diff --git a/packages/cli/src/commands/handlers/default.ts b/packages/cli/src/commands/handlers/default.ts
index 1a5d2b39b030..de45766f2ad5 100644
--- a/packages/cli/src/commands/handlers/default.ts
+++ b/packages/cli/src/commands/handlers/default.ts
@@ -47,7 +47,6 @@ export default Runtime.handler(Commands, (input) =>
       ),
     )
     const updater = yield* Updater.Service
-    if (!server.service) yield* updater.check().pipe(Effect.forkScoped)
     preflight.loading()
     const config = yield* Config.Service
     const npm = yield* Npm.Service
@@ -83,11 +82,14 @@ export default Runtime.handler(Commands, (input) =>
         get: () => runPromise(config.get()),
         update: (update) => runPromise(config.update(update)),
       },
-      updater: service
-        ? {
-            apply: (version) => runPromise(updater.apply(version)),
-          }
-        : undefined,
+      updater: {
+        monitor: (notify, signal) =>
+          runPromise(
+            updater.monitor((version) => Effect.sync(() => notify(version))),
+            { signal },
+          ),
+        apply: (version) => runPromise(updater.apply(version)),
+      },
       packages: {
         prepare: (spec, install = true) => runPromise(install ? npm.add(spec) : npm.resolve(spec)),
       },
diff --git a/packages/cli/src/server-process.ts b/packages/cli/src/server-process.ts
index c165258dc4cc..3a043c40a079 100644
--- a/packages/cli/src/server-process.ts
+++ b/packages/cli/src/server-process.ts
@@ -7,14 +7,12 @@ import { Global } from "@opencode-ai/util/global"
 import { OPENCODE_ARTIFACT, OPENCODE_CHANNEL, OPENCODE_VERSION } from "./version"
 import { AppProcess } from "@opencode-ai/util/process"
 import { randomBytes, randomUUID } from "node:crypto"
-import { spawn } from "node:child_process"
-import { Deferred, Effect, Option, Redacted, Schedule, Schema } from "effect"
+import { Effect, Option, Redacted, Schedule, Schema } from "effect"
 import { PersistentPty } from "@opencode-ai/schema/persistent-pty"
 import { HttpServer } from "effect/unstable/http"
 import { Env } from "./env"
 import { ServiceConfig } from "./services/service-config"
 import { ServiceRegistration } from "./services/service-registration"
-import { Updater } from "./services/updater"
 import { WebUi } from "./services/web-ui"
 
 export type Mode = "default" | "service" | "stdio"
@@ -29,7 +27,6 @@ export type Options = {
 // The process effect lives until server shutdown; tracing it would parent every request to one process-lifetime trace.
 export const run = Effect.fnUntraced(function* (options: Options) {
   return yield* processEffect(options).pipe(
-    Effect.provide(Updater.layer),
     Effect.provide(
       LayerNode.compile(LayerNode.group([Global.node, AppProcess.node]), {
         replacements: [
@@ -54,8 +51,7 @@ const processEffect = Effect.fnUntraced(function* (options: Options) {
         )
   const global = yield* Global.Service
   if (options.mode === "service") yield* Effect.sync(() => process.chdir(global.home))
-  const replacement = yield* Deferred.make<PersistentPty.Handoff | null>()
-  const next = yield* Effect.scoped(
+  return yield* Effect.scoped(
     Effect.gen(function* () {
       const foreground = options.mode === "default"
       const serviceOptions = options.mode === "service" ? yield* ServiceConfig.options() : undefined
@@ -66,7 +62,7 @@ const processEffect = Effect.fnUntraced(function* (options: Options) {
         serviceOptions !== undefined && port !== undefined
           ? yield* Service.incumbent({ ...serviceOptions, url: serviceURL(hostname, port) })
           : undefined
-      if (incumbent !== undefined) return Option.none<PersistentPty.Handoff | null>()
+      if (incumbent !== undefined) return
       const { start } = yield* Effect.promise(() => import("@opencode-ai/server/process"))
       const environmentPassword = yield* Env.password
       // Keep the lease credential out of the environment inherited by tools.
@@ -163,62 +159,17 @@ const processEffect = Effect.fnUntraced(function* (options: Options) {
           )
         }),
       )
-      if (server === undefined) return Option.none<PersistentPty.Handoff | null>()
+      if (server === undefined) return
       const url = HttpServer.formatAddress(server.address)
       console.log(options.mode === "stdio" ? JSON.stringify({ url }) : `server listening on ${url}`)
       if (foreground && !environmentPassword) console.log(`server password ${password}`)
-      const updater = yield* Updater.Service
-      yield* updater
-        .monitor({
-          url,
-          password,
-          managed: options.mode === "service",
-          notify: server.updateAvailable,
-          restart: (handoff) => Deferred.succeed(replacement, handoff).pipe(Effect.asVoid),
-        })
-        .pipe(Effect.forkScoped)
       return yield* options.mode === "service"
-        ? Effect.raceFirst(
-            server.shutdown.pipe(Effect.as(Option.none<PersistentPty.Handoff | null>())),
-            Deferred.await(replacement).pipe(Effect.map(Option.some)),
-          )
+        ? server.shutdown
         : options.mode === "stdio"
-          ? waitForStdinClose().pipe(Effect.as(Option.none<PersistentPty.Handoff | null>()))
+          ? waitForStdinClose()
           : Effect.never
     }).pipe(Effect.annotateLogs({ role: "server" })),
   )
-  if (Option.isNone(next)) return
-  yield* spawnReplacement(next.value)
-})
-
-const spawnReplacement = Effect.fnUntraced(function* (handoff: PersistentPty.Handoff | null) {
-  const options = yield* ServiceConfig.options()
-  const [command, ...args] = options.command
-  if (!command) return yield* Effect.fail(new Error("Failed to resolve CLI command for restart"))
-  // We do not monitor the replacement after spawn. A managed TUI
-  // recovers with Service.ensure if startup fails; a future client
-  // restart signal could coordinate that recovery instead.
-  yield* Effect.tryPromise({
-    try: () =>
-      new Promise<void>((resolve, reject) => {
-        const child = spawn(command, args, {
-          detached: true,
-          stdio: "ignore",
-          windowsHide: true,
-          env: {
-            ...process.env,
-            ...options.env,
-            OPENCODE_PTY_HANDOFF: handoff ? JSON.stringify(handoff) : undefined,
-          },
-        })
-        child.once("spawn", () => {
-          child.unref()
-          resolve()
-        })
-        child.once("error", reject)
-      }),
-    catch: (cause) => new Error("Failed to start replacement server", { cause }),
-  })
 })
 
 const recognizeIncumbent = Effect.fnUntraced(function* (options: DiscoverOptions, hostname: string, port: number) {
diff --git a/packages/cli/src/services/updater-action.ts b/packages/cli/src/services/updater-action.ts
index 9b76507111f3..d447b716692f 100644
--- a/packages/cli/src/services/updater-action.ts
+++ b/packages/cli/src/services/updater-action.ts
@@ -1,5 +1,5 @@
-export type Policy = "disable" | "notify" | "auto"
-export type Action = "none" | "notify" | "upgrade"
+export type Policy = "disable" | "notify"
+export type Action = "none" | "notify"
 
 const maximumComponent = "9007199254740991"
 const versionPattern =
@@ -10,10 +10,7 @@ export function action(current: string, latest: string, policy: Policy): Action
   const currentVersion = parseReleaseVersion(current)
   const latestVersion = parseReleaseVersion(latest)
   if (!currentVersion || !latestVersion || sameRelease(currentVersion, latestVersion)) return "none"
-  if (policy === "notify") return "notify"
-  // Major upgrades are never installed automatically.
-  if (currentVersion.major !== latestVersion.major) return "notify"
-  return "upgrade"
+  return "notify"
 }
 
 export function parseReleaseVersion(input: string) {
diff --git a/packages/cli/src/services/updater.test.ts b/packages/cli/src/services/updater.test.ts
index e477675c2596..3d9bbeb5458a 100644
--- a/packages/cli/src/services/updater.test.ts
+++ b/packages/cli/src/services/updater.test.ts
@@ -6,22 +6,17 @@ describe("updater", () => {
   test("reads update policy from JSONC", () => {
     expect(decodePolicy('{ // preference\n "update": "notify",\n}')).toBe("notify")
     expect(decodePolicy('{ "update": "disable" }')).toBe("disable")
-    expect(decodePolicy('{ "update": "auto" }')).toBe("auto")
+    expect(decodePolicy('{ "update": "auto" }')).toBe("notify")
     expect(decodePolicy('{ "update": "invalid" }')).toBeUndefined()
   })
 
   test("maps the v1 update policy", () => {
     expect(decodePolicy('{ "autoupdate": false }')).toBe("disable")
     expect(decodePolicy('{ "autoupdate": "notify" }')).toBe("notify")
-    expect(decodePolicy('{ "autoupdate": true }')).toBe("auto")
+    expect(decodePolicy('{ "autoupdate": true }')).toBe("notify")
   })
 
-  test("automatically updates patches and minors", () => {
-    expect(action("1.2.3", "1.2.4", "auto")).toBe("upgrade")
-    expect(action("1.2.3", "1.3.0", "auto")).toBe("upgrade")
-  })
-
-  test("reports patches and minors without automatically installing them", () => {
+  test("reports every available release", () => {
     expect(action("1.2.3", "1.2.4", "notify")).toBe("notify")
     expect(action("1.2.3", "1.3.0", "notify")).toBe("notify")
     expect(action("1.2.3", "2.0.0", "notify")).toBe("notify")
@@ -32,25 +27,21 @@ describe("updater", () => {
     expect(action("1.2.3", "1.2.4", "disable")).toBe("none")
   })
 
-  test("reports majors instead of automatically installing them", () => {
-    expect(action("1.2.3", "2.0.0", "auto")).toBe("notify")
-  })
-
   test("reports up-to-date only when versions match", () => {
-    expect(action("1.2.3", "1.2.3", "auto")).toBe("none")
+    expect(action("1.2.3", "1.2.3", "notify")).toBe("none")
   })
 
-  test("upgrades when latest is lower (rollback)", () => {
-    expect(action("1.2.4", "1.2.3", "auto")).toBe("upgrade")
+  test("reports when latest is lower (rollback)", () => {
+    expect(action("1.2.4", "1.2.3", "notify")).toBe("notify")
   })
 
   test("accepts strict release version variants", () => {
-    expect(action("v1.2.3", " 1.2.4\n", "auto")).toBe("upgrade")
-    expect(action("1.2.3-alpha.1", "1.2.3-alpha.2", "auto")).toBe("upgrade")
-    expect(action("0.0.0-dev-17403", "0.0.0-dev-17403.2", "auto")).toBe("upgrade")
-    expect(action("0.0.0-next-17403", "0.0.0-beta-17404", "auto")).toBe("upgrade")
-    expect(action("1.2.3+old", "1.2.3+new", "auto")).toBe("none")
-    expect(action("v1.2.3+old", "1.2.3", "auto")).toBe("none")
+    expect(action("v1.2.3", " 1.2.4\n", "notify")).toBe("notify")
+    expect(action("1.2.3-alpha.1", "1.2.3-alpha.2", "notify")).toBe("notify")
+    expect(action("0.0.0-dev-17403", "0.0.0-dev-17403.2", "notify")).toBe("notify")
+    expect(action("0.0.0-next-17403", "0.0.0-beta-17404", "notify")).toBe("notify")
+    expect(action("1.2.3+old", "1.2.3+new", "notify")).toBe("none")
+    expect(action("v1.2.3+old", "1.2.3", "notify")).toBe("none")
   })
 
   test("preserves strict validity", () => {
@@ -71,21 +62,21 @@ describe("updater", () => {
       "0.9007199254740992.0",
       "0.0.9007199254740992",
     ]
-    invalid.forEach((version) => expect(action("1.2.3", version, "auto"), version).toBe("none"))
+    invalid.forEach((version) => expect(action("1.2.3", version, "notify"), version).toBe("none"))
   })
 
   test("handles numeric limits without losing precision", () => {
-    expect(action("9007199254740991.0.0", "9007199254740991.0.1", "auto")).toBe("upgrade")
-    expect(action("9007199254740990.0.0", "9007199254740991.0.0", "auto")).toBe("notify")
+    expect(action("9007199254740991.0.0", "9007199254740991.0.1", "notify")).toBe("notify")
+    expect(action("9007199254740990.0.0", "9007199254740991.0.0", "notify")).toBe("notify")
   })
 
   test("preserves equality for oversized numeric prerelease identifiers", () => {
-    expect(action("1.0.0-9007199254740992", "1.0.0-9007199254740993", "auto")).toBe("none")
-    expect(action("1.0.0-9007199254740991", "1.0.0-9007199254740992", "auto")).toBe("upgrade")
+    expect(action("1.0.0-9007199254740992", "1.0.0-9007199254740993", "notify")).toBe("none")
+    expect(action("1.0.0-9007199254740991", "1.0.0-9007199254740992", "notify")).toBe("notify")
   })
 
   test("rejects versions longer than semver's limit before trimming", () => {
-    expect(action("1.2.3", `${" ".repeat(251)}1.2.3`, "auto")).toBe("none")
-    expect(action("1.2.3", `1.2.4+${"a".repeat(250)}`, "auto")).toBe("upgrade")
+    expect(action("1.2.3", `${" ".repeat(251)}1.2.3`, "notify")).toBe("none")
+    expect(action("1.2.3", `1.2.4+${"a".repeat(250)}`, "notify")).toBe("notify")
   })
 })
diff --git a/packages/cli/src/services/updater.ts b/packages/cli/src/services/updater.ts
index 2fb99f308c82..b769cb0ca6d3 100644
--- a/packages/cli/src/services/updater.ts
+++ b/packages/cli/src/services/updater.ts
@@ -1,154 +1,36 @@
 import { Global } from "@opencode-ai/util/global"
 import { AppProcess } from "@opencode-ai/util/process"
-import { OpenCode } from "@opencode-ai/client"
-import { PersistentPty } from "@opencode-ai/schema/persistent-pty"
 import { OPENCODE_ARTIFACT, OPENCODE_CHANNEL, OPENCODE_LOCAL, OPENCODE_VERSION } from "../version"
-import { Context, Duration, Effect, FileSystem, Layer, Ref, Schedule, Semaphore, Stream } from "effect"
+import { Context, Duration, Effect, FileSystem, Layer, Schedule } from "effect"
 import { ChildProcess } from "effect/unstable/process"
 import { parse, type ParseError } from "jsonc-parser"
 import path from "node:path"
-import { action, parseReleaseVersion, type Action, type Policy } from "./updater-action"
+import { action, parseReleaseVersion, type Policy } from "./updater-action"
 
 export const methods = ["curl", "npm", "pnpm", "bun", "yarn"] as const
 export type Method = (typeof methods)[number]
 
 export interface Interface {
-  readonly check: () => Effect.Effect<void>
-  readonly monitor: (input: {
-    readonly url: string
-    readonly password: string
-    readonly managed: boolean
-    readonly notify: (version: string) => Effect.Effect<void>
-    readonly restart: (handoff: PersistentPty.Handoff | null) => Effect.Effect<void>
-  }) => Effect.Effect<void>
+  readonly monitor: (notify: (version: string) => Effect.Effect<void>) => Effect.Effect<void>
   readonly apply: (version: string) => Effect.Effect<void, Error>
   readonly method: () => Effect.Effect<Method | undefined>
   readonly latest: () => Effect.Effect<string, Error>
   readonly upgrade: (method: Method, version: string) => Effect.Effect<void, Error>
 }
 
-export type Inspection =
-  | { readonly action: "none" }
-  | { readonly action: Exclude<Action, "none">; readonly version: string }
-
-type State =
-  | { readonly type: "current" }
-  | { readonly type: "available"; readonly version: string; readonly availableSince: number }
-  | { readonly type: "ready-to-restart"; readonly version: string }
-
-export interface MonitorInput {
-  readonly url: string
-  readonly password: string
-  readonly managed: boolean
-  readonly inspect: () => Effect.Effect<Inspection, Error>
-  readonly install: (version: string) => Effect.Effect<boolean, Error>
-  readonly restart: (handoff: PersistentPty.Handoff | null) => Effect.Effect<void>
-  readonly interval?: Duration.Input
-  readonly notificationThreshold?: Duration.Input
+export const monitorUpdates = Effect.fnUntraced(function* (input: {
+  readonly inspect: () => Effect.Effect<string | undefined, Error>
   readonly notify: (version: string) => Effect.Effect<void>
-}
-
-export const monitorServer = Effect.fnUntraced(function* (input: MonitorInput) {
-  const state = yield* Ref.make<State>({ type: "current" })
-  const applyLock = yield* Semaphore.make(1)
-  const client = OpenCode.make({
-    baseUrl: input.url,
-    headers: { authorization: `Basic ${btoa(`opencode:${input.password}`)}` },
-  })
-
-  const applyIfIdle = () =>
-    applyLock.withPermit(
-      Effect.gen(function* () {
-        const pending = yield* Ref.get(state)
-        if (pending.type !== "available") return
-        const active = yield* Effect.tryPromise({
-          try: () => client.session.active(),
-          catch: (cause) => new Error("Failed to read active sessions", { cause }),
-        })
-        if (Object.keys(active).length > 0) return
-        const latest = yield* input.inspect()
-        if (latest.action !== "upgrade") {
-          yield* Ref.set(state, { type: "current" })
-          return
-        }
-        const installed = yield* input
-          .install(latest.version)
-          .pipe(
-            Effect.catch((error) =>
-              Effect.logWarning("automatic update failed", { cause: error }).pipe(Effect.as(false)),
-            ),
-          )
-        if (!installed) return
-        const handoff = input.managed
-          ? yield* Effect.tryPromise({
-              try: () => client.experimental.persistentPty.handoff(),
-              catch: (cause) => new Error("Failed to prepare persistent terminals for restart", { cause }),
-            })
-          : undefined
-        yield* Ref.set(state, { type: "ready-to-restart", version: latest.version })
-        if (handoff) yield* input.restart(handoff.handoff)
-      }),
-    )
-
-  const checkServer = Effect.gen(function* () {
-    const result = yield* input.inspect()
-    if (result.action === "notify") {
-      yield* input.notify(result.version)
-      return
-    }
-    if (result.action !== "upgrade") {
-      yield* Ref.update(
-        state,
-        (current): State => (current.type === "ready-to-restart" ? current : { type: "current" }),
-      )
-      return
-    }
-    yield* Ref.update(state, (current): State => {
-      if (current.type === "ready-to-restart" && current.version === result.version) return current
-      return {
-        type: "available",
-        version: result.version,
-        availableSince: current.type === "available" ? current.availableSince : Date.now(),
-      }
-    })
-    yield* applyIfIdle()
-    const pending = yield* Ref.get(state)
-    if (
-      pending.type === "available" &&
-      Date.now() - pending.availableSince >= Duration.toMillis(input.notificationThreshold ?? "3 days")
-    )
-      yield* input.notify(pending.version)
-  }).pipe(Effect.catch((cause) => Effect.logWarning("automatic update check failed", { cause })))
-
-  const subscribe = Effect.suspend(() =>
-    Stream.fromAsyncIterable(
-      client.event.subscribe(),
-      (cause) => new Error("Update event stream failed", { cause }),
-    ).pipe(
-      Stream.runForEach((event) => {
-        if (event.type === "server.connected") return applyIfIdle()
-        if (
-          event.type !== "session.execution.succeeded" &&
-          event.type !== "session.execution.failed" &&
-          event.type !== "session.execution.interrupted"
-        )
-          return Effect.void
-        return Effect.tryPromise({
-          try: () => client.session.wait({ sessionID: event.data.sessionID }),
-          catch: (cause) => new Error(`Failed to wait for Session ${event.data.sessionID}`, { cause }),
-        }).pipe(Effect.andThen(applyIfIdle()))
-      }),
-      Effect.catch((cause) => Effect.logWarning("update event stream disconnected", { cause })),
-    ),
-  ).pipe(Effect.repeat(Schedule.spaced("1 second")))
-
-  return yield* Effect.all(
-    [checkServer.pipe(Effect.repeat(Schedule.spaced(input.interval ?? "10 minutes"))), subscribe],
-    {
-      concurrency: "unbounded",
-      discard: true,
-    },
-  )
+  readonly initialDelay?: Duration.Input
+  readonly interval?: Duration.Input
+}) {
+  const interval = input.interval ?? "10 minutes"
+  const initialDelay = input.initialDelay ?? "90 seconds"
+  const check = Effect.gen(function* () {
+    const version = yield* input.inspect()
+    if (version !== undefined) yield* input.notify(version)
+  }).pipe(Effect.catch((error) => Effect.logWarning("update check failed", { error })))
+  return yield* check.pipe(Effect.repeat(Schedule.spaced(interval)), Effect.delay(initialDelay))
 })
 
 export class Service extends Context.Service<Service, Interface>()("@opencode/cli/Updater") {}
@@ -161,13 +43,14 @@ export function decodePolicy(text: string): Policy | undefined {
   if (errors.length || typeof input !== "object" || input === null) return
   if ("update" in input) {
     const value = input.update
-    if (value === "disable" || value === "notify" || value === "auto") return value
+    if (value === "disable" || value === "notify") return value
+    if (value === "auto") return "notify"
     return
   }
   if (!("autoupdate" in input)) return
   if (input.autoupdate === false) return "disable"
   if (input.autoupdate === "notify") return "notify"
-  if (input.autoupdate === true) return "auto"
+  if (input.autoupdate === true) return "notify"
 }
 
 const make = Effect.gen(function* () {
@@ -192,7 +75,7 @@ const make = Effect.gen(function* () {
         Effect.orElseSucceed(() => undefined),
       ),
     )
-    return values.findLast((value) => value !== undefined) ?? "auto"
+    return values.findLast((value) => value !== undefined) ?? "notify"
   })
 
   const run = Effect.fnUntraced(function* (command: string[], timeout: Duration.Input = "10 seconds") {
@@ -302,19 +185,19 @@ const make = Effect.gen(function* () {
     return yield* Effect.fail(new Error(result.stderr.trim() || `Failed to update with ${method}`))
   })
 
-  const inspect = Effect.fnUntraced(function* (): Effect.fn.Return<Inspection, Error> {
+  const inspect = Effect.fnUntraced(function* () {
     if (OPENCODE_LOCAL || ["1", "true"].includes(process.env.OPENCODE_DISABLE_AUTOUPDATE?.toLowerCase() ?? "")) {
       yield* Effect.logInfo("update check skipped", {
         reason: OPENCODE_LOCAL ? "local-install" : "disabled",
         version: OPENCODE_VERSION,
         channel: OPENCODE_CHANNEL,
       })
-      return { action: "none" }
+      return undefined
     }
     const policy = yield* readPolicy()
     if (policy === "disable") {
       yield* Effect.logInfo("update check skipped", { reason: "policy-disabled" })
-      return { action: "none" }
+      return undefined
     }
 
     const version = yield* latest()
@@ -325,19 +208,16 @@ const make = Effect.gen(function* () {
     const next = action(OPENCODE_VERSION, version, policy)
     if (next === "none") {
       yield* Effect.logInfo("update check done", { action: "up-to-date" })
-      return { action: "none" }
+      return undefined
     }
-    if (next === "notify") {
-      yield* Effect.logInfo("OpenCode update available", { current: OPENCODE_VERSION, latest: version })
-      return { action: next, version }
-    }
-    return { action: next, version }
+    yield* Effect.logInfo("OpenCode update available", { current: OPENCODE_VERSION, latest: version })
+    return version
   })
 
   const install = Effect.fnUntraced(function* (version: string) {
     const detected = yield* method()
     if (!detected) {
-      yield* Effect.logWarning("automatic update skipped: installation method not found")
+      yield* Effect.logWarning("update skipped: installation method not found")
       return false
     }
     yield* upgrade(detected, version)
@@ -349,26 +229,9 @@ const make = Effect.gen(function* () {
     if (!(yield* install(version))) return yield* Effect.fail(new Error("Installation method not found"))
   })
 
-  const check = Effect.fn("cli.updater.check")(
-    function* () {
-      const result = yield* inspect()
-      if (result.action !== "upgrade") return
-      yield* install(result.version)
-    },
-    Effect.catchCause((cause) => Effect.logWarning("automatic update failed", { cause })),
-  )
-
-  const monitor = Effect.fn("cli.updater.monitor")(function* (input: {
-    readonly url: string
-    readonly password: string
-    readonly managed: boolean
-    readonly notify: (version: string) => Effect.Effect<void>
-    readonly restart: (handoff: PersistentPty.Handoff | null) => Effect.Effect<void>
-  }) {
-    return yield* monitorServer({ ...input, inspect, install })
-  })
+  const monitor = (notify: (version: string) => Effect.Effect<void>) => monitorUpdates({ inspect, notify })
 
-  return Service.of({ check, monitor, apply, method, latest, upgrade })
+  return Service.of({ monitor, apply, method, latest, upgrade })
 })
 
 export const layer = Layer.effect(Service, make)
diff --git a/packages/cli/test/fixture/upgrade.ts b/packages/cli/test/fixture/upgrade.ts
index 70263f2d15e6..5ed8b4bc479f 100644
--- a/packages/cli/test/fixture/upgrade.ts
+++ b/packages/cli/test/fixture/upgrade.ts
@@ -12,9 +12,8 @@ await Effect.runPromise(
     process.argv.slice(2),
   ).pipe(
     Effect.provideService(Updater.Service, {
-      check: () => Effect.die("Manual upgrades must not run the automatic update check"),
       monitor: () => Effect.die("Manual upgrades must not monitor automatic updates"),
-      apply: () => Effect.die("Manual upgrades must not apply automatic updates"),
+      apply: () => Effect.die("Manual upgrades must not apply TUI updates"),
       method: () =>
         Effect.sync(() => {
           record("method")
diff --git a/packages/cli/test/updater-monitor.test.ts b/packages/cli/test/updater-monitor.test.ts
index 866d59dceee8..92ec7372aa07 100644
--- a/packages/cli/test/updater-monitor.test.ts
+++ b/packages/cli/test/updater-monitor.test.ts
@@ -1,107 +1,40 @@
 import { expect } from "bun:test"
-import { Deferred, Effect, Layer, Option } from "effect"
+import { Effect, Layer, Queue } from "effect"
+import { TestClock } from "effect/testing"
 import { testEffect } from "../../core/test/lib/effect"
 import { Updater } from "../src/services/updater"
 
 const it = testEffect(Layer.empty)
 
-it.live("installs and restarts after the final Session settles", () =>
+it.effect("checks after 90 seconds and every 10 minutes after that", () =>
   Effect.gen(function* () {
-    const fixture = yield* Effect.acquireRelease(Effect.sync(makeServer), (server) => Effect.sync(() => server.stop()))
-    const installed = yield* Deferred.make<string>()
-    const restarted = yield* Deferred.make<void>()
-    yield* Updater.monitorServer({
-      url: fixture.url,
-      password: "test",
-      managed: true,
-      inspect: () => Effect.succeed({ action: "upgrade", version: "1.1.0" }),
-      install: (version) => Deferred.succeed(installed, version).pipe(Effect.as(true)),
-      restart: () => Deferred.succeed(restarted, undefined).pipe(Effect.asVoid),
-      notify: () => Effect.void,
+    const updates = yield* Queue.unbounded<string>()
+    yield* Updater.monitorUpdates({
+      inspect: () => Effect.succeed("2.0.0"),
+      notify: (version) => Queue.offer(updates, version).pipe(Effect.asVoid),
     }).pipe(Effect.forkScoped)
-    yield* wait(fixture.activeRead, () => "Updater did not check active Sessions")
-    yield* wait(fixture.eventOpened, () => "Updater did not open the server event stream")
-    expect(Option.isNone(yield* Deferred.poll(installed))).toBe(true)
 
-    fixture.settle()
-    yield* wait(fixture.waited, () => "Updater did not receive the settlement event")
-    expect(
-      yield* Effect.raceFirst(
-        Deferred.await(installed),
-        Effect.sleep("1 second").pipe(Effect.andThen(Effect.fail(new Error("Updater did not install the update")))),
-      ),
-    ).toBe("1.1.0")
-    yield* Effect.raceFirst(
-      Deferred.await(restarted),
-      Effect.sleep("1 second").pipe(Effect.andThen(Effect.fail(new Error("Updater did not restart the server")))),
-    )
+    yield* Effect.yieldNow
+    expect(yield* Queue.size(updates)).toBe(0)
+    yield* TestClock.adjust("89 seconds")
+    expect(yield* Queue.size(updates)).toBe(0)
+    yield* TestClock.adjust("1 second")
+    expect(yield* Queue.take(updates)).toBe("2.0.0")
+    yield* Effect.yieldNow
+    yield* TestClock.adjust("10 minutes")
+    expect(yield* Queue.take(updates)).toBe("2.0.0")
   }),
 )
 
-const wait = (promise: Promise<unknown>, message: () => string) =>
-  Effect.tryPromise(() => Promise.race([promise, Bun.sleep(1_000).then(() => Promise.reject(new Error(message())))]))
-
-function makeServer() {
-  const encoder = new TextEncoder()
-  const activeRead = Promise.withResolvers<void>()
-  const eventOpened = Promise.withResolvers<void>()
-  const waited = Promise.withResolvers<void>()
-  let active = true
-  let events: ReadableStreamDefaultController<Uint8Array> | undefined
-  const server = Bun.serve({
-    hostname: "127.0.0.1",
-    port: 0,
-    fetch(request) {
-      const url = new URL(request.url)
-      if (url.pathname === "/api/session/active") {
-        activeRead.resolve()
-        return Response.json({ data: active ? { ses_test: { type: "running" } } : {} })
-      }
-      if (url.pathname === "/api/session/ses_test/wait" && request.method === "POST") {
-        waited.resolve()
-        return new Response(null, { status: 204 })
-      }
-      if (url.pathname === "/api/experimental/persistent-pty/handoff" && request.method === "POST") {
-        return Response.json({ handoff: null })
-      }
-      if (url.pathname === "/api/event") {
-        return new Response(
-          new ReadableStream<Uint8Array>({
-            start(controller) {
-              events = controller
-              eventOpened.resolve()
-            },
-          }),
-          { headers: { "content-type": "text/event-stream" } },
-        )
-      }
-      return new Response("Not found", { status: 404 })
-    },
-  })
+it.effect("does not notify when no update is available", () =>
+  Effect.gen(function* () {
+    const updates = yield* Queue.unbounded<string>()
+    yield* Updater.monitorUpdates({
+      inspect: () => Effect.succeed(undefined),
+      notify: (version) => Queue.offer(updates, version).pipe(Effect.asVoid),
+    }).pipe(Effect.forkScoped)
 
-  return {
-    url: server.url.origin,
-    activeRead: activeRead.promise,
-    eventOpened: eventOpened.promise,
-    waited: waited.promise,
-    settle() {
-      active = false
-      events?.enqueue(
-        encoder.encode(
-          `data: ${JSON.stringify({
-            id: "evt_settled",
-            created: Date.now(),
-            type: "session.execution.succeeded",
-            durable: { aggregateID: "ses_test", seq: 0, version: 1 },
-            data: { sessionID: "ses_test" },
-          })}\n\n`,
-        ),
-      )
-      events?.close()
-      events = undefined
-    },
-    stop() {
-      server.stop(true)
-    },
-  }
-}
+    yield* Effect.yieldNow
+    expect(yield* Queue.size(updates)).toBe(0)
+  }),
+)
diff --git a/packages/client/src/promise/generated/types.ts b/packages/client/src/promise/generated/types.ts
index 1717899493b0..3638435548af 100644
--- a/packages/client/src/promise/generated/types.ts
+++ b/packages/client/src/promise/generated/types.ts
@@ -1892,7 +1892,7 @@ export type ConfigEntry =
         shell?: string
         model?: string | { providerID: string; model: string; variant?: string }
         default_agent?: string
-        update?: "disable" | "notify" | "auto"
+        update?: "disable" | "notify"
         share?: "manual" | "auto" | "disabled"
         enterprise?: { url?: string }
         username?: string
diff --git a/packages/core/src/config/normalize.ts b/packages/core/src/config/normalize.ts
index 2dd14cf64cce..7777eaa8b51c 100644
--- a/packages/core/src/config/normalize.ts
+++ b/packages/core/src/config/normalize.ts
@@ -73,6 +73,11 @@ export function normalize(input: unknown): Result {
   const legacyUpdate = own(input, "autoupdate")
     ? decodeValue(ConfigV1.Info.fields.autoupdate, input.autoupdate, ["autoupdate"], diagnostics)
     : undefined
+  const nativeUpdate = own(input, "update")
+    ? input.update === "auto"
+      ? "notify"
+      : decodeEncoded(Info.fields.update, input.update, ["update"], diagnostics)
+    : undefined
   const legacyShare = own(input, "autoshare")
     ? decodeValue(Schema.Boolean, input.autoshare, ["autoshare"], diagnostics) === true
       ? "auto"
@@ -86,7 +91,10 @@ export function normalize(input: unknown): Result {
     if (migrated !== undefined) encoded.media = canonical(ConfigMedia.Info, migrated)
   }
   if (legacySnapshots !== undefined) encoded.snapshots = legacySnapshots
-  if (legacyUpdate !== undefined) encoded.update = ConfigMigrateV1.migrate({ autoupdate: legacyUpdate }).update
+  const migratedUpdate =
+    legacyUpdate === undefined ? undefined : ConfigMigrateV1.migrate({ autoupdate: legacyUpdate }).update
+  const update = prefer(migratedUpdate, nativeUpdate, ["update"], diagnostics)
+  if (update !== undefined) encoded.update = update
   if (legacyShare !== undefined) encoded.share = legacyShare
 
   const legacyReferences = decodeMap(input.reference, ConfigReference.Entry, ["reference"], diagnostics, decodeEncoded)
@@ -196,7 +204,6 @@ export function normalize(input: unknown): Result {
     shell: Info.fields.shell,
     model: Info.fields.model,
     default_agent: Info.fields.default_agent,
-    update: Info.fields.update,
     share: Info.fields.share,
     enterprise: Info.fields.enterprise,
     username: Info.fields.username,
diff --git a/packages/core/src/v1/config/migrate.ts b/packages/core/src/v1/config/migrate.ts
index 271689ce4129..4ddfbe10c03e 100644
--- a/packages/core/src/v1/config/migrate.ts
+++ b/packages/core/src/v1/config/migrate.ts
@@ -29,11 +29,9 @@ export function migrate(info: typeof ConfigV1.Info.Type) {
         update:
           info.autoupdate === false
             ? "disable"
-            : info.autoupdate === "notify"
+            : info.autoupdate === "notify" || info.autoupdate === true
               ? "notify"
-              : info.autoupdate === true
-                ? "auto"
-                : undefined,
+              : undefined,
         share: info.share ?? (info.autoshare ? "auto" : undefined),
         enterprise: info.enterprise,
         username: info.username,
diff --git a/packages/core/test/config/config.test.ts b/packages/core/test/config/config.test.ts
index 2533ba603bc2..d7f5270b70cf 100644
--- a/packages/core/test/config/config.test.ts
+++ b/packages/core/test/config/config.test.ts
@@ -13,6 +13,7 @@ import { LayerNode } from "@opencode-ai/util/effect/layer-node"
 import { Credential } from "@opencode-ai/core/credential"
 import { ConfigMigrateV1 } from "@opencode-ai/core/v1/config/migrate"
 import { ConfigV1 } from "@opencode-ai/core/v1/config/config"
+import { ConfigNormalize } from "@opencode-ai/core/config/normalize"
 import { Watcher } from "@opencode-ai/core/filesystem/watcher"
 import { Bus } from "@opencode-ai/core/bus"
 import { Global } from "@opencode-ai/util/global"
@@ -665,10 +666,18 @@ describe("Config", () => {
   test("migrates the v1 update policy", () => {
     expect(ConfigMigrateV1.migrate({ autoupdate: false }).update).toBe("disable")
     expect(ConfigMigrateV1.migrate({ autoupdate: "notify" }).update).toBe("notify")
-    expect(ConfigMigrateV1.migrate({ autoupdate: true }).update).toBe("auto")
+    expect(ConfigMigrateV1.migrate({ autoupdate: true }).update).toBe("notify")
     expect(ConfigMigrateV1.migrate({}).update).toBeUndefined()
   })
 
+  test("normalizes the previous native auto update policy", () => {
+    expect(ConfigNormalize.normalize({ update: "auto" })).toEqual({
+      type: "normalized",
+      encoded: { update: "notify" },
+      diagnostics: [],
+    })
+  })
+
   test("migrates v1 provider lists to policies", () => {
     expect(
       ConfigMigrateV1.migrate({
diff --git a/packages/protocol/openapi.json b/packages/protocol/openapi.json
index 345ee740ca96..54fa594848c9 100644
--- a/packages/protocol/openapi.json
+++ b/packages/protocol/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify", "auto"]
+            "enum": ["disable", "notify"]
           },
           "share": {
             "type": "string",
diff --git a/packages/schema/src/config.ts b/packages/schema/src/config.ts
index 653819d6b511..33c0a4c6a81e 100644
--- a/packages/schema/src/config.ts
+++ b/packages/schema/src/config.ts
@@ -34,8 +34,8 @@ export class Info extends Schema.Class<Info>("Config.Info")({
   default_agent: Schema.String.pipe(optional).annotate({
     description: "Default primary agent to use when no session agent is selected",
   }),
-  update: Schema.Literals(["disable", "notify", "auto"]).pipe(optional).annotate({
-    description: "Disable updates, notify when one is available, or install automatically",
+  update: Schema.Literals(["disable", "notify"]).pipe(optional).annotate({
+    description: "Disable updates or notify when one is available",
   }),
   share: Schema.Literals(["manual", "auto", "disabled"]).pipe(optional).annotate({
     description: "Control whether sessions may be shared manually, automatically, or not at all",
diff --git a/packages/server/src/process.ts b/packages/server/src/process.ts
index f515b1a20c2f..99f3b37f1b48 100644
--- a/packages/server/src/process.ts
+++ b/packages/server/src/process.ts
@@ -1,11 +1,9 @@
 export * as ServerProcess from "./process"
 
 import { NodeHttpServer } from "@effect/platform-node"
-import { Bus } from "@opencode-ai/core/bus"
 import { SessionRestart } from "@opencode-ai/core/session/execution/restart"
 import { hasPtyConnectTicketURL } from "@opencode-ai/protocol/groups/pty"
 import { hasPersistentPtyConnectTicketURL } from "@opencode-ai/protocol/groups/persistent-pty"
-import { InstallationEvent } from "@opencode-ai/schema/installation-event"
 import { Cause, Context, Effect, Exit, Latch, Layer, Option, Ref, Scope } from "effect"
 import {
   HttpMiddleware,
@@ -116,12 +114,7 @@ export const start = Effect.fn("ServerProcess.start")(function* <E, R>(
       )
     yield* Ref.set(application, Option.some(transform ? transform(app) : app))
     yield* status.ready
-    return {
-      address: bound.http.address,
-      shutdown: shutdown.await,
-      updateAvailable: (version: string) =>
-        Context.get(context, Bus.Service).publish(InstallationEvent.UpdateAvailable, { version }).pipe(Effect.asVoid),
-    }
+    return { address: bound.http.address, shutdown: shutdown.await }
   }).pipe(
     Effect.catchCause((cause) => {
       if (!lifecycle || Cause.hasInterruptsOnly(cause)) return Effect.failCause(cause)
diff --git a/packages/server/test/process.test.ts b/packages/server/test/process.test.ts
index 228f4c52bdc9..234bd255db8a 100644
--- a/packages/server/test/process.test.ts
+++ b/packages/server/test/process.test.ts
@@ -1,5 +1,4 @@
 import { expect } from "bun:test"
-import { InstallationEvent } from "@opencode-ai/schema/installation-event"
 import { Effect } from "effect"
 import { HttpServer, HttpServerError, HttpServerResponse } from "effect/unstable/http"
 import { it } from "../../core/test/lib/effect"
@@ -100,12 +99,9 @@ it.live("allows browser preflight requests without credentials", () =>
     )
     expect(event.status).toBe(200)
     expect(event.headers.get("content-encoding")).toBeNull()
-    if (!event.body) return yield* Effect.die(new Error("Event response has no body"))
-    const reader = event.body.getReader()
-    yield* Effect.promise(() => readUntil(reader, "server.connected"))
-    yield* server.updateAvailable("2.0.0")
-    yield* Effect.promise(() => readUntil(reader, "installation.update-available"))
-    yield* Effect.promise(() => reader.cancel())
+    const body = event.body
+    if (!body) return yield* Effect.die(new Error("Event response has no body"))
+    yield* Effect.promise(() => body.cancel())
 
     const missing = yield* Effect.promise(() =>
       fetch(new URL("/missing", HttpServer.formatAddress(server.address)), {
@@ -130,11 +126,3 @@ it.live("allows browser preflight requests without credentials", () =>
     )
   }),
 )
-
-async function readUntil(reader: ReadableStreamDefaultReader<Uint8Array>, expected: string) {
-  while (true) {
-    const next = await reader.read()
-    if (next.done) throw new Error(`Event stream ended before ${expected}`)
-    if (new TextDecoder().decode(next.value).includes(expected)) return
-  }
-}
diff --git a/packages/tui/src/app.tsx b/packages/tui/src/app.tsx
index a6501f751680..8895847cb6b1 100644
--- a/packages/tui/src/app.tsx
+++ b/packages/tui/src/app.tsx
@@ -186,6 +186,7 @@ export type TuiInput = {
   args: Args
   config: Config.Interface
   updater?: {
+    monitor: (notify: (version: string) => void, signal: AbortSignal) => Promise<void>
     apply: (version: string) => Promise<void>
   }
   packages: PackageSource
@@ -220,9 +221,6 @@ export const run = Effect.fn("Tui.run")(function* (input: TuiInput) {
   const service = managed
     ? {
         reconnect: async (signal: AbortSignal) => {
-          // Give the server a chance to respawn itself before starting client-side recovery.
-          await new Promise((resolve) => setTimeout(resolve, 50))
-          if (signal.aborted) throw signal.reason ?? new Error("Server reconnect cancelled")
           const endpoint = await managed.reconnect(signal)
           const next = { baseUrl: endpoint.url, headers: Service.headers(endpoint) }
           return { api: OpenCode.make(next), url: endpoint.url }
@@ -507,6 +505,36 @@ function App(props: { pair?: DialogPairCredentials; updater?: TuiInput["updater"
     "update-notifications",
     { initial: { versions: [] } },
   )
+  const showUpdate = (version: string) => {
+    const updater = props.updater
+    if (!updater || updateNotifications.versions.includes(version)) return
+    void markUpdateNotification((draft) => {
+      draft.versions = [...draft.versions, version].slice(-100)
+    }).catch((error) => log.error("failed to persist update notification", { error }))
+    const key = `update:${version}`
+    dialog.replace(
+      () => (
+        <DialogUpdate
+          dialogKey={key}
+          version={version}
+          install={() => updater.apply(version)}
+          restart={client.restart}
+        />
+      ),
+      undefined,
+      { key },
+    )
+    dialog.setCentered(true)
+  }
+  onMount(() => {
+    const updater = props.updater
+    if (!updater) return
+    const controller = new AbortController()
+    onCleanup(() => controller.abort())
+    void updater.monitor(showUpdate, controller.signal).catch((error) => {
+      if (!controller.signal.aborted) log.error("update monitor failed", { error })
+    })
+  })
   const tabsResize = createPaneResize({
     value: () => layout.verticalTabsWidth ?? SESSION_SIDEBAR_WIDTH,
     defaultValue: () => SESSION_SIDEBAR_WIDTH,
@@ -1215,19 +1243,6 @@ function App(props: { pair?: DialogPairCredentials; updater?: TuiInput["updater"
     })
   })
 
-  event.on("installation.update-available", (evt) => {
-    const updater = props.updater
-    const restart = client.restart
-    if (!updater || !restart) return
-    const version = evt.data.version
-    if (updateNotifications.versions.includes(version)) return
-    void markUpdateNotification((draft) => {
-      draft.versions = [...draft.versions, version].slice(-100)
-    }).catch((error) => log.error("failed to persist update notification", { error }))
-    dialog.replace(() => <DialogUpdate version={version} install={() => updater.apply(version)} restart={restart} />)
-    dialog.setCentered(true)
-  })
-
   event.on("tui.session.select", (evt, { workspace }) => {
     if (workspace !== (location.current?.workspaceID ?? data.location.default().workspaceID)) return
     route.navigate({
diff --git a/packages/tui/src/component/dialog-update.tsx b/packages/tui/src/component/dialog-update.tsx
index c07d53f7eb95..96f534250b8c 100644
--- a/packages/tui/src/component/dialog-update.tsx
+++ b/packages/tui/src/component/dialog-update.tsx
@@ -8,22 +8,32 @@ import { useDialog } from "../ui/dialog"
 import { Spinner } from "./spinner"
 
 type State =
-  | { type: "ready"; active: "update" | "ignore" }
+  | { type: "ready"; active: "update" | "skip" }
   | { type: "installing" }
   | { type: "restarting" }
   | { type: "failed"; message: string }
 
-export function DialogUpdate(props: { version: string; install: () => Promise<void>; restart: () => Promise<void> }) {
+export function DialogUpdate(props: {
+  dialogKey: string
+  version: string
+  install: () => Promise<void>
+  restart?: () => Promise<void>
+}) {
   const dialog = useDialog()
   const theme = useTheme("elevated")
   const [state, setState] = createSignal<State>({ type: "ready", active: "update" })
+  const close = () => {
+    if (dialog.key === props.dialogKey) dialog.clear()
+  }
 
   const install = async () => {
     setState({ type: "installing" })
     await props.install()
-    setState({ type: "restarting" })
-    await props.restart()
-    dialog.clear()
+    if (props.restart) {
+      setState({ type: "restarting" })
+      await props.restart()
+    }
+    close()
   }
 
   const beginInstall = () => {
@@ -34,16 +44,16 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
   const run = () => {
     const current = state()
     if (current.type !== "ready") return
-    if (current.active === "ignore") return dialog.clear()
+    if (current.active === "skip") return close()
     beginInstall()
   }
 
   const toggle = () =>
     setState((current) =>
-      current.type === "ready" ? { ...current, active: current.active === "update" ? "ignore" : "update" } : current,
+      current.type === "ready" ? { ...current, active: current.active === "update" ? "skip" : "update" } : current,
     )
 
-  const selected = (action: "update" | "ignore") => {
+  const selected = (action: "update" | "skip") => {
     const current = state()
     return current.type === "ready" && current.active === action
   }
@@ -60,7 +70,7 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
         bind: "return",
         title: "Confirm update action",
         group: "Dialog",
-        run: () => (state().type === "failed" ? dialog.clear() : run()),
+        run: () => (state().type === "failed" ? close() : run()),
       },
       {
         bind: "left",
@@ -81,9 +91,9 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
     <box paddingLeft={2} paddingRight={2} gap={1}>
       <box flexDirection="row" justifyContent="space-between">
         <text attributes={TextAttributes.BOLD} fg={theme.text.default}>
-          Update
+          Update available
         </text>
-        <text fg={theme.text.subdued} onMouseUp={() => dialog.clear()}>
+        <text fg={theme.text.subdued} onMouseUp={close}>
           esc
         </text>
       </box>
@@ -91,14 +101,17 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
         <Switch>
           <Match when={state().type === "ready"}>
             <text fg={theme.text.subdued}>
-              Update to v{props.version}? It will be applied in the background and active sessions will be restarted.
+              An update is available. Applying will
+              {props.restart
+                ? " restart the server and active sessions will be resumed."
+                : " install the update but you will need to manually restart."}
             </text>
           </Match>
           <Match when={state().type === "installing"}>
-            <Spinner>Installing OpenCode {props.version}…</Spinner>
+            <Spinner shimmer={theme.text.default}>Installing OpenCode {props.version}…</Spinner>
           </Match>
           <Match when={state().type === "restarting"}>
-            <Spinner>Restarting the background service…</Spinner>
+            <Spinner shimmer={theme.text.default}>Restarting the background service…</Spinner>
           </Match>
           <Match when={state().type === "failed"}>
             <text fg={theme.text.feedback.error.default}>{failure()}</text>
@@ -114,7 +127,7 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
                 paddingLeft={3}
                 paddingRight={3}
                 backgroundColor={theme.background.action.primary.focused}
-                onMouseUp={() => dialog.clear()}
+                onMouseUp={close}
               >
                 <text fg={theme.text.action.primary.focused}>close</text>
               </box>
@@ -123,19 +136,19 @@ export function DialogUpdate(props: { version: string; install: () => Promise<vo
         }
       >
         <box flexDirection="row" justifyContent="flex-end" paddingBottom={1}>
-          <For each={["ignore", "update"] as const}>
+          <For each={["skip", "update"] as const}>
             {(action) => (
               <box
                 paddingLeft={1}
                 paddingRight={1}
                 backgroundColor={selected(action) ? theme.background.action.primary.focused : undefined}
                 onMouseUp={() => {
-                  if (action === "ignore") return dialog.clear()
+                  if (action === "skip") return close()
                   beginInstall()
                 }}
               >
                 <text fg={selected(action) ? theme.text.action.primary.focused : theme.text.subdued}>
-                  {action === "update" ? "Update" : "Ignore"}
+                  {action === "update" ? "Update" : "Skip"}
                 </text>
               </box>
             )}
diff --git a/packages/tui/src/component/shimmer-text.tsx b/packages/tui/src/component/shimmer-text.tsx
new file mode 100644
index 000000000000..a1e06eade505
--- /dev/null
+++ b/packages/tui/src/component/shimmer-text.tsx
@@ -0,0 +1,104 @@
+import {
+  OptimizedBuffer,
+  RGBA,
+  TargetChannel,
+  TextRenderable,
+  type RenderContext,
+  type TextOptions,
+} from "@opentui/core"
+import { extend, type JSX } from "@opentui/solid"
+import { splitProps } from "solid-js"
+import { coast, intensityAt } from "./tab-pulse"
+
+type ShimmerTextOptions = TextOptions & {
+  shimmer: RGBA
+}
+
+const DURATION = 1200
+const TRANSPARENT = RGBA.fromValues(0, 0, 0, 0)
+const CONTINUATION = 0xc0000000 | 0
+
+class ShimmerTextRenderable extends TextRenderable {
+  private _shimmer = RGBA.defaultForeground()
+  private elapsed = 0
+  private scratch: OptimizedBuffer | undefined
+  private mask = new Float32Array(0)
+  private matrix = new Float32Array(16)
+
+  constructor(ctx: RenderContext, options: ShimmerTextOptions) {
+    super(ctx, options)
+    this.matrix[3] = this._shimmer.r
+    this.matrix[7] = this._shimmer.g
+    this.matrix[11] = this._shimmer.b
+    this.matrix[15] = 1
+    if (options.shimmer) this.shimmer = options.shimmer
+    this.live = true
+  }
+
+  set shimmer(value: RGBA) {
+    if (value.equals(this._shimmer)) return
+    this._shimmer = value
+    this.matrix[3] = value.r
+    this.matrix[7] = value.g
+    this.matrix[11] = value.b
+    this.requestRender()
+  }
+
+  override render(buffer: OptimizedBuffer, deltaTime: number) {
+    if (!this.visible || this.isDestroyed || !Number.isFinite(this.width) || this.width <= 0 || this.height <= 0) return
+    this.elapsed = (this.elapsed + deltaTime) % DURATION
+    if (!this.scratch)
+      this.scratch = OptimizedBuffer.create(this.width, this.height, this._ctx.widthMethod, { respectAlpha: true })
+    if (this.scratch.width !== this.width || this.scratch.height !== this.height)
+      this.scratch.resize(this.width, this.height)
+
+    this.scratch.clear(TRANSPARENT)
+    this.scratch.drawTextBuffer(this.textBufferView, 0, 0)
+    const characters = this.scratch.buffers.char
+    let end = 0
+    for (let row = 0; row < this.height; row++) {
+      let column = this.width
+      while (
+        column > 0 &&
+        (characters[row * this.width + column - 1] === 32 || characters[row * this.width + column - 1] === 0)
+      )
+        column--
+      end = Math.max(end, column)
+    }
+    const front = -4 + coast(this.elapsed / DURATION) * (end + 22)
+    if (this.mask.length !== this.width * this.height * 3) this.mask = new Float32Array(this.width * this.height * 3)
+    let strength = 0
+    for (let cell = 0; cell < characters.length; cell++) {
+      const column = cell % this.width
+      if ((characters[cell] & CONTINUATION) !== CONTINUATION) strength = intensityAt(column, front, 4, 18)
+      this.mask[cell * 3] = column
+      this.mask[cell * 3 + 1] = Math.floor(cell / this.width)
+      this.mask[cell * 3 + 2] = strength
+    }
+    this.scratch.colorMatrix(this.matrix, this.mask, 1, TargetChannel.FG)
+    buffer.drawFrameBuffer(this.screenX, this.screenY, this.scratch)
+    this.markClean()
+    this._ctx.addToHitGrid(this.screenX, this.screenY, this.width, this.height, this.num)
+  }
+
+  override destroy() {
+    this.scratch?.destroy()
+    this.scratch = undefined
+    super.destroy()
+  }
+}
+
+extend({ shimmer_text: ShimmerTextRenderable })
+
+declare module "@opentui/solid" {
+  interface OpenTUIComponents {
+    shimmer_text: typeof ShimmerTextRenderable
+  }
+}
+
+type Props = Omit<JSX.IntrinsicElements["text"], "ref"> & { shimmer: RGBA }
+
+export function ShimmerText(props: Props) {
+  const [local, text] = splitProps(props, ["shimmer"])
+  return <shimmer_text {...text} shimmer={local.shimmer} />
+}
diff --git a/packages/tui/src/component/spinner.tsx b/packages/tui/src/component/spinner.tsx
index 1cca2f4bcffd..0bed53f45ac7 100644
--- a/packages/tui/src/component/spinner.tsx
+++ b/packages/tui/src/component/spinner.tsx
@@ -1,30 +1,48 @@
-import { Show } from "solid-js"
+import { createEffect, createSignal, onCleanup, Show } from "solid-js"
 import { useTheme } from "../context/theme"
 import { useConfig } from "../config"
 import type { JSX } from "@opentui/solid"
 import type { RGBA } from "@opentui/core"
 import { registerOpencodeSpinner } from "./register-spinner"
 import { SPINNER_FRAMES } from "./spinner-frames"
+import { ShimmerText } from "./shimmer-text"
 
 export { SPINNER_FRAMES } from "./spinner-frames"
 
 registerOpencodeSpinner()
 
-export function Spinner(props: { children?: JSX.Element; color?: RGBA }) {
+export function Spinner(props: { children?: JSX.Element; color?: RGBA; shimmer?: RGBA }) {
   const theme = useTheme()
   const config = useConfig().data
   const color = () => props.color ?? theme.text.subdued
+  const [frame, setFrame] = createSignal(0)
+  createEffect(() => {
+    if (!(config.animations ?? true) || !props.shimmer) return
+    const timer = setInterval(() => setFrame((value) => (value + 1) % SPINNER_FRAMES.length), 80)
+    onCleanup(() => clearInterval(timer))
+  })
   return (
     <Show
       when={config.animations ?? true}
       fallback={<text fg={color()}>{props.children ? <>⋯ {props.children}</> : "⋯"}</text>}
     >
-      <box flexDirection="row" gap={1}>
-        <spinner frames={SPINNER_FRAMES} interval={80} color={color()} />
-        <Show when={props.children}>
-          <text fg={color()}>{props.children}</text>
-        </Show>
-      </box>
+      <Show
+        when={props.shimmer}
+        fallback={
+          <box flexDirection="row" gap={1}>
+            <spinner frames={SPINNER_FRAMES} interval={80} color={color()} />
+            <Show when={props.children}>
+              <text fg={color()}>{props.children}</text>
+            </Show>
+          </box>
+        }
+      >
+        {(shimmer) => (
+          <ShimmerText fg={color()} shimmer={shimmer()}>
+            {SPINNER_FRAMES[frame()]} {props.children}
+          </ShimmerText>
+        )}
+      </Show>
     </Show>
   )
 }
diff --git a/packages/www/openapi.json b/packages/www/openapi.json
index 345ee740ca96..54fa594848c9 100644
--- a/packages/www/openapi.json
+++ b/packages/www/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify", "auto"]
+            "enum": ["disable", "notify"]
           },
           "share": {
             "type": "string",
diff --git a/packages/www/public/openapi.json b/packages/www/public/openapi.json
index 345ee740ca96..54fa594848c9 100644
--- a/packages/www/public/openapi.json
+++ b/packages/www/public/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify", "auto"]
+            "enum": ["disable", "notify"]
           },
           "share": {
             "type": "string",
diff --git a/packages/www/src/docs/content/config.mdx b/packages/www/src/docs/content/config.mdx
index c9e10a28be87..f0d93fd4ced0 100644
--- a/packages/www/src/docs/content/config.mdx
+++ b/packages/www/src/docs/content/config.mdx
@@ -129,15 +129,13 @@ agents.
 
 ### Updates
 
-Control updates from the global config. Set `update` to `"disable"` to skip
-updates, `"notify"` to report available updates without installing them, or
-`"auto"` to automatically install compatible non-major updates.
-Major updates are reported but never installed automatically.
+Control update checks from the global config. Set `update` to `"disable"` to
+skip them or `"notify"` to show available updates before installing them.
 Project-level values are ignored.
 
 ```jsonc
 {
-  "update": "auto",
+  "update": "notify",
 }
 ```
 
diff --git a/packages/www/src/docs/content/migrate-v1.mdx b/packages/www/src/docs/content/migrate-v1.mdx
index 838ea805cc1e..ac939218ea98 100644
--- a/packages/www/src/docs/content/migrate-v1.mdx
+++ b/packages/www/src/docs/content/migrate-v1.mdx
@@ -409,7 +409,8 @@ The V1 provider filters do not have one-to-one native V2 config fields, but thei
 
 - `enabled_providers` becomes an internal deny-by-default provider policy followed by allows for the listed providers.
 - `disabled_providers` becomes internal deny policies for the listed providers.
-- `autoupdate` becomes `update`: `false` maps to `"disable"`, `"notify"` remains `"notify"`, and `true` maps to `"auto"`.
+- `autoupdate` becomes `update`: `false` maps to `"disable"`, while `"notify"` and `true` map to `"notify"`.
+- The previous V2 value `update: "auto"` is treated as `update: "notify"`.
 - `small_model` becomes the `model` selection for the built-in `title` agent. Native V2 configuration should use
   `agents.title.model` instead.