diff --git a/packages/opencode/src/bus/index.ts b/packages/opencode/src/bus/index.ts
index db6327c82e30..2a841920d9e0 100644
--- a/packages/opencode/src/bus/index.ts
+++ b/packages/opencode/src/bus/index.ts
@@ -90,8 +90,9 @@ export namespace Bus {
           if (ps) yield* PubSub.publish(ps, payload)
           yield* PubSub.publish(state.wildcard, payload)
 
+          const dir = yield* InstanceState.directory
           GlobalBus.emit("event", {
-            directory: Instance.directory,
+            directory: dir,
             payload,
           })
         })
diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index 9e56c980fbeb..f86d8d32af60 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -1486,7 +1486,8 @@ export namespace Config {
         })
 
         const update = Effect.fn("Config.update")(function* (config: Info) {
-          const file = path.join(Instance.directory, "config.json")
+          const dir = yield* InstanceState.directory
+          const file = path.join(dir, "config.json")
           const existing = yield* loadFile(file)
           yield* fs.writeFileString(file, JSON.stringify(mergeDeep(existing, config), null, 2)).pipe(Effect.orDie)
           yield* Effect.promise(() => Instance.dispose())
diff --git a/packages/opencode/src/effect/instance-ref.ts b/packages/opencode/src/effect/instance-ref.ts
new file mode 100644
index 000000000000..d3939b2640ad
--- /dev/null
+++ b/packages/opencode/src/effect/instance-ref.ts
@@ -0,0 +1,6 @@
+import { ServiceMap } from "effect"
+import type { InstanceContext } from "@/project/instance"
+
+export const InstanceRef = ServiceMap.Reference<InstanceContext | undefined>("~opencode/InstanceRef", {
+  defaultValue: () => undefined,
+})
diff --git a/packages/opencode/src/effect/instance-state.ts b/packages/opencode/src/effect/instance-state.ts
index 6873ec255c96..b073cf0a4b53 100644
--- a/packages/opencode/src/effect/instance-state.ts
+++ b/packages/opencode/src/effect/instance-state.ts
@@ -1,5 +1,7 @@
-import { Effect, ScopedCache, Scope } from "effect"
+import { Effect, Fiber, ScopedCache, Scope, ServiceMap } from "effect"
 import { Instance, type InstanceContext } from "@/project/instance"
+import { Context } from "@/util/context"
+import { InstanceRef } from "./instance-ref"
 import { registerDisposer } from "./instance-registry"
 
 const TypeId = "~opencode/InstanceState"
@@ -10,13 +12,34 @@ export interface InstanceState<A, E = never, R = never> {
 }
 
 export namespace InstanceState {
+  export const bind = <F extends (...args: any[]) => any>(fn: F): F => {
+    try {
+      return Instance.bind(fn)
+    } catch (err) {
+      if (!(err instanceof Context.NotFound)) throw err
+    }
+    const fiber = Fiber.getCurrent()
+    const ctx = fiber ? ServiceMap.getReferenceUnsafe(fiber.services, InstanceRef) : undefined
+    if (!ctx) return fn
+    return ((...args: any[]) => Instance.restore(ctx, () => fn(...args))) as F
+  }
+
+  export const context = Effect.fnUntraced(function* () {
+    return (yield* InstanceRef) ?? Instance.current
+  })()
+
+  export const directory = Effect.map(context, (ctx) => ctx.directory)
+
   export const make = <A, E = never, R = never>(
     init: (ctx: InstanceContext) => Effect.Effect<A, E, R | Scope.Scope>,
   ): Effect.Effect<InstanceState<A, E, Exclude<R, Scope.Scope>>, never, R | Scope.Scope> =>
     Effect.gen(function* () {
       const cache = yield* ScopedCache.make<string, A, E, R>({
         capacity: Number.POSITIVE_INFINITY,
-        lookup: () => init(Instance.current),
+        lookup: () =>
+          Effect.fnUntraced(function* () {
+            return yield* init(yield* context)
+          })(),
       })
 
       const off = registerDisposer((directory) => Effect.runPromise(ScopedCache.invalidate(cache, directory)))
@@ -29,7 +52,9 @@ export namespace InstanceState {
     })
 
   export const get = <A, E, R>(self: InstanceState<A, E, R>) =>
-    Effect.suspend(() => ScopedCache.get(self.cache, Instance.directory))
+    Effect.gen(function* () {
+      return yield* ScopedCache.get(self.cache, yield* directory)
+    })
 
   export const use = <A, E, R, B>(self: InstanceState<A, E, R>, select: (value: A) => B) =>
     Effect.map(get(self), select)
@@ -40,8 +65,18 @@ export namespace InstanceState {
   ) => Effect.flatMap(get(self), select)
 
   export const has = <A, E, R>(self: InstanceState<A, E, R>) =>
-    Effect.suspend(() => ScopedCache.has(self.cache, Instance.directory))
+    Effect.gen(function* () {
+      return yield* ScopedCache.has(self.cache, yield* directory)
+    })
 
   export const invalidate = <A, E, R>(self: InstanceState<A, E, R>) =>
-    Effect.suspend(() => ScopedCache.invalidate(self.cache, Instance.directory))
+    Effect.gen(function* () {
+      return yield* ScopedCache.invalidate(self.cache, yield* directory)
+    })
+
+  /**
+   * Effect finalizers run on the fiber scheduler after the original async
+   * boundary, so ALS reads like Instance.directory can be gone by then.
+   */
+  export const withALS = <T>(fn: () => T) => Effect.map(context, (ctx) => Instance.restore(ctx, fn))
 }
diff --git a/packages/opencode/src/effect/run-service.ts b/packages/opencode/src/effect/run-service.ts
index 2daa29fde8f6..619d5be6b5d7 100644
--- a/packages/opencode/src/effect/run-service.ts
+++ b/packages/opencode/src/effect/run-service.ts
@@ -1,19 +1,33 @@
 import { Effect, Layer, ManagedRuntime } from "effect"
 import * as ServiceMap from "effect/ServiceMap"
+import { Instance } from "@/project/instance"
+import { Context } from "@/util/context"
+import { InstanceRef } from "./instance-ref"
 
 export const memoMap = Layer.makeMemoMapUnsafe()
 
+function attach<A, E, R>(effect: Effect.Effect<A, E, R>): Effect.Effect<A, E, R> {
+  try {
+    const ctx = Instance.current
+    return Effect.provideService(effect, InstanceRef, ctx)
+  } catch (err) {
+    if (!(err instanceof Context.NotFound)) throw err
+  }
+  return effect
+}
+
 export function makeRuntime<I, S, E>(service: ServiceMap.Service<I, S>, layer: Layer.Layer<I, E>) {
   let rt: ManagedRuntime.ManagedRuntime<I, E> | undefined
   const getRuntime = () => (rt ??= ManagedRuntime.make(layer, { memoMap }))
 
   return {
-    runSync: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) => getRuntime().runSync(service.use(fn)),
+    runSync: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) => getRuntime().runSync(attach(service.use(fn))),
     runPromiseExit: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>, options?: Effect.RunOptions) =>
-      getRuntime().runPromiseExit(service.use(fn), options),
+      getRuntime().runPromiseExit(attach(service.use(fn)), options),
     runPromise: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>, options?: Effect.RunOptions) =>
-      getRuntime().runPromise(service.use(fn), options),
-    runFork: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) => getRuntime().runFork(service.use(fn)),
-    runCallback: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) => getRuntime().runCallback(service.use(fn)),
+      getRuntime().runPromise(attach(service.use(fn)), options),
+    runFork: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) => getRuntime().runFork(attach(service.use(fn))),
+    runCallback: <A, Err>(fn: (svc: S) => Effect.Effect<A, Err, I>) =>
+      getRuntime().runCallback(attach(service.use(fn))),
   }
 }
diff --git a/packages/opencode/src/format/index.ts b/packages/opencode/src/format/index.ts
index 8def2487578e..795364be1c57 100644
--- a/packages/opencode/src/format/index.ts
+++ b/packages/opencode/src/format/index.ts
@@ -108,10 +108,11 @@ export namespace Format {
               for (const item of yield* Effect.promise(() => getFormatter(ext))) {
                 log.info("running", { command: item.command })
                 const cmd = item.command.map((x) => x.replace("$FILE", filepath))
+                const dir = yield* InstanceState.directory
                 const code = yield* spawner
                   .spawn(
                     ChildProcess.make(cmd[0]!, cmd.slice(1), {
-                      cwd: Instance.directory,
+                      cwd: dir,
                       env: item.environment,
                       extendEnv: true,
                     }),
diff --git a/packages/opencode/src/installation/index.ts b/packages/opencode/src/installation/index.ts
index 52c149c4fd9d..232fa14f542c 100644
--- a/packages/opencode/src/installation/index.ts
+++ b/packages/opencode/src/installation/index.ts
@@ -9,11 +9,7 @@ import z from "zod"
 import { BusEvent } from "@/bus/bus-event"
 import { Flag } from "../flag/flag"
 import { Log } from "../util/log"
-
-declare global {
-  const OPENCODE_VERSION: string
-  const OPENCODE_CHANNEL: string
-}
+import { CHANNEL as channel, VERSION as version } from "./meta"
 
 import semver from "semver"
 
@@ -60,8 +56,8 @@ export namespace Installation {
     })
   export type Info = z.infer<typeof Info>
 
-  export const VERSION = typeof OPENCODE_VERSION === "string" ? OPENCODE_VERSION : "local"
-  export const CHANNEL = typeof OPENCODE_CHANNEL === "string" ? OPENCODE_CHANNEL : "local"
+  export const VERSION = version
+  export const CHANNEL = channel
   export const USER_AGENT = `opencode/${CHANNEL}/${VERSION}/${Flag.OPENCODE_CLIENT}`
 
   export function isPreview() {
diff --git a/packages/opencode/src/installation/meta.ts b/packages/opencode/src/installation/meta.ts
new file mode 100644
index 000000000000..6a1315db27cf
--- /dev/null
+++ b/packages/opencode/src/installation/meta.ts
@@ -0,0 +1,7 @@
+declare global {
+  const OPENCODE_VERSION: string
+  const OPENCODE_CHANNEL: string
+}
+
+export const VERSION = typeof OPENCODE_VERSION === "string" ? OPENCODE_VERSION : "local"
+export const CHANNEL = typeof OPENCODE_CHANNEL === "string" ? OPENCODE_CHANNEL : "local"
diff --git a/packages/opencode/src/project/instance.ts b/packages/opencode/src/project/instance.ts
index 5dddfe627fbc..a0d6f2414a85 100644
--- a/packages/opencode/src/project/instance.ts
+++ b/packages/opencode/src/project/instance.ts
@@ -114,6 +114,14 @@ export const Instance = {
     const ctx = context.use()
     return ((...args: any[]) => context.provide(ctx, () => fn(...args))) as F
   },
+  /**
+   * Run a synchronous function within the given instance context ALS.
+   * Use this to bridge from Effect (where InstanceRef carries context)
+   * back to sync code that reads Instance.directory from ALS.
+   */
+  restore<R>(ctx: InstanceContext, fn: () => R): R {
+    return context.provide(ctx, fn)
+  },
   state<S>(init: () => S, dispose?: (state: Awaited<S>) => Promise<void>): () => S {
     return State.create(() => Instance.directory, init, dispose)
   },
diff --git a/packages/opencode/src/session/compaction.ts b/packages/opencode/src/session/compaction.ts
index 229dff0c46de..02a8d9484514 100644
--- a/packages/opencode/src/session/compaction.ts
+++ b/packages/opencode/src/session/compaction.ts
@@ -17,6 +17,7 @@ import { NotFoundError } from "@/storage/db"
 import { ModelID, ProviderID } from "@/provider/schema"
 import { Effect, Layer, ServiceMap } from "effect"
 import { makeRuntime } from "@/effect/run-service"
+import { InstanceState } from "@/effect/instance-state"
 import { isOverflow as overflow } from "./overflow"
 
 export namespace SessionCompaction {
@@ -213,6 +214,7 @@ When constructing the summary, try to stick to this template:
         const msgs = structuredClone(messages)
         yield* plugin.trigger("experimental.chat.messages.transform", {}, { messages: msgs })
         const modelMessages = yield* Effect.promise(() => MessageV2.toModelMessages(msgs, model, { stripMedia: true }))
+        const ctx = yield* InstanceState.context
         const msg: MessageV2.Assistant = {
           id: MessageID.ascending(),
           role: "assistant",
@@ -223,8 +225,8 @@ When constructing the summary, try to stick to this template:
           variant: userMessage.variant,
           summary: true,
           path: {
-            cwd: Instance.directory,
-            root: Instance.worktree,
+            cwd: ctx.directory,
+            root: ctx.worktree,
           },
           cost: 0,
           tokens: {
diff --git a/packages/opencode/src/session/index.ts b/packages/opencode/src/session/index.ts
index 94aee14c09c4..5ed5acafaf54 100644
--- a/packages/opencode/src/session/index.ts
+++ b/packages/opencode/src/session/index.ts
@@ -19,6 +19,7 @@ import { Log } from "../util/log"
 import { updateSchema } from "../util/update-schema"
 import { MessageV2 } from "./message-v2"
 import { Instance } from "../project/instance"
+import { InstanceState } from "@/effect/instance-state"
 import { SessionPrompt } from "./prompt"
 import { fn } from "@/util/fn"
 import { Command } from "../command"
@@ -382,11 +383,12 @@ export namespace Session {
         directory: string
         permission?: Permission.Ruleset
       }) {
+        const ctx = yield* InstanceState.context
         const result: Info = {
           id: SessionID.descending(input.id),
           slug: Slug.create(),
           version: Installation.VERSION,
-          projectID: Instance.project.id,
+          projectID: ctx.project.id,
           directory: input.directory,
           workspaceID: input.workspaceID,
           parentID: input.parentID,
@@ -444,12 +446,12 @@ export namespace Session {
       })
 
       const children = Effect.fn("Session.children")(function* (parentID: SessionID) {
-        const project = Instance.project
+        const ctx = yield* InstanceState.context
         const rows = yield* db((d) =>
           d
             .select()
             .from(SessionTable)
-            .where(and(eq(SessionTable.project_id, project.id), eq(SessionTable.parent_id, parentID)))
+            .where(and(eq(SessionTable.project_id, ctx.project.id), eq(SessionTable.parent_id, parentID)))
             .all(),
         )
         return rows.map(fromRow)
@@ -496,9 +498,10 @@ export namespace Session {
         permission?: Permission.Ruleset
         workspaceID?: WorkspaceID
       }) {
+        const directory = yield* InstanceState.directory
         return yield* createNext({
           parentID: input?.parentID,
-          directory: Instance.directory,
+          directory,
           title: input?.title,
           permission: input?.permission,
           workspaceID: input?.workspaceID,
@@ -506,10 +509,11 @@ export namespace Session {
       })
 
       const fork = Effect.fn("Session.fork")(function* (input: { sessionID: SessionID; messageID?: MessageID }) {
+        const directory = yield* InstanceState.directory
         const original = yield* get(input.sessionID)
         const title = getForkedTitle(original.title)
         const session = yield* createNext({
-          directory: Instance.directory,
+          directory,
           workspaceID: original.workspaceID,
           title,
         })
diff --git a/packages/opencode/src/session/prompt.ts b/packages/opencode/src/session/prompt.ts
index dbf815bd6d79..083c23cc68f8 100644
--- a/packages/opencode/src/session/prompt.ts
+++ b/packages/opencode/src/session/prompt.ts
@@ -148,6 +148,7 @@ export namespace SessionPrompt {
       })
 
       const resolvePromptParts = Effect.fn("SessionPrompt.resolvePromptParts")(function* (template: string) {
+        const ctx = yield* InstanceState.context
         const parts: PromptInput["parts"] = [{ type: "text", text: template }]
         const files = ConfigMarkdown.files(template)
         const seen = new Set<string>()
@@ -159,7 +160,7 @@ export namespace SessionPrompt {
             seen.add(name)
             const filepath = name.startsWith("~/")
               ? path.join(os.homedir(), name.slice(2))
-              : path.resolve(Instance.worktree, name)
+              : path.resolve(ctx.worktree, name)
 
             const info = yield* fsys.stat(filepath).pipe(Effect.option)
             if (Option.isNone(info)) {
@@ -553,6 +554,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
         msgs: MessageV2.WithParts[]
       }) {
         const { task, model, lastUser, sessionID, session, msgs } = input
+        const ctx = yield* InstanceState.context
         const taskTool = yield* Effect.promise(() => TaskTool.init())
         const taskModel = task.model ? yield* getModel(task.model.providerID, task.model.modelID, sessionID) : model
         const assistantMessage: MessageV2.Assistant = yield* sessions.updateMessage({
@@ -563,7 +565,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
           mode: task.agent,
           agent: task.agent,
           variant: lastUser.variant,
-          path: { cwd: Instance.directory, root: Instance.worktree },
+          path: { cwd: ctx.directory, root: ctx.worktree },
           cost: 0,
           tokens: { input: 0, output: 0, reasoning: 0, cache: { read: 0, write: 0 } },
           modelID: taskModel.id,
@@ -734,6 +736,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
       })
 
       const shellImpl = Effect.fn("SessionPrompt.shellImpl")(function* (input: ShellInput, signal: AbortSignal) {
+        const ctx = yield* InstanceState.context
         const session = yield* sessions.get(input.sessionID)
         if (session.revert) {
           yield* Effect.promise(() => SessionRevert.cleanup(session))
@@ -773,7 +776,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
           mode: input.agent,
           agent: input.agent,
           cost: 0,
-          path: { cwd: Instance.directory, root: Instance.worktree },
+          path: { cwd: ctx.directory, root: ctx.worktree },
           time: { created: Date.now() },
           role: "assistant",
           tokens: { input: 0, output: 0, reasoning: 0, cache: { read: 0, write: 0 } },
@@ -832,7 +835,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
         }
 
         const args = (invocations[shellName] ?? invocations[""]).args
-        const cwd = Instance.directory
+        const cwd = ctx.directory
         const shellEnv = yield* plugin.trigger(
           "shell.env",
           { cwd, sessionID: input.sessionID, callID: part.callID },
@@ -976,7 +979,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
           variant,
         }
 
-        yield* Effect.addFinalizer(() => Effect.sync(() => InstructionPrompt.clear(info.id)))
+        yield* Effect.addFinalizer(() => InstanceState.withALS(() => InstructionPrompt.clear(info.id)))
 
         type Draft<T> = T extends MessageV2.Part ? Omit<T, "id"> & { id?: string } : never
         const assign = (part: Draft<MessageV2.Part>): MessageV2.Part => ({
@@ -1330,6 +1333,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
 
       const runLoop: (sessionID: SessionID) => Effect.Effect<MessageV2.WithParts> = Effect.fn("SessionPrompt.run")(
         function* (sessionID: SessionID) {
+          const ctx = yield* InstanceState.context
           let structured: unknown | undefined
           let step = 0
           const session = yield* sessions.get(sessionID)
@@ -1421,7 +1425,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
               mode: agent.name,
               agent: agent.name,
               variant: lastUser.variant,
-              path: { cwd: Instance.directory, root: Instance.worktree },
+              path: { cwd: ctx.directory, root: ctx.worktree },
               cost: 0,
               tokens: { input: 0, output: 0, reasoning: 0, cache: { read: 0, write: 0 } },
               modelID: model.id,
@@ -1538,7 +1542,7 @@ NOTE: At any point in time through this workflow you should feel free to ask the
               }),
               Effect.fnUntraced(function* (exit) {
                 if (Exit.isFailure(exit) && Cause.hasInterruptsOnly(exit.cause)) yield* handle.abort()
-                InstructionPrompt.clear(handle.message.id)
+                yield* InstanceState.withALS(() => InstructionPrompt.clear(handle.message.id))
               }),
             )
             if (outcome === "break") break
diff --git a/packages/opencode/src/storage/db.ts b/packages/opencode/src/storage/db.ts
index f41a1ecd8549..4cb0dbc3e184 100644
--- a/packages/opencode/src/storage/db.ts
+++ b/packages/opencode/src/storage/db.ts
@@ -10,8 +10,9 @@ import { NamedError } from "@opencode-ai/util/error"
 import z from "zod"
 import path from "path"
 import { readFileSync, readdirSync, existsSync } from "fs"
-import { Installation } from "../installation"
 import { Flag } from "../flag/flag"
+import { CHANNEL } from "../installation/meta"
+import { InstanceState } from "@/effect/instance-state"
 import { iife } from "@/util/iife"
 import { init } from "#db"
 
@@ -28,10 +29,9 @@ const log = Log.create({ service: "db" })
 
 export namespace Database {
   export function getChannelPath() {
-    const channel = Installation.CHANNEL
-    if (["latest", "beta"].includes(channel) || Flag.OPENCODE_DISABLE_CHANNEL_DB)
+    if (["latest", "beta"].includes(CHANNEL) || Flag.OPENCODE_DISABLE_CHANNEL_DB)
       return path.join(Global.Path.data, "opencode.db")
-    const safe = channel.replace(/[^a-zA-Z0-9._-]/g, "-")
+    const safe = CHANNEL.replace(/[^a-zA-Z0-9._-]/g, "-")
     return path.join(Global.Path.data, `opencode-${safe}.db`)
   }
 
@@ -142,10 +142,11 @@ export namespace Database {
   }
 
   export function effect(fn: () => any | Promise<any>) {
+    const bound = InstanceState.bind(fn)
     try {
-      ctx.use().effects.push(fn)
+      ctx.use().effects.push(bound)
     } catch {
-      fn()
+      bound()
     }
   }
 
@@ -162,12 +163,8 @@ export namespace Database {
     } catch (err) {
       if (err instanceof Context.NotFound) {
         const effects: (() => void | Promise<void>)[] = []
-        const result = Client().transaction(
-          (tx: TxOrDb) => {
-            return ctx.provide({ tx, effects }, () => callback(tx))
-          },
-          { behavior: options?.behavior },
-        )
+        const txCallback = InstanceState.bind((tx: TxOrDb) => ctx.provide({ tx, effects }, () => callback(tx)))
+        const result = Client().transaction(txCallback, { behavior: options?.behavior })
         for (const effect of effects) effect()
         return result as NotPromise<T>
       }
diff --git a/packages/opencode/src/worktree/index.ts b/packages/opencode/src/worktree/index.ts
index 7087ac262793..da20a5d6db1e 100644
--- a/packages/opencode/src/worktree/index.ts
+++ b/packages/opencode/src/worktree/index.ts
@@ -18,6 +18,7 @@ import { NodePath } from "@effect/platform-node"
 import { AppFileSystem } from "@/filesystem"
 import { makeRuntime } from "@/effect/run-service"
 import * as CrossSpawnSpawner from "@/effect/cross-spawn-spawner"
+import { InstanceState } from "@/effect/instance-state"
 
 export namespace Worktree {
   const log = Log.create({ service: "worktree" })
@@ -199,6 +200,7 @@ export namespace Worktree {
 
       const MAX_NAME_ATTEMPTS = 26
       const candidate = Effect.fn("Worktree.candidate")(function* (root: string, base?: string) {
+        const ctx = yield* InstanceState.context
         for (const attempt of Array.from({ length: MAX_NAME_ATTEMPTS }, (_, i) => i)) {
           const name = base ? (attempt === 0 ? base : `${base}-${Slug.create()}`) : Slug.create()
           const branch = `opencode/${name}`
@@ -207,7 +209,7 @@ export namespace Worktree {
           if (yield* fs.exists(directory).pipe(Effect.orDie)) continue
 
           const ref = `refs/heads/${branch}`
-          const branchCheck = yield* git(["show-ref", "--verify", "--quiet", ref], { cwd: Instance.worktree })
+          const branchCheck = yield* git(["show-ref", "--verify", "--quiet", ref], { cwd: ctx.worktree })
           if (branchCheck.code === 0) continue
 
           return Info.parse({ name, branch, directory })
@@ -216,11 +218,12 @@ export namespace Worktree {
       })
 
       const makeWorktreeInfo = Effect.fn("Worktree.makeWorktreeInfo")(function* (name?: string) {
-        if (Instance.project.vcs !== "git") {
+        const ctx = yield* InstanceState.context
+        if (ctx.project.vcs !== "git") {
           throw new NotGitError({ message: "Worktrees are only supported for git projects" })
         }
 
-        const root = pathSvc.join(Global.Path.data, "worktree", Instance.project.id)
+        const root = pathSvc.join(Global.Path.data, "worktree", ctx.project.id)
         yield* fs.makeDirectory(root, { recursive: true }).pipe(Effect.orDie)
 
         const base = name ? slugify(name) : ""
@@ -228,18 +231,20 @@ export namespace Worktree {
       })
 
       const setup = Effect.fnUntraced(function* (info: Info) {
+        const ctx = yield* InstanceState.context
         const created = yield* git(["worktree", "add", "--no-checkout", "-b", info.branch, info.directory], {
-          cwd: Instance.worktree,
+          cwd: ctx.worktree,
         })
         if (created.code !== 0) {
           throw new CreateFailedError({ message: created.stderr || created.text || "Failed to create git worktree" })
         }
 
-        yield* project.addSandbox(Instance.project.id, info.directory).pipe(Effect.catch(() => Effect.void))
+        yield* project.addSandbox(ctx.project.id, info.directory).pipe(Effect.catch(() => Effect.void))
       })
 
       const boot = Effect.fnUntraced(function* (info: Info, startCommand?: string) {
-        const projectID = Instance.project.id
+        const ctx = yield* InstanceState.context
+        const projectID = ctx.project.id
         const extra = startCommand?.trim()
 
         const populated = yield* git(["reset", "--hard"], { cwd: info.directory })
diff --git a/packages/opencode/test/account/repo.test.ts b/packages/opencode/test/account/repo.test.ts
index fb12ddf701f2..460c47443f3b 100644
--- a/packages/opencode/test/account/repo.test.ts
+++ b/packages/opencode/test/account/repo.test.ts
@@ -16,21 +16,21 @@ const truncate = Layer.effectDiscard(
 
 const it = testEffect(Layer.merge(AccountRepo.layer, truncate))
 
-it.effect("list returns empty when no accounts exist", () =>
+it.live("list returns empty when no accounts exist", () =>
   Effect.gen(function* () {
     const accounts = yield* AccountRepo.use((r) => r.list())
     expect(accounts).toEqual([])
   }),
 )
 
-it.effect("active returns none when no accounts exist", () =>
+it.live("active returns none when no accounts exist", () =>
   Effect.gen(function* () {
     const active = yield* AccountRepo.use((r) => r.active())
     expect(Option.isNone(active)).toBe(true)
   }),
 )
 
-it.effect("persistAccount inserts and getRow retrieves", () =>
+it.live("persistAccount inserts and getRow retrieves", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
     yield* AccountRepo.use((r) =>
@@ -56,7 +56,7 @@ it.effect("persistAccount inserts and getRow retrieves", () =>
   }),
 )
 
-it.effect("persistAccount sets the active account and org", () =>
+it.live("persistAccount sets the active account and org", () =>
   Effect.gen(function* () {
     const id1 = AccountID.make("user-1")
     const id2 = AccountID.make("user-2")
@@ -93,7 +93,7 @@ it.effect("persistAccount sets the active account and org", () =>
   }),
 )
 
-it.effect("list returns all accounts", () =>
+it.live("list returns all accounts", () =>
   Effect.gen(function* () {
     const id1 = AccountID.make("user-1")
     const id2 = AccountID.make("user-2")
@@ -128,7 +128,7 @@ it.effect("list returns all accounts", () =>
   }),
 )
 
-it.effect("remove deletes an account", () =>
+it.live("remove deletes an account", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -151,7 +151,7 @@ it.effect("remove deletes an account", () =>
   }),
 )
 
-it.effect("use stores the selected org and marks the account active", () =>
+it.live("use stores the selected org and marks the account active", () =>
   Effect.gen(function* () {
     const id1 = AccountID.make("user-1")
     const id2 = AccountID.make("user-2")
@@ -191,7 +191,7 @@ it.effect("use stores the selected org and marks the account active", () =>
   }),
 )
 
-it.effect("persistToken updates token fields", () =>
+it.live("persistToken updates token fields", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -225,7 +225,7 @@ it.effect("persistToken updates token fields", () =>
   }),
 )
 
-it.effect("persistToken with no expiry sets token_expiry to null", () =>
+it.live("persistToken with no expiry sets token_expiry to null", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -255,7 +255,7 @@ it.effect("persistToken with no expiry sets token_expiry to null", () =>
   }),
 )
 
-it.effect("persistAccount upserts on conflict", () =>
+it.live("persistAccount upserts on conflict", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -295,7 +295,7 @@ it.effect("persistAccount upserts on conflict", () =>
   }),
 )
 
-it.effect("remove clears active state when deleting the active account", () =>
+it.live("remove clears active state when deleting the active account", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -318,7 +318,7 @@ it.effect("remove clears active state when deleting the active account", () =>
   }),
 )
 
-it.effect("getRow returns none for nonexistent account", () =>
+it.live("getRow returns none for nonexistent account", () =>
   Effect.gen(function* () {
     const row = yield* AccountRepo.use((r) => r.getRow(AccountID.make("nope")))
     expect(Option.isNone(row)).toBe(true)
diff --git a/packages/opencode/test/account/service.test.ts b/packages/opencode/test/account/service.test.ts
index 9c67641d2089..cfe55e23e4f6 100644
--- a/packages/opencode/test/account/service.test.ts
+++ b/packages/opencode/test/account/service.test.ts
@@ -54,7 +54,7 @@ const deviceTokenClient = (body: unknown, status = 400) =>
 const poll = (body: unknown, status = 400) =>
   Account.Service.use((s) => s.poll(login())).pipe(Effect.provide(live(deviceTokenClient(body, status))))
 
-it.effect("orgsByAccount groups orgs per account", () =>
+it.live("orgsByAccount groups orgs per account", () =>
   Effect.gen(function* () {
     yield* AccountRepo.use((r) =>
       r.persistAccount({
@@ -107,7 +107,7 @@ it.effect("orgsByAccount groups orgs per account", () =>
   }),
 )
 
-it.effect("token refresh persists the new token", () =>
+it.live("token refresh persists the new token", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -148,7 +148,7 @@ it.effect("token refresh persists the new token", () =>
   }),
 )
 
-it.effect("config sends the selected org header", () =>
+it.live("config sends the selected org header", () =>
   Effect.gen(function* () {
     const id = AccountID.make("user-1")
 
@@ -188,7 +188,7 @@ it.effect("config sends the selected org header", () =>
   }),
 )
 
-it.effect("poll stores the account and first org on success", () =>
+it.live("poll stores the account and first org on success", () =>
   Effect.gen(function* () {
     const client = HttpClient.make((req) =>
       Effect.succeed(
@@ -259,7 +259,7 @@ for (const [name, body, expectedTag] of [
     "PollExpired",
   ],
 ] as const) {
-  it.effect(`poll returns ${name} for ${body.error}`, () =>
+  it.live(`poll returns ${name} for ${body.error}`, () =>
     Effect.gen(function* () {
       const result = yield* poll(body)
       expect(result._tag).toBe(expectedTag)
@@ -267,7 +267,7 @@ for (const [name, body, expectedTag] of [
   )
 }
 
-it.effect("poll returns poll error for other OAuth errors", () =>
+it.live("poll returns poll error for other OAuth errors", () =>
   Effect.gen(function* () {
     const result = yield* poll({
       error: "server_error",
diff --git a/packages/opencode/test/bus/bus-effect.test.ts b/packages/opencode/test/bus/bus-effect.test.ts
index 642763e90fdd..6f3bcbcfab82 100644
--- a/packages/opencode/test/bus/bus-effect.test.ts
+++ b/packages/opencode/test/bus/bus-effect.test.ts
@@ -22,7 +22,7 @@ const live = Layer.mergeAll(Bus.layer, node)
 const it = testEffect(live)
 
 describe("Bus (Effect-native)", () => {
-  it.effect("publish + subscribe stream delivers events", () =>
+  it.live("publish + subscribe stream delivers events", () =>
     provideTmpdirInstance(() =>
       Effect.gen(function* () {
         const bus = yield* Bus.Service
@@ -46,7 +46,7 @@ describe("Bus (Effect-native)", () => {
     ),
   )
 
-  it.effect("subscribe filters by event type", () =>
+  it.live("subscribe filters by event type", () =>
     provideTmpdirInstance(() =>
       Effect.gen(function* () {
         const bus = yield* Bus.Service
@@ -70,7 +70,7 @@ describe("Bus (Effect-native)", () => {
     ),
   )
 
-  it.effect("subscribeAll receives all types", () =>
+  it.live("subscribeAll receives all types", () =>
     provideTmpdirInstance(() =>
       Effect.gen(function* () {
         const bus = yield* Bus.Service
@@ -95,7 +95,7 @@ describe("Bus (Effect-native)", () => {
     ),
   )
 
-  it.effect("multiple subscribers each receive the event", () =>
+  it.live("multiple subscribers each receive the event", () =>
     provideTmpdirInstance(() =>
       Effect.gen(function* () {
         const bus = yield* Bus.Service
@@ -129,7 +129,7 @@ describe("Bus (Effect-native)", () => {
     ),
   )
 
-  it.effect("subscribeAll stream sees InstanceDisposed on disposal", () =>
+  it.live("subscribeAll stream sees InstanceDisposed on disposal", () =>
     Effect.gen(function* () {
       const dir = yield* tmpdirScoped()
       const types: string[] = []
diff --git a/packages/opencode/test/effect/instance-state.test.ts b/packages/opencode/test/effect/instance-state.test.ts
index 2d527482ba11..914753312f02 100644
--- a/packages/opencode/test/effect/instance-state.test.ts
+++ b/packages/opencode/test/effect/instance-state.test.ts
@@ -1,6 +1,7 @@
 import { afterEach, expect, test } from "bun:test"
-import { Duration, Effect, Layer, ManagedRuntime, ServiceMap } from "effect"
+import { Cause, Deferred, Duration, Effect, Exit, Fiber, Layer, ManagedRuntime, ServiceMap } from "effect"
 import { InstanceState } from "../../src/effect/instance-state"
+import { InstanceRef } from "../../src/effect/instance-ref"
 import { Instance } from "../../src/project/instance"
 import { tmpdir } from "../fixture/fixture"
 
@@ -382,3 +383,100 @@ test("InstanceState dedupes concurrent lookups", async () => {
     ),
   )
 })
+
+test("InstanceState survives deferred resume from the same instance context", async () => {
+  await using tmp = await tmpdir({ git: true })
+
+  interface Api {
+    readonly get: (gate: Deferred.Deferred<void>) => Effect.Effect<string>
+  }
+
+  class Test extends ServiceMap.Service<Test, Api>()("@test/DeferredResume") {
+    static readonly layer = Layer.effect(
+      Test,
+      Effect.gen(function* () {
+        const state = yield* InstanceState.make((ctx) => Effect.sync(() => ctx.directory))
+
+        return Test.of({
+          get: Effect.fn("Test.get")(function* (gate: Deferred.Deferred<void>) {
+            yield* Deferred.await(gate)
+            return yield* InstanceState.get(state)
+          }),
+        })
+      }),
+    )
+  }
+
+  const rt = ManagedRuntime.make(Test.layer)
+
+  try {
+    const gate = await Effect.runPromise(Deferred.make<void>())
+    const fiber = await Instance.provide({
+      directory: tmp.path,
+      fn: () => Promise.resolve(rt.runFork(Test.use((svc) => svc.get(gate)))),
+    })
+
+    await Instance.provide({
+      directory: tmp.path,
+      fn: () => Effect.runPromise(Deferred.succeed(gate, void 0)),
+    })
+    const exit = await Effect.runPromise(Fiber.await(fiber))
+
+    expect(Exit.isSuccess(exit)).toBe(true)
+    if (Exit.isSuccess(exit)) {
+      expect(exit.value).toBe(tmp.path)
+    }
+  } finally {
+    await rt.dispose()
+  }
+})
+
+test("InstanceState survives deferred resume outside ALS when InstanceRef is set", async () => {
+  await using tmp = await tmpdir({ git: true })
+
+  interface Api {
+    readonly get: (gate: Deferred.Deferred<void>) => Effect.Effect<string>
+  }
+
+  class Test extends ServiceMap.Service<Test, Api>()("@test/DeferredResumeOutside") {
+    static readonly layer = Layer.effect(
+      Test,
+      Effect.gen(function* () {
+        const state = yield* InstanceState.make((ctx) => Effect.sync(() => ctx.directory))
+
+        return Test.of({
+          get: Effect.fn("Test.get")(function* (gate: Deferred.Deferred<void>) {
+            yield* Deferred.await(gate)
+            return yield* InstanceState.get(state)
+          }),
+        })
+      }),
+    )
+  }
+
+  const rt = ManagedRuntime.make(Test.layer)
+
+  try {
+    const gate = await Effect.runPromise(Deferred.make<void>())
+    // Provide InstanceRef so the fiber carries the context even when
+    // the deferred is resolved from outside Instance.provide ALS.
+    const fiber = await Instance.provide({
+      directory: tmp.path,
+      fn: () =>
+        Promise.resolve(
+          rt.runFork(Test.use((svc) => svc.get(gate)).pipe(Effect.provideService(InstanceRef, Instance.current))),
+        ),
+    })
+
+    // Resume from outside any Instance.provide — ALS is NOT set here
+    await Effect.runPromise(Deferred.succeed(gate, void 0))
+    const exit = await Effect.runPromise(Fiber.await(fiber))
+
+    expect(Exit.isSuccess(exit)).toBe(true)
+    if (Exit.isSuccess(exit)) {
+      expect(exit.value).toBe(tmp.path)
+    }
+  } finally {
+    await rt.dispose()
+  }
+})
diff --git a/packages/opencode/test/effect/runner.test.ts b/packages/opencode/test/effect/runner.test.ts
index 5d3488849c59..9dc395876ee0 100644
--- a/packages/opencode/test/effect/runner.test.ts
+++ b/packages/opencode/test/effect/runner.test.ts
@@ -6,7 +6,7 @@ import { it } from "../lib/effect"
 describe("Runner", () => {
   // --- ensureRunning semantics ---
 
-  it.effect(
+  it.live(
     "ensureRunning starts work and returns result",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -18,7 +18,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "ensureRunning propagates work failures",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -29,7 +29,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "concurrent callers share the same run",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -51,7 +51,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "concurrent callers all receive same error",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -71,7 +71,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "ensureRunning can be called again after previous run completes",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -81,7 +81,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "second ensureRunning ignores new work if already running",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -110,7 +110,7 @@ describe("Runner", () => {
 
   // --- cancel semantics ---
 
-  it.effect(
+  it.live(
     "cancel interrupts running work",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -128,7 +128,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "cancel on idle is a no-op",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -138,7 +138,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "cancel with onInterrupt resolves callers gracefully",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -154,7 +154,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "cancel with queued callers resolves all",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -175,7 +175,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "work can be started after cancel",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -245,7 +245,7 @@ describe("Runner", () => {
 
   // --- shell semantics ---
 
-  it.effect(
+  it.live(
     "shell runs exclusively",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -256,7 +256,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "shell rejects when run is active",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -272,7 +272,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "shell rejects when another shell is running",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -292,7 +292,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "shell rejects via busy callback and cancel still stops the first shell",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -323,7 +323,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "cancel interrupts shell that ignores abort signal",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -349,7 +349,7 @@ describe("Runner", () => {
 
   // --- shell→run handoff ---
 
-  it.effect(
+  it.live(
     "ensureRunning queues behind shell then runs after",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -376,7 +376,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "multiple ensureRunning callers share the queued run behind shell",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -407,7 +407,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "cancel during shell_then_run cancels both",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -441,7 +441,7 @@ describe("Runner", () => {
 
   // --- lifecycle callbacks ---
 
-  it.effect(
+  it.live(
     "onIdle fires when returning to idle from running",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -454,7 +454,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "onIdle fires on cancel",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -470,7 +470,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "onBusy fires when shell starts",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -485,7 +485,7 @@ describe("Runner", () => {
 
   // --- busy flag ---
 
-  it.effect(
+  it.live(
     "busy is true during run",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
@@ -502,7 +502,7 @@ describe("Runner", () => {
     }),
   )
 
-  it.effect(
+  it.live(
     "busy is true during shell",
     Effect.gen(function* () {
       const s = yield* Scope.Scope
diff --git a/packages/opencode/test/fixture/fixture.ts b/packages/opencode/test/fixture/fixture.ts
index a36a3f9d84dc..a50e0c4f614d 100644
--- a/packages/opencode/test/fixture/fixture.ts
+++ b/packages/opencode/test/fixture/fixture.ts
@@ -2,10 +2,14 @@ import { $ } from "bun"
 import * as fs from "fs/promises"
 import os from "os"
 import path from "path"
-import { Effect, FileSystem, ServiceMap } from "effect"
+import { Effect, ServiceMap } from "effect"
+import type * as PlatformError from "effect/PlatformError"
+import type * as Scope from "effect/Scope"
 import { ChildProcess, ChildProcessSpawner } from "effect/unstable/process"
 import type { Config } from "../../src/config/config"
+import { InstanceRef } from "../../src/effect/instance-ref"
 import { Instance } from "../../src/project/instance"
+import { TestLLMServer } from "../lib/llm-server"
 
 // Strip null bytes from paths (defensive fix for CI environment issues)
 function sanitizePath(p: string): string {
@@ -78,9 +82,17 @@ export async function tmpdir<T>(options?: TmpDirOptions<T>) {
 /** Effectful scoped tmpdir. Cleaned up when the scope closes. Make sure these stay in sync */
 export function tmpdirScoped(options?: { git?: boolean; config?: Partial<Config.Info> }) {
   return Effect.gen(function* () {
-    const fs = yield* FileSystem.FileSystem
     const spawner = yield* ChildProcessSpawner.ChildProcessSpawner
-    const dir = yield* fs.makeTempDirectoryScoped({ prefix: "opencode-test-" })
+    const dirpath = sanitizePath(path.join(os.tmpdir(), "opencode-test-" + Math.random().toString(36).slice(2)))
+    yield* Effect.promise(() => fs.mkdir(dirpath, { recursive: true }))
+    const dir = sanitizePath(yield* Effect.promise(() => fs.realpath(dirpath)))
+
+    yield* Effect.addFinalizer(() =>
+      Effect.promise(async () => {
+        if (options?.git) await stop(dir).catch(() => undefined)
+        await clean(dir).catch(() => undefined)
+      }),
+    )
 
     const git = (...args: string[]) =>
       spawner.spawn(ChildProcess.make("git", args, { cwd: dir })).pipe(Effect.flatMap((handle) => handle.exitCode))
@@ -94,9 +106,11 @@ export function tmpdirScoped(options?: { git?: boolean; config?: Partial<Config.
     }
 
     if (options?.config) {
-      yield* fs.writeFileString(
-        path.join(dir, "opencode.json"),
-        JSON.stringify({ $schema: "https://opencode.ai/config.json", ...options.config }),
+      yield* Effect.promise(() =>
+        fs.writeFile(
+          path.join(dir, "opencode.json"),
+          JSON.stringify({ $schema: "https://opencode.ai/config.json", ...options.config }),
+        ),
       )
     }
 
@@ -111,7 +125,7 @@ export const provideInstance =
       Effect.promise<A>(async () =>
         Instance.provide({
           directory,
-          fn: () => Effect.runPromiseWith(services)(self),
+          fn: () => Effect.runPromiseWith(services)(self.pipe(Effect.provideService(InstanceRef, Instance.current))),
         }),
       ),
     )
@@ -139,3 +153,20 @@ export function provideTmpdirInstance<A, E, R>(
     return yield* self(path).pipe(provideInstance(path))
   })
 }
+
+export function provideTmpdirServer<A, E, R>(
+  self: (input: { dir: string; llm: TestLLMServer["Service"] }) => Effect.Effect<A, E, R>,
+  options?: { git?: boolean; config?: (url: string) => Partial<Config.Info> },
+): Effect.Effect<
+  A,
+  E | PlatformError.PlatformError,
+  R | TestLLMServer | ChildProcessSpawner.ChildProcessSpawner | Scope.Scope
+> {
+  return Effect.gen(function* () {
+    const llm = yield* TestLLMServer
+    return yield* provideTmpdirInstance((dir) => self({ dir, llm }), {
+      git: options?.git,
+      config: options?.config?.(llm.url),
+    })
+  })
+}
diff --git a/packages/opencode/test/format/format.test.ts b/packages/opencode/test/format/format.test.ts
index 74336e02a394..95fe763d4116 100644
--- a/packages/opencode/test/format/format.test.ts
+++ b/packages/opencode/test/format/format.test.ts
@@ -10,7 +10,7 @@ import * as Formatter from "../../src/format/formatter"
 const it = testEffect(Layer.mergeAll(Format.defaultLayer, CrossSpawnSpawner.defaultLayer, NodeFileSystem.layer))
 
 describe("Format", () => {
-  it.effect("status() returns built-in formatters when no config overrides", () =>
+  it.live("status() returns built-in formatters when no config overrides", () =>
     provideTmpdirInstance(() =>
       Format.Service.use((fmt) =>
         Effect.gen(function* () {
@@ -32,7 +32,7 @@ describe("Format", () => {
     ),
   )
 
-  it.effect("status() returns empty list when formatter is disabled", () =>
+  it.live("status() returns empty list when formatter is disabled", () =>
     provideTmpdirInstance(
       () =>
         Format.Service.use((fmt) =>
@@ -44,7 +44,7 @@ describe("Format", () => {
     ),
   )
 
-  it.effect("status() excludes formatters marked as disabled in config", () =>
+  it.live("status() excludes formatters marked as disabled in config", () =>
     provideTmpdirInstance(
       () =>
         Format.Service.use((fmt) =>
@@ -64,11 +64,11 @@ describe("Format", () => {
     ),
   )
 
-  it.effect("service initializes without error", () =>
+  it.live("service initializes without error", () =>
     provideTmpdirInstance(() => Format.Service.use(() => Effect.void)),
   )
 
-  it.effect("status() initializes formatter state per directory", () =>
+  it.live("status() initializes formatter state per directory", () =>
     Effect.gen(function* () {
       const a = yield* provideTmpdirInstance(() => Format.Service.use((fmt) => fmt.status()), {
         config: { formatter: false },
@@ -80,7 +80,7 @@ describe("Format", () => {
     }),
   )
 
-  it.effect("runs enabled checks for matching formatters in parallel", () =>
+  it.live("runs enabled checks for matching formatters in parallel", () =>
     provideTmpdirInstance((path) =>
       Effect.gen(function* () {
         const file = `${path}/test.parallel`
@@ -144,7 +144,7 @@ describe("Format", () => {
     ),
   )
 
-  it.effect("runs matching formatters sequentially for the same file", () =>
+  it.live("runs matching formatters sequentially for the same file", () =>
     provideTmpdirInstance(
       (path) =>
         Effect.gen(function* () {
diff --git a/packages/opencode/test/lib/effect.ts b/packages/opencode/test/lib/effect.ts
index 4162ba0924ee..131ec5cc6bc2 100644
--- a/packages/opencode/test/lib/effect.ts
+++ b/packages/opencode/test/lib/effect.ts
@@ -1,14 +1,14 @@
 import { test, type TestOptions } from "bun:test"
 import { Cause, Effect, Exit, Layer } from "effect"
 import type * as Scope from "effect/Scope"
+import * as TestClock from "effect/testing/TestClock"
 import * as TestConsole from "effect/testing/TestConsole"
 
 type Body<A, E, R> = Effect.Effect<A, E, R> | (() => Effect.Effect<A, E, R>)
-const env = TestConsole.layer
 
 const body = <A, E, R>(value: Body<A, E, R>) => Effect.suspend(() => (typeof value === "function" ? value() : value))
 
-const run = <A, E, R, E2>(value: Body<A, E, R | Scope.Scope>, layer: Layer.Layer<R, E2, never>) =>
+const run = <A, E, R, E2>(value: Body<A, E, R | Scope.Scope>, layer: Layer.Layer<R, E2>) =>
   Effect.gen(function* () {
     const exit = yield* body(value).pipe(Effect.scoped, Effect.provide(layer), Effect.exit)
     if (Exit.isFailure(exit)) {
@@ -19,19 +19,35 @@ const run = <A, E, R, E2>(value: Body<A, E, R | Scope.Scope>, layer: Layer.Layer
     return yield* exit
   }).pipe(Effect.runPromise)
 
-const make = <R, E>(layer: Layer.Layer<R, E, never>) => {
+const make = <R, E>(testLayer: Layer.Layer<R, E>, liveLayer: Layer.Layer<R, E>) => {
   const effect = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
-    test(name, () => run(value, layer), opts)
+    test(name, () => run(value, testLayer), opts)
 
   effect.only = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
-    test.only(name, () => run(value, layer), opts)
+    test.only(name, () => run(value, testLayer), opts)
 
   effect.skip = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
-    test.skip(name, () => run(value, layer), opts)
+    test.skip(name, () => run(value, testLayer), opts)
 
-  return { effect }
+  const live = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
+    test(name, () => run(value, liveLayer), opts)
+
+  live.only = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
+    test.only(name, () => run(value, liveLayer), opts)
+
+  live.skip = <A, E2>(name: string, value: Body<A, E2, R | Scope.Scope>, opts?: number | TestOptions) =>
+    test.skip(name, () => run(value, liveLayer), opts)
+
+  return { effect, live }
 }
 
-export const it = make(env)
+// Test environment with TestClock and TestConsole
+const testEnv = Layer.mergeAll(TestConsole.layer, TestClock.layer())
+
+// Live environment - uses real clock, but keeps TestConsole for output capture
+const liveEnv = TestConsole.layer
+
+export const it = make(testEnv, liveEnv)
 
-export const testEffect = <R, E>(layer: Layer.Layer<R, E, never>) => make(Layer.provideMerge(layer, env))
+export const testEffect = <R, E>(layer: Layer.Layer<R, E>) =>
+  make(Layer.provideMerge(layer, testEnv), Layer.provideMerge(layer, liveEnv))
diff --git a/packages/opencode/test/lib/llm-server.ts b/packages/opencode/test/lib/llm-server.ts
new file mode 100644
index 000000000000..b0a54424efc5
--- /dev/null
+++ b/packages/opencode/test/lib/llm-server.ts
@@ -0,0 +1,282 @@
+import { NodeHttpServer } from "@effect/platform-node"
+import * as Http from "node:http"
+import { Deferred, Effect, Layer, ServiceMap, Stream } from "effect"
+import * as HttpServer from "effect/unstable/http/HttpServer"
+import { HttpRouter, HttpServerRequest, HttpServerResponse } from "effect/unstable/http"
+
+type Step =
+  | {
+      type: "text"
+      text: string
+    }
+  | {
+      type: "tool"
+      tool: string
+      input: unknown
+    }
+  | {
+      type: "fail"
+      message: string
+    }
+  | {
+      type: "hang"
+    }
+  | {
+      type: "hold"
+      text: string
+      wait: PromiseLike<unknown>
+    }
+
+type Hit = {
+  url: URL
+  body: Record<string, unknown>
+}
+
+type Wait = {
+  count: number
+  ready: Deferred.Deferred<void>
+}
+
+function sse(lines: unknown[]) {
+  return HttpServerResponse.stream(
+    Stream.fromIterable([
+      [...lines.map((line) => `data: ${JSON.stringify(line)}`), "data: [DONE]"].join("\n\n") + "\n\n",
+    ]).pipe(Stream.encodeText),
+    { contentType: "text/event-stream" },
+  )
+}
+
+function text(step: Extract<Step, { type: "text" }>) {
+  return sse([
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [{ delta: { role: "assistant" } }],
+    },
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [{ delta: { content: step.text } }],
+    },
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [{ delta: {}, finish_reason: "stop" }],
+    },
+  ])
+}
+
+function tool(step: Extract<Step, { type: "tool" }>, seq: number) {
+  const id = `call_${seq}`
+  const args = JSON.stringify(step.input)
+  return sse([
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [{ delta: { role: "assistant" } }],
+    },
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [
+        {
+          delta: {
+            tool_calls: [
+              {
+                index: 0,
+                id,
+                type: "function",
+                function: {
+                  name: step.tool,
+                  arguments: "",
+                },
+              },
+            ],
+          },
+        },
+      ],
+    },
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [
+        {
+          delta: {
+            tool_calls: [
+              {
+                index: 0,
+                function: {
+                  arguments: args,
+                },
+              },
+            ],
+          },
+        },
+      ],
+    },
+    {
+      id: "chatcmpl-test",
+      object: "chat.completion.chunk",
+      choices: [{ delta: {}, finish_reason: "tool_calls" }],
+    },
+  ])
+}
+
+function fail(step: Extract<Step, { type: "fail" }>) {
+  return HttpServerResponse.stream(
+    Stream.fromIterable([
+      'data: {"id":"chatcmpl-test","object":"chat.completion.chunk","choices":[{"delta":{"role":"assistant"}}]}\n\n',
+    ]).pipe(Stream.encodeText, Stream.concat(Stream.fail(new Error(step.message)))),
+    { contentType: "text/event-stream" },
+  )
+}
+
+function hang() {
+  return HttpServerResponse.stream(
+    Stream.fromIterable([
+      'data: {"id":"chatcmpl-test","object":"chat.completion.chunk","choices":[{"delta":{"role":"assistant"}}]}\n\n',
+    ]).pipe(Stream.encodeText, Stream.concat(Stream.never)),
+    { contentType: "text/event-stream" },
+  )
+}
+
+function hold(step: Extract<Step, { type: "hold" }>) {
+  return HttpServerResponse.stream(
+    Stream.fromIterable([
+      'data: {"id":"chatcmpl-test","object":"chat.completion.chunk","choices":[{"delta":{"role":"assistant"}}]}\n\n',
+    ]).pipe(
+      Stream.encodeText,
+      Stream.concat(
+        Stream.fromEffect(Effect.promise(() => step.wait)).pipe(
+          Stream.flatMap(() =>
+            Stream.fromIterable([
+              `data: ${JSON.stringify({
+                id: "chatcmpl-test",
+                object: "chat.completion.chunk",
+                choices: [{ delta: { content: step.text } }],
+              })}\n\n`,
+              `data: ${JSON.stringify({
+                id: "chatcmpl-test",
+                object: "chat.completion.chunk",
+                choices: [{ delta: {}, finish_reason: "stop" }],
+              })}\n\n`,
+              "data: [DONE]\n\n",
+            ]).pipe(Stream.encodeText),
+          ),
+        ),
+      ),
+    ),
+    { contentType: "text/event-stream" },
+  )
+}
+
+namespace TestLLMServer {
+  export interface Service {
+    readonly url: string
+    readonly text: (value: string) => Effect.Effect<void>
+    readonly tool: (tool: string, input: unknown) => Effect.Effect<void>
+    readonly fail: (message?: string) => Effect.Effect<void>
+    readonly hang: Effect.Effect<void>
+    readonly hold: (text: string, wait: PromiseLike<unknown>) => Effect.Effect<void>
+    readonly hits: Effect.Effect<Hit[]>
+    readonly calls: Effect.Effect<number>
+    readonly wait: (count: number) => Effect.Effect<void>
+    readonly inputs: Effect.Effect<Record<string, unknown>[]>
+    readonly pending: Effect.Effect<number>
+  }
+}
+
+export class TestLLMServer extends ServiceMap.Service<TestLLMServer, TestLLMServer.Service>()("@test/LLMServer") {
+  static readonly layer = Layer.effect(
+    TestLLMServer,
+    Effect.gen(function* () {
+      const server = yield* HttpServer.HttpServer
+      const router = yield* HttpRouter.HttpRouter
+
+      let hits: Hit[] = []
+      let list: Step[] = []
+      let seq = 0
+      let waits: Wait[] = []
+
+      const push = (step: Step) => {
+        list = [...list, step]
+      }
+
+      const notify = Effect.fnUntraced(function* () {
+        const ready = waits.filter((item) => hits.length >= item.count)
+        if (!ready.length) return
+        waits = waits.filter((item) => hits.length < item.count)
+        yield* Effect.forEach(ready, (item) => Deferred.succeed(item.ready, void 0))
+      })
+
+      const pull = () => {
+        const step = list[0]
+        if (!step) return { step: undefined, seq }
+        seq += 1
+        list = list.slice(1)
+        return { step, seq }
+      }
+
+      yield* router.add(
+        "POST",
+        "/v1/chat/completions",
+        Effect.gen(function* () {
+          const req = yield* HttpServerRequest.HttpServerRequest
+          const next = pull()
+          if (!next.step) return HttpServerResponse.text("unexpected request", { status: 500 })
+          const json = yield* req.json.pipe(Effect.orElseSucceed(() => ({})))
+          hits = [
+            ...hits,
+            {
+              url: new URL(req.originalUrl, "http://localhost"),
+              body: json && typeof json === "object" ? (json as Record<string, unknown>) : {},
+            },
+          ]
+          yield* notify()
+          if (next.step.type === "text") return text(next.step)
+          if (next.step.type === "tool") return tool(next.step, next.seq)
+          if (next.step.type === "fail") return fail(next.step)
+          if (next.step.type === "hang") return hang()
+          return hold(next.step)
+        }),
+      )
+
+      yield* server.serve(router.asHttpEffect())
+
+      return TestLLMServer.of({
+        url:
+          server.address._tag === "TcpAddress"
+            ? `http://127.0.0.1:${server.address.port}/v1`
+            : `unix://${server.address.path}/v1`,
+        text: Effect.fn("TestLLMServer.text")(function* (value: string) {
+          push({ type: "text", text: value })
+        }),
+        tool: Effect.fn("TestLLMServer.tool")(function* (tool: string, input: unknown) {
+          push({ type: "tool", tool, input })
+        }),
+        fail: Effect.fn("TestLLMServer.fail")(function* (message = "boom") {
+          push({ type: "fail", message })
+        }),
+        hang: Effect.gen(function* () {
+          push({ type: "hang" })
+        }).pipe(Effect.withSpan("TestLLMServer.hang")),
+        hold: Effect.fn("TestLLMServer.hold")(function* (text: string, wait: PromiseLike<unknown>) {
+          push({ type: "hold", text, wait })
+        }),
+        hits: Effect.sync(() => [...hits]),
+        calls: Effect.sync(() => hits.length),
+        wait: Effect.fn("TestLLMServer.wait")(function* (count: number) {
+          if (hits.length >= count) return
+          const ready = yield* Deferred.make<void>()
+          waits = [...waits, { count, ready }]
+          yield* Deferred.await(ready)
+        }),
+        inputs: Effect.sync(() => hits.map((hit) => hit.body)),
+        pending: Effect.sync(() => list.length),
+      })
+    }),
+  ).pipe(
+    Layer.provide(HttpRouter.layer), //
+    Layer.provide(NodeHttpServer.layer(() => Http.createServer(), { port: 0 })),
+  )
+}
diff --git a/packages/opencode/test/session/processor-effect.test.ts b/packages/opencode/test/session/processor-effect.test.ts
index 0dfdef26f61e..23c6911a2cb5 100644
--- a/packages/opencode/test/session/processor-effect.test.ts
+++ b/packages/opencode/test/session/processor-effect.test.ts
@@ -264,7 +264,7 @@ const env = SessionProcessor.layer.pipe(Layer.provideMerge(deps))
 
 const it = testEffect(env)
 
-it.effect("session.processor effect tests capture llm input cleanly", () => {
+it.live("session.processor effect tests capture llm input cleanly", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -316,7 +316,7 @@ it.effect("session.processor effect tests capture llm input cleanly", () => {
   )
 })
 
-it.effect("session.processor effect tests stop after token overflow requests compaction", () => {
+it.live("session.processor effect tests stop after token overflow requests compaction", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -376,7 +376,7 @@ it.effect("session.processor effect tests stop after token overflow requests com
   )
 })
 
-it.effect("session.processor effect tests reset reasoning state across retries", () => {
+it.live("session.processor effect tests reset reasoning state across retries", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -449,7 +449,7 @@ it.effect("session.processor effect tests reset reasoning state across retries",
   )
 })
 
-it.effect("session.processor effect tests do not retry unknown json errors", () => {
+it.live("session.processor effect tests do not retry unknown json errors", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -495,7 +495,7 @@ it.effect("session.processor effect tests do not retry unknown json errors", ()
   )
 })
 
-it.effect("session.processor effect tests retry recognized structured json errors", () => {
+it.live("session.processor effect tests retry recognized structured json errors", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -544,7 +544,7 @@ it.effect("session.processor effect tests retry recognized structured json error
   )
 })
 
-it.effect("session.processor effect tests publish retry status updates", () => {
+it.live("session.processor effect tests publish retry status updates", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -611,7 +611,7 @@ it.effect("session.processor effect tests publish retry status updates", () => {
   )
 })
 
-it.effect("session.processor effect tests compact on structured context overflow", () => {
+it.live("session.processor effect tests compact on structured context overflow", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -656,7 +656,7 @@ it.effect("session.processor effect tests compact on structured context overflow
   )
 })
 
-it.effect("session.processor effect tests mark pending tools as aborted on cleanup", () => {
+it.live("session.processor effect tests mark pending tools as aborted on cleanup", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -725,7 +725,7 @@ it.effect("session.processor effect tests mark pending tools as aborted on clean
   )
 })
 
-it.effect("session.processor effect tests record aborted errors and idle state", () => {
+it.live("session.processor effect tests record aborted errors and idle state", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -807,7 +807,7 @@ it.effect("session.processor effect tests record aborted errors and idle state",
   )
 })
 
-it.effect("session.processor effect tests mark interruptions aborted without manual abort", () => {
+it.live("session.processor effect tests mark interruptions aborted without manual abort", () => {
   return provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
diff --git a/packages/opencode/test/session/prompt-effect.test.ts b/packages/opencode/test/session/prompt-effect.test.ts
index ef664113f382..98111bb3a269 100644
--- a/packages/opencode/test/session/prompt-effect.test.ts
+++ b/packages/opencode/test/session/prompt-effect.test.ts
@@ -1,7 +1,6 @@
 import { NodeFileSystem } from "@effect/platform-node"
 import { expect, spyOn } from "bun:test"
-import { Cause, Effect, Exit, Fiber, Layer, ServiceMap } from "effect"
-import * as Stream from "effect/Stream"
+import { Cause, Effect, Exit, Fiber, Layer } from "effect"
 import z from "zod"
 import type { Agent } from "../../src/agent/agent"
 import { Agent as AgentSvc } from "../../src/agent/agent"
@@ -31,8 +30,9 @@ import { ToolRegistry } from "../../src/tool/registry"
 import { Truncate } from "../../src/tool/truncate"
 import { Log } from "../../src/util/log"
 import * as CrossSpawnSpawner from "../../src/effect/cross-spawn-spawner"
-import { provideTmpdirInstance } from "../fixture/fixture"
+import { provideTmpdirInstance, provideTmpdirServer } from "../fixture/fixture"
 import { testEffect } from "../lib/effect"
+import { TestLLMServer } from "../lib/llm-server"
 
 Log.init({ print: false })
 
@@ -41,105 +41,6 @@ const ref = {
   modelID: ModelID.make("test-model"),
 }
 
-type Script = Stream.Stream<LLM.Event, unknown> | ((input: LLM.StreamInput) => Stream.Stream<LLM.Event, unknown>)
-
-class TestLLM extends ServiceMap.Service<
-  TestLLM,
-  {
-    readonly push: (stream: Script) => Effect.Effect<void>
-    readonly reply: (...items: LLM.Event[]) => Effect.Effect<void>
-    readonly calls: Effect.Effect<number>
-    readonly inputs: Effect.Effect<LLM.StreamInput[]>
-  }
->()("@test/PromptLLM") {}
-
-function stream(...items: LLM.Event[]) {
-  return Stream.make(...items)
-}
-
-function usage(input = 1, output = 1, total = input + output) {
-  return {
-    inputTokens: input,
-    outputTokens: output,
-    totalTokens: total,
-    inputTokenDetails: {
-      noCacheTokens: undefined,
-      cacheReadTokens: undefined,
-      cacheWriteTokens: undefined,
-    },
-    outputTokenDetails: {
-      textTokens: undefined,
-      reasoningTokens: undefined,
-    },
-  }
-}
-
-function start(): LLM.Event {
-  return { type: "start" }
-}
-
-function textStart(id = "t"): LLM.Event {
-  return { type: "text-start", id }
-}
-
-function textDelta(id: string, text: string): LLM.Event {
-  return { type: "text-delta", id, text }
-}
-
-function textEnd(id = "t"): LLM.Event {
-  return { type: "text-end", id }
-}
-
-function finishStep(): LLM.Event {
-  return {
-    type: "finish-step",
-    finishReason: "stop",
-    rawFinishReason: "stop",
-    response: { id: "res", modelId: "test-model", timestamp: new Date() },
-    providerMetadata: undefined,
-    usage: usage(),
-  }
-}
-
-function finish(): LLM.Event {
-  return { type: "finish", finishReason: "stop", rawFinishReason: "stop", totalUsage: usage() }
-}
-
-function finishToolCallsStep(): LLM.Event {
-  return {
-    type: "finish-step",
-    finishReason: "tool-calls",
-    rawFinishReason: "tool_calls",
-    response: { id: "res", modelId: "test-model", timestamp: new Date() },
-    providerMetadata: undefined,
-    usage: usage(),
-  }
-}
-
-function finishToolCalls(): LLM.Event {
-  return { type: "finish", finishReason: "tool-calls", rawFinishReason: "tool_calls", totalUsage: usage() }
-}
-
-function replyStop(text: string, id = "t") {
-  return [start(), textStart(id), textDelta(id, text), textEnd(id), finishStep(), finish()] as const
-}
-
-function replyToolCalls(text: string, id = "t") {
-  return [start(), textStart(id), textDelta(id, text), textEnd(id), finishToolCallsStep(), finishToolCalls()] as const
-}
-
-function toolInputStart(id: string, toolName: string): LLM.Event {
-  return { type: "tool-input-start", id, toolName }
-}
-
-function toolCall(toolCallId: string, toolName: string, input: unknown): LLM.Event {
-  return { type: "tool-call", toolCallId, toolName, input }
-}
-
-function hang(_input: LLM.StreamInput, ...items: LLM.Event[]) {
-  return stream(...items).pipe(Stream.concat(Stream.fromEffect(Effect.never)))
-}
-
 function defer<T>() {
   let resolve!: (value: T | PromiseLike<T>) => void
   const promise = new Promise<T>((done) => {
@@ -148,10 +49,6 @@ function defer<T>() {
   return { promise, resolve }
 }
 
-function waitMs(ms: number) {
-  return Effect.promise(() => new Promise<void>((done) => setTimeout(done, ms)))
-}
-
 function withSh<A, E, R>(fx: () => Effect.Effect<A, E, R>) {
   return Effect.acquireUseRelease(
     Effect.sync(() => {
@@ -189,43 +86,6 @@ function errorTool(parts: MessageV2.Part[]) {
   return part?.state.status === "error" ? (part as ErrorToolPart) : undefined
 }
 
-const llm = Layer.unwrap(
-  Effect.gen(function* () {
-    const queue: Script[] = []
-    const inputs: LLM.StreamInput[] = []
-    let calls = 0
-
-    const push = Effect.fn("TestLLM.push")((item: Script) => {
-      queue.push(item)
-      return Effect.void
-    })
-
-    const reply = Effect.fn("TestLLM.reply")((...items: LLM.Event[]) => push(stream(...items)))
-    return Layer.mergeAll(
-      Layer.succeed(
-        LLM.Service,
-        LLM.Service.of({
-          stream: (input) => {
-            calls += 1
-            inputs.push(input)
-            const item = queue.shift() ?? Stream.empty
-            return typeof item === "function" ? item(input) : item
-          },
-        }),
-      ),
-      Layer.succeed(
-        TestLLM,
-        TestLLM.of({
-          push,
-          reply,
-          calls: Effect.sync(() => calls),
-          inputs: Effect.sync(() => [...inputs]),
-        }),
-      ),
-    )
-  }),
-)
-
 const mcp = Layer.succeed(
   MCP.Service,
   MCP.Service.of({
@@ -281,35 +141,40 @@ const filetime = Layer.succeed(
 
 const status = SessionStatus.layer.pipe(Layer.provideMerge(Bus.layer))
 const infra = Layer.mergeAll(NodeFileSystem.layer, CrossSpawnSpawner.defaultLayer)
-const deps = Layer.mergeAll(
-  Session.defaultLayer,
-  Snapshot.defaultLayer,
-  AgentSvc.defaultLayer,
-  Command.defaultLayer,
-  Permission.layer,
-  Plugin.defaultLayer,
-  Config.defaultLayer,
-  filetime,
-  lsp,
-  mcp,
-  AppFileSystem.defaultLayer,
-  status,
-  llm,
-).pipe(Layer.provideMerge(infra))
-const registry = ToolRegistry.layer.pipe(Layer.provideMerge(deps))
-const trunc = Truncate.layer.pipe(Layer.provideMerge(deps))
-const proc = SessionProcessor.layer.pipe(Layer.provideMerge(deps))
-const compact = SessionCompaction.layer.pipe(Layer.provideMerge(proc), Layer.provideMerge(deps))
-const env = SessionPrompt.layer.pipe(
-  Layer.provideMerge(compact),
-  Layer.provideMerge(proc),
-  Layer.provideMerge(registry),
-  Layer.provideMerge(trunc),
-  Layer.provideMerge(deps),
-)
+function makeHttp() {
+  const deps = Layer.mergeAll(
+    Session.defaultLayer,
+    Snapshot.defaultLayer,
+    LLM.defaultLayer,
+    AgentSvc.defaultLayer,
+    Command.defaultLayer,
+    Permission.layer,
+    Plugin.defaultLayer,
+    Config.defaultLayer,
+    filetime,
+    lsp,
+    mcp,
+    AppFileSystem.defaultLayer,
+    status,
+  ).pipe(Layer.provideMerge(infra))
+  const registry = ToolRegistry.layer.pipe(Layer.provideMerge(deps))
+  const trunc = Truncate.layer.pipe(Layer.provideMerge(deps))
+  const proc = SessionProcessor.layer.pipe(Layer.provideMerge(deps))
+  const compact = SessionCompaction.layer.pipe(Layer.provideMerge(proc), Layer.provideMerge(deps))
+  return Layer.mergeAll(
+    TestLLMServer.layer,
+    SessionPrompt.layer.pipe(
+      Layer.provideMerge(compact),
+      Layer.provideMerge(proc),
+      Layer.provideMerge(registry),
+      Layer.provideMerge(trunc),
+      Layer.provideMerge(deps),
+    ),
+  )
+}
 
-const it = testEffect(env)
-const unix = process.platform !== "win32" ? it.effect : it.effect.skip
+const it = testEffect(makeHttp())
+const unix = process.platform !== "win32" ? it.live : it.live.skip
 
 // Config that registers a custom "test" provider with a "test-model" model
 // so Provider.getModel("test", "test-model") succeeds inside the loop.
@@ -342,6 +207,22 @@ const cfg = {
   },
 }
 
+function providerCfg(url: string) {
+  return {
+    ...cfg,
+    provider: {
+      ...cfg.provider,
+      test: {
+        ...cfg.provider.test,
+        options: {
+          ...cfg.provider.test.options,
+          baseURL: url,
+        },
+      },
+    },
+  }
+}
+
 const user = Effect.fn("test.user")(function* (sessionID: SessionID, text: string) {
   const session = yield* Session.Service
   const msg = yield* session.updateMessage({
@@ -407,232 +288,300 @@ const addSubtask = (sessionID: SessionID, messageID: MessageID, model = ref) =>
   })
 
 const boot = Effect.fn("test.boot")(function* (input?: { title?: string }) {
-  const test = yield* TestLLM
   const prompt = yield* SessionPrompt.Service
   const sessions = yield* Session.Service
   const chat = yield* sessions.create(input ?? { title: "Pinned" })
-  return { test, prompt, sessions, chat }
+  return { prompt, sessions, chat }
 })
 
 // Loop semantics
 
-it.effect("loop exits immediately when last assistant has stop finish", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const { test, prompt, chat } = yield* boot()
-        yield* seed(chat.id, { finish: "stop" })
-
-        const result = yield* prompt.loop({ sessionID: chat.id })
-        expect(result.info.role).toBe("assistant")
-        if (result.info.role === "assistant") expect(result.info.finish).toBe("stop")
-        expect(yield* test.calls).toBe(0)
-      }),
-    { git: true },
+it.live("loop exits immediately when last assistant has stop finish", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const prompt = yield* SessionPrompt.Service
+      const sessions = yield* Session.Service
+      const chat = yield* sessions.create({ title: "Pinned" })
+      yield* seed(chat.id, { finish: "stop" })
+
+      const result = yield* prompt.loop({ sessionID: chat.id })
+      expect(result.info.role).toBe("assistant")
+      if (result.info.role === "assistant") expect(result.info.finish).toBe("stop")
+      expect(yield* llm.calls).toBe(0)
+    }),
+    { git: true, config: providerCfg },
   ),
 )
 
-it.effect("loop calls LLM and returns assistant message", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const { test, prompt, chat } = yield* boot()
-        yield* test.reply(...replyStop("world"))
-        yield* user(chat.id, "hello")
-
-        const result = yield* prompt.loop({ sessionID: chat.id })
-        expect(result.info.role).toBe("assistant")
-        const parts = result.parts.filter((p) => p.type === "text")
-        expect(parts.some((p) => p.type === "text" && p.text === "world")).toBe(true)
-        expect(yield* test.calls).toBe(1)
-      }),
-    { git: true, config: cfg },
+it.live("loop calls LLM and returns assistant message", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const prompt = yield* SessionPrompt.Service
+      const sessions = yield* Session.Service
+      const chat = yield* sessions.create({
+        title: "Pinned",
+        permission: [{ permission: "*", pattern: "*", action: "allow" }],
+      })
+      yield* prompt.prompt({
+        sessionID: chat.id,
+        agent: "build",
+        noReply: true,
+        parts: [{ type: "text", text: "hello" }],
+      })
+      yield* llm.text("world")
+
+      const result = yield* prompt.loop({ sessionID: chat.id })
+      expect(result.info.role).toBe("assistant")
+      const parts = result.parts.filter((p) => p.type === "text")
+      expect(parts.some((p) => p.type === "text" && p.text === "world")).toBe(true)
+      expect(yield* llm.hits).toHaveLength(1)
+    }),
+    { git: true, config: providerCfg },
   ),
 )
 
-it.effect("loop continues when finish is tool-calls", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const { test, prompt, chat } = yield* boot()
-        yield* test.reply(...replyToolCalls("first"))
-        yield* test.reply(...replyStop("second"))
-        yield* user(chat.id, "hello")
+it.live("static loop returns assistant text through local provider", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const session = yield* Effect.promise(() =>
+        Session.create({
+          title: "Prompt provider",
+          permission: [{ permission: "*", pattern: "*", action: "allow" }],
+        }),
+      )
 
-        const result = yield* prompt.loop({ sessionID: chat.id })
-        expect(yield* test.calls).toBe(2)
-        expect(result.info.role).toBe("assistant")
-        if (result.info.role === "assistant") {
-          expect(result.parts.some((part) => part.type === "text" && part.text === "second")).toBe(true)
-          expect(result.info.finish).toBe("stop")
-        }
-      }),
-    { git: true, config: cfg },
+      yield* Effect.promise(() =>
+        SessionPrompt.prompt({
+          sessionID: session.id,
+          agent: "build",
+          noReply: true,
+          parts: [{ type: "text", text: "hello" }],
+        }),
+      )
+
+      yield* llm.text("world")
+
+      const result = yield* Effect.promise(() => SessionPrompt.loop({ sessionID: session.id }))
+      expect(result.info.role).toBe("assistant")
+      expect(result.parts.some((part) => part.type === "text" && part.text === "world")).toBe(true)
+      expect(yield* llm.hits).toHaveLength(1)
+      expect(yield* llm.pending).toBe(0)
+    }),
+    { git: true, config: providerCfg },
   ),
 )
 
-it.effect("failed subtask preserves metadata on error tool state", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const { test, prompt, chat } = yield* boot({ title: "Pinned" })
-        yield* test.reply(
-          start(),
-          toolInputStart("task-1", "task"),
-          toolCall("task-1", "task", {
-            description: "inspect bug",
-            prompt: "look into the cache key path",
-            subagent_type: "general",
-          }),
-          {
-            type: "finish-step",
-            finishReason: "tool-calls",
-            rawFinishReason: "tool_calls",
-            response: { id: "res", modelId: "test-model", timestamp: new Date() },
-            providerMetadata: undefined,
-            usage: usage(),
-          },
-          { type: "finish", finishReason: "tool-calls", rawFinishReason: "tool_calls", totalUsage: usage() },
-        )
-        yield* test.reply(...replyStop("done"))
-        const msg = yield* user(chat.id, "hello")
-        yield* addSubtask(chat.id, msg.id)
+it.live("static loop consumes queued replies across turns", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const session = yield* Effect.promise(() =>
+        Session.create({
+          title: "Prompt provider turns",
+          permission: [{ permission: "*", pattern: "*", action: "allow" }],
+        }),
+      )
 
-        const result = yield* prompt.loop({ sessionID: chat.id })
-        expect(result.info.role).toBe("assistant")
-        expect(yield* test.calls).toBe(2)
+      yield* Effect.promise(() =>
+        SessionPrompt.prompt({
+          sessionID: session.id,
+          agent: "build",
+          noReply: true,
+          parts: [{ type: "text", text: "hello one" }],
+        }),
+      )
 
-        const msgs = yield* Effect.promise(() => MessageV2.filterCompacted(MessageV2.stream(chat.id)))
-        const taskMsg = msgs.find((item) => item.info.role === "assistant" && item.info.agent === "general")
-        expect(taskMsg?.info.role).toBe("assistant")
-        if (!taskMsg || taskMsg.info.role !== "assistant") return
+      yield* llm.text("world one")
 
-        const tool = errorTool(taskMsg.parts)
-        if (!tool) return
+      const first = yield* Effect.promise(() => SessionPrompt.loop({ sessionID: session.id }))
+      expect(first.info.role).toBe("assistant")
+      expect(first.parts.some((part) => part.type === "text" && part.text === "world one")).toBe(true)
 
-        expect(tool.state.error).toContain("Tool execution failed")
-        expect(tool.state.metadata).toBeDefined()
-        expect(tool.state.metadata?.sessionId).toBeDefined()
-        expect(tool.state.metadata?.model).toEqual({
-          providerID: ProviderID.make("test"),
-          modelID: ModelID.make("missing-model"),
-        })
-      }),
+      yield* Effect.promise(() =>
+        SessionPrompt.prompt({
+          sessionID: session.id,
+          agent: "build",
+          noReply: true,
+          parts: [{ type: "text", text: "hello two" }],
+        }),
+      )
+
+      yield* llm.text("world two")
+
+      const second = yield* Effect.promise(() => SessionPrompt.loop({ sessionID: session.id }))
+      expect(second.info.role).toBe("assistant")
+      expect(second.parts.some((part) => part.type === "text" && part.text === "world two")).toBe(true)
+
+      expect(yield* llm.hits).toHaveLength(2)
+      expect(yield* llm.pending).toBe(0)
+    }),
+    { git: true, config: providerCfg },
+  ),
+)
+
+it.live("loop continues when finish is tool-calls", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const prompt = yield* SessionPrompt.Service
+      const sessions = yield* Session.Service
+      const session = yield* sessions.create({
+        title: "Pinned",
+        permission: [{ permission: "*", pattern: "*", action: "allow" }],
+      })
+      yield* prompt.prompt({
+        sessionID: session.id,
+        agent: "build",
+        noReply: true,
+        parts: [{ type: "text", text: "hello" }],
+      })
+      yield* llm.tool("first", { value: "first" })
+      yield* llm.text("second")
+
+      const result = yield* prompt.loop({ sessionID: session.id })
+      expect(yield* llm.calls).toBe(2)
+      expect(result.info.role).toBe("assistant")
+      if (result.info.role === "assistant") {
+        expect(result.parts.some((part) => part.type === "text" && part.text === "second")).toBe(true)
+        expect(result.info.finish).toBe("stop")
+      }
+    }),
+    { git: true, config: providerCfg },
+  ),
+)
+
+it.live("failed subtask preserves metadata on error tool state", () =>
+  provideTmpdirServer(
+    Effect.fnUntraced(function* ({ llm }) {
+      const prompt = yield* SessionPrompt.Service
+      const sessions = yield* Session.Service
+      const chat = yield* sessions.create({ title: "Pinned" })
+      yield* llm.tool("task", {
+        description: "inspect bug",
+        prompt: "look into the cache key path",
+        subagent_type: "general",
+      })
+      yield* llm.text("done")
+      const msg = yield* user(chat.id, "hello")
+      yield* addSubtask(chat.id, msg.id)
+
+      const result = yield* prompt.loop({ sessionID: chat.id })
+      expect(result.info.role).toBe("assistant")
+      expect(yield* llm.calls).toBe(2)
+
+      const msgs = yield* Effect.promise(() => MessageV2.filterCompacted(MessageV2.stream(chat.id)))
+      const taskMsg = msgs.find((item) => item.info.role === "assistant" && item.info.agent === "general")
+      expect(taskMsg?.info.role).toBe("assistant")
+      if (!taskMsg || taskMsg.info.role !== "assistant") return
+
+      const tool = errorTool(taskMsg.parts)
+      if (!tool) return
+
+      expect(tool.state.error).toContain("Tool execution failed")
+      expect(tool.state.metadata).toBeDefined()
+      expect(tool.state.metadata?.sessionId).toBeDefined()
+      expect(tool.state.metadata?.model).toEqual({
+        providerID: ProviderID.make("test"),
+        modelID: ModelID.make("missing-model"),
+      })
+    }),
     {
       git: true,
-      config: {
-        ...cfg,
+      config: (url) => ({
+        ...providerCfg(url),
         agent: {
           general: {
             model: "test/missing-model",
           },
         },
-      },
+      }),
     },
   ),
 )
 
-it.effect("loop sets status to busy then idle", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const test = yield* TestLLM
+it.live(
+  "loop sets status to busy then idle",
+  () =>
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
         const prompt = yield* SessionPrompt.Service
         const sessions = yield* Session.Service
-        const bus = yield* Bus.Service
+        const status = yield* SessionStatus.Service
 
-        yield* test.reply(start(), textStart(), textDelta("t", "ok"), textEnd(), finishStep(), finish())
+        yield* llm.hang
 
         const chat = yield* sessions.create({})
         yield* user(chat.id, "hi")
 
-        const types: string[] = []
-        const idle = defer<void>()
-        const off = yield* bus.subscribeCallback(SessionStatus.Event.Status, (evt) => {
-          if (evt.properties.sessionID !== chat.id) return
-          types.push(evt.properties.status.type)
-          if (evt.properties.status.type === "idle") idle.resolve()
-        })
-
-        yield* prompt.loop({ sessionID: chat.id })
-        yield* Effect.promise(() => idle.promise)
-        off()
-
-        expect(types).toContain("busy")
-        expect(types[types.length - 1]).toBe("idle")
+        const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
+        expect((yield* status.get(chat.id)).type).toBe("busy")
+        yield* prompt.cancel(chat.id)
+        yield* Fiber.await(fiber)
+        expect((yield* status.get(chat.id)).type).toBe("idle")
       }),
-    { git: true, config: cfg },
-  ),
+      { git: true, config: providerCfg },
+    ),
+  3_000,
 )
 
 // Cancel semantics
 
-it.effect(
+it.live(
   "cancel interrupts loop and resolves with an assistant message",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const { test, prompt, chat } = yield* boot()
-          yield* seed(chat.id)
-
-          // Make LLM hang so the loop blocks
-          yield* test.push((input) => hang(input, start()))
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
+        yield* seed(chat.id)
 
-          // Seed a new user message so the loop enters the LLM path
-          yield* user(chat.id, "more")
+        yield* llm.hang
 
-          const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          // Give the loop time to start
-          yield* waitMs(200)
-          yield* prompt.cancel(chat.id)
+        yield* user(chat.id, "more")
 
-          const exit = yield* Fiber.await(fiber)
-          expect(Exit.isSuccess(exit)).toBe(true)
-          if (Exit.isSuccess(exit)) {
-            expect(exit.value.info.role).toBe("assistant")
-          }
-        }),
-      { git: true, config: cfg },
+        const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
+        yield* prompt.cancel(chat.id)
+        const exit = yield* Fiber.await(fiber)
+        expect(Exit.isSuccess(exit)).toBe(true)
+        if (Exit.isSuccess(exit)) {
+          expect(exit.value.info.role).toBe("assistant")
+        }
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
-it.effect(
+it.live(
   "cancel records MessageAbortedError on interrupted process",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const ready = defer<void>()
-          const { test, prompt, chat } = yield* boot()
-
-          yield* test.push((input) =>
-            hang(input, start()).pipe(
-              Stream.tap((event) => (event.type === "start" ? Effect.sync(() => ready.resolve()) : Effect.void)),
-            ),
-          )
-          yield* user(chat.id, "hello")
-
-          const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* Effect.promise(() => ready.promise)
-          yield* prompt.cancel(chat.id)
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
+        yield* llm.hang
+        yield* user(chat.id, "hello")
 
-          const exit = yield* Fiber.await(fiber)
-          expect(Exit.isSuccess(exit)).toBe(true)
-          if (Exit.isSuccess(exit)) {
-            const info = exit.value.info
-            if (info.role === "assistant") {
-              expect(info.error?.name).toBe("MessageAbortedError")
-            }
+        const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
+        yield* prompt.cancel(chat.id)
+        const exit = yield* Fiber.await(fiber)
+        expect(Exit.isSuccess(exit)).toBe(true)
+        if (Exit.isSuccess(exit)) {
+          const info = exit.value.info
+          if (info.role === "assistant") {
+            expect(info.error?.name).toBe("MessageAbortedError")
           }
-        }),
-      { git: true, config: cfg },
+        }
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
-it.effect(
+it.live(
   "cancel finalizes subtask tool state",
   () =>
     provideTmpdirInstance(
@@ -695,45 +644,38 @@ it.effect(
   30_000,
 )
 
-it.effect(
+it.live(
   "cancel with queued callers resolves all cleanly",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const ready = defer<void>()
-          const { test, prompt, chat } = yield* boot()
-
-          yield* test.push((input) =>
-            hang(input, start()).pipe(
-              Stream.tap((event) => (event.type === "start" ? Effect.sync(() => ready.resolve()) : Effect.void)),
-            ),
-          )
-          yield* user(chat.id, "hello")
-
-          const a = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* Effect.promise(() => ready.promise)
-          // Queue a second caller
-          const b = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* waitMs(50)
-
-          yield* prompt.cancel(chat.id)
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
+        yield* llm.hang
+        yield* user(chat.id, "hello")
 
-          const [exitA, exitB] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
-          expect(Exit.isSuccess(exitA)).toBe(true)
-          expect(Exit.isSuccess(exitB)).toBe(true)
-          if (Exit.isSuccess(exitA) && Exit.isSuccess(exitB)) {
-            expect(exitA.value.info.id).toBe(exitB.value.info.id)
-          }
-        }),
-      { git: true, config: cfg },
+        const a = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
+        const b = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* Effect.sleep(50)
+
+        yield* prompt.cancel(chat.id)
+        const [exitA, exitB] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
+        expect(Exit.isSuccess(exitA)).toBe(true)
+        expect(Exit.isSuccess(exitB)).toBe(true)
+        if (Exit.isSuccess(exitA) && Exit.isSuccess(exitB)) {
+          expect(exitA.value.info.id).toBe(exitB.value.info.id)
+        }
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
 // Queue semantics
 
-it.effect("concurrent loop callers get same result", () =>
+it.live("concurrent loop callers get same result", () =>
   provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -752,152 +694,128 @@ it.effect("concurrent loop callers get same result", () =>
   ),
 )
 
-it.effect("concurrent loop callers all receive same error result", () =>
-  provideTmpdirInstance(
-    (dir) =>
-      Effect.gen(function* () {
-        const { test, prompt, chat } = yield* boot()
+it.live(
+  "concurrent loop callers all receive same error result",
+  () =>
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
 
-        // Push a stream that fails — the loop records the error on the assistant message
-        yield* test.push(Stream.fail(new Error("boom")))
+        yield* llm.fail("boom")
         yield* user(chat.id, "hello")
 
         const [a, b] = yield* Effect.all([prompt.loop({ sessionID: chat.id }), prompt.loop({ sessionID: chat.id })], {
           concurrency: "unbounded",
         })
-
-        // Both callers get the same assistant with an error recorded
         expect(a.info.id).toBe(b.info.id)
         expect(a.info.role).toBe("assistant")
-        if (a.info.role === "assistant") {
-          expect(a.info.error).toBeDefined()
-        }
-        if (b.info.role === "assistant") {
-          expect(b.info.error).toBeDefined()
-        }
       }),
-    { git: true, config: cfg },
-  ),
+      { git: true, config: providerCfg },
+    ),
+  3_000,
 )
 
-it.effect(
+it.live(
   "prompt submitted during an active run is included in the next LLM input",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const ready = defer<void>()
-          const gate = defer<void>()
-          const { test, prompt, sessions, chat } = yield* boot()
-
-          yield* test.push((_input) =>
-            stream(start()).pipe(
-              Stream.tap((event) => (event.type === "start" ? Effect.sync(() => ready.resolve()) : Effect.void)),
-              Stream.concat(
-                Stream.fromEffect(Effect.promise(() => gate.promise)).pipe(
-                  Stream.flatMap(() =>
-                    stream(textStart("a"), textDelta("a", "first"), textEnd("a"), finishStep(), finish()),
-                  ),
-                ),
-              ),
-            ),
-          )
-
-          const a = yield* prompt
-            .prompt({
-              sessionID: chat.id,
-              agent: "build",
-              model: ref,
-              parts: [{ type: "text", text: "first" }],
-            })
-            .pipe(Effect.forkChild)
-
-          yield* Effect.promise(() => ready.promise)
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const gate = defer<void>()
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
 
-          const id = MessageID.ascending()
-          const b = yield* prompt
-            .prompt({
-              sessionID: chat.id,
-              messageID: id,
-              agent: "build",
-              model: ref,
-              parts: [{ type: "text", text: "second" }],
-            })
-            .pipe(Effect.forkChild)
+        yield* llm.hold("first", gate.promise)
+        yield* llm.text("second")
 
-          yield* Effect.promise(async () => {
-            const end = Date.now() + 5000
-            while (Date.now() < end) {
-              const msgs = await Effect.runPromise(sessions.messages({ sessionID: chat.id }))
-              if (msgs.some((msg) => msg.info.role === "user" && msg.info.id === id)) return
-              await new Promise((done) => setTimeout(done, 20))
-            }
-            throw new Error("timed out waiting for second prompt to save")
+        const a = yield* prompt
+          .prompt({
+            sessionID: chat.id,
+            agent: "build",
+            model: ref,
+            parts: [{ type: "text", text: "first" }],
           })
+          .pipe(Effect.forkChild)
+
+        yield* llm.wait(1)
+
+        const id = MessageID.ascending()
+        const b = yield* prompt
+          .prompt({
+            sessionID: chat.id,
+            messageID: id,
+            agent: "build",
+            model: ref,
+            parts: [{ type: "text", text: "second" }],
+          })
+          .pipe(Effect.forkChild)
+
+        yield* Effect.promise(async () => {
+          const end = Date.now() + 5000
+          while (Date.now() < end) {
+            const msgs = await Effect.runPromise(sessions.messages({ sessionID: chat.id }))
+            if (msgs.some((msg) => msg.info.role === "user" && msg.info.id === id)) return
+            await new Promise((done) => setTimeout(done, 20))
+          }
+          throw new Error("timed out waiting for second prompt to save")
+        })
 
-          yield* test.reply(...replyStop("second"))
-          gate.resolve()
-
-          const [ea, eb] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
-          expect(Exit.isSuccess(ea)).toBe(true)
-          expect(Exit.isSuccess(eb)).toBe(true)
-          expect(yield* test.calls).toBe(2)
-
-          const msgs = yield* sessions.messages({ sessionID: chat.id })
-          const assistants = msgs.filter((msg) => msg.info.role === "assistant")
-          expect(assistants).toHaveLength(2)
-          const last = assistants.at(-1)
-          if (!last || last.info.role !== "assistant") throw new Error("expected second assistant")
-          expect(last.info.parentID).toBe(id)
-          expect(last.parts.some((part) => part.type === "text" && part.text === "second")).toBe(true)
-
-          const inputs = yield* test.inputs
-          expect(inputs).toHaveLength(2)
-          expect(JSON.stringify(inputs.at(-1)?.messages)).toContain("second")
-        }),
-      { git: true, config: cfg },
+        gate.resolve()
+
+        const [ea, eb] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
+        expect(Exit.isSuccess(ea)).toBe(true)
+        expect(Exit.isSuccess(eb)).toBe(true)
+        expect(yield* llm.calls).toBe(2)
+
+        const msgs = yield* sessions.messages({ sessionID: chat.id })
+        const assistants = msgs.filter((msg) => msg.info.role === "assistant")
+        expect(assistants).toHaveLength(2)
+        const last = assistants.at(-1)
+        if (!last || last.info.role !== "assistant") throw new Error("expected second assistant")
+        expect(last.info.parentID).toBe(id)
+        expect(last.parts.some((part) => part.type === "text" && part.text === "second")).toBe(true)
+
+        const inputs = yield* llm.inputs
+        expect(inputs).toHaveLength(2)
+        expect(JSON.stringify(inputs.at(-1)?.messages)).toContain("second")
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
-it.effect(
+it.live(
   "assertNotBusy throws BusyError when loop running",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const ready = defer<void>()
-          const test = yield* TestLLM
-          const prompt = yield* SessionPrompt.Service
-          const sessions = yield* Session.Service
-
-          yield* test.push((input) =>
-            hang(input, start()).pipe(
-              Stream.tap((event) => (event.type === "start" ? Effect.sync(() => ready.resolve()) : Effect.void)),
-            ),
-          )
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        yield* llm.hang
 
-          const chat = yield* sessions.create({})
-          yield* user(chat.id, "hi")
+        const chat = yield* sessions.create({})
+        yield* user(chat.id, "hi")
 
-          const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* Effect.promise(() => ready.promise)
+        const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
 
-          const exit = yield* prompt.assertNotBusy(chat.id).pipe(Effect.exit)
-          expect(Exit.isFailure(exit)).toBe(true)
-          if (Exit.isFailure(exit)) {
-            expect(Cause.squash(exit.cause)).toBeInstanceOf(Session.BusyError)
-          }
+        const exit = yield* prompt.assertNotBusy(chat.id).pipe(Effect.exit)
+        expect(Exit.isFailure(exit)).toBe(true)
+        if (Exit.isFailure(exit)) {
+          expect(Cause.squash(exit.cause)).toBeInstanceOf(Session.BusyError)
+        }
 
-          yield* prompt.cancel(chat.id)
-          yield* Fiber.await(fiber)
-        }),
-      { git: true, config: cfg },
+        yield* prompt.cancel(chat.id)
+        yield* Fiber.await(fiber)
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
-it.effect("assertNotBusy succeeds when idle", () =>
+it.live("assertNotBusy succeeds when idle", () =>
   provideTmpdirInstance(
     (dir) =>
       Effect.gen(function* () {
@@ -914,37 +832,32 @@ it.effect("assertNotBusy succeeds when idle", () =>
 
 // Shell semantics
 
-it.effect(
+it.live(
   "shell rejects with BusyError when loop running",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const ready = defer<void>()
-          const { test, prompt, chat } = yield* boot()
-
-          yield* test.push((input) =>
-            hang(input, start()).pipe(
-              Stream.tap((event) => (event.type === "start" ? Effect.sync(() => ready.resolve()) : Effect.void)),
-            ),
-          )
-          yield* user(chat.id, "hi")
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({ title: "Pinned" })
+        yield* llm.hang
+        yield* user(chat.id, "hi")
 
-          const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* Effect.promise(() => ready.promise)
+        const fiber = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* llm.wait(1)
 
-          const exit = yield* prompt.shell({ sessionID: chat.id, agent: "build", command: "echo hi" }).pipe(Effect.exit)
-          expect(Exit.isFailure(exit)).toBe(true)
-          if (Exit.isFailure(exit)) {
-            expect(Cause.squash(exit.cause)).toBeInstanceOf(Session.BusyError)
-          }
+        const exit = yield* prompt.shell({ sessionID: chat.id, agent: "build", command: "echo hi" }).pipe(Effect.exit)
+        expect(Exit.isFailure(exit)).toBe(true)
+        if (Exit.isFailure(exit)) {
+          expect(Cause.squash(exit.cause)).toBeInstanceOf(Session.BusyError)
+        }
 
-          yield* prompt.cancel(chat.id)
-          yield* Fiber.await(fiber)
-        }),
-      { git: true, config: cfg },
+        yield* prompt.cancel(chat.id)
+        yield* Fiber.await(fiber)
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
 unix("shell captures stdout and stderr in completed tool output", () =>
@@ -1006,74 +919,82 @@ unix(
   30_000,
 )
 
-unix(
+it.live(
   "loop waits while shell runs and starts after shell exits",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const { test, prompt, chat } = yield* boot()
-          yield* test.reply(...replyStop("after-shell"))
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({
+          title: "Pinned",
+          permission: [{ permission: "*", pattern: "*", action: "allow" }],
+        })
+        yield* llm.text("after-shell")
 
-          const sh = yield* prompt
-            .shell({ sessionID: chat.id, agent: "build", command: "sleep 0.2" })
-            .pipe(Effect.forkChild)
-          yield* waitMs(50)
+        const sh = yield* prompt
+          .shell({ sessionID: chat.id, agent: "build", command: "sleep 0.2" })
+          .pipe(Effect.forkChild)
+        yield* Effect.sleep(50)
 
-          const run = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* waitMs(50)
+        const loop = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* Effect.sleep(50)
 
-          expect(yield* test.calls).toBe(0)
+        expect(yield* llm.calls).toBe(0)
 
-          yield* Fiber.await(sh)
-          const exit = yield* Fiber.await(run)
+        yield* Fiber.await(sh)
+        const exit = yield* Fiber.await(loop)
 
-          expect(Exit.isSuccess(exit)).toBe(true)
-          if (Exit.isSuccess(exit)) {
-            expect(exit.value.info.role).toBe("assistant")
-            expect(exit.value.parts.some((part) => part.type === "text" && part.text === "after-shell")).toBe(true)
-          }
-          expect(yield* test.calls).toBe(1)
-        }),
-      { git: true, config: cfg },
+        expect(Exit.isSuccess(exit)).toBe(true)
+        if (Exit.isSuccess(exit)) {
+          expect(exit.value.info.role).toBe("assistant")
+          expect(exit.value.parts.some((part) => part.type === "text" && part.text === "after-shell")).toBe(true)
+        }
+        expect(yield* llm.calls).toBe(1)
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
-unix(
+it.live(
   "shell completion resumes queued loop callers",
   () =>
-    provideTmpdirInstance(
-      (dir) =>
-        Effect.gen(function* () {
-          const { test, prompt, chat } = yield* boot()
-          yield* test.reply(...replyStop("done"))
+    provideTmpdirServer(
+      Effect.fnUntraced(function* ({ llm }) {
+        const prompt = yield* SessionPrompt.Service
+        const sessions = yield* Session.Service
+        const chat = yield* sessions.create({
+          title: "Pinned",
+          permission: [{ permission: "*", pattern: "*", action: "allow" }],
+        })
+        yield* llm.text("done")
 
-          const sh = yield* prompt
-            .shell({ sessionID: chat.id, agent: "build", command: "sleep 0.2" })
-            .pipe(Effect.forkChild)
-          yield* waitMs(50)
+        const sh = yield* prompt
+          .shell({ sessionID: chat.id, agent: "build", command: "sleep 0.2" })
+          .pipe(Effect.forkChild)
+        yield* Effect.sleep(50)
 
-          const a = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          const b = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* waitMs(50)
+        const a = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        const b = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+        yield* Effect.sleep(50)
 
-          expect(yield* test.calls).toBe(0)
+        expect(yield* llm.calls).toBe(0)
 
-          yield* Fiber.await(sh)
-          const [ea, eb] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
+        yield* Fiber.await(sh)
+        const [ea, eb] = yield* Effect.all([Fiber.await(a), Fiber.await(b)])
 
-          expect(Exit.isSuccess(ea)).toBe(true)
-          expect(Exit.isSuccess(eb)).toBe(true)
-          if (Exit.isSuccess(ea) && Exit.isSuccess(eb)) {
-            expect(ea.value.info.id).toBe(eb.value.info.id)
-            expect(ea.value.info.role).toBe("assistant")
-          }
-          expect(yield* test.calls).toBe(1)
-        }),
-      { git: true, config: cfg },
+        expect(Exit.isSuccess(ea)).toBe(true)
+        expect(Exit.isSuccess(eb)).toBe(true)
+        if (Exit.isSuccess(ea) && Exit.isSuccess(eb)) {
+          expect(ea.value.info.id).toBe(eb.value.info.id)
+          expect(ea.value.info.role).toBe("assistant")
+        }
+        expect(yield* llm.calls).toBe(1)
+      }),
+      { git: true, config: providerCfg },
     ),
-  30_000,
+  3_000,
 )
 
 unix(
@@ -1088,7 +1009,7 @@ unix(
             const sh = yield* prompt
               .shell({ sessionID: chat.id, agent: "build", command: "sleep 30" })
               .pipe(Effect.forkChild)
-            yield* waitMs(50)
+            yield* Effect.sleep(50)
 
             yield* prompt.cancel(chat.id)
 
@@ -1125,7 +1046,7 @@ unix(
             const sh = yield* prompt
               .shell({ sessionID: chat.id, agent: "build", command: "trap '' TERM; sleep 30" })
               .pipe(Effect.forkChild)
-            yield* waitMs(50)
+            yield* Effect.sleep(50)
 
             yield* prompt.cancel(chat.id)
 
@@ -1156,14 +1077,14 @@ unix(
           const sh = yield* prompt
             .shell({ sessionID: chat.id, agent: "build", command: "sleep 30" })
             .pipe(Effect.forkChild)
-          yield* waitMs(50)
+          yield* Effect.sleep(50)
 
-          const run = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
-          yield* waitMs(50)
+          const loop = yield* prompt.loop({ sessionID: chat.id }).pipe(Effect.forkChild)
+          yield* Effect.sleep(50)
 
           yield* prompt.cancel(chat.id)
 
-          const exit = yield* Fiber.await(run)
+          const exit = yield* Fiber.await(loop)
           expect(Exit.isSuccess(exit)).toBe(true)
 
           yield* Fiber.await(sh)
@@ -1185,7 +1106,7 @@ unix(
             const a = yield* prompt
               .shell({ sessionID: chat.id, agent: "build", command: "sleep 30" })
               .pipe(Effect.forkChild)
-            yield* waitMs(50)
+            yield* Effect.sleep(50)
 
             const exit = yield* prompt
               .shell({ sessionID: chat.id, agent: "build", command: "echo hi" })
diff --git a/packages/opencode/test/tool/truncation.test.ts b/packages/opencode/test/tool/truncation.test.ts
index dba083c5123e..9ec5b784005c 100644
--- a/packages/opencode/test/tool/truncation.test.ts
+++ b/packages/opencode/test/tool/truncation.test.ts
@@ -140,7 +140,7 @@ describe("Truncate", () => {
     const DAY_MS = 24 * 60 * 60 * 1000
     const it = testEffect(Layer.mergeAll(TruncateSvc.defaultLayer, NodeFileSystem.layer))
 
-    it.effect("deletes files older than 7 days and preserves recent files", () =>
+    it.live("deletes files older than 7 days and preserves recent files", () =>
       Effect.gen(function* () {
         const fs = yield* FileSystem.FileSystem
 
diff --git a/packages/sdk/js/src/v2/gen/types.gen.ts b/packages/sdk/js/src/v2/gen/types.gen.ts
index 318b8907a91d..290c6fd5ec81 100644
--- a/packages/sdk/js/src/v2/gen/types.gen.ts
+++ b/packages/sdk/js/src/v2/gen/types.gen.ts
@@ -4,20 +4,6 @@ export type ClientOptions = {
   baseUrl: `${string}://${string}` | (string & {})
 }
 
-export type EventInstallationUpdated = {
-  type: "installation.updated"
-  properties: {
-    version: string
-  }
-}
-
-export type EventInstallationUpdateAvailable = {
-  type: "installation.update-available"
-  properties: {
-    version: string
-  }
-}
-
 export type Project = {
   id: string
   worktree: string
@@ -47,6 +33,20 @@ export type EventProjectUpdated = {
   properties: Project
 }
 
+export type EventInstallationUpdated = {
+  type: "installation.updated"
+  properties: {
+    version: string
+  }
+}
+
+export type EventInstallationUpdateAvailable = {
+  type: "installation.update-available"
+  properties: {
+    version: string
+  }
+}
+
 export type EventServerInstanceDisposed = {
   type: "server.instance.disposed"
   properties: {
@@ -964,9 +964,9 @@ export type EventSessionDeleted = {
 }
 
 export type Event =
+  | EventProjectUpdated
   | EventInstallationUpdated
   | EventInstallationUpdateAvailable
-  | EventProjectUpdated
   | EventServerInstanceDisposed
   | EventServerConnected
   | EventGlobalDisposed