diff --git a/packages/cli/package.json b/packages/cli/package.json
index 8cb1c2ef22..2b26f52ec2 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -27,6 +27,7 @@
   "scripts": {
     "build": "bun run script/build.ts",
     "dev": "bun run src/index.ts",
+    "test": "bun test --timeout 30000 --only-failures",
     "typecheck": "tsgo --noEmit"
   },
   "dependencies": {
diff --git a/packages/cli/src/index.ts b/packages/cli/src/index.ts
index f8775fdb16..5b851d7f49 100755
--- a/packages/cli/src/index.ts
+++ b/packages/cli/src/index.ts
@@ -58,6 +58,6 @@ Effect.logInfo("cli starting", {
   Effect.provide(LoggingLayer),
   Effect.provide(NodeServices.layer),
   Effect.scoped,
-  Effect.tap(() => Effect.sync(() => process.exit(0))),
+  Effect.tap(() => Effect.sync(() => process.exit(process.exitCode ?? 0))),
   NodeRuntime.runMain,
 )
diff --git a/packages/cli/src/mini/catalog.shared.ts b/packages/cli/src/mini/catalog.shared.ts
index 1af0f51f62..d810c47077 100644
--- a/packages/cli/src/mini/catalog.shared.ts
+++ b/packages/cli/src/mini/catalog.shared.ts
@@ -14,10 +14,11 @@ type CurrentSkill = SkillListOutput["data"][number]
 type CurrentProvider = ProviderListOutput["data"][number]
 type CurrentModel = ModelListOutput["data"][number]
 
-function location(directory: string) {
+function location(directory: string, workspace?: string) {
   return {
     location: {
       directory,
+      workspace,
     },
   }
 }
@@ -98,13 +99,14 @@ export function runProviders(providers: CurrentProvider[], models: CurrentModel[
 export async function waitForCatalogReady(input: {
   sdk: OpenCodeClient
   directory: string
+  workspace?: string
   model: { providerID: string; modelID: string }
   timeoutMs?: number
 }) {
   const deadline = Date.now() + (input.timeoutMs ?? 5_000)
   while (Date.now() < deadline) {
     const models = await input.sdk.model
-      .list(location(input.directory))
+      .list(location(input.directory, input.workspace))
       .then((result) => result.data)
       .catch(() => undefined)
     if (models?.some((model) => model.providerID === input.model.providerID && model.id === input.model.modelID)) return
diff --git a/packages/cli/src/mini/noninteractive.ts b/packages/cli/src/mini/noninteractive.ts
index 0645daac51..97d2fd91b6 100644
--- a/packages/cli/src/mini/noninteractive.ts
+++ b/packages/cli/src/mini/noninteractive.ts
@@ -132,8 +132,14 @@ export async function runNonInteractivePrompt(input: Input) {
 
   const consume = async () => {
     while (!controller.signal.aborted) {
-      const next = await stream.next()
-      if (next.done) throw new Error("Event stream disconnected during prompt execution")
+      const next = await stream.next().catch((error) => {
+        if (!emittedError) throw error
+        return { done: true as const, value: undefined }
+      })
+      if (next.done) {
+        if (emittedError) return
+        throw new Error("Event stream disconnected during prompt execution")
+      }
       const event = next.value
 
       if (event.type === "permission.v2.asked" && submitted && event.data.sessionID === input.sessionID) {
@@ -416,7 +422,7 @@ export async function runNonInteractivePrompt(input: Input) {
         }
         controller.abort()
         await completed?.catch(() => {})
-        if (interrupted) return undefined
+        if (interrupted || emittedError) return undefined
         throw error
       })
     admission = undefined
diff --git a/packages/cli/src/mini/run.ts b/packages/cli/src/mini/run.ts
index ee4fc1cb53..d8e3dcd228 100644
--- a/packages/cli/src/mini/run.ts
+++ b/packages/cli/src/mini/run.ts
@@ -8,7 +8,7 @@ import { open } from "node:fs/promises"
 import path from "node:path"
 import { Daemon } from "../daemon"
 import { Standalone } from "../services/standalone"
-import { loadRunAgents, waitForCatalogReady, waitForDefaultModel } from "./catalog.shared"
+import { loadRunAgents, waitForCatalogReady } from "./catalog.shared"
 import { runNonInteractivePrompt } from "./noninteractive"
 import { toolInlineInfo } from "./tool"
 import { UI } from "./ui"
@@ -49,7 +49,11 @@ type Prepared = {
 
 const ATTACH_FILE_MAX_BYTES = 10 * 1024 * 1024
 
-export async function runNonInteractive(input: RunCommandInput) {
+export function runNonInteractive(input: RunCommandInput) {
+  return run(input).catch((error) => reportError(input, error instanceof Error ? error.message : String(error)))
+}
+
+async function run(input: RunCommandInput) {
   if (input.fork && !input.continue && !input.session) fail("--fork requires --continue or --session")
   const root = process.env.PWD ?? process.cwd()
   const directory = input.server ? input.directory : localDirectory(input.directory, root)
@@ -78,17 +82,22 @@ async function execute(input: RunCommandInput, prepared: Prepared, transport: Tr
   if (!requestedDirectory) fail("Failed to resolve server directory")
   const session = await selectSession(client, requestedDirectory, input)
   const cwd = session?.location.directory ?? requestedDirectory
+  const workspace = session?.location.workspaceID
   const explicitModel = parseModel(input.model)
   const sessionModel = session?.model ? { providerID: session.model.providerID, modelID: session.model.id } : undefined
   const defaultModel =
-    input.variant && !explicitModel && !sessionModel
-      ? await waitForDefaultModel({ sdk: client, directory: cwd })
+    !explicitModel && !sessionModel
+      ? await client.model
+          .default({ location: { directory: cwd, workspace } })
+          .then((result) =>
+            result.data ? { providerID: result.data.providerID, modelID: result.data.id } : undefined,
+          )
       : undefined
   const model = pickRunModel(explicitModel, input.variant, sessionModel, defaultModel)
   if (input.variant && !model) return reportError(input, "Cannot select a variant before selecting a model", session?.id)
   if (model) {
-    await waitForCatalogReady({ sdk: client, directory: cwd, model })
-    const available = await client.model.list({ location: { directory: cwd } })
+    await waitForCatalogReady({ sdk: client, directory: cwd, workspace, model })
+    const available = await client.model.list({ location: { directory: cwd, workspace } })
     if (!available.data.some((item) => item.providerID === model.providerID && item.id === model.modelID))
       return reportError(input, `Model unavailable: ${model.providerID}/${model.modelID}`, session?.id)
   }
@@ -109,26 +118,21 @@ async function execute(input: RunCommandInput, prepared: Prepared, transport: Tr
     })
   }
 
-  try {
-    await runNonInteractivePrompt({
-      client,
-      sessionID: selected.id,
-      message: prepared.message,
-      files: prepared.files,
-      agent,
-      model,
-      variant: input.variant,
-      thinking: input.thinking ?? false,
-      format: input.format,
-      dangerouslySkipPermissions: input.dangerouslySkipPermissions ?? false,
-      attached: !input.standaloneCommand,
-      renderTool,
-      renderToolError,
-    })
-  } catch (error) {
-    UI.error(error instanceof Error ? error.message : String(error))
-    process.exitCode = 1
-  }
+  await runNonInteractivePrompt({
+    client,
+    sessionID: selected.id,
+    message: prepared.message,
+    files: prepared.files,
+    agent,
+    model,
+    variant: input.variant,
+    thinking: input.thinking ?? false,
+    format: input.format,
+    dangerouslySkipPermissions: input.dangerouslySkipPermissions ?? false,
+    attached: !input.standaloneCommand,
+    renderTool,
+    renderToolError,
+  }).catch((error) => reportError(input, error instanceof Error ? error.message : String(error), selected.id))
 }
 
 export function mergeInput(message: string | undefined, piped: string | undefined) {
@@ -303,6 +307,5 @@ function reportError(input: RunCommandInput, message: string, sessionID?: string
 }
 
 function fail(message: string): never {
-  UI.error(message)
-  process.exit(1)
+  throw new Error(message)
 }
diff --git a/packages/cli/src/server-process.ts b/packages/cli/src/server-process.ts
index 6f3af1f060..48471a573a 100644
--- a/packages/cli/src/server-process.ts
+++ b/packages/cli/src/server-process.ts
@@ -39,7 +39,7 @@ const processEffect = Effect.fnUntraced(function* (options: Options) {
     Effect.gen(function* () {
       if (options.mode === "service") {
         const service = yield* ServiceConfig.options()
-        yield* Flock.effect("service-process", {
+        yield* Flock.effect(path.basename(service.file, ".json") + "-process", {
           dir: path.dirname(service.file),
           staleMs: 3_000,
           timeoutMs: 15_000,
diff --git a/packages/cli/src/services/standalone.ts b/packages/cli/src/services/standalone.ts
index 328eb0e302..c0a8d8b71d 100644
--- a/packages/cli/src/services/standalone.ts
+++ b/packages/cli/src/services/standalone.ts
@@ -42,7 +42,7 @@ const makeTransport = Effect.fn("cli.standalone.transport")(
     const output = yield* proc.stdout.pipe(Stream.decodeText(), Stream.splitLines, Stream.take(1), Stream.mkString)
     if (!output) return yield* Effect.fail(new Error("Standalone server exited before reporting readiness"))
     const ready = yield* Effect.tryPromise(() => decodeReady(output))
-    return { url: ready.url, headers: ServerAuth.headers({ password }), pid: proc.pid }
+    return { url: ready.url, headers: ServerAuth.headers({ password, username: "opencode" }), pid: proc.pid }
   },
   Effect.provide(AppNodeBuilder.build(CrossSpawnSpawner.node)),
 )
diff --git a/packages/cli/test/fixture/standalone-owner.ts b/packages/cli/test/fixture/standalone-owner.ts
index 6149f614de..1ad311890a 100644
--- a/packages/cli/test/fixture/standalone-owner.ts
+++ b/packages/cli/test/fixture/standalone-owner.ts
@@ -8,7 +8,8 @@ await Effect.runPromise(
   Effect.scoped(
     Effect.gen(function* () {
       const transport = yield* Standalone.transport()
-      console.log(`${transport.pid} ${transport.url}`)
+      const response = yield* Effect.promise(() => fetch(new URL("/api/health", transport.url), { headers: transport.headers }))
+      console.log(`${transport.pid} ${transport.url} ${response.status}`)
       return yield* Effect.never
     }),
   ),
diff --git a/packages/cli/test/mini.test.ts b/packages/cli/test/mini.test.ts
index 95b74d2404..4734b62476 100644
--- a/packages/cli/test/mini.test.ts
+++ b/packages/cli/test/mini.test.ts
@@ -1,9 +1,11 @@
 import { describe, expect, test } from "bun:test"
+import { InstallationVersion } from "@opencode-ai/core/installation/version"
+import path from "node:path"
 import { mergeInteractiveInput, mergeNonInteractiveInput, pickRunModel } from "../src/mini"
 
 async function cli(args: string[]) {
   const child = Bun.spawn([process.execPath, "run", "src/index.ts", ...args], {
-    cwd: new URL("..", import.meta.url).pathname,
+    cwd: path.join(import.meta.dir, ".."),
     stdout: "pipe",
     stderr: "pipe",
   })
@@ -61,6 +63,66 @@ describe("mini command", () => {
     expect(result.stderr).not.toContain("You must provide a message")
   })
 
+  test("preserves a run failure exit code", async () => {
+    let modelRequests = 0
+    const server = Bun.serve({
+      port: 0,
+      fetch(request) {
+        const url = new URL(request.url)
+        if (url.pathname === "/api/health")
+          return Response.json({ healthy: true, version: InstallationVersion, pid: process.pid })
+        if (url.pathname === "/api/model") {
+          modelRequests++
+          return Response.json({
+            location: { directory: process.cwd(), project: { id: "global", directory: process.cwd() } },
+            data: modelRequests === 1 ? [{ id: "missing", providerID: "definitely" }] : [],
+          })
+        }
+        return new Response(undefined, { status: 404 })
+      },
+    })
+
+    try {
+      const result = await cli([
+        "run",
+        "--server",
+        server.url.toString(),
+        "--dir",
+        process.cwd(),
+        "--model",
+        "definitely/missing",
+        "hi",
+      ])
+
+      expect(result.exitCode).toBe(1)
+      expect(result.stderr).toContain("Model unavailable: definitely/missing")
+    } finally {
+      server.stop(true)
+    }
+  })
+
+  test("reports pre-admission errors as JSON", async () => {
+    const server = Bun.serve({
+      port: 0,
+      fetch() {
+        return Response.json({ healthy: true, version: "incompatible", pid: process.pid })
+      },
+    })
+
+    try {
+      const result = await cli(["run", "--format", "json", "--server", server.url.toString(), "hi"])
+
+      expect(result.exitCode).toBe(1)
+      expect(JSON.parse(result.stdout)).toMatchObject({
+        type: "error",
+        sessionID: "",
+        error: { type: "unknown", message: expect.stringContaining("requires") },
+      })
+    } finally {
+      server.stop(true)
+    }
+  })
+
   test("uses the shared V2 server option instead of an attach command", async () => {
     const result = await cli(["mini", "--help"])
 
diff --git a/packages/cli/test/standalone.test.ts b/packages/cli/test/standalone.test.ts
index 1a309477f3..3cfe25855f 100644
--- a/packages/cli/test/standalone.test.ts
+++ b/packages/cli/test/standalone.test.ts
@@ -4,18 +4,19 @@ import path from "node:path"
 test("standalone server exits when its owner is killed", async () => {
   const owner = Bun.spawn([process.execPath, path.join(import.meta.dir, "fixture/standalone-owner.ts")], {
     cwd: path.join(import.meta.dir, ".."),
-    env: process.env,
+    env: { ...process.env, OPENCODE_SERVER_USERNAME: "custom" },
     stdin: "ignore",
     stdout: "pipe",
     stderr: "pipe",
   })
   const line = await Promise.race([readLine(owner.stdout), Bun.sleep(10_000).then(() => undefined)])
-  const [rawPID, url] = line?.split(" ") ?? []
+  const [rawPID, url, status] = line?.split(" ") ?? []
   const pid = Number(rawPID)
 
   try {
     expect(pid).toBeGreaterThan(0)
     expect(url).toStartWith("http://127.0.0.1:")
+    expect(status).toBe("200")
     expect(running(pid)).toBe(true)
 
     owner.kill("SIGKILL")
diff --git a/packages/client/src/effect/service.ts b/packages/client/src/effect/service.ts
index 03e9c07237..9c5e833ee1 100644
--- a/packages/client/src/effect/service.ts
+++ b/packages/client/src/effect/service.ts
@@ -104,9 +104,10 @@ export const Info = Schema.Struct({
 export type Info = typeof Info.Type
 
 const decode = Schema.decodeUnknownEffect(Schema.fromJsonString(Info))
-const decodeHealth = Schema.decodeUnknownEffect(
+const decodeHealth = Schema.decodeUnknownOption(
   Schema.Struct({ healthy: Schema.Literal(true), version: Schema.String, pid: Schema.Int }),
 )
+const decodeLegacyHealth = Schema.decodeUnknownOption(Schema.Struct({ healthy: Schema.Literal(true) }))
 
 // A missing or corrupt file means no valid info; callers treat both
 // the same (the registering server self-evicts, clients rediscover).
@@ -122,7 +123,7 @@ type LocalService = {
   readonly transport: Transport
 }
 
-const probe = Effect.fnUntraced(function* (info: Info, version?: string) {
+const probe = Effect.fnUntraced(function* (info: Info, version?: string, allowLegacy = false) {
   const headers = info.password === undefined ? undefined : auth(info.password)
   const response = yield* Effect.tryPromise(() =>
     fetch(new URL("/api/health", info.url), {
@@ -131,14 +132,20 @@ const probe = Effect.fnUntraced(function* (info: Info, version?: string) {
     }),
   ).pipe(Effect.option, Effect.map(Option.getOrUndefined))
   if (response === undefined || !response.ok) return undefined
-  const health = yield* Effect.tryPromise(() => response.json()).pipe(
-    Effect.flatMap(decodeHealth),
-    Effect.option,
-    Effect.map(Option.getOrUndefined),
+  const body = yield* Effect.tryPromise(() => response.json()).pipe(Effect.option, Effect.map(Option.getOrUndefined))
+  const health = decodeHealth(body)
+  if (Option.isSome(health)) {
+    if (health.value.pid !== info.pid) return undefined
+    if (info.version !== undefined && health.value.version !== info.version) return undefined
+    if (version !== undefined && health.value.version !== version) return undefined
+    return { info, transport: { url: info.url, headers } } satisfies LocalService
+  }
+  if (
+    !allowLegacy ||
+    Option.isNone(decodeLegacyHealth(body)) ||
+    (typeof body === "object" && body !== null && ("version" in body || "pid" in body))
   )
-  if (health?.pid !== info.pid) return undefined
-  if (info.version !== undefined && health.version !== info.version) return undefined
-  if (version !== undefined && health.version !== version) return undefined
+    return undefined
   return { info, transport: { url: info.url, headers } } satisfies LocalService
 })
 
@@ -147,7 +154,7 @@ const probe = Effect.fnUntraced(function* (info: Info, version?: string) {
 const find = Effect.fnUntraced(function* (options: Options) {
   const info = yield* read(options.file)
   if (info === undefined) return undefined
-  return yield* probe(info)
+  return yield* probe(info, undefined, true)
 })
 
 // 50ms cadence bounded at ~5s, shared by stop escalation and start readiness.
diff --git a/packages/server/src/handlers/model.ts b/packages/server/src/handlers/model.ts
index 5059804354..b5d6ef37cf 100644
--- a/packages/server/src/handlers/model.ts
+++ b/packages/server/src/handlers/model.ts
@@ -1,4 +1,6 @@
 import { Catalog } from "@opencode-ai/core/catalog"
+import { PluginSupervisor } from "@opencode-ai/core/plugin/supervisor"
+import { ServiceUnavailableError } from "@opencode-ai/protocol/errors"
 import { Effect } from "effect"
 import { HttpApiBuilder } from "effect/unstable/httpapi"
 import { Api } from "../api"
@@ -17,6 +19,19 @@ export const ModelHandler = HttpApiBuilder.group(Api, "server.model", (handlers)
       .handle(
         "model.default",
         Effect.fn(function* () {
+          const plugins = yield* PluginSupervisor.Service
+          yield* plugins.ready.pipe(
+            Effect.timeoutOrElse({
+              duration: "5 seconds",
+              orElse: () =>
+                Effect.fail(
+                  new ServiceUnavailableError({
+                    message: "Model catalog initialization timed out",
+                    service: "model.catalog",
+                  }),
+                ),
+            }),
+          )
           const catalog = yield* Catalog.Service
           return yield* response(catalog.model.default())
         }),
diff --git a/turbo.json b/turbo.json
index 2ab43fc5ce..83bc4fbeae 100644
--- a/turbo.json
+++ b/turbo.json
@@ -12,6 +12,10 @@
       "dependsOn": ["^build"],
       "outputs": []
     },
+    "@opencode-ai/cli#test": {
+      "dependsOn": ["^build"],
+      "outputs": []
+    },
     "@opencode-ai/tui#test": {
       "dependsOn": ["^build"],
       "outputs": []