@quantum-ai/gemini-cli 0.45.3

package/packages/cli/dist/src/config/settings.test.js

@@ -0,0 +1,2660 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+/// <reference types="vitest/globals" />
+// Mock 'os' first.
+import * as osActual from 'node:os'; // Import for type info for the mock factory
+vi.mock('os', async (importOriginal) => {
+    const actualOs = await importOriginal();
+    return {
+        ...actualOs,
+        homedir: vi.fn(() => path.resolve('/mock/home/user')),
+        platform: vi.fn(() => 'linux'),
+    };
+});
+// Mock './settings.js' to ensure it uses the mocked 'os.homedir()' for its internal constants.
+vi.mock('./settings.js', async (importActual) => {
+    const originalModule = await importActual();
+    return {
+        __esModule: true, // Ensure correct module shape
+        ...originalModule, // Re-export all original members
+        // We are relying on originalModule's USER_SETTINGS_PATH being constructed with mocked os.homedir()
+    };
+});
+// Mock trustedFolders
+import * as trustedFolders from './trustedFolders.js';
+vi.mock('./trustedFolders.js', () => ({
+    isWorkspaceTrusted: vi.fn(),
+    isFolderTrustEnabled: vi.fn(),
+    loadTrustedFolders: vi.fn(),
+}));
+vi.mock('./settingsSchema.js', async (importOriginal) => {
+    const actual = await importOriginal();
+    return {
+        ...actual,
+        getSettingsSchema: vi.fn(actual.getSettingsSchema),
+    };
+});
+// NOW import everything else, including the (now effectively re-exported) settings.js
+import * as path from 'node:path'; // Restored for MOCK_WORKSPACE_SETTINGS_PATH
+import { describe, it, expect, vi, beforeEach, afterEach, } from 'vitest';
+import * as fs from 'node:fs'; // fs will be mocked separately
+import stripJsonComments from 'strip-json-comments'; // Will be mocked separately
+import { isWorkspaceTrusted } from './trustedFolders.js';
+// These imports will get the versions from the vi.mock('./settings.js', ...) factory.
+import { loadSettings, USER_SETTINGS_PATH, // This IS the mocked path.
+getSystemSettingsPath, getSystemDefaultsPath, saveSettings, getDefaultsFromSchema, loadEnvironment, migrateDeprecatedSettings, SettingScope, LoadedSettings, sanitizeEnvVar, createTestMergedSettings, resetSettingsCacheForTesting, } from './settings.js';
+import { FatalConfigError, GEMINI_DIR, Storage, AuthType, } from '@quantum-ai/gemini-cli-core';
+import { updateSettingsFilePreservingFormat } from '../utils/commentJson.js';
+import { getSettingsSchema, MergeStrategy, } from './settingsSchema.js';
+import { createMockSettings } from '../test-utils/settings.js';
+const MOCK_WORKSPACE_DIR = path.resolve(path.resolve('/mock/workspace'));
+// Use the (mocked) GEMINI_DIR for consistency
+const MOCK_WORKSPACE_SETTINGS_PATH = path.join(MOCK_WORKSPACE_DIR, GEMINI_DIR, 'settings.json');
+// Helper to normalize paths for test assertions, making them OS-agnostic
+const normalizePath = (p) => path.normalize(p.toString());
+vi.mock('fs', async (importOriginal) => {
+    // Get all the functions from the real 'fs' module
+    const actualFs = await importOriginal();
+    return {
+        ...actualFs, // Keep all the real functions
+        // Now, just override the ones we need for the test
+        existsSync: vi.fn(),
+        readFileSync: vi.fn(),
+        writeFileSync: vi.fn(),
+        mkdirSync: vi.fn(),
+        realpathSync: vi.fn((p) => p),
+    };
+});
+vi.mock('./extension.js');
+const mockCoreEvents = vi.hoisted(() => ({
+    emitFeedback: vi.fn(),
+    emitSettingsChanged: vi.fn(),
+}));
+vi.mock('@quantum-ai/gemini-cli-core', async (importOriginal) => {
+    const actual = await importOriginal();
+    const os = await import('node:os');
+    const pathMod = await import('node:path');
+    const fsMod = await import('node:fs');
+    // Helper to resolve paths using the test's mocked environment
+    const testResolve = (p) => {
+        if (!p)
+            return '';
+        try {
+            // Use the mocked fs.realpathSync if available, otherwise fallback
+            return fsMod.realpathSync(pathMod.resolve(p));
+        }
+        catch {
+            return pathMod.resolve(p);
+        }
+    };
+    // Create a smarter mock for isWorkspaceHomeDir
+    vi.spyOn(actual.Storage.prototype, 'isWorkspaceHomeDir').mockImplementation(function () {
+        const target = testResolve(pathMod.dirname(this.getGeminiDir()));
+        // Pick up the mocked home directory specifically from the 'os' mock
+        const home = testResolve(os.homedir());
+        return actual.normalizePath(target) === actual.normalizePath(home);
+    });
+    return {
+        ...actual,
+        coreEvents: mockCoreEvents,
+        homedir: vi.fn(() => os.homedir()),
+    };
+});
+vi.mock('../utils/commentJson.js', () => ({
+    updateSettingsFilePreservingFormat: vi.fn(),
+}));
+vi.mock('strip-json-comments', () => ({
+    default: vi.fn((content) => content),
+}));
+describe('Settings Loading and Merging', () => {
+    let mockFsExistsSync;
+    let mockStripJsonComments;
+    let mockFsMkdirSync;
+    beforeEach(() => {
+        vi.resetAllMocks();
+        resetSettingsCacheForTesting();
+        mockFsExistsSync = vi.mocked(fs.existsSync);
+        mockFsMkdirSync = vi.mocked(fs.mkdirSync);
+        mockStripJsonComments = vi.mocked(stripJsonComments);
+        vi.mocked(osActual.homedir).mockReturnValue(path.resolve('/mock/home/user'));
+        mockStripJsonComments.mockImplementation((jsonString) => jsonString);
+        mockFsExistsSync.mockReturnValue(false);
+        fs.readFileSync.mockReturnValue('{}'); // Return valid empty JSON
+        mockFsMkdirSync.mockImplementation(() => undefined);
+        vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+            isTrusted: true,
+            source: 'file',
+        });
+    });
+    afterEach(() => {
+        vi.restoreAllMocks();
+        vi.unstubAllEnvs();
+    });
+    describe('loadSettings', () => {
+        it.each([
+            {
+                scope: 'system',
+                path: getSystemSettingsPath(),
+                content: {
+                    ui: { theme: 'system-default' },
+                    tools: { sandbox: false },
+                },
+            },
+            {
+                scope: 'user',
+                path: USER_SETTINGS_PATH,
+                content: {
+                    ui: { theme: 'dark' },
+                    context: { fileName: 'USER_CONTEXT.md' },
+                },
+            },
+            {
+                scope: 'workspace',
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                content: {
+                    tools: { sandbox: true },
+                    context: { fileName: 'WORKSPACE_CONTEXT.md' },
+                },
+            },
+        ])('should load $scope settings if only $scope file exists', ({ scope, path: p, content }) => {
+            mockFsExistsSync.mockImplementation((pathLike) => path.normalize(pathLike.toString()) === path.normalize(p));
+            fs.readFileSync.mockImplementation((pathDesc) => {
+                if (path.normalize(pathDesc.toString()) === path.normalize(p))
+                    return JSON.stringify(content);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(fs.readFileSync).toHaveBeenCalledWith(expect.stringContaining(path.basename(p)), 'utf-8');
+            expect(settings[scope].settings).toEqual(content);
+            expect(settings.merged).toMatchObject(content);
+        });
+        it('should merge system, user and workspace settings, with system taking precedence over workspace, and workspace over user', () => {
+            mockFsExistsSync.mockImplementation((p) => {
+                const normP = path.normalize(p.toString());
+                return (normP === path.normalize(getSystemSettingsPath()) ||
+                    normP === path.normalize(USER_SETTINGS_PATH) ||
+                    normP === path.normalize(MOCK_WORKSPACE_SETTINGS_PATH));
+            });
+            const systemSettingsContent = {
+                ui: {
+                    theme: 'system-theme',
+                },
+                tools: {
+                    sandbox: false,
+                },
+                mcp: {
+                    allowed: ['server1', 'server2'],
+                },
+                telemetry: { enabled: false },
+            };
+            const userSettingsContent = {
+                ui: {
+                    theme: 'dark',
+                },
+                tools: {
+                    sandbox: true,
+                },
+                context: {
+                    fileName: 'USER_CONTEXT.md',
+                },
+            };
+            const workspaceSettingsContent = {
+                tools: {
+                    sandbox: false,
+                    core: ['tool1'],
+                },
+                context: {
+                    fileName: 'WORKSPACE_CONTEXT.md',
+                },
+                mcp: {
+                    allowed: ['server1', 'server2', 'server3'],
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                const normP = path.normalize(p.toString());
+                if (normP === path.normalize(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normP === path.normalize(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normP === path.normalize(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.system.settings).toEqual(systemSettingsContent);
+            expect(settings.user.settings).toEqual(userSettingsContent);
+            expect(settings.workspace.settings).toEqual(workspaceSettingsContent);
+            expect(settings.merged).toMatchObject({
+                ui: {
+                    theme: 'system-theme',
+                },
+                tools: {
+                    sandbox: false,
+                    core: ['tool1'],
+                },
+                telemetry: { enabled: false },
+                context: {
+                    fileName: 'WORKSPACE_CONTEXT.md',
+                },
+                mcp: {
+                    allowed: ['server1', 'server2'],
+                },
+            });
+        });
+        it('should merge all settings files with the correct precedence', () => {
+            // Mock schema to test defaults application
+            const mockSchema = {
+                ui: { type: 'object', default: {}, properties: {} },
+                tools: { type: 'object', default: {}, properties: {} },
+                context: {
+                    type: 'object',
+                    default: {},
+                    properties: {
+                        discoveryMaxDirs: { type: 'number', default: 200 },
+                        includeDirectories: {
+                            type: 'array',
+                            default: [],
+                            mergeStrategy: MergeStrategy.CONCAT,
+                        },
+                    },
+                },
+                mcpServers: { type: 'object', default: {} },
+            };
+            getSettingsSchema.mockReturnValue(mockSchema);
+            mockFsExistsSync.mockReturnValue(true);
+            const systemDefaultsContent = {
+                ui: {
+                    theme: 'default-theme',
+                },
+                tools: {
+                    sandbox: true,
+                },
+                telemetry: true,
+                context: {
+                    includeDirectories: ['/system/defaults/dir'],
+                },
+            };
+            const userSettingsContent = {
+                ui: {
+                    theme: 'user-theme',
+                },
+                context: {
+                    fileName: 'USER_CONTEXT.md',
+                    includeDirectories: ['/user/dir1', '/user/dir2'],
+                },
+            };
+            const workspaceSettingsContent = {
+                tools: {
+                    sandbox: false,
+                },
+                context: {
+                    fileName: 'WORKSPACE_CONTEXT.md',
+                    includeDirectories: ['/workspace/dir'],
+                },
+            };
+            const systemSettingsContent = {
+                ui: {
+                    theme: 'system-theme',
+                },
+                telemetry: false,
+                context: {
+                    includeDirectories: ['/system/dir'],
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemDefaultsPath()))
+                    return JSON.stringify(systemDefaultsContent);
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.systemDefaults.settings).toEqual(systemDefaultsContent);
+            expect(settings.system.settings).toEqual(systemSettingsContent);
+            expect(settings.user.settings).toEqual(userSettingsContent);
+            expect(settings.workspace.settings).toEqual(workspaceSettingsContent);
+            expect(settings.merged).toEqual({
+                context: {
+                    discoveryMaxDirs: 200,
+                    includeDirectories: [
+                        '/system/defaults/dir',
+                        '/user/dir1',
+                        '/user/dir2',
+                        '/workspace/dir',
+                        '/system/dir',
+                    ],
+                    fileName: 'WORKSPACE_CONTEXT.md',
+                },
+                mcpServers: {},
+                ui: { theme: 'system-theme' },
+                tools: { sandbox: false },
+                telemetry: false,
+            });
+        });
+        it('should use folderTrust from workspace settings when trusted', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                security: {
+                    folderTrust: {
+                        enabled: true,
+                    },
+                },
+            };
+            const workspaceSettingsContent = {
+                security: {
+                    folderTrust: {
+                        enabled: false, // This should be used
+                    },
+                },
+            };
+            const systemSettingsContent = {
+            // No folderTrust here
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.security?.folderTrust?.enabled).toBe(false); // Workspace setting should be used
+        });
+        it('should resolve environment variables and cast them to correct types before validation', () => {
+            vi.stubEnv('TEST_AUTO_THEME', 'false');
+            vi.stubEnv('TEST_MAX_TURNS', '15');
+            mockFsExistsSync.mockImplementation((p) => path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH)) {
+                    return JSON.stringify({
+                        ui: { autoThemeSwitching: '$TEST_AUTO_THEME' },
+                        model: { maxSessionTurns: '$TEST_MAX_TURNS' },
+                    });
+                }
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.ui.autoThemeSwitching).toBe(false);
+            expect(settings.merged.model.maxSessionTurns).toBe(15);
+            expect(settings.errors).toHaveLength(0);
+        });
+        it('should use default values from environment variable placeholders', () => {
+            vi.stubEnv('TEST_AUTO_THEME', ''); // Should trigger default
+            delete process.env['TEST_AUTO_THEME'];
+            mockFsExistsSync.mockImplementation((p) => path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH)) {
+                    return JSON.stringify({
+                        ui: { autoThemeSwitching: '${TEST_AUTO_THEME:-true}' },
+                    });
+                }
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.ui.autoThemeSwitching).toBe(true);
+            expect(settings.errors).toHaveLength(0);
+        });
+        it('should record validation errors if expansion result is invalid', () => {
+            vi.stubEnv('TEST_MAX_TURNS', 'not-a-number');
+            mockFsExistsSync.mockImplementation((p) => path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH)) {
+                    return JSON.stringify({
+                        model: { maxSessionTurns: '$TEST_MAX_TURNS' },
+                    });
+                }
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.errors.length).toBeGreaterThan(0);
+            expect(settings.errors[0].message).toContain('Expected number, received string');
+            // Should fall back to the expanded string value
+            expect(settings.merged.model.maxSessionTurns).toBe('not-a-number');
+        });
+        it('should preserve environment variable placeholders on save', () => {
+            vi.stubEnv('TEST_AUTO_THEME', 'true');
+            const placeholder = '${TEST_AUTO_THEME:-false}';
+            mockFsExistsSync.mockImplementation((p) => path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (path.normalize(p.toString()) === path.normalize(USER_SETTINGS_PATH)) {
+                    return JSON.stringify({
+                        ui: { autoThemeSwitching: placeholder },
+                    });
+                }
+                return '{}';
+            });
+            // Load settings - this will expand the placeholder for runtime use
+            const loaded = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(loaded.merged.ui.autoThemeSwitching).toBe(true);
+            // Verify that the original settings for the user scope still have the placeholder
+            const userFile = loaded.forScope(SettingScope.User);
+            expect(userFile.originalSettings.ui?.autoThemeSwitching).toBe(placeholder);
+            // Save settings - this should use the originalSettings (with placeholders)
+            const mockUpdate = vi.mocked(updateSettingsFilePreservingFormat);
+            saveSettings(userFile);
+            expect(mockUpdate).toHaveBeenCalledWith(USER_SETTINGS_PATH, expect.objectContaining({
+                ui: expect.objectContaining({
+                    autoThemeSwitching: placeholder,
+                }),
+            }));
+        });
+        it('should use system folderTrust over user setting', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                security: {
+                    folderTrust: {
+                        enabled: false,
+                    },
+                },
+            };
+            const workspaceSettingsContent = {
+                security: {
+                    folderTrust: {
+                        enabled: true, // This should be ignored
+                    },
+                },
+            };
+            const systemSettingsContent = {
+                security: {
+                    folderTrust: {
+                        enabled: true,
+                    },
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.security?.folderTrust?.enabled).toBe(true); // System setting should be used
+        });
+        it('should not allow user or workspace to override system disableYoloMode', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                security: {
+                    disableYoloMode: false,
+                    disableAlwaysAllow: false,
+                },
+            };
+            const workspaceSettingsContent = {
+                security: {
+                    disableYoloMode: false, // This should be ignored
+                    disableAlwaysAllow: false, // This should be ignored
+                },
+            };
+            const systemSettingsContent = {
+                security: {
+                    disableYoloMode: true,
+                    disableAlwaysAllow: true,
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.security?.disableYoloMode).toBe(true); // System setting should be used
+            expect(settings.merged.security?.disableAlwaysAllow).toBe(true); // System setting should be used
+        });
+        it.each([
+            {
+                description: 'contextFileName in user settings',
+                path: USER_SETTINGS_PATH,
+                content: { context: { fileName: 'CUSTOM.md' } },
+                expected: { key: 'context.fileName', value: 'CUSTOM.md' },
+            },
+            {
+                description: 'contextFileName in workspace settings',
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                content: { context: { fileName: 'PROJECT_SPECIFIC.md' } },
+                expected: { key: 'context.fileName', value: 'PROJECT_SPECIFIC.md' },
+            },
+            {
+                description: 'excludedProjectEnvVars in user settings',
+                path: USER_SETTINGS_PATH,
+                content: {
+                    advanced: { excludedEnvVars: ['DEBUG', 'NODE_ENV', 'CUSTOM_VAR'] },
+                },
+                expected: {
+                    key: 'advanced.excludedEnvVars',
+                    value: ['DEBUG', 'DEBUG_MODE', 'NODE_ENV', 'CUSTOM_VAR'],
+                },
+            },
+            {
+                description: 'excludedProjectEnvVars in workspace settings',
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                content: {
+                    advanced: { excludedEnvVars: ['WORKSPACE_DEBUG', 'WORKSPACE_VAR'] },
+                },
+                expected: {
+                    key: 'advanced.excludedEnvVars',
+                    value: ['DEBUG', 'DEBUG_MODE', 'WORKSPACE_DEBUG', 'WORKSPACE_VAR'],
+                },
+            },
+        ])('should handle $description correctly', ({ path, content, expected }) => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(path));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(path))
+                    return JSON.stringify(content);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            const keys = expected.key.split('.');
+            let result = settings.merged;
+            for (const key of keys) {
+                result = result[key];
+            }
+            expect(result).toEqual(expected.value);
+        });
+        it('should merge excludedProjectEnvVars with workspace taking precedence over user', () => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH) ||
+                normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH));
+            const userSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['DEBUG', 'NODE_ENV', 'USER_VAR'] },
+            };
+            const workspaceSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['WORKSPACE_DEBUG', 'WORKSPACE_VAR'] },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings.advanced?.excludedEnvVars).toEqual([
+                'DEBUG',
+                'NODE_ENV',
+                'USER_VAR',
+            ]);
+            expect(settings.workspace.settings.advanced?.excludedEnvVars).toEqual([
+                'WORKSPACE_DEBUG',
+                'WORKSPACE_VAR',
+            ]);
+            expect(settings.merged.advanced?.excludedEnvVars).toEqual([
+                'DEBUG',
+                'DEBUG_MODE',
+                'NODE_ENV',
+                'USER_VAR',
+                'WORKSPACE_DEBUG',
+                'WORKSPACE_VAR',
+            ]);
+        });
+        it('should default contextFileName to undefined if not in any settings file', () => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH) ||
+                normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH));
+            const userSettingsContent = { ui: { theme: 'dark' } };
+            const workspaceSettingsContent = { tools: { sandbox: true } };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.context?.fileName).toBeUndefined();
+        });
+        it.each([
+            {
+                scope: 'user',
+                path: USER_SETTINGS_PATH,
+                content: { telemetry: { enabled: true } },
+                expected: true,
+            },
+            {
+                scope: 'workspace',
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                content: { telemetry: { enabled: false } },
+                expected: false,
+            },
+        ])('should load telemetry setting from $scope settings', ({ path, content, expected }) => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(path));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(path))
+                    return JSON.stringify(content);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.telemetry?.enabled).toBe(expected);
+        });
+        it('should prioritize workspace telemetry setting over user setting', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = { telemetry: { enabled: true } };
+            const workspaceSettingsContent = { telemetry: { enabled: false } };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.telemetry?.enabled).toBe(false);
+        });
+        it('should have telemetry as undefined if not in any settings file', () => {
+            mockFsExistsSync.mockReturnValue(false); // No settings files exist
+            fs.readFileSync.mockReturnValue('{}');
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.telemetry).toBeUndefined();
+            expect(settings.merged.ui).toBeDefined();
+            expect(settings.merged.mcpServers).toEqual({});
+        });
+        it('should merge MCP servers correctly, with workspace taking precedence', () => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH) ||
+                normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH));
+            const userSettingsContent = {
+                mcpServers: {
+                    'user-server': {
+                        command: 'user-command',
+                        args: ['--user-arg'],
+                        description: 'User MCP server',
+                    },
+                    'shared-server': {
+                        command: 'user-shared-command',
+                        description: 'User shared server config',
+                    },
+                },
+            };
+            const workspaceSettingsContent = {
+                mcpServers: {
+                    'workspace-server': {
+                        command: 'workspace-command',
+                        args: ['--workspace-arg'],
+                        description: 'Workspace MCP server',
+                    },
+                    'shared-server': {
+                        command: 'workspace-shared-command',
+                        description: 'Workspace shared server config',
+                    },
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings).toEqual(userSettingsContent);
+            expect(settings.workspace.settings).toEqual(workspaceSettingsContent);
+            expect(settings.merged.mcpServers).toEqual({
+                'user-server': {
+                    command: 'user-command',
+                    args: ['--user-arg'],
+                    description: 'User MCP server',
+                },
+                'workspace-server': {
+                    command: 'workspace-command',
+                    args: ['--workspace-arg'],
+                    description: 'Workspace MCP server',
+                },
+                'shared-server': {
+                    command: 'workspace-shared-command',
+                    description: 'Workspace shared server config',
+                },
+            });
+        });
+        it.each([
+            {
+                scope: 'user',
+                path: USER_SETTINGS_PATH,
+                content: {
+                    mcpServers: {
+                        'user-only-server': {
+                            command: 'user-only-command',
+                            description: 'User only server',
+                        },
+                    },
+                },
+                expected: {
+                    'user-only-server': {
+                        command: 'user-only-command',
+                        description: 'User only server',
+                    },
+                },
+            },
+            {
+                scope: 'workspace',
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                content: {
+                    mcpServers: {
+                        'workspace-only-server': {
+                            command: 'workspace-only-command',
+                            description: 'Workspace only server',
+                        },
+                    },
+                },
+                expected: {
+                    'workspace-only-server': {
+                        command: 'workspace-only-command',
+                        description: 'Workspace only server',
+                    },
+                },
+            },
+        ])('should handle MCP servers when only in $scope settings', ({ path, content, expected }) => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(path));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(path))
+                    return JSON.stringify(content);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.mcpServers).toEqual(expected);
+        });
+        it('should have mcpServers as undefined if not in any settings file', () => {
+            mockFsExistsSync.mockReturnValue(false); // No settings files exist
+            fs.readFileSync.mockReturnValue('{}');
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.mcpServers).toEqual({});
+        });
+        it('should merge MCP servers from system, user, and workspace with system taking precedence', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                mcpServers: {
+                    'shared-server': {
+                        command: 'system-command',
+                        args: ['--system-arg'],
+                    },
+                    'system-only-server': {
+                        command: 'system-only-command',
+                    },
+                },
+            };
+            const userSettingsContent = {
+                mcpServers: {
+                    'user-server': {
+                        command: 'user-command',
+                    },
+                    'shared-server': {
+                        command: 'user-command',
+                        description: 'from user',
+                    },
+                },
+            };
+            const workspaceSettingsContent = {
+                mcpServers: {
+                    'workspace-server': {
+                        command: 'workspace-command',
+                    },
+                    'shared-server': {
+                        command: 'workspace-command',
+                        args: ['--workspace-arg'],
+                    },
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.mcpServers).toEqual({
+                'user-server': {
+                    command: 'user-command',
+                },
+                'workspace-server': {
+                    command: 'workspace-command',
+                },
+                'system-only-server': {
+                    command: 'system-only-command',
+                },
+                'shared-server': {
+                    command: 'system-command',
+                    args: ['--system-arg'],
+                },
+            });
+        });
+        it('should merge mcp allowed/excluded lists with system taking precedence over workspace', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                mcp: {
+                    allowed: ['system-allowed'],
+                },
+            };
+            const userSettingsContent = {
+                mcp: {
+                    allowed: ['user-allowed'],
+                    excluded: ['user-excluded'],
+                },
+            };
+            const workspaceSettingsContent = {
+                mcp: {
+                    allowed: ['workspace-allowed'],
+                    excluded: ['workspace-excluded'],
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.mcp).toEqual({
+                allowed: ['system-allowed'],
+                excluded: ['workspace-excluded'],
+            });
+        });
+        describe('LoadedSettings MCP consolidation', () => {
+            it('should consolidate mcp excluded list across all scopes', () => {
+                const loaded = new LoadedSettings({
+                    path: '',
+                    settings: { mcp: { excluded: ['system-excluded'] } },
+                    originalSettings: {},
+                }, {
+                    path: '',
+                    settings: { mcp: { excluded: ['defaults-excluded'] } },
+                    originalSettings: {},
+                }, {
+                    path: '',
+                    settings: { mcp: { excluded: ['user-excluded'] } },
+                    originalSettings: {},
+                }, {
+                    path: '',
+                    settings: { mcp: { excluded: ['workspace-excluded'] } },
+                    originalSettings: {},
+                }, true);
+                expect(loaded.getConsolidatedExcludedMcpServers()).toEqual([
+                    'system-excluded',
+                    'defaults-excluded',
+                    'user-excluded',
+                    'workspace-excluded',
+                ]);
+            });
+            it('should consolidate allowed mcp list via case-insensitive intersection', () => {
+                const loaded = new LoadedSettings({
+                    path: '',
+                    settings: { mcp: { allowed: ['Server-A', 'Server-B'] } },
+                    originalSettings: {},
+                }, {
+                    path: '',
+                    settings: { mcp: { allowed: ['server-a', 'Server-C'] } },
+                    originalSettings: {},
+                }, { path: '', settings: {}, originalSettings: {} }, // no allowlist in user
+                {
+                    path: '',
+                    settings: { mcp: { allowed: ['SERVER-A', 'Server-D'] } },
+                    originalSettings: {},
+                }, true);
+                expect(loaded.getConsolidatedAllowedMcpServers()).toEqual(['Server-A']);
+            });
+            it('should return undefined allowed list if no scopes define one', () => {
+                const loaded = new LoadedSettings({ path: '', settings: {}, originalSettings: {} }, { path: '', settings: {}, originalSettings: {} }, { path: '', settings: {}, originalSettings: {} }, { path: '', settings: {}, originalSettings: {} }, true);
+                expect(loaded.getConsolidatedAllowedMcpServers()).toBeUndefined();
+            });
+        });
+        describe('compressionThreshold settings', () => {
+            it.each([
+                {
+                    description: 'should be taken from user settings if only present there',
+                    userContent: { model: { compressionThreshold: 0.5 } },
+                    workspaceContent: {},
+                    expected: 0.5,
+                },
+                {
+                    description: 'should be taken from workspace settings if only present there',
+                    userContent: {},
+                    workspaceContent: { model: { compressionThreshold: 0.8 } },
+                    expected: 0.8,
+                },
+                {
+                    description: 'should prioritize workspace settings over user settings',
+                    userContent: { model: { compressionThreshold: 0.5 } },
+                    workspaceContent: { model: { compressionThreshold: 0.8 } },
+                    expected: 0.8,
+                },
+                {
+                    description: 'should be default if not in any settings file',
+                    userContent: {},
+                    workspaceContent: {},
+                    expected: 0.5,
+                },
+            ])('$description', ({ userContent, workspaceContent, expected }) => {
+                mockFsExistsSync.mockReturnValue(true);
+                fs.readFileSync.mockImplementation((p) => {
+                    if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                        return JSON.stringify(userContent);
+                    if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                        return JSON.stringify(workspaceContent);
+                    return '{}';
+                });
+                const settings = loadSettings(MOCK_WORKSPACE_DIR);
+                expect(settings.merged.model?.compressionThreshold).toEqual(expected);
+            });
+        });
+        it('should use user compressionThreshold if workspace does not define it', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                general: {},
+                model: { compressionThreshold: 0.5 },
+            };
+            const workspaceSettingsContent = {
+                general: {},
+                model: {},
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.model?.compressionThreshold).toEqual(0.5);
+        });
+        it('should merge includeDirectories from all scopes', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                context: { includeDirectories: ['/system/dir'] },
+            };
+            const systemDefaultsContent = {
+                context: { includeDirectories: ['/system/defaults/dir'] },
+            };
+            const userSettingsContent = {
+                context: { includeDirectories: ['/user/dir1', '/user/dir2'] },
+            };
+            const workspaceSettingsContent = {
+                context: { includeDirectories: ['/workspace/dir'] },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath()))
+                    return JSON.stringify(systemSettingsContent);
+                if (normalizePath(p) === normalizePath(getSystemDefaultsPath()))
+                    return JSON.stringify(systemDefaultsContent);
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.context?.includeDirectories).toEqual([
+                '/system/defaults/dir',
+                '/user/dir1',
+                '/user/dir2',
+                '/workspace/dir',
+                '/system/dir',
+            ]);
+        });
+        it('should handle JSON parsing errors gracefully', () => {
+            mockFsExistsSync.mockReturnValue(true); // Both files "exist"
+            const invalidJsonContent = 'invalid json';
+            const userReadError = new SyntaxError("Expected ',' or '}' after property value in JSON at position 10");
+            const workspaceReadError = new SyntaxError('Unexpected token i in JSON at position 0');
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH)) {
+                    // Simulate JSON.parse throwing for user settings
+                    vi.spyOn(JSON, 'parse').mockImplementationOnce(() => {
+                        throw userReadError;
+                    });
+                    return invalidJsonContent; // Content that would cause JSON.parse to throw
+                }
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH)) {
+                    // Simulate JSON.parse throwing for workspace settings
+                    vi.spyOn(JSON, 'parse').mockImplementationOnce(() => {
+                        throw workspaceReadError;
+                    });
+                    return invalidJsonContent;
+                }
+                return '{}'; // Default for other reads
+            });
+            try {
+                loadSettings(MOCK_WORKSPACE_DIR);
+                throw new Error('loadSettings should have thrown a FatalConfigError');
+            }
+            catch (e) {
+                expect(e).toBeInstanceOf(FatalConfigError);
+                const error = e;
+                expect(error.message).toContain(`Error in ${USER_SETTINGS_PATH}: ${userReadError.message}`);
+                expect(error.message).toContain(`Error in ${MOCK_WORKSPACE_SETTINGS_PATH}: ${workspaceReadError.message}`);
+                expect(error.message).toContain('Please fix the configuration file(s) and try again.');
+            }
+            // Restore JSON.parse mock if it was spied on specifically for this test
+            vi.restoreAllMocks(); // Or more targeted restore if needed
+        });
+        it('should resolve environment variables in user settings', () => {
+            process.env['TEST_API_KEY'] = 'user_api_key_from_env';
+            const userSettingsContent = {
+                apiKey: '$TEST_API_KEY',
+                someUrl: 'https://test.com/${TEST_API_KEY}',
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['apiKey']).toBe('user_api_key_from_env');
+            expect(settings.user.settings['someUrl']).toBe('https://test.com/user_api_key_from_env');
+            expect(settings.merged['apiKey']).toBe('user_api_key_from_env');
+            delete process.env['TEST_API_KEY'];
+        });
+        it('should resolve environment variables in workspace settings', () => {
+            process.env['WORKSPACE_ENDPOINT'] = 'workspace_endpoint_from_env';
+            const workspaceSettingsContent = {
+                endpoint: '${WORKSPACE_ENDPOINT}/api',
+                nested: { value: '$WORKSPACE_ENDPOINT' },
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.workspace.settings['endpoint']).toBe('workspace_endpoint_from_env/api');
+            const nested = settings.workspace.settings['nested'];
+            expect(nested['value']).toBe('workspace_endpoint_from_env');
+            expect(settings.merged['endpoint']).toBe('workspace_endpoint_from_env/api');
+            delete process.env['WORKSPACE_ENDPOINT'];
+        });
+        it('should correctly resolve and merge env variables from different scopes', () => {
+            process.env['SYSTEM_VAR'] = 'system_value';
+            process.env['USER_VAR'] = 'user_value';
+            process.env['WORKSPACE_VAR'] = 'workspace_value';
+            process.env['SHARED_VAR'] = 'final_value';
+            const systemSettingsContent = {
+                configValue: '$SHARED_VAR',
+                systemOnly: '$SYSTEM_VAR',
+            };
+            const userSettingsContent = {
+                configValue: '$SHARED_VAR',
+                userOnly: '$USER_VAR',
+                ui: {
+                    theme: 'dark',
+                },
+            };
+            const workspaceSettingsContent = {
+                configValue: '$SHARED_VAR',
+                workspaceOnly: '$WORKSPACE_VAR',
+                ui: {
+                    theme: 'light',
+                },
+            };
+            mockFsExistsSync.mockReturnValue(true);
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH)) {
+                    return JSON.stringify(userSettingsContent);
+                }
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH)) {
+                    return JSON.stringify(workspaceSettingsContent);
+                }
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Check resolved values in individual scopes
+            expect(settings.system.settings['configValue']).toBe('final_value');
+            expect(settings.system.settings['systemOnly']).toBe('system_value');
+            expect(settings.user.settings['configValue']).toBe('final_value');
+            expect(settings.user.settings['userOnly']).toBe('user_value');
+            expect(settings.workspace.settings['configValue']).toBe('final_value');
+            expect(settings.workspace.settings['workspaceOnly']).toBe('workspace_value');
+            // Check merged values (system > workspace > user)
+            expect(settings.merged['configValue']).toBe('final_value');
+            expect(settings.merged['systemOnly']).toBe('system_value');
+            expect(settings.merged['userOnly']).toBe('user_value');
+            expect(settings.merged['workspaceOnly']).toBe('workspace_value');
+            expect(settings.merged.ui?.theme).toBe('light'); // workspace overrides user
+            delete process.env['SYSTEM_VAR'];
+            delete process.env['USER_VAR'];
+            delete process.env['WORKSPACE_VAR'];
+            delete process.env['SHARED_VAR'];
+        });
+        it('should correctly merge dnsResolutionOrder with workspace taking precedence', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                advanced: { dnsResolutionOrder: 'ipv4first' },
+            };
+            const workspaceSettingsContent = {
+                advanced: { dnsResolutionOrder: 'verbatim' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.advanced?.dnsResolutionOrder).toBe('verbatim');
+        });
+        it('should use user dnsResolutionOrder if workspace is not defined', () => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            const userSettingsContent = {
+                advanced: { dnsResolutionOrder: 'verbatim' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.advanced?.dnsResolutionOrder).toBe('verbatim');
+        });
+        it('should leave unresolved environment variables as is', () => {
+            const userSettingsContent = { apiKey: '$UNDEFINED_VAR' };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['apiKey']).toBe('$UNDEFINED_VAR');
+            expect(settings.merged['apiKey']).toBe('$UNDEFINED_VAR');
+        });
+        it('should resolve multiple environment variables in a single string', () => {
+            process.env['VAR_A'] = 'valueA';
+            process.env['VAR_B'] = 'valueB';
+            const userSettingsContent = {
+                path: '/path/$VAR_A/${VAR_B}/end',
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['path']).toBe('/path/valueA/valueB/end');
+            delete process.env['VAR_A'];
+            delete process.env['VAR_B'];
+        });
+        it('should resolve environment variables in arrays', () => {
+            process.env['ITEM_1'] = 'item1_env';
+            process.env['ITEM_2'] = 'item2_env';
+            const userSettingsContent = {
+                list: ['$ITEM_1', '${ITEM_2}', 'literal'],
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['list']).toEqual([
+                'item1_env',
+                'item2_env',
+                'literal',
+            ]);
+            delete process.env['ITEM_1'];
+            delete process.env['ITEM_2'];
+        });
+        it('should correctly pass through null, boolean, and number types, and handle undefined properties', () => {
+            process.env['MY_ENV_STRING'] = 'env_string_value';
+            process.env['MY_ENV_STRING_NESTED'] = 'env_string_nested_value';
+            const userSettingsContent = {
+                nullVal: null,
+                trueVal: true,
+                falseVal: false,
+                numberVal: 123.45,
+                stringVal: '$MY_ENV_STRING',
+                nestedObj: {
+                    nestedNull: null,
+                    nestedBool: true,
+                    nestedNum: 0,
+                    nestedString: 'literal',
+                    anotherEnv: '${MY_ENV_STRING_NESTED}',
+                },
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['nullVal']).toBeNull();
+            expect(settings.user.settings['trueVal']).toBe(true);
+            expect(settings.user.settings['falseVal']).toBe(false);
+            expect(settings.user.settings['numberVal']).toBe(123.45);
+            expect(settings.user.settings['stringVal']).toBe('env_string_value');
+            expect(settings.user.settings['undefinedVal']).toBeUndefined();
+            const nestedObj = settings.user.settings['nestedObj'];
+            expect(nestedObj['nestedNull']).toBeNull();
+            expect(nestedObj['nestedBool']).toBe(true);
+            expect(nestedObj['nestedNum']).toBe(0);
+            expect(nestedObj['nestedString']).toBe('literal');
+            expect(nestedObj['anotherEnv']).toBe('env_string_nested_value');
+            delete process.env['MY_ENV_STRING'];
+            delete process.env['MY_ENV_STRING_NESTED'];
+        });
+        it('should resolve multiple concatenated environment variables in a single string value', () => {
+            process.env['TEST_HOST'] = 'myhost';
+            process.env['TEST_PORT'] = '9090';
+            const userSettingsContent = {
+                serverAddress: '${TEST_HOST}:${TEST_PORT}/api',
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings['serverAddress']).toBe('myhost:9090/api');
+            delete process.env['TEST_HOST'];
+            delete process.env['TEST_PORT'];
+        });
+        describe('when GEMINI_CLI_SYSTEM_SETTINGS_PATH is set', () => {
+            const MOCK_ENV_SYSTEM_SETTINGS_PATH = path.resolve('/mock/env/system/settings.json');
+            beforeEach(() => {
+                process.env['GEMINI_CLI_SYSTEM_SETTINGS_PATH'] =
+                    MOCK_ENV_SYSTEM_SETTINGS_PATH;
+            });
+            afterEach(() => {
+                delete process.env['GEMINI_CLI_SYSTEM_SETTINGS_PATH'];
+            });
+            it('should load system settings from the path specified in the environment variable', () => {
+                mockFsExistsSync.mockImplementation((p) => p === MOCK_ENV_SYSTEM_SETTINGS_PATH);
+                const systemSettingsContent = {
+                    ui: { theme: 'env-var-theme' },
+                    tools: { sandbox: true },
+                };
+                fs.readFileSync.mockImplementation((p) => {
+                    if (p === MOCK_ENV_SYSTEM_SETTINGS_PATH)
+                        return JSON.stringify(systemSettingsContent);
+                    return '{}';
+                });
+                const settings = loadSettings(MOCK_WORKSPACE_DIR);
+                expect(fs.readFileSync).toHaveBeenCalledWith(MOCK_ENV_SYSTEM_SETTINGS_PATH, 'utf-8');
+                expect(settings.system.path).toBe(MOCK_ENV_SYSTEM_SETTINGS_PATH);
+                expect(settings.system.settings).toEqual(systemSettingsContent);
+                expect(settings.merged).toMatchObject({
+                    ...systemSettingsContent,
+                });
+            });
+        });
+        it('should correctly skip workspace-level loading if workspaceDir is a symlink to home', () => {
+            const mockHomeDir = path.resolve('/mock/home/user');
+            const mockSymlinkDir = path.resolve('/mock/symlink/to/home');
+            const mockWorkspaceSettingsPath = path.join(mockSymlinkDir, GEMINI_DIR, 'settings.json');
+            vi.mocked(osActual.homedir).mockReturnValue(mockHomeDir);
+            vi.mocked(fs.realpathSync).mockImplementation((p) => {
+                const pStr = p.toString();
+                const resolved = path.resolve(pStr);
+                if (resolved === path.resolve(mockSymlinkDir) ||
+                    resolved === path.resolve(mockHomeDir)) {
+                    return mockHomeDir;
+                }
+                return pStr;
+            });
+            // Force the storage check to return true for this specific test
+            const isWorkspaceHomeDirSpy = vi
+                .spyOn(Storage.prototype, 'isWorkspaceHomeDir')
+                .mockReturnValue(true);
+            mockFsExistsSync.mockImplementation((p) => 
+            // Only return true for workspace settings path to see if it gets loaded
+            p === mockWorkspaceSettingsPath);
+            try {
+                const settings = loadSettings(mockSymlinkDir);
+                // Verify that even though the file exists, it was NOT loaded because realpath matched home
+                expect(fs.readFileSync).not.toHaveBeenCalledWith(mockWorkspaceSettingsPath, 'utf-8');
+                expect(settings.workspace.settings).toEqual({});
+            }
+            finally {
+                isWorkspaceHomeDirSpy.mockRestore();
+            }
+        });
+        describe('caching', () => {
+            it('should cache loadSettings results', () => {
+                const mockedRead = vi.mocked(fs.readFileSync);
+                mockedRead.mockClear();
+                mockedRead.mockReturnValue('{}');
+                mockFsExistsSync.mockReturnValue(true);
+                const settings1 = loadSettings(MOCK_WORKSPACE_DIR);
+                const settings2 = loadSettings(MOCK_WORKSPACE_DIR);
+                expect(mockedRead).toHaveBeenCalledTimes(5); // system, systemDefaults, user, workspace, and potentially an env file
+                expect(settings1).toBe(settings2);
+            });
+            it('should use separate cache for different workspace directories', () => {
+                const mockedRead = vi.mocked(fs.readFileSync);
+                mockedRead.mockClear();
+                mockedRead.mockReturnValue('{}');
+                mockFsExistsSync.mockReturnValue(true);
+                const workspace1 = path.resolve('/mock/workspace1');
+                const workspace2 = path.resolve('/mock/workspace2');
+                const settings1 = loadSettings(workspace1);
+                const settings2 = loadSettings(workspace2);
+                expect(mockedRead).toHaveBeenCalledTimes(10); // 5 for each workspace
+                expect(settings1).not.toBe(settings2);
+            });
+            it('should clear cache when saveSettings is called for user settings', () => {
+                const mockedRead = vi.mocked(fs.readFileSync);
+                mockedRead.mockClear();
+                mockedRead.mockReturnValue('{}');
+                mockFsExistsSync.mockReturnValue(true);
+                const settings1 = loadSettings(MOCK_WORKSPACE_DIR);
+                expect(mockedRead).toHaveBeenCalledTimes(5);
+                saveSettings(settings1.user);
+                const settings2 = loadSettings(MOCK_WORKSPACE_DIR);
+                expect(mockedRead).toHaveBeenCalledTimes(10); // Should have re-read from disk
+                expect(settings1).not.toBe(settings2);
+            });
+            it('should clear all caches when saveSettings is called for workspace settings', () => {
+                const mockedRead = vi.mocked(fs.readFileSync);
+                mockedRead.mockClear();
+                mockedRead.mockReturnValue('{}');
+                mockFsExistsSync.mockReturnValue(true);
+                const workspace1 = path.resolve('/mock/workspace1');
+                const workspace2 = path.resolve('/mock/workspace2');
+                const settings1W1 = loadSettings(workspace1);
+                const settings1W2 = loadSettings(workspace2);
+                expect(mockedRead).toHaveBeenCalledTimes(10);
+                // Save settings for workspace 1
+                saveSettings(settings1W1.workspace);
+                const settings2W1 = loadSettings(workspace1);
+                const settings2W2 = loadSettings(workspace2);
+                // Both workspace caches should have been cleared and re-read from disk (+10 reads)
+                expect(mockedRead).toHaveBeenCalledTimes(20);
+                expect(settings1W1).not.toBe(settings2W1);
+                expect(settings1W2).not.toBe(settings2W2);
+            });
+        });
+    });
+    describe('excludedProjectEnvVars integration', () => {
+        const originalEnv = { ...process.env };
+        beforeEach(() => {
+            process.env = { ...originalEnv };
+        });
+        afterEach(() => {
+            process.env = originalEnv;
+        });
+        it('should exclude DEBUG and DEBUG_MODE from project .env files by default', () => {
+            // Create a workspace settings file with excludedProjectEnvVars
+            const workspaceSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['DEBUG', 'DEBUG_MODE'] },
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            // Mock findEnvFile to return a project .env file
+            const originalFindEnvFile = loadSettings.findEnvFile;
+            loadSettings.findEnvFile =
+                () => path.resolve('/mock/project/.env');
+            // Mock fs.readFileSync for .env file content
+            const originalReadFileSync = fs.readFileSync;
+            fs.readFileSync.mockImplementation((p) => {
+                if (p === path.resolve('/mock/project/.env')) {
+                    return 'DEBUG=true\nDEBUG_MODE=1\nGEMINI_API_KEY=test-key';
+                }
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH)) {
+                    return JSON.stringify(workspaceSettingsContent);
+                }
+                return '{}';
+            });
+            try {
+                // This will call loadEnvironment internally with the merged settings
+                const settings = loadSettings(MOCK_WORKSPACE_DIR);
+                // Verify the settings were loaded correctly
+                expect(settings.merged.advanced?.excludedEnvVars).toEqual([
+                    'DEBUG',
+                    'DEBUG_MODE',
+                ]);
+                // Note: We can't directly test process.env changes here because the mocking
+                // prevents the actual file system operations, but we can verify the settings
+                // are correctly merged and passed to loadEnvironment
+            }
+            finally {
+                loadSettings.findEnvFile =
+                    originalFindEnvFile;
+                fs.readFileSync.mockImplementation(originalReadFileSync);
+            }
+        });
+        it('should respect custom excludedProjectEnvVars from user settings', () => {
+            const userSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['NODE_ENV', 'DEBUG'] },
+            };
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings.advanced?.excludedEnvVars).toEqual([
+                'NODE_ENV',
+                'DEBUG',
+            ]);
+            expect(settings.merged.advanced?.excludedEnvVars).toEqual([
+                'DEBUG',
+                'DEBUG_MODE',
+                'NODE_ENV',
+            ]);
+        });
+        it('should merge excludedProjectEnvVars with workspace taking precedence', () => {
+            const userSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['DEBUG', 'NODE_ENV', 'USER_VAR'] },
+            };
+            const workspaceSettingsContent = {
+                general: {},
+                advanced: { excludedEnvVars: ['WORKSPACE_DEBUG', 'WORKSPACE_VAR'] },
+            };
+            mockFsExistsSync.mockReturnValue(true);
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.user.settings.advanced?.excludedEnvVars).toEqual([
+                'DEBUG',
+                'NODE_ENV',
+                'USER_VAR',
+            ]);
+            expect(settings.workspace.settings.advanced?.excludedEnvVars).toEqual([
+                'WORKSPACE_DEBUG',
+                'WORKSPACE_VAR',
+            ]);
+            expect(settings.merged.advanced?.excludedEnvVars).toEqual([
+                'DEBUG',
+                'DEBUG_MODE',
+                'NODE_ENV',
+                'USER_VAR',
+                'WORKSPACE_DEBUG',
+                'WORKSPACE_VAR',
+            ]);
+        });
+    });
+    describe('with workspace trust', () => {
+        it('should merge workspace settings when workspace is trusted', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                ui: { theme: 'dark' },
+                tools: { sandbox: false },
+            };
+            const workspaceSettingsContent = {
+                tools: { sandbox: true },
+                context: { fileName: 'WORKSPACE.md' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.tools?.sandbox).toBe(true);
+            expect(settings.merged.context?.fileName).toBe('WORKSPACE.md');
+            expect(settings.merged.ui?.theme).toBe('dark');
+        });
+        it('should NOT merge workspace settings when workspace is not trusted', () => {
+            vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+                isTrusted: false,
+                source: 'file',
+            });
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                ui: { theme: 'dark' },
+                tools: { sandbox: false },
+                context: { fileName: 'USER.md' },
+            };
+            const workspaceSettingsContent = {
+                tools: { sandbox: true },
+                context: { fileName: 'WORKSPACE.md' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.tools?.sandbox).toBe(false); // User setting
+            expect(settings.merged.context?.fileName).toBe('USER.md'); // User setting
+            expect(settings.merged.ui?.theme).toBe('dark'); // User setting
+        });
+        it('should NOT merge workspace settings when workspace trust is undefined', () => {
+            vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+                isTrusted: undefined,
+                source: undefined,
+            });
+            mockFsExistsSync.mockReturnValue(true);
+            const userSettingsContent = {
+                ui: { theme: 'dark' },
+                tools: { sandbox: false },
+                context: { fileName: 'USER.md' },
+            };
+            const workspaceSettingsContent = {
+                tools: { sandbox: true },
+                context: { fileName: 'WORKSPACE.md' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            expect(settings.merged.tools?.sandbox).toBe(false); // User setting
+            expect(settings.merged.context?.fileName).toBe('USER.md'); // User setting
+        });
+    });
+    describe('loadEnvironment', () => {
+        function setup({ isFolderTrustEnabled = true, isWorkspaceTrustedValue = true, }) {
+            delete process.env['GEMINI_API_KEY']; // reset
+            delete process.env['TESTTEST']; // reset
+            const geminiEnvPath = path.resolve(path.join(MOCK_WORKSPACE_DIR, GEMINI_DIR, '.env'));
+            const workspaceEnvPath = path.resolve(path.join(MOCK_WORKSPACE_DIR, '.env'));
+            vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+                isTrusted: isWorkspaceTrustedValue,
+                source: 'file',
+            });
+            mockFsExistsSync.mockImplementation((p) => {
+                const normalizedP = path.resolve(p.toString());
+                return [
+                    path.resolve(USER_SETTINGS_PATH),
+                    geminiEnvPath,
+                    workspaceEnvPath,
+                ].includes(normalizedP);
+            });
+            const userSettingsContent = {
+                ui: {
+                    theme: 'dark',
+                },
+                security: {
+                    folderTrust: {
+                        enabled: isFolderTrustEnabled,
+                    },
+                },
+                context: {
+                    fileName: 'USER_CONTEXT.md',
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                const normalizedP = path.resolve(p.toString());
+                if (normalizedP === path.resolve(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizedP === geminiEnvPath || normalizedP === workspaceEnvPath)
+                    return 'TESTTEST=1234\nGEMINI_API_KEY=test-key';
+                return '{}';
+            });
+        }
+        it('sets environment variables from .env files', () => {
+            setup({ isFolderTrustEnabled: false, isWorkspaceTrustedValue: true });
+            const settings = {
+                security: { folderTrust: { enabled: false } },
+            };
+            loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+            expect(process.env['TESTTEST']).toEqual('1234');
+            expect(process.env['GEMINI_API_KEY']).toEqual('test-key');
+        });
+        it('does not load env files from untrusted spaces when sandboxed', () => {
+            setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: false });
+            const settings = {
+                security: { folderTrust: { enabled: true } },
+                tools: { sandbox: true },
+            };
+            loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+            expect(process.env['TESTTEST']).not.toEqual('1234');
+        });
+        it('does NOT load non-whitelisted env files from untrusted spaces even when NOT sandboxed', () => {
+            setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: false });
+            const settings = {
+                security: { folderTrust: { enabled: true } },
+                tools: { sandbox: false },
+            };
+            loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+            expect(process.env['TESTTEST']).not.toEqual('1234');
+            expect(process.env['GEMINI_API_KEY']).toEqual('test-key');
+        });
+        it('does not load env files when trust is undefined and sandboxed', () => {
+            delete process.env['TESTTEST'];
+            // isWorkspaceTrusted returns {isTrusted: undefined} for matched rules with no trust value, or no matching rules.
+            setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: undefined });
+            const settings = {
+                security: { folderTrust: { enabled: true } },
+                tools: { sandbox: true },
+            };
+            const mockTrustFn = vi.fn().mockReturnValue({ isTrusted: undefined });
+            loadEnvironment(settings, MOCK_WORKSPACE_DIR, mockTrustFn);
+            expect(process.env['TESTTEST']).not.toEqual('1234');
+            expect(process.env['GEMINI_API_KEY']).toEqual('test-key');
+        });
+        it('loads whitelisted env files from untrusted spaces if sandboxing is enabled', () => {
+            setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: false });
+            const settings = createTestMergedSettings({
+                tools: { sandbox: true },
+            });
+            loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+            // GEMINI_API_KEY is in the whitelist, so it should be loaded.
+            expect(process.env['GEMINI_API_KEY']).toEqual('test-key');
+            // TESTTEST is NOT in the whitelist, so it should be blocked.
+            expect(process.env['TESTTEST']).not.toEqual('1234');
+        });
+        it('loads whitelisted env files from untrusted spaces if sandboxing is enabled via CLI flag', () => {
+            const originalArgv = [...process.argv];
+            process.argv.push('-s');
+            try {
+                setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: false });
+                const settings = createTestMergedSettings({
+                    tools: { sandbox: false },
+                });
+                loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+                expect(process.env['GEMINI_API_KEY']).toEqual('test-key');
+                expect(process.env['TESTTEST']).not.toEqual('1234');
+            }
+            finally {
+                process.argv = originalArgv;
+            }
+        });
+    });
+    describe('migrateDeprecatedSettings', () => {
+        let mockFsExistsSync;
+        let mockFsReadFileSync;
+        beforeEach(() => {
+            vi.resetAllMocks();
+            mockFsExistsSync = vi.mocked(fs.existsSync);
+            mockFsExistsSync.mockReturnValue(true);
+            mockFsReadFileSync = vi.mocked(fs.readFileSync);
+            mockFsReadFileSync.mockReturnValue('{}');
+            vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+                isTrusted: true,
+                source: undefined,
+            });
+        });
+        afterEach(() => {
+            vi.restoreAllMocks();
+        });
+        it('should not do anything if there are no deprecated settings', () => {
+            const userSettingsContent = {
+                extensions: {
+                    enabled: ['user-ext-1'],
+                },
+            };
+            const workspaceSettingsContent = {
+                someOtherSetting: 'value',
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                if (normalizePath(p) === normalizePath(MOCK_WORKSPACE_SETTINGS_PATH))
+                    return JSON.stringify(workspaceSettingsContent);
+                return '{}';
+            });
+            const setValueSpy = vi.spyOn(LoadedSettings.prototype, 'setValue');
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            setValueSpy.mockClear();
+            migrateDeprecatedSettings(loadedSettings, true);
+            expect(setValueSpy).not.toHaveBeenCalled();
+        });
+        it('should migrate general.disableAutoUpdate to general.enableAutoUpdate with inverted value', () => {
+            const userSettingsContent = {
+                general: {
+                    disableAutoUpdate: true,
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const setValueSpy = vi.spyOn(LoadedSettings.prototype, 'setValue');
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            migrateDeprecatedSettings(loadedSettings, true);
+            // Should set new value to false (inverted from true)
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'general', expect.objectContaining({ enableAutoUpdate: false }));
+        });
+        it('should migrate tools.approvalMode to general.defaultApprovalMode', () => {
+            const userSettingsContent = {
+                tools: {
+                    approvalMode: 'plan',
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const setValueSpy = vi.spyOn(LoadedSettings.prototype, 'setValue');
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            migrateDeprecatedSettings(loadedSettings, true);
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'general', expect.objectContaining({ defaultApprovalMode: 'plan' }));
+            // Verify removal
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'tools', expect.not.objectContaining({ approvalMode: 'plan' }));
+        });
+        it('should migrate all 4 inverted boolean settings', () => {
+            const userSettingsContent = {
+                general: {
+                    disableAutoUpdate: false,
+                    disableUpdateNag: true,
+                },
+                context: {
+                    fileFiltering: {
+                        disableFuzzySearch: false,
+                    },
+                },
+                ui: {
+                    accessibility: {
+                        disableLoadingPhrases: true,
+                    },
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const setValueSpy = vi.spyOn(LoadedSettings.prototype, 'setValue');
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            migrateDeprecatedSettings(loadedSettings, true);
+            // Check that general settings were migrated with inverted values
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'general', expect.objectContaining({ enableAutoUpdate: true }));
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'general', expect.objectContaining({ enableAutoUpdateNotification: false }));
+            // Check context.fileFiltering was migrated
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'context', expect.objectContaining({
+                fileFiltering: expect.objectContaining({ enableFuzzySearch: true }),
+            }));
+            // Check ui.accessibility was migrated
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'ui', expect.objectContaining({
+                accessibility: expect.objectContaining({
+                    enableLoadingPhrases: false,
+                }),
+            }));
+            // Check that enableLoadingPhrases: false was further migrated to loadingPhrases: 'off'
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'ui', expect.objectContaining({
+                loadingPhrases: 'off',
+            }));
+        });
+        it('should migrate enableLoadingPhrases: false to loadingPhrases: off', () => {
+            const userSettingsContent = {
+                ui: {
+                    accessibility: {
+                        enableLoadingPhrases: false,
+                    },
+                },
+            };
+            const loadedSettings = createMockSettings(userSettingsContent);
+            const setValueSpy = vi.spyOn(loadedSettings, 'setValue');
+            migrateDeprecatedSettings(loadedSettings);
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'ui', expect.objectContaining({
+                loadingPhrases: 'off',
+            }));
+        });
+        it('should not migrate enableLoadingPhrases: true to loadingPhrases', () => {
+            const userSettingsContent = {
+                ui: {
+                    accessibility: {
+                        enableLoadingPhrases: true,
+                    },
+                },
+            };
+            const loadedSettings = createMockSettings(userSettingsContent);
+            const setValueSpy = vi.spyOn(loadedSettings, 'setValue');
+            migrateDeprecatedSettings(loadedSettings);
+            // Should not set loadingPhrases when enableLoadingPhrases is true
+            const uiCalls = setValueSpy.mock.calls.filter((call) => call[1] === 'ui');
+            for (const call of uiCalls) {
+                const uiValue = call[2];
+                expect(uiValue).not.toHaveProperty('loadingPhrases');
+            }
+        });
+        it('should not overwrite existing loadingPhrases during migration', () => {
+            const userSettingsContent = {
+                ui: {
+                    loadingPhrases: 'witty',
+                    accessibility: {
+                        enableLoadingPhrases: false,
+                    },
+                },
+            };
+            const loadedSettings = createMockSettings(userSettingsContent);
+            const setValueSpy = vi.spyOn(loadedSettings, 'setValue');
+            migrateDeprecatedSettings(loadedSettings);
+            // Should not overwrite existing loadingPhrases
+            const uiCalls = setValueSpy.mock.calls.filter((call) => call[1] === 'ui');
+            for (const call of uiCalls) {
+                const uiValue = call[2];
+                if (uiValue['loadingPhrases'] !== undefined) {
+                    expect(uiValue['loadingPhrases']).toBe('witty');
+                }
+            }
+        });
+        it('should remove deprecated settings by default and prioritize new ones', () => {
+            const userSettingsContent = {
+                general: {
+                    disableAutoUpdate: true,
+                    enableAutoUpdate: true, // Trust this (true) over disableAutoUpdate (true -> false)
+                },
+                context: {
+                    fileFiltering: {
+                        disableFuzzySearch: false,
+                        enableFuzzySearch: false, // Trust this (false) over disableFuzzySearch (false -> true)
+                    },
+                },
+            };
+            const loadedSettings = createMockSettings(userSettingsContent);
+            const setValueSpy = vi.spyOn(loadedSettings, 'setValue');
+            // Default is now removeDeprecated = true
+            migrateDeprecatedSettings(loadedSettings);
+            // Should remove disableAutoUpdate and trust enableAutoUpdate: true
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'general', {
+                enableAutoUpdate: true,
+            });
+            // Should remove disableFuzzySearch and trust enableFuzzySearch: false
+            expect(setValueSpy).toHaveBeenCalledWith(SettingScope.User, 'context', {
+                fileFiltering: { enableFuzzySearch: false },
+            });
+        });
+        it('should preserve deprecated settings when removeDeprecated is explicitly false', () => {
+            const userSettingsContent = {
+                general: {
+                    disableAutoUpdate: true,
+                    enableAutoUpdate: true,
+                },
+                context: {
+                    fileFiltering: {
+                        disableFuzzySearch: false,
+                        enableFuzzySearch: false,
+                    },
+                },
+            };
+            const loadedSettings = createMockSettings(userSettingsContent);
+            migrateDeprecatedSettings(loadedSettings, false);
+            // Should still have old settings since removeDeprecated = false
+            expect(loadedSettings.forScope(SettingScope.User).settings.general).toHaveProperty('disableAutoUpdate');
+            expect(loadedSettings.forScope(SettingScope.User).settings.context.fileFiltering).toHaveProperty('disableFuzzySearch');
+        });
+        it('should trigger migration automatically during loadSettings', () => {
+            mockFsExistsSync.mockImplementation((p) => normalizePath(p) === normalizePath(USER_SETTINGS_PATH));
+            const userSettingsContent = {
+                general: {
+                    disableAutoUpdate: true,
+                },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Verify it was migrated in the merged settings
+            expect(settings.merged.general?.enableAutoUpdate).toBe(false);
+            // Verify it was saved back to disk (via setValue calling updateSettingsFilePreservingFormat)
+            expect(updateSettingsFilePreservingFormat).toHaveBeenCalledWith(USER_SETTINGS_PATH, expect.objectContaining({
+                general: expect.objectContaining({ enableAutoUpdate: false }),
+            }));
+        });
+        it('should migrate disableUpdateNag to enableAutoUpdateNotification in memory but not save for system and system defaults settings', () => {
+            const systemSettingsContent = {
+                general: {
+                    disableUpdateNag: true,
+                },
+            };
+            const systemDefaultsContent = {
+                general: {
+                    disableUpdateNag: false,
+                },
+            };
+            vi.mocked(fs.existsSync).mockReturnValue(true);
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                if (normalizePath(p) === normalizePath(getSystemDefaultsPath())) {
+                    return JSON.stringify(systemDefaultsContent);
+                }
+                return '{}';
+            });
+            const feedbackSpy = mockCoreEvents.emitFeedback;
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Verify system settings were migrated in memory
+            expect(settings.system.settings.general).toHaveProperty('enableAutoUpdateNotification');
+            expect(settings.system.settings.general['enableAutoUpdateNotification']).toBe(false);
+            // Verify system defaults settings were migrated in memory
+            expect(settings.systemDefaults.settings.general).toHaveProperty('enableAutoUpdateNotification');
+            expect(settings.systemDefaults.settings.general['enableAutoUpdateNotification']).toBe(true);
+            // Merged should also reflect it (system overrides defaults, but both are migrated)
+            expect(settings.merged.general?.enableAutoUpdateNotification).toBe(false);
+            // Verify it was NOT saved back to disk
+            expect(updateSettingsFilePreservingFormat).not.toHaveBeenCalledWith(getSystemSettingsPath(), expect.anything());
+            expect(updateSettingsFilePreservingFormat).not.toHaveBeenCalledWith(getSystemDefaultsPath(), expect.anything());
+            // Verify warnings were shown
+            expect(feedbackSpy).toHaveBeenCalledWith('warning', expect.stringContaining('The system configuration contains deprecated settings'));
+            expect(feedbackSpy).toHaveBeenCalledWith('warning', expect.stringContaining('The system default configuration contains deprecated settings'));
+        });
+        it('should migrate experimental agent settings in system scope in memory but not save', () => {
+            const systemSettingsContent = {
+                experimental: {
+                    codebaseInvestigatorSettings: {
+                        enabled: true,
+                    },
+                },
+            };
+            vi.mocked(fs.existsSync).mockReturnValue(true);
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                return '{}';
+            });
+            const feedbackSpy = mockCoreEvents.emitFeedback;
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Verify it was migrated in memory
+            expect(settings.system.settings.agents?.overrides).toMatchObject({
+                codebase_investigator: {
+                    enabled: true,
+                },
+            });
+            // Verify it was NOT saved back to disk
+            expect(updateSettingsFilePreservingFormat).not.toHaveBeenCalledWith(getSystemSettingsPath(), expect.anything());
+            // Verify warnings were shown
+            expect(feedbackSpy).toHaveBeenCalledWith('warning', expect.stringContaining('The system configuration contains deprecated settings: [experimental.codebaseInvestigatorSettings]'));
+        });
+        it('should migrate experimental agent settings to agents overrides', () => {
+            const userSettingsContent = {
+                experimental: {
+                    codebaseInvestigatorSettings: {
+                        enabled: true,
+                        maxNumTurns: 15,
+                        maxTimeMinutes: 5,
+                        thinkingBudget: 16384,
+                        model: 'gemini-1.5-pro',
+                    },
+                    cliHelpAgentSettings: {
+                        enabled: false,
+                    },
+                },
+            };
+            vi.mocked(fs.existsSync).mockReturnValue(true);
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(USER_SETTINGS_PATH))
+                    return JSON.stringify(userSettingsContent);
+                return '{}';
+            });
+            const settings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Verify migration to agents.overrides
+            expect(settings.user.settings.agents?.overrides).toMatchObject({
+                codebase_investigator: {
+                    enabled: true,
+                    runConfig: {
+                        maxTurns: 15,
+                        maxTimeMinutes: 5,
+                    },
+                    modelConfig: {
+                        model: 'gemini-1.5-pro',
+                        generateContentConfig: {
+                            thinkingConfig: {
+                                thinkingBudget: 16384,
+                            },
+                        },
+                    },
+                },
+                cli_help: {
+                    enabled: false,
+                },
+            });
+        });
+    });
+    describe('saveSettings', () => {
+        it('should save settings using updateSettingsFilePreservingFormat', () => {
+            const mockUpdateSettings = vi.mocked(updateSettingsFilePreservingFormat);
+            const settingsFile = createMockSettings({ ui: { theme: 'dark' } }).user;
+            settingsFile.path = path.resolve('/mock/settings.json');
+            saveSettings(settingsFile);
+            expect(mockUpdateSettings).toHaveBeenCalledWith(path.resolve('/mock/settings.json'), {
+                ui: { theme: 'dark' },
+            });
+        });
+        it('should create directory if it does not exist', () => {
+            const mockFsExistsSync = vi.mocked(fs.existsSync);
+            const mockFsMkdirSync = vi.mocked(fs.mkdirSync);
+            mockFsExistsSync.mockReturnValue(false);
+            const settingsFile = createMockSettings({}).user;
+            settingsFile.path = path.resolve('/mock/new/dir/settings.json');
+            saveSettings(settingsFile);
+            expect(mockFsExistsSync).toHaveBeenCalledWith(path.resolve('/mock/new/dir'));
+            expect(mockFsMkdirSync).toHaveBeenCalledWith(path.resolve('/mock/new/dir'), {
+                recursive: true,
+            });
+        });
+        it('should emit error feedback if saving fails', () => {
+            const mockUpdateSettings = vi.mocked(updateSettingsFilePreservingFormat);
+            const error = new Error('Write failed');
+            mockUpdateSettings.mockImplementation(() => {
+                throw error;
+            });
+            const settingsFile = createMockSettings({}).user;
+            settingsFile.path = path.resolve('/mock/settings.json');
+            saveSettings(settingsFile);
+            expect(mockCoreEvents.emitFeedback).toHaveBeenCalledWith('error', 'Failed to save settings: Write failed', error);
+        });
+    });
+    describe('LoadedSettings and remote admin settings', () => {
+        it('should prioritize remote admin settings over file-based admin settings', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                admin: {
+                    // These should be ignored
+                    secureModeEnabled: true,
+                    mcp: { enabled: false },
+                    extensions: { enabled: false },
+                },
+                // A non-admin setting to ensure it's still processed
+                ui: { theme: 'system-theme' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                return '{}';
+            });
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            // 1. Verify that on initial load, file-based admin settings are ignored
+            //    and schema defaults are used instead.
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false); // default: false
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true); // default: true
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true); // default: true
+            expect(loadedSettings.merged.ui?.theme).toBe('system-theme'); // non-admin setting should be loaded
+            // 2. Now, set remote admin settings.
+            loadedSettings.setRemoteAdminSettings({
+                strictModeDisabled: false,
+                mcpSetting: { mcpEnabled: false, mcpConfig: {} },
+                cliFeatureSetting: {
+                    extensionsSetting: { extensionsEnabled: false },
+                    unmanagedCapabilitiesEnabled: false,
+                },
+            });
+            // 3. Verify that remote admin settings take precedence.
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(true);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
+            // non-admin setting should remain unchanged
+            expect(loadedSettings.merged.ui?.theme).toBe('system-theme');
+        });
+        it('should set remote admin settings and recompute merged settings', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                admin: {
+                    secureModeEnabled: false,
+                    mcp: { enabled: false },
+                    extensions: { enabled: false },
+                },
+                ui: { theme: 'initial-theme' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                return '{}';
+            });
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Ensure initial state from defaults (as file-based admin settings are ignored)
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+            expect(loadedSettings.merged.ui?.theme).toBe('initial-theme');
+            const newRemoteSettings = {
+                strictModeDisabled: false,
+                mcpSetting: { mcpEnabled: false, mcpConfig: {} },
+                cliFeatureSetting: {
+                    extensionsSetting: { extensionsEnabled: false },
+                    unmanagedCapabilitiesEnabled: false,
+                },
+            };
+            loadedSettings.setRemoteAdminSettings(newRemoteSettings);
+            // Verify that remote admin settings are applied
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(true);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
+            // Non-admin settings should remain untouched
+            expect(loadedSettings.merged.ui?.theme).toBe('initial-theme');
+        });
+        it('should correctly handle undefined remote admin settings', () => {
+            mockFsExistsSync.mockReturnValue(true);
+            const systemSettingsContent = {
+                ui: { theme: 'initial-theme' },
+            };
+            fs.readFileSync.mockImplementation((p) => {
+                if (normalizePath(p) === normalizePath(getSystemSettingsPath())) {
+                    return JSON.stringify(systemSettingsContent);
+                }
+                return '{}';
+            });
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            // Should have default admin settings
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+            loadedSettings.setRemoteAdminSettings({}); // Set empty remote settings
+            // Admin settings should revert to defaults because there are no remote overrides
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+        });
+        it('should un-nest MCP configuration from remote settings', () => {
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            const mcpServers = {
+                'admin-server': {
+                    url: 'http://admin-mcp.com',
+                    type: 'sse',
+                    trust: true,
+                },
+            };
+            loadedSettings.setRemoteAdminSettings({
+                mcpSetting: {
+                    mcpEnabled: true,
+                    mcpConfig: {
+                        mcpServers,
+                    },
+                },
+            });
+            expect(loadedSettings.merged.admin?.mcp?.config).toEqual(mcpServers);
+        });
+        it('should map requiredMcpConfig from remote settings', () => {
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            const requiredMcpConfig = {
+                'corp-tool': {
+                    url: 'https://mcp.corp/tool',
+                    type: 'http',
+                    trust: true,
+                },
+            };
+            loadedSettings.setRemoteAdminSettings({
+                mcpSetting: {
+                    mcpEnabled: true,
+                    requiredMcpConfig,
+                },
+            });
+            expect(loadedSettings.merged.admin?.mcp?.requiredConfig).toEqual(requiredMcpConfig);
+        });
+        it('should set skills based on unmanagedCapabilitiesEnabled', () => {
+            const loadedSettings = loadSettings();
+            loadedSettings.setRemoteAdminSettings({
+                cliFeatureSetting: {
+                    unmanagedCapabilitiesEnabled: true,
+                },
+            });
+            expect(loadedSettings.merged.admin.skills?.enabled).toBe(true);
+            loadedSettings.setRemoteAdminSettings({
+                cliFeatureSetting: {
+                    unmanagedCapabilitiesEnabled: false,
+                },
+            });
+            expect(loadedSettings.merged.admin.skills?.enabled).toBe(false);
+        });
+        it('should handle completely empty remote admin settings response', () => {
+            const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+            loadedSettings.setRemoteAdminSettings({});
+            // Should default to schema defaults (standard defaults)
+            expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+            expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+            expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+        });
+    });
+    describe('getDefaultsFromSchema', () => {
+        it('should extract defaults from a schema', () => {
+            const mockSchema = {
+                prop1: {
+                    type: 'string',
+                    default: 'default1',
+                    label: 'Prop 1',
+                    category: 'General',
+                    requiresRestart: false,
+                },
+                nested: {
+                    type: 'object',
+                    label: 'Nested',
+                    category: 'General',
+                    requiresRestart: false,
+                    default: {},
+                    properties: {
+                        prop2: {
+                            type: 'number',
+                            default: 42,
+                            label: 'Prop 2',
+                            category: 'General',
+                            requiresRestart: false,
+                        },
+                    },
+                },
+            };
+            const defaults = getDefaultsFromSchema(mockSchema);
+            expect(defaults).toEqual({
+                prop1: 'default1',
+                nested: {
+                    prop2: 42,
+                },
+            });
+        });
+    });
+    describe('Reactivity & Snapshots', () => {
+        let loadedSettings;
+        beforeEach(() => {
+            const emptySettingsFile = {
+                path: path.resolve('/mock/path'),
+                settings: {},
+                originalSettings: {},
+            };
+            loadedSettings = new LoadedSettings({ ...emptySettingsFile, path: getSystemSettingsPath() }, { ...emptySettingsFile, path: getSystemDefaultsPath() }, { ...emptySettingsFile, path: USER_SETTINGS_PATH }, { ...emptySettingsFile, path: MOCK_WORKSPACE_SETTINGS_PATH }, true, // isTrusted
+            []);
+        });
+        it('getSnapshot() should return stable reference if no changes occur', () => {
+            const snap1 = loadedSettings.getSnapshot();
+            const snap2 = loadedSettings.getSnapshot();
+            expect(snap1).toBe(snap2);
+        });
+        it('getSnapshot() should preserve readOnly metadata for each scope', () => {
+            const readonlySettings = new LoadedSettings({
+                path: getSystemSettingsPath(),
+                settings: {},
+                originalSettings: {},
+                readOnly: true,
+            }, {
+                path: getSystemDefaultsPath(),
+                settings: {},
+                originalSettings: {},
+                readOnly: true,
+            }, {
+                path: USER_SETTINGS_PATH,
+                settings: {},
+                originalSettings: {},
+                readOnly: false,
+            }, {
+                path: MOCK_WORKSPACE_SETTINGS_PATH,
+                settings: {},
+                originalSettings: {},
+                readOnly: true,
+            }, true, []);
+            const snapshot = readonlySettings.getSnapshot();
+            expect(snapshot.system.readOnly).toBe(true);
+            expect(snapshot.systemDefaults.readOnly).toBe(true);
+            expect(snapshot.user.readOnly).toBe(false);
+            expect(snapshot.workspace.readOnly).toBe(true);
+        });
+        it('setValue() should create a new snapshot reference and emit event', () => {
+            const oldSnapshot = loadedSettings.getSnapshot();
+            const oldUserRef = oldSnapshot.user.settings;
+            loadedSettings.setValue(SettingScope.User, 'ui.theme', 'high-contrast');
+            const newSnapshot = loadedSettings.getSnapshot();
+            expect(newSnapshot).not.toBe(oldSnapshot);
+            expect(newSnapshot.user.settings).not.toBe(oldUserRef);
+            expect(newSnapshot.user.settings.ui?.theme).toBe('high-contrast');
+            expect(newSnapshot.system.settings).not.toBe(oldSnapshot.system.settings);
+            expect(mockCoreEvents.emitSettingsChanged).toHaveBeenCalled();
+        });
+    });
+    describe('Security and Sandbox', () => {
+        let originalArgv;
+        let originalEnv;
+        beforeEach(() => {
+            originalArgv = [...process.argv];
+            originalEnv = { ...process.env };
+            // Clear relevant env vars
+            delete process.env['GEMINI_API_KEY'];
+            delete process.env['GOOGLE_API_KEY'];
+            delete process.env['GOOGLE_CLOUD_PROJECT'];
+            delete process.env['GOOGLE_CLOUD_LOCATION'];
+            delete process.env['CLOUD_SHELL'];
+            delete process.env['MALICIOUS_VAR'];
+            delete process.env['FOO'];
+            delete process.env['_GEMINI_USER_GCP_PROJECT'];
+            vi.resetAllMocks();
+            vi.mocked(fs.existsSync).mockReturnValue(false);
+        });
+        afterEach(() => {
+            process.argv = originalArgv;
+            process.env = originalEnv;
+        });
+        describe('sandbox detection', () => {
+            it('should detect sandbox when -s is a real flag', () => {
+                process.argv = ['node', 'gemini', '-s', 'some prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(true);
+                vi.mocked(fs.readFileSync).mockReturnValue('FOO=bar\nGEMINI_API_KEY=secret');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                // If sandboxed and untrusted, FOO should NOT be loaded, but GEMINI_API_KEY should be.
+                expect(process.env['FOO']).toBeUndefined();
+                expect(process.env['GEMINI_API_KEY']).toBe('secret');
+            });
+            it('should detect sandbox when --sandbox is a real flag', () => {
+                process.argv = ['node', 'gemini', '--sandbox', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(true);
+                vi.mocked(fs.readFileSync).mockReturnValue('GEMINI_API_KEY=secret');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toBe('secret');
+            });
+            it('should ignore sandbox flags if they appear after --', () => {
+                process.argv = ['node', 'gemini', '--', '-s', 'some prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                vi.mocked(fs.readFileSync).mockReturnValue('GEMINI_API_KEY=secret');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toEqual('secret');
+            });
+            it('should NOT be tricked by positional arguments that look like flags', () => {
+                process.argv = ['node', 'gemini', 'my -s prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                vi.mocked(fs.readFileSync).mockReturnValue('GEMINI_API_KEY=secret');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toEqual('secret');
+            });
+        });
+        describe('env var sanitization', () => {
+            it('should strictly enforce whitelist in untrusted/sandboxed mode', () => {
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                vi.mocked(fs.readFileSync).mockReturnValue(`
+GEMINI_API_KEY=secret-key
+MALICIOUS_VAR=should-be-ignored
+GOOGLE_API_KEY=another-secret
+    `);
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toBe('secret-key');
+                expect(process.env['GOOGLE_API_KEY']).toBe('another-secret');
+                expect(process.env['MALICIOUS_VAR']).toBeUndefined();
+            });
+            it('should sanitize shell injection characters in whitelisted env vars in untrusted mode', () => {
+                process.argv = ['node', 'gemini', '--sandbox', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                const maliciousPayload = 'key-$(whoami)-`id`-&|;><*?[]{}';
+                vi.mocked(fs.readFileSync).mockReturnValue(`GEMINI_API_KEY=${maliciousPayload}`);
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                // sanitizeEnvVar: value.replace(/[^a-zA-Z0-9\-_./]/g, '')
+                expect(process.env['GEMINI_API_KEY']).toBe('key-whoami-id-');
+            });
+            it('should allow . and / in whitelisted env vars but sanitize other characters in untrusted mode', () => {
+                process.argv = ['node', 'gemini', '--sandbox', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                const complexPayload = 'secret-123/path.to/somewhere;rm -rf /';
+                vi.mocked(fs.readFileSync).mockReturnValue(`GEMINI_API_KEY=${complexPayload}`);
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toBe('secret-123/path.to/somewhererm-rf/');
+            });
+            it('should NOT sanitize variables from trusted sources', () => {
+                process.argv = ['node', 'gemini', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: true,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(true);
+                vi.mocked(fs.readFileSync).mockReturnValue('FOO=$(bar)');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                // Trusted source, no sanitization
+                expect(process.env['FOO']).toBe('$(bar)');
+            });
+            it('should load environment variables normally when workspace is TRUSTED even if "sandboxed"', () => {
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: true,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockImplementation((path) => path.toString().endsWith('.env'));
+                vi.mocked(fs.readFileSync).mockReturnValue(`
+GEMINI_API_KEY=un-sanitized;key!
+MALICIOUS_VAR=allowed-because-trusted
+    `);
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GEMINI_API_KEY']).toBe('un-sanitized;key!');
+                expect(process.env['MALICIOUS_VAR']).toBe('allowed-because-trusted');
+            });
+            it('should sanitize value in sanitizeEnvVar helper', () => {
+                expect(sanitizeEnvVar('$(calc)')).toBe('calc');
+                expect(sanitizeEnvVar('`rm -rf /`')).toBe('rm-rf/');
+                expect(sanitizeEnvVar('normal-project-123')).toBe('normal-project-123');
+                expect(sanitizeEnvVar('us-central1')).toBe('us-central1');
+            });
+        });
+        describe('Cloud Shell security', () => {
+            it('should handle Cloud Shell special defaults securely when untrusted', () => {
+                process.env['CLOUD_SHELL'] = 'true';
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                // No .env file
+                vi.mocked(fs.existsSync).mockReturnValue(false);
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('cloudshell-gca');
+            });
+            it('should not override GOOGLE_CLOUD_PROJECT in Cloud Shell when auth type is vertex-ai', () => {
+                vi.stubEnv('CLOUD_SHELL', 'true');
+                vi.stubEnv('GOOGLE_CLOUD_PROJECT', 'my-vertex-project');
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                // No .env file
+                vi.mocked(fs.existsSync).mockReturnValue(false);
+                loadEnvironment(createMockSettings({
+                    tools: { sandbox: false },
+                    security: { auth: { selectedType: AuthType.USE_VERTEX_AI } },
+                }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('my-vertex-project');
+            });
+            it('should respect .env override for GOOGLE_CLOUD_PROJECT in Cloud Shell when auth type is vertex-ai', () => {
+                vi.stubEnv('CLOUD_SHELL', 'true');
+                vi.stubEnv('GOOGLE_CLOUD_PROJECT', 'my-vertex-project');
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: true,
+                    source: 'file',
+                });
+                // Mock .env file to override the shell project
+                vi.mocked(fs.existsSync).mockReturnValue(true);
+                vi.mocked(fs.readFileSync).mockReturnValue('GOOGLE_CLOUD_PROJECT=env-vertex-project');
+                loadEnvironment(createMockSettings({
+                    tools: { sandbox: false },
+                    security: { auth: { selectedType: AuthType.USE_VERTEX_AI } },
+                }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('env-vertex-project');
+            });
+            it('should clear cloudshell-gca when switching to Vertex AI without an original project', () => {
+                process.env['CLOUD_SHELL'] = 'true';
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(false);
+                // First call: normal Cloud Shell auth sets cloudshell-gca
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('cloudshell-gca');
+                // Second call: user switched to Vertex AI, should remove cloudshell-gca
+                loadEnvironment(createMockSettings({
+                    tools: { sandbox: false },
+                    security: { auth: { selectedType: AuthType.USE_VERTEX_AI } },
+                }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBeUndefined();
+            });
+            it('should restore original project when switching to Vertex AI after Cloud Shell override', () => {
+                process.env['CLOUD_SHELL'] = 'true';
+                process.env['GOOGLE_CLOUD_PROJECT'] = 'my-real-project';
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(false);
+                // First call: saves original to _GEMINI_USER_GCP_PROJECT, sets cloudshell-gca
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('cloudshell-gca');
+                expect(process.env['_GEMINI_USER_GCP_PROJECT']).toBe('my-real-project');
+                // Second call: switching to Vertex AI should restore the saved value
+                loadEnvironment(createMockSettings({
+                    tools: { sandbox: false },
+                    security: { auth: { selectedType: AuthType.USE_VERTEX_AI } },
+                }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('my-real-project');
+            });
+            it('should restore project after restart when child inherits cloudshell-gca', () => {
+                // Simulate child process after restart: inherits cloudshell-gca and
+                // the saved original from the parent process.
+                process.env['CLOUD_SHELL'] = 'true';
+                process.env['GOOGLE_CLOUD_PROJECT'] = 'cloudshell-gca';
+                process.env['_GEMINI_USER_GCP_PROJECT'] = 'my-real-project';
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(false);
+                loadEnvironment(createMockSettings({
+                    tools: { sandbox: false },
+                    security: { auth: { selectedType: AuthType.USE_VERTEX_AI } },
+                }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('my-real-project');
+            });
+            it('should sanitize GOOGLE_CLOUD_PROJECT in Cloud Shell when loaded from .env in untrusted mode', () => {
+                process.env['CLOUD_SHELL'] = 'true';
+                process.argv = ['node', 'gemini', '-s', 'prompt'];
+                vi.mocked(isWorkspaceTrusted).mockReturnValue({
+                    isTrusted: false,
+                    source: 'file',
+                });
+                vi.mocked(fs.existsSync).mockReturnValue(true);
+                vi.mocked(fs.readFileSync).mockReturnValue('GOOGLE_CLOUD_PROJECT=attacker-project;inject');
+                loadEnvironment(createMockSettings({ tools: { sandbox: false } }).merged, MOCK_WORKSPACE_DIR);
+                expect(process.env['GOOGLE_CLOUD_PROJECT']).toBe('attacker-projectinject');
+            });
+        });
+    });
+});
+describe('LoadedSettings Isolation and Serializability', () => {
+    let loadedSettings;
+    beforeEach(() => {
+        vi.resetAllMocks();
+        // Create a minimal LoadedSettings instance
+        const emptyScope = {
+            path: path.resolve('/mock/settings.json'),
+            settings: {},
+            originalSettings: {},
+        };
+        loadedSettings = new LoadedSettings(emptyScope, // system
+        emptyScope, // systemDefaults
+        { ...emptyScope }, // user
+        emptyScope, // workspace
+        true);
+    });
+    describe('setValue Isolation', () => {
+        it('should isolate state between settings and originalSettings', () => {
+            const complexValue = { a: { b: 1 } };
+            loadedSettings.setValue(SettingScope.User, 'test', complexValue);
+            const userSettings = loadedSettings.forScope(SettingScope.User);
+            const settingsValue = userSettings.settings['test'];
+            const originalValue = userSettings.originalSettings['test'];
+            // Verify they are equal but different references
+            expect(settingsValue).toEqual(complexValue);
+            expect(originalValue).toEqual(complexValue);
+            expect(settingsValue).not.toBe(complexValue);
+            expect(originalValue).not.toBe(complexValue);
+            expect(settingsValue).not.toBe(originalValue);
+            // Modify the in-memory setting object
+            settingsValue.a.b = 2;
+            // originalSettings should NOT be affected
+            expect(originalValue.a.b).toBe(1);
+        });
+        it('should not share references between settings and originalSettings (original servers test)', () => {
+            const mcpServers = {
+                'test-server': { command: 'echo' },
+            };
+            loadedSettings.setValue(SettingScope.User, 'mcpServers', mcpServers);
+            // Modify the original object
+            delete mcpServers['test-server'];
+            // The settings in LoadedSettings should still have the server
+            const userSettings = loadedSettings.forScope(SettingScope.User);
+            expect(userSettings.settings.mcpServers['test-server']).toBeDefined();
+            expect(userSettings.originalSettings.mcpServers['test-server']).toBeDefined();
+            // They should also be different objects from each other
+            expect(userSettings.settings.mcpServers).not.toBe(userSettings.originalSettings.mcpServers);
+        });
+    });
+    describe('setValue Serializability', () => {
+        it('should preserve Map/Set types (via structuredClone)', () => {
+            const mapValue = { myMap: new Map([['key', 'value']]) };
+            loadedSettings.setValue(SettingScope.User, 'test', mapValue);
+            const userSettings = loadedSettings.forScope(SettingScope.User);
+            const settingsValue = userSettings.settings['test'];
+            // Map is preserved by structuredClone
+            expect(settingsValue.myMap).toBeInstanceOf(Map);
+            expect(settingsValue.myMap.get('key')).toBe('value');
+            // But it should be a different reference
+            expect(settingsValue.myMap).not.toBe(mapValue.myMap);
+        });
+        it('should handle circular references (structuredClone supports them, but deepMerge may not)', () => {
+            const circular = { a: 1 };
+            circular['self'] = circular;
+            // structuredClone(circular) works, but LoadedSettings.setValue calls
+            // computeMergedSettings() -> customDeepMerge() which blows up on circularity.
+            expect(() => {
+                loadedSettings.setValue(SettingScope.User, 'test', circular);
+            }).toThrow(/Maximum call stack size exceeded/);
+        });
+    });
+});
+//# sourceMappingURL=settings.test.js.map