAuthType: 'security.auth.selectedType',
+    shouldUseNodePtyShell: 'tools.usePty',
+    skipNextSpeakerCheck: 'model.skipNextSpeakerCheck',
+    summarizeToolOutput: 'model.summarizeToolOutput',
+    telemetry: 'telemetry',
+    theme: 'ui.theme',
+    toolDiscoveryCommand: 'tools.discoveryCommand',
+    toolCallCommand: 'tools.callCommand',
+    usageStatisticsEnabled: 'privacy.usageStatisticsEnabled',
+    useExternalAuth: 'security.auth.useExternal',
+    useRipgrep: 'tools.useRipgrep',
+    vimMode: 'general.vimMode',
+};
 export function getSystemSettingsPath() {
-    if (process.env['GEMINI_CLI_SYSTEM_SETTINGS_PATH']) {
-        return process.env['GEMINI_CLI_SYSTEM_SETTINGS_PATH'];
+    if (process.env['CELL_CLI_SYSTEM_SETTINGS_PATH']) {
+        return process.env['CELL_CLI_SYSTEM_SETTINGS_PATH'];
     }
     if (platform() === 'darwin') {
-        return '/Library/Application Support/GeminiCli/settings.json';
+        return '/Library/Application Support/CellCli/settings.json';
     }
     else if (platform() === 'win32') {
-        return 'C:\\ProgramData\\gemini-cli\\settings.json';
+        return 'C:\\ProgramData\\cell-cli\\settings.json';
     }
     else {
-        return '/etc/gemini-cli/settings.json';
+        return '/etc/cell-cli/settings.json';
     }
 }
-export function getWorkspaceSettingsPath(workspaceDir) {
-    return path.join(workspaceDir, SETTINGS_DIRECTORY_NAME, 'settings.json');
+export function getSystemDefaultsPath() {
+    if (process.env['CELL_CLI_SYSTEM_DEFAULTS_PATH']) {
+        return process.env['CELL_CLI_SYSTEM_DEFAULTS_PATH'];
+    }
+    return path.join(path.dirname(getSystemSettingsPath()), 'system-defaults.json');
 }
 export var SettingScope;
 (function (SettingScope) {
     SettingScope["User"] = "User";
     SettingScope["Workspace"] = "Workspace";
     SettingScope["System"] = "System";
+    SettingScope["SystemDefaults"] = "SystemDefaults";
 })(SettingScope || (SettingScope = {}));
-function mergeSettings(system, user, workspace) {
-    // folderTrust is not supported at workspace level.
-    // eslint-disable-next-line @typescript-eslint/no-unused-vars
-    const { folderTrust, ...workspaceWithoutFolderTrust } = workspace;
-    return {
-        ...user,
-        ...workspaceWithoutFolderTrust,
-        ...system,
-        customThemes: {
-            ...(user.customThemes || {}),
-            ...(workspace.customThemes || {}),
-            ...(system.customThemes || {}),
-        },
-        mcpServers: {
-            ...(user.mcpServers || {}),
-            ...(workspace.mcpServers || {}),
-            ...(system.mcpServers || {}),
-        },
-        includeDirectories: [
-            ...(system.includeDirectories || []),
-            ...(user.includeDirectories || []),
-            ...(workspace.includeDirectories || []),
-        ],
-        chatCompression: {
-            ...(system.chatCompression || {}),
-            ...(user.chatCompression || {}),
-            ...(workspace.chatCompression || {}),
-        },
-    };
+function setNestedProperty(obj, path, value) {
+    const keys = path.split('.');
+    const lastKey = keys.pop();
+    if (!lastKey)
+        return;
+    let current = obj;
+    for (const key of keys) {
+        if (current[key] === undefined) {
+            current[key] = {};
+        }
+        const next = current[key];
+        if (typeof next === 'object' && next !== null) {
+            current = next;
+        }
+        else {
+            // This path is invalid, so we stop.
+            return;
+        }
+    }
+    current[lastKey] = value;
+}
+export function needsMigration(settings) {
+    // A file needs migration if it contains any top-level key that is moved to a
+    // nested location in V2.
+    const hasV1Keys = Object.entries(MIGRATION_MAP).some(([v1Key, v2Path]) => {
+        if (v1Key === v2Path || !(v1Key in settings)) {
+            return false;
+        }
+        // If a key exists that is both a V1 key and a V2 container (like 'model'),
+        // we need to check the type. If it's an object, it's a V2 container and not
+        // a V1 key that needs migration.
+        if (KNOWN_V2_CONTAINERS.has(v1Key) &&
+            typeof settings[v1Key] === 'object' &&
+            settings[v1Key] !== null) {
+            return false;
+        }
+        return true;
+    });
+    return hasV1Keys;
+}
+function migrateSettingsToV2(flatSettings) {
+    if (!needsMigration(flatSettings)) {
+        return null;
+    }
+    const v2Settings = {};
+    const flatKeys = new Set(Object.keys(flatSettings));
+    for (const [oldKey, newPath] of Object.entries(MIGRATION_MAP)) {
+        if (flatKeys.has(oldKey)) {
+            setNestedProperty(v2Settings, newPath, flatSettings[oldKey]);
+            flatKeys.delete(oldKey);
+        }
+    }
+    // Preserve mcpServers at the top level
+    if (flatSettings['mcpServers']) {
+        v2Settings['mcpServers'] = flatSettings['mcpServers'];
+        flatKeys.delete('mcpServers');
+    }
+    // Carry over any unrecognized keys
+    for (const remainingKey of flatKeys) {
+        v2Settings[remainingKey] = flatSettings[remainingKey];
+    }
+    return v2Settings;
+}
+function getNestedProperty(obj, path) {
+    const keys = path.split('.');
+    let current = obj;
+    for (const key of keys) {
+        if (typeof current !== 'object' || current === null || !(key in current)) {
+            return undefined;
+        }
+        current = current[key];
+    }
+    return current;
+}
+const REVERSE_MIGRATION_MAP = Object.fromEntries(Object.entries(MIGRATION_MAP).map(([key, value]) => [value, key]));
+// Dynamically determine the top-level keys from the V2 settings structure.
+const KNOWN_V2_CONTAINERS = new Set(Object.values(MIGRATION_MAP).map((path) => path.split('.')[0]));
+export function migrateSettingsToV1(v2Settings) {
+    const v1Settings = {};
+    const v2Keys = new Set(Object.keys(v2Settings));
+    for (const [newPath, oldKey] of Object.entries(REVERSE_MIGRATION_MAP)) {
+        const value = getNestedProperty(v2Settings, newPath);
+        if (value !== undefined) {
+            v1Settings[oldKey] = value;
+            v2Keys.delete(newPath.split('.')[0]);
+        }
+    }
+    // Preserve mcpServers at the top level
+    if (v2Settings['mcpServers']) {
+        v1Settings['mcpServers'] = v2Settings['mcpServers'];
+        v2Keys.delete('mcpServers');
+    }
+    // Carry over any unrecognized keys
+    for (const remainingKey of v2Keys) {
+        const value = v2Settings[remainingKey];
+        if (value === undefined) {
+            continue;
+        }
+        // Don't carry over empty objects that were just containers for migrated settings.
+        if (KNOWN_V2_CONTAINERS.has(remainingKey) &&
+            typeof value === 'object' &&
+            value !== null &&
+            !Array.isArray(value) &&
+            Object.keys(value).length === 0) {
+            continue;
+        }
+        v1Settings[remainingKey] = value;
+    }
+    return v1Settings;
+}
+function mergeSettings(system, systemDefaults, user, workspace, isTrusted) {
+    const safeWorkspace = isTrusted ? workspace : {};
+    // Settings are merged with the following precedence (last one wins for
+    // single values):
+    // 1. System Defaults
+    // 2. User Settings
+    // 3. Workspace Settings
+    // 4. System Settings (as overrides)
+    return customDeepMerge(getMergeStrategyForPath, {}, // Start with an empty object
+    systemDefaults, user, safeWorkspace, system);
 }
 export class LoadedSettings {
-    constructor(system, user, workspace, errors) {
+    constructor(system, systemDefaults, user, workspace, isTrusted, migratedInMemorScopes) {
         this.system = system;
+        this.systemDefaults = systemDefaults;
         this.user = user;
         this.workspace = workspace;
-        this.errors = errors;
+        this.isTrusted = isTrusted;
+        this.migratedInMemorScopes = migratedInMemorScopes;
         this._merged = this.computeMergedSettings();
     }
     system;
+    systemDefaults;
     user;
     workspace;
-    errors;
+    isTrusted;
+    migratedInMemorScopes;
     _merged;
     get merged() {
         return this._merged;
     }
     computeMergedSettings() {
-        return mergeSettings(this.system.settings, this.user.settings, this.workspace.settings);
+        return mergeSettings(this.system.settings, this.systemDefaults.settings, this.user.settings, this.workspace.settings, this.isTrusted);
     }
     forScope(scope) {
         switch (scope) {
@@ -96,56 +277,24 @@ export class LoadedSettings {
                 return this.workspace;
             case SettingScope.System:
                 return this.system;
+            case SettingScope.SystemDefaults:
+                return this.systemDefaults;
             default:
                 throw new Error(`Invalid scope: ${scope}`);
         }
     }
     setValue(scope, key, value) {
         const settingsFile = this.forScope(scope);
-        settingsFile.settings[key] = value;
+        setNestedProperty(settingsFile.settings, key, value);
         this._merged = this.computeMergedSettings();
         saveSettings(settingsFile);
     }
 }
-function resolveEnvVarsInString(value) {
-    const envVarRegex = /\$(?:(\w+)|{([^}]+)})/g; // Find $VAR_NAME or ${VAR_NAME}
-    return value.replace(envVarRegex, (match, varName1, varName2) => {
-        const varName = varName1 || varName2;
-        if (process && process.env && typeof process.env[varName] === 'string') {
-            return process.env[varName];
-        }
-        return match;
-    });
-}
-function resolveEnvVarsInObject(obj) {
-    if (obj === null ||
-        obj === undefined ||
-        typeof obj === 'boolean' ||
-        typeof obj === 'number') {
-        return obj;
-    }
-    if (typeof obj === 'string') {
-        return resolveEnvVarsInString(obj);
-    }
-    if (Array.isArray(obj)) {
-        return obj.map((item) => resolveEnvVarsInObject(item));
-    }
-    if (typeof obj === 'object') {
-        const newObj = { ...obj };
-        for (const key in newObj) {
-            if (Object.prototype.hasOwnProperty.call(newObj, key)) {
-                newObj[key] = resolveEnvVarsInObject(newObj[key]);
-            }
-        }
-        return newObj;
-    }
-    return obj;
-}
 function findEnvFile(startDir) {
     let currentDir = path.resolve(startDir);
     while (true) {
-        // prefer gemini-specific .env under GEMINI_DIR
-        const geminiEnvPath = path.join(currentDir, GEMINI_DIR, '.env');
+        // prefer gemini-specific .env under CELL_DIR
+        const geminiEnvPath = path.join(currentDir, CELL_DIR, '.env');
         if (fs.existsSync(geminiEnvPath)) {
             return geminiEnvPath;
         }
@@ -156,7 +305,7 @@ function findEnvFile(startDir) {
         const parentDir = path.dirname(currentDir);
         if (parentDir === currentDir || !parentDir) {
             // check .env under home as fallback, again preferring gemini-specific .env
-            const homeGeminiEnvPath = path.join(homedir(), GEMINI_DIR, '.env');
+            const homeGeminiEnvPath = path.join(homedir(), CELL_DIR, '.env');
             if (fs.existsSync(homeGeminiEnvPath)) {
                 return homeGeminiEnvPath;
             }
@@ -194,33 +343,21 @@ export function setUpCloudShellEnvironment(envFilePath) {
 }
 export function loadEnvironment(settings) {
     const envFilePath = findEnvFile(process.cwd());
+    if (!isWorkspaceTrusted(settings)) {
+        return;
+    }
     // Cloud Shell environment variable handling
     if (process.env['CLOUD_SHELL'] === 'true') {
         setUpCloudShellEnvironment(envFilePath);
     }
-    // If no settings provided, try to load workspace settings for exclusions
-    let resolvedSettings = settings;
-    if (!resolvedSettings) {
-        const workspaceSettingsPath = getWorkspaceSettingsPath(process.cwd());
-        try {
-            if (fs.existsSync(workspaceSettingsPath)) {
-                const workspaceContent = fs.readFileSync(workspaceSettingsPath, 'utf-8');
-                const parsedWorkspaceSettings = JSON.parse(stripJsonComments(workspaceContent));
-                resolvedSettings = resolveEnvVarsInObject(parsedWorkspaceSettings);
-            }
-        }
-        catch (_e) {
-            // Ignore errors loading workspace settings
-        }
-    }
     if (envFilePath) {
         // Manually parse and load environment variables to handle exclusions correctly.
         // This avoids modifying environment variables that were already set from the shell.
         try {
             const envFileContent = fs.readFileSync(envFilePath, 'utf-8');
             const parsedEnv = dotenv.parse(envFileContent);
-            const excludedVars = resolvedSettings?.excludedProjectEnvVars || DEFAULT_EXCLUDED_ENV_VARS;
-            const isProjectEnvFile = !envFilePath.includes(GEMINI_DIR);
+            const excludedVars = settings?.advanced?.excludedEnvVars || DEFAULT_EXCLUDED_ENV_VARS;
+            const isProjectEnvFile = !envFilePath.includes(CELL_DIR);
             for (const key in parsedEnv) {
                 if (Object.hasOwn(parsedEnv, key)) {
                     // If it's a project .env file, skip loading excluded variables.
@@ -243,12 +380,15 @@ export function loadEnvironment(settings) {
  * Loads settings from user and workspace directories.
  * Project settings override user settings.
  */
-export function loadSettings(workspaceDir) {
+export function loadSettings(workspaceDir = process.cwd()) {
     let systemSettings = {};
+    let systemDefaultSettings = {};
     let userSettings = {};
     let workspaceSettings = {};
     const settingsErrors = [];
     const systemSettingsPath = getSystemSettingsPath();
+    const systemDefaultsPath = getSystemDefaultsPath();
+    const migratedInMemorScopes = new Set();
     // Resolve paths to their canonical representation to handle symlinks
     const resolvedWorkspaceDir = path.resolve(workspaceDir);
     const resolvedHomeDir = path.resolve(homedir());
@@ -262,7 +402,7 @@ export function loadSettings(workspaceDir) {
     }
     // We expect homedir to always exist and be resolvable.
     const realHomeDir = fs.realpathSync(resolvedHomeDir);
-    const workspaceSettingsPath = getWorkspaceSettingsPath(workspaceDir);
+    const workspaceSettingsPath = new Storage(workspaceDir).getWorkspaceSettingsPath();
     // Load system settings
     try {
         if (fs.existsSync(systemSettingsPath)) {
@@ -281,13 +421,6 @@ export function loadSettings(workspaceDir) {
         if (fs.existsSync(USER_SETTINGS_PATH)) {
             const userContent = fs.readFileSync(USER_SETTINGS_PATH, 'utf-8');
             userSettings = JSON.parse(stripJsonComments(userContent));
-            // Support legacy theme names
-            if (userSettings.theme && userSettings.theme === 'VS') {
-                userSettings.theme = DefaultLight.name;
-            }
-            else if (userSettings.theme && userSettings.theme === 'VS2015') {
-                userSettings.theme = DefaultDark.name;
-            }
         }
     }
     catch (error) {
@@ -300,7 +433,7 @@ export function loadSettings(workspaceDir) {
     const defaultMcpServerConfig = {
         Cell: {
             url: 'https://api.machina.ai/mcp/v1/cell/sse',
-            timeout: 5000,
+            timeout: 600000,
         },
     };
     let settingsModified = false;
@@ -318,33 +451,79 @@ export function loadSettings(workspaceDir) {
             settings: userSettings,
         });
     }
+    /*
     // Load YAML config and merge
     const yamlSettings = loadYamlConfig();
     userSettings = { ...userSettings, ...yamlSettings };
-    if (realWorkspaceDir !== realHomeDir) {
-        // Load workspace settings
+  */
+    const loadAndMigrate = (filePath, scope) => {
         try {
-            if (fs.existsSync(workspaceSettingsPath)) {
-                const projectContent = fs.readFileSync(workspaceSettingsPath, 'utf-8');
-                workspaceSettings = JSON.parse(stripJsonComments(projectContent));
-                if (workspaceSettings.theme && workspaceSettings.theme === 'VS') {
-                    workspaceSettings.theme = DefaultLight.name;
+            if (fs.existsSync(filePath)) {
+                const content = fs.readFileSync(filePath, 'utf-8');
+                const rawSettings = JSON.parse(stripJsonComments(content));
+                if (typeof rawSettings !== 'object' ||
+                    rawSettings === null ||
+                    Array.isArray(rawSettings)) {
+                    settingsErrors.push({
+                        message: 'Settings file is not a valid JSON object.',
+                        path: filePath,
+                    });
+                    return {};
                 }
-                else if (workspaceSettings.theme &&
-                    workspaceSettings.theme === 'VS2015') {
-                    workspaceSettings.theme = DefaultDark.name;
+                let settingsObject = rawSettings;
+                if (needsMigration(settingsObject)) {
+                    const migratedSettings = migrateSettingsToV2(settingsObject);
+                    if (migratedSettings) {
+                        if (MIGRATE_V2_OVERWRITE) {
+                            try {
+                                fs.renameSync(filePath, `${filePath}.orig`);
+                                fs.writeFileSync(filePath, JSON.stringify(migratedSettings, null, 2), 'utf-8');
+                            }
+                            catch (e) {
+                                console.error(`Error migrating settings file on disk: ${getErrorMessage(e)}`);
+                            }
+                        }
+                        else {
+                            migratedInMemorScopes.add(scope);
+                        }
+                        settingsObject = migratedSettings;
+                    }
                 }
+                return settingsObject;
             }
         }
         catch (error) {
             settingsErrors.push({
                 message: getErrorMessage(error),
-                path: workspaceSettingsPath,
+                path: filePath,
             });
         }
+        return {};
+    };
+    systemSettings = loadAndMigrate(systemSettingsPath, SettingScope.System);
+    systemDefaultSettings = loadAndMigrate(systemDefaultsPath, SettingScope.SystemDefaults);
+    userSettings = loadAndMigrate(USER_SETTINGS_PATH, SettingScope.User);
+    if (realWorkspaceDir !== realHomeDir) {
+        workspaceSettings = loadAndMigrate(workspaceSettingsPath, SettingScope.Workspace);
     }
+    // Support legacy theme names
+    if (userSettings.ui?.theme === 'VS') {
+        userSettings.ui.theme = DefaultLight.name;
+    }
+    else if (userSettings.ui?.theme === 'VS2015') {
+        userSettings.ui.theme = DefaultDark.name;
+    }
+    if (workspaceSettings.ui?.theme === 'VS') {
+        workspaceSettings.ui.theme = DefaultLight.name;
+    }
+    else if (workspaceSettings.ui?.theme === 'VS2015') {
+        workspaceSettings.ui.theme = DefaultDark.name;
+    }
+    // For the initial trust check, we can only use user and system settings.
+    const initialTrustCheckSettings = customDeepMerge(getMergeStrategyForPath, {}, systemSettings, userSettings);
+    const isTrusted = isWorkspaceTrusted(initialTrustCheckSettings) ?? true;
     // Create a temporary merged settings object to pass to loadEnvironment.
-    const tempMergedSettings = mergeSettings(systemSettings, userSettings, workspaceSettings);
+    const tempMergedSettings = mergeSettings(systemSettings, systemDefaultSettings, userSettings, workspaceSettings, isTrusted);
     // loadEnviroment depends on settings so we have to create a temp version of
     // the settings to avoid a cycle
     loadEnvironment(tempMergedSettings);
@@ -353,25 +532,23 @@ export function loadSettings(workspaceDir) {
     userSettings = resolveEnvVarsInObject(userSettings);
     workspaceSettings = resolveEnvVarsInObject(workspaceSettings);
     // Create LoadedSettings first
-    const loadedSettings = new LoadedSettings({
+    if (settingsErrors.length > 0) {
+        const errorMessages = settingsErrors.map((error) => `Error in ${error.path}: ${error.message}`);
+        throw new FatalConfigError(`${errorMessages.join('\n')}\nPlease fix the configuration file(s) and try again.`);
+    }
+    return new LoadedSettings({
         path: systemSettingsPath,
         settings: systemSettings,
+    }, {
+        path: systemDefaultsPath,
+        settings: systemDefaultSettings,
     }, {
         path: USER_SETTINGS_PATH,
         settings: userSettings,
     }, {
         path: workspaceSettingsPath,
         settings: workspaceSettings,
-    }, settingsErrors);
-    // Validate chatCompression settings
-    const chatCompression = loadedSettings.merged.chatCompression;
-    const threshold = chatCompression?.contextPercentageThreshold;
-    if (threshold != null &&
-        (typeof threshold !== 'number' || threshold < 0 || threshold > 1)) {
-        console.warn(`Invalid value for chatCompression.contextPercentageThreshold: "${threshold}". Please use a value between 0 and 1. Using default compression settings.`);
-        delete loadedSettings.merged.chatCompression;
-    }
-    return loadedSettings;
+    }, isTrusted, migratedInMemorScopes);
 }
 export function saveSettings(settingsFile) {
     try {
@@ -380,7 +557,11 @@ export function saveSettings(settingsFile) {
         if (!fs.existsSync(dirPath)) {
             fs.mkdirSync(dirPath, { recursive: true });
         }
-        fs.writeFileSync(settingsFile.path, JSON.stringify(settingsFile.settings, null, 2), 'utf-8');
+        let settingsToSave = settingsFile.settings;
+        if (!MIGRATE_V2_OVERWRITE) {
+            settingsToSave = migrateSettingsToV1(settingsToSave);
+        }
+        fs.writeFileSync(settingsFile.path, JSON.stringify(settingsToSave, null, 2), 'utf-8');
     }
     catch (error) {
         console.error('Error saving user settings file:', error);