diff --git a/packages/app/src/components/workspace-setup-dialog.tsx b/packages/app/src/components/workspace-setup-dialog.tsx
index af7ca6cf5..3656df4fb 100644
--- a/packages/app/src/components/workspace-setup-dialog.tsx
+++ b/packages/app/src/components/workspace-setup-dialog.tsx
@@ -1,6 +1,5 @@
-import { useCallback, useEffect, useMemo, useState, type ComponentType } from "react";
+import { useCallback, useEffect, useMemo, useState } from "react";
 import { ActivityIndicator, Pressable, Text, View } from "react-native";
-import { ChevronLeft, MessagesSquare, SquareTerminal } from "lucide-react-native";
 import { StyleSheet, useUnistyles } from "react-native-unistyles";
 import { createNameId } from "mnemonic-id";
 import { AdaptiveModalSheet } from "@/components/adaptive-modal-sheet";
@@ -28,7 +27,6 @@ export function WorkspaceSetupDialog() {
   const mergeWorkspaces = useSessionStore((state) => state.mergeWorkspaces);
   const setHasHydratedWorkspaces = useSessionStore((state) => state.setHasHydratedWorkspaces);
   const setAgents = useSessionStore((state) => state.setAgents);
-  const [step, setStep] = useState<"choose" | "chat">("choose");
   const [errorMessage, setErrorMessage] = useState<string | null>(null);
   const [createdWorkspace, setCreatedWorkspace] = useState<ReturnType<
     typeof normalizeWorkspaceDescriptor
@@ -59,7 +57,6 @@ export function WorkspaceSetupDialog() {
   }
 
   useEffect(() => {
-    setStep("choose");
     setErrorMessage(null);
     setCreatedWorkspace(null);
     setPendingAction(null);
@@ -265,142 +262,59 @@ export function WorkspaceSetupDialog() {
         <Text style={styles.workspacePath}>{workspacePath}</Text>
       </View>
 
-      {step === "choose" ? (
-        <View style={styles.section}>
-          <Text style={styles.sectionTitle}>What do you want to open?</Text>
-          <View style={styles.choiceGrid}>
-            <ChoiceCard
-              title="Chat Agent"
-              description="Open this workspace with a prompt-first chat agent."
-              Icon={MessagesSquare}
-              disabled={pendingAction !== null}
-              onPress={() => {
-                setErrorMessage(null);
-                setStep("chat");
-              }}
-            />
-            <ChoiceCard
-              title="Terminal"
-              description="Create the workspace, then open a standalone terminal tab."
-              Icon={SquareTerminal}
-              disabled={pendingAction !== null}
-              pending={pendingAction === "terminal"}
-              onPress={() => {
-                void handleCreateTerminal();
-              }}
-            />
-          </View>
-        </View>
-      ) : null}
+      <View style={styles.section}>
+        <Composer
+          agentId={`workspace-setup:${serverId}:${sourceDirectory}`}
+          serverId={serverId}
+          isInputActive={true}
+          onSubmitMessage={handleCreateChatAgent}
+          isSubmitLoading={pendingAction === "chat"}
+          blurOnSubmit={true}
+          value={chatDraft.text}
+          onChangeText={chatDraft.setText}
+          images={chatDraft.images}
+          onChangeImages={chatDraft.setImages}
+          clearDraft={chatDraft.clear}
+          autoFocus
+          commandDraftConfig={composerState?.commandDraftConfig}
+          statusControls={
+            composerState
+              ? {
+                  ...composerState.statusControls,
+                  disabled: pendingAction !== null,
+                }
+              : undefined
+          }
+        />
+      </View>
 
-      {step === "chat" ? (
-        <View style={styles.section}>
-          <StepHeader
-            title="Chat Agent"
-            onBack={() => {
-              setErrorMessage(null);
-              setStep("choose");
-            }}
-          />
-          <Text style={styles.helper}>
-            Start with a prompt and optional images. The workspace is created first, then the agent launches, then navigation happens.
-          </Text>
-          <View style={styles.composerCard}>
-            <Composer
-              agentId={`workspace-setup:${serverId}:${sourceDirectory}`}
-              serverId={serverId}
-              isInputActive={true}
-              onSubmitMessage={handleCreateChatAgent}
-              isSubmitLoading={pendingAction === "chat"}
-              blurOnSubmit={true}
-              value={chatDraft.text}
-              onChangeText={chatDraft.setText}
-              images={chatDraft.images}
-              onChangeImages={chatDraft.setImages}
-              clearDraft={chatDraft.clear}
-              autoFocus
-              commandDraftConfig={composerState?.commandDraftConfig}
-              statusControls={
-                composerState
-                  ? {
-                      ...composerState.statusControls,
-                      disabled: pendingAction !== null,
-                    }
-                  : undefined
-              }
-            />
-          </View>
-        </View>
-      ) : null}
+      <Pressable
+        accessibilityRole="button"
+        disabled={pendingAction !== null}
+        onPress={() => void handleCreateTerminal()}
+        style={[
+          styles.terminalLink,
+          pendingAction !== null && pendingAction !== "terminal" ? { opacity: 0.5 } : undefined,
+        ]}
+      >
+        {pendingAction === "terminal" ? (
+          <ActivityIndicator size="small" color={theme.colors.foregroundMuted} />
+        ) : null}
+        <Text style={styles.terminalLinkText}>{"\u2192"} Open terminal</Text>
+      </Pressable>
 
       {errorMessage ? <Text style={styles.errorText}>{errorMessage}</Text> : null}
     </AdaptiveModalSheet>
   );
 }
 
-function StepHeader({ title, onBack }: { title: string; onBack: () => void }) {
-  const { theme } = useUnistyles();
-
-  return (
-    <View style={styles.stepHeader}>
-      <Pressable accessibilityRole="button" onPress={onBack} style={styles.backButton}>
-        <ChevronLeft size={16} color={theme.colors.foregroundMuted} />
-      </Pressable>
-      <Text style={styles.sectionTitle}>{title}</Text>
-    </View>
-  );
-}
-
-function ChoiceCard({
-  title,
-  description,
-  Icon,
-  disabled,
-  pending = false,
-  onPress,
-}: {
-  title: string;
-  description: string;
-  Icon: ComponentType<{ size: number; color: string }>;
-  disabled: boolean;
-  pending?: boolean;
-  onPress: () => void;
-}) {
-  const { theme } = useUnistyles();
-
-  return (
-    <Pressable
-      accessibilityRole="button"
-      disabled={disabled}
-      onPress={onPress}
-      style={({ hovered, pressed }) => [
-        styles.choiceCard,
-        (hovered || pressed) && !disabled ? styles.choiceCardHovered : null,
-        disabled ? styles.cardDisabled : null,
-      ]}
-    >
-      <View style={styles.choiceIconWrap}>
-        {pending ? (
-          <ActivityIndicator size="small" color={theme.colors.foreground} />
-        ) : (
-          <Icon size={16} color={theme.colors.foreground} />
-        )}
-      </View>
-      <View style={styles.choiceBody}>
-        <Text style={styles.choiceTitle}>{title}</Text>
-        <Text numberOfLines={1} style={styles.choiceDescription}>{description}</Text>
-      </View>
-    </Pressable>
-  );
-}
-
 const styles = StyleSheet.create((theme) => ({
   header: {
     gap: theme.spacing[1],
   },
   workspaceTitle: {
     fontSize: theme.fontSize.base,
-    fontWeight: theme.fontWeight.semibold,
+    fontWeight: theme.fontWeight.medium,
     color: theme.colors.foreground,
   },
   workspacePath: {
@@ -409,78 +323,17 @@ const styles = StyleSheet.create((theme) => ({
   },
   section: {
     gap: theme.spacing[3],
+    marginHorizontal: -theme.spacing[6],
   },
-  sectionTitle: {
-    fontSize: theme.fontSize.sm,
-    fontWeight: theme.fontWeight.medium,
-    color: theme.colors.foregroundMuted,
-  },
-  helper: {
-    fontSize: theme.fontSize.sm,
-    color: theme.colors.foregroundMuted,
-    lineHeight: 20,
-  },
-  choiceGrid: {
-    gap: theme.spacing[2],
-  },
-  choiceCard: {
-    flexDirection: "row",
-    alignItems: "center",
-    gap: theme.spacing[3],
-    borderWidth: 1,
-    borderColor: theme.colors.border,
-    borderRadius: theme.borderRadius.lg,
-    backgroundColor: theme.colors.surface1,
-    paddingVertical: theme.spacing[3],
-    paddingHorizontal: theme.spacing[3],
-  },
-  choiceCardHovered: {
-    backgroundColor: theme.colors.surface2,
-  },
-  cardDisabled: {
-    opacity: theme.opacity[50],
-  },
-  choiceIconWrap: {
-    width: 32,
-    height: 32,
-    borderRadius: theme.borderRadius.md,
-    alignItems: "center",
-    justifyContent: "center",
-    backgroundColor: theme.colors.surface2,
-  },
-  choiceBody: {
-    flex: 1,
-    gap: 2,
-  },
-  choiceTitle: {
-    fontSize: theme.fontSize.sm,
-    fontWeight: theme.fontWeight.medium,
-    color: theme.colors.foreground,
-  },
-  choiceDescription: {
-    fontSize: theme.fontSize.xs,
-    color: theme.colors.foregroundMuted,
-  },
-  composerCard: {
-    minHeight: 180,
-    borderWidth: 1,
-    borderColor: theme.colors.border,
-    borderRadius: theme.borderRadius.lg,
-    backgroundColor: theme.colors.surface0,
-    overflow: "hidden",
-  },
-  stepHeader: {
+  terminalLink: {
     flexDirection: "row",
     alignItems: "center",
+    alignSelf: "flex-end",
     gap: theme.spacing[2],
   },
-  backButton: {
-    width: 28,
-    height: 28,
-    borderRadius: theme.borderRadius.md,
-    alignItems: "center",
-    justifyContent: "center",
-    backgroundColor: theme.colors.surface2,
+  terminalLinkText: {
+    fontSize: theme.fontSize.sm,
+    color: theme.colors.foregroundMuted,
   },
   errorText: {
     fontSize: theme.fontSize.sm,
diff --git a/scripts/dev.sh b/scripts/dev.sh
index d4e8426de..8bcef241f 100755
--- a/scripts/dev.sh
+++ b/scripts/dev.sh
@@ -5,11 +5,21 @@ set -e
 SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 export PATH="$SCRIPT_DIR/../node_modules/.bin:$PATH"
 
-# Use a temporary PASEO_HOME to avoid conflicts between dev instances
+# Derive PASEO_HOME: stable name for worktrees, temporary dir otherwise
 if [ -z "${PASEO_HOME}" ]; then
   export PASEO_HOME
-  PASEO_HOME="$(mktemp -d "${TMPDIR:-/tmp}/paseo-dev.XXXXXX")"
-  trap "rm -rf '$PASEO_HOME'" EXIT
+  GIT_DIR="$(git rev-parse --git-dir 2>/dev/null || true)"
+  GIT_COMMON_DIR="$(git rev-parse --git-common-dir 2>/dev/null || true)"
+  if [ -n "$GIT_DIR" ] && [ -n "$GIT_COMMON_DIR" ] && [ "$GIT_DIR" != "$GIT_COMMON_DIR" ]; then
+    # Inside a worktree — derive a stable home from the worktree name
+    WORKTREE_ROOT="$(git rev-parse --show-toplevel)"
+    WORKTREE_NAME="$(basename "$WORKTREE_ROOT" | tr '[:upper:]' '[:lower:]' | sed 's/[^a-z0-9-]/-/g; s/--*/-/g; s/^-//; s/-$//')"
+    PASEO_HOME="$HOME/.paseo-${WORKTREE_NAME}"
+    mkdir -p "$PASEO_HOME"
+  else
+    PASEO_HOME="$(mktemp -d "${TMPDIR:-/tmp}/paseo-dev.XXXXXX")"
+    trap "rm -rf '$PASEO_HOME'" EXIT
+  fi
 fi
 
 echo "══════════════════════════════════════════════════════"