diff --git a/.github/actions/setup-bun/action.yml b/.github/actions/setup-bun/action.yml
index 9d29724d86..5cdd73dbc2 100644
--- a/.github/actions/setup-bun/action.yml
+++ b/.github/actions/setup-bun/action.yml
@@ -50,7 +50,8 @@ runs:
           ${{ runner.os }}-bun-
 
     - name: Install setuptools for distutils compatibility
-      run: python3 -m pip install setuptools || pip install setuptools || true
+      # Ubuntu 24.04 marks its Python as externally managed (PEP 668); allow the install rather than log an error.
+      run: python3 -m pip install --break-system-packages setuptools || pip install setuptools || true
       shell: bash
 
     - name: Install dependencies
diff --git a/package.json b/package.json
index 0f7d70c00d..d7bed79885 100644
--- a/package.json
+++ b/package.json
@@ -4,7 +4,7 @@
   "description": "MobileCode: the open source AI coding agent for mobile apps",
   "private": true,
   "type": "module",
-  "packageManager": "bun@1.3.14",
+  "packageManager": "bun@1.4.1",
   "scripts": {
     "dev": "bun run --cwd packages/opencode src/index.ts",
     "dev:desktop": "bun --cwd packages/desktop dev",