diff --git a/packages/app/e2e/browser/workspace-scripts-menu-resize.spec.ts b/packages/app/e2e/browser/workspace-scripts-menu-resize.spec.ts
index 17c4d3dd45..969f330520 100644
--- a/packages/app/e2e/browser/workspace-scripts-menu-resize.spec.ts
+++ b/packages/app/e2e/browser/workspace-scripts-menu-resize.spec.ts
@@ -2,6 +2,7 @@ import { test, expect } from "../support/fixtures";
 import { createTempGitRepo } from "../support/helpers/workspace";
 import {
   connectWorkspaceSetupClient,
+  setupCommandOutput,
   createWorkspaceThroughDaemon,
   openWorkspaceScriptsMenu,
   seedProjectForWorkspaceSetup,
@@ -33,7 +34,9 @@ test("scripts menu resizes when a service row grows after launch", async ({ page
     await seedProjectForWorkspaceSetup(client, repo.path);
     const completed = waitForWorkspaceSetupProgress(
       client,
-      (payload) => payload.status === "completed" && payload.detail.log.includes("setup complete"),
+      (payload) =>
+        payload.status === "completed" &&
+        setupCommandOutput(payload.detail).includes("setup complete"),
     );
     const workspace = await createWorkspaceThroughDaemon(client, {
       cwd: repo.path,
diff --git a/packages/app/e2e/browser/workspace-setup-streaming.spec.ts b/packages/app/e2e/browser/workspace-setup-streaming.spec.ts
index 227e2c8bc1..18a9704ddf 100644
--- a/packages/app/e2e/browser/workspace-setup-streaming.spec.ts
+++ b/packages/app/e2e/browser/workspace-setup-streaming.spec.ts
@@ -18,6 +18,7 @@ import {
 } from "../support/helpers/terminal-perf";
 import {
   connectWorkspaceSetupClient,
+  setupCommandOutput,
   createWorkspaceThroughDaemon,
   expectSetupPanel,
   openHomeWithProject,
@@ -92,7 +93,8 @@ test.describe("Workspace setup streaming", () => {
       const completed = waitForWorkspaceSetupProgress(
         client,
         (payload) =>
-          payload.status === "completed" && payload.detail.log.includes("setup complete"),
+          payload.status === "completed" &&
+          setupCommandOutput(payload.detail).includes("setup complete"),
       );
       const workspace = await createWorkspaceThroughDaemon(client, {
         cwd: repo.path,
@@ -170,16 +172,19 @@ test.describe("Workspace setup streaming", () => {
       await seedProjectForWorkspaceSetup(client, repo.path);
       const initialRunning = waitForWorkspaceSetupProgress(
         client,
-        (payload) => payload.status === "running" && payload.detail.log === "",
+        (payload) => payload.status === "running" && payload.detail.commands.length === 0,
       );
       const runningWithOutput = waitForWorkspaceSetupProgress(
         client,
-        (payload) => payload.status === "running" && payload.detail.log.includes("starting setup"),
+        (payload) =>
+          payload.status === "running" &&
+          setupCommandOutput(payload.detail).includes("starting setup"),
       );
       const completed = waitForWorkspaceSetupProgress(
         client,
         (payload) =>
-          payload.status === "completed" && payload.detail.log.includes("setup complete"),
+          payload.status === "completed" &&
+          setupCommandOutput(payload.detail).includes("setup complete"),
       );
 
       await createWorkspaceThroughDaemon(client, {
@@ -192,8 +197,8 @@ test.describe("Workspace setup streaming", () => {
       const completedPayload = await completed;
 
       expect(initialPayload.detail.log).toBe("");
-      expect(runningPayload.detail.log).toContain("starting setup");
-      expect(completedPayload.detail.log).toContain("setup complete");
+      expect(setupCommandOutput(runningPayload.detail)).toContain("starting setup");
+      expect(setupCommandOutput(completedPayload.detail)).toContain("setup complete");
       expect(completedPayload.error).toBeNull();
     } finally {
       await client.close();
@@ -215,7 +220,9 @@ test.describe("Workspace setup streaming", () => {
       await seedProjectForWorkspaceSetup(client, repo.path);
       const failed = waitForWorkspaceSetupProgress(
         client,
-        (payload) => payload.status === "failed" && payload.detail.log.includes("setup failed"),
+        (payload) =>
+          payload.status === "failed" &&
+          setupCommandOutput(payload.detail).includes("setup failed"),
       );
 
       const workspace = await createWorkspaceThroughDaemon(client, {
@@ -224,8 +231,8 @@ test.describe("Workspace setup streaming", () => {
       });
 
       const failedPayload = await failed;
-      expect(failedPayload.detail.log).toContain("starting setup");
-      expect(failedPayload.detail.log).toContain("setup failed");
+      expect(setupCommandOutput(failedPayload.detail)).toContain("starting setup");
+      expect(setupCommandOutput(failedPayload.detail)).toContain("setup failed");
       expect(failedPayload.error).toMatch(/failed/i);
 
       await openHomeWithProject(page, repo.path);
@@ -331,7 +338,8 @@ test.describe("Workspace setup streaming", () => {
       const completed = waitForWorkspaceSetupProgress(
         client,
         (payload) =>
-          payload.status === "completed" && payload.detail.log.includes("setup complete"),
+          payload.status === "completed" &&
+          setupCommandOutput(payload.detail).includes("setup complete"),
       );
       const workspace = await createWorkspaceThroughDaemon(client, {
         cwd: repo.path,
@@ -377,7 +385,8 @@ test.describe("Workspace setup streaming", () => {
       const completed = waitForWorkspaceSetupProgress(
         client,
         (payload) =>
-          payload.status === "completed" && payload.detail.log.includes("setup complete"),
+          payload.status === "completed" &&
+          setupCommandOutput(payload.detail).includes("setup complete"),
       );
 
       const result = await client.createPaseoWorktree({
diff --git a/packages/app/e2e/support/helpers/workspace-setup.ts b/packages/app/e2e/support/helpers/workspace-setup.ts
index dd1bc779bd..eda1d8d023 100644
--- a/packages/app/e2e/support/helpers/workspace-setup.ts
+++ b/packages/app/e2e/support/helpers/workspace-setup.ts
@@ -376,3 +376,7 @@ export function observeSetupPanelTraffic(page: Page) {
     },
   };
 }
+
+export function setupCommandOutput(detail: { commands: Array<{ log: string }> }): string {
+  return detail.commands.map((command) => command.log).join("\n");
+}
diff --git a/packages/protocol/src/messages.wire-compat.test.ts b/packages/protocol/src/messages.wire-compat.test.ts
index 6903aa2cd1..d3b3ce26df 100644
--- a/packages/protocol/src/messages.wire-compat.test.ts
+++ b/packages/protocol/src/messages.wire-compat.test.ts
@@ -474,3 +474,54 @@ test("usage entries accept older failures and additive successful snapshots", ()
     }).success,
   ).toBe(false);
 });
+
+// Frozen setup detail shape from v0.8.0: log is required, command output is optional.
+const ReleasedSetupDetailSchema = z.object({
+  type: z.literal("worktree_setup"),
+  worktreePath: z.string(),
+  branchName: z.string(),
+  log: z.string(),
+  commands: z.array(
+    z.object({
+      index: z.number().int().positive(),
+      command: z.string(),
+      cwd: z.string(),
+      log: z.string().optional().default(""),
+      status: z.enum(["running", "completed", "failed"]),
+      exitCode: z.number().nullable(),
+      durationMs: z.number().nonnegative().optional(),
+    }),
+  ),
+  truncated: z.boolean().optional(),
+});
+
+test("released setup clients parse empty combined logs and retain command output", () => {
+  const detail = {
+    type: "worktree_setup",
+    worktreePath: "/workspace",
+    branchName: "feature",
+    log: "",
+    commands: [
+      {
+        index: 1,
+        command: "echo ready",
+        cwd: "/workspace",
+        log: "ready\n",
+        status: "completed",
+        exitCode: 0,
+      },
+    ],
+  };
+  const parsed = ReleasedSetupDetailSchema.parse(JSON.parse(JSON.stringify(detail)));
+  expect(parsed).toEqual(detail);
+  expect(parsed.commands[0]?.log).toBe("ready\n");
+  const { log: _log, ...withoutLegacyField } = detail;
+  expect(ReleasedSetupDetailSchema.safeParse(withoutLegacyField).success).toBe(false);
+  expect(
+    WorkspaceSetupSnapshotSchema.parse({
+      status: "completed",
+      detail: { ...detail, log: "old daemon combined output" },
+      error: null,
+    }).detail.log,
+  ).toBe("old daemon combined output");
+});
diff --git a/packages/server/src/server/workspace-create-worktree-source.e2e.test.ts b/packages/server/src/server/workspace-create-worktree-source.e2e.test.ts
index 80208fe63d..2d5c60a752 100644
--- a/packages/server/src/server/workspace-create-worktree-source.e2e.test.ts
+++ b/packages/server/src/server/workspace-create-worktree-source.e2e.test.ts
@@ -604,12 +604,18 @@ async function expectMissingLocalMergeTarget({ client, cwd }: RestorableWorkspac
   ).toContain("No local merge target is recorded");
 }
 
+function setupCommandOutput(detail: { commands: Array<{ log: string }> }): string {
+  return detail.commands.map((command) => command.log).join("\n");
+}
+
 // Setup output is opt-in even for multiple sockets sharing one logical client.
 test("setup details follow one workspace/source and restore after reconnect with minimal directory status", async () => {
   const daemon = await createTestPaseoDaemon({ mcpEnabled: true });
   const { repoDir, tempRoot } = createGitRepoWithBranch();
   const clients: SocketDaemonClient[] = [];
   const sockets = new Map<string, WebSocket[]>();
+  const setupWireTypes = new Set<string>();
+  const setupWireDetails: Array<{ log: string; commands: Array<{ log: string }> }> = [];
   const observations: Array<{ release(): Promise<void> }> = [];
   const workspaces: Array<{ id: string; workspaceDirectory?: string }> = [];
   const mcp = new Client({ name: "setup-test", version: "1.0.0" });
@@ -653,6 +659,24 @@ const timer = setInterval(() => {
         reconnect: { baseDelayMs: 10, maxDelayMs: 10 },
         webSocketFactory: (url) => {
           const socket = new WebSocket(url);
+          socket.on("message", (data, isBinary) => {
+            if (isBinary) return;
+            const frame = JSON.parse(data.toString());
+            const message = frame.message ?? frame;
+            if (message.type === "workspace_setup_progress") {
+              setupWireTypes.add(message.type);
+              setupWireDetails.push(message.payload.detail);
+            }
+            if (
+              message.type === "workspace_setup_status_response" ||
+              message.type === "workspace.setup.subscribe.response"
+            ) {
+              if (message.payload.snapshot) {
+                setupWireTypes.add(message.type);
+                setupWireDetails.push(message.payload.snapshot.detail);
+              }
+            }
+          });
           sockets.set(clientId, [...(sockets.get(clientId) ?? []), socket]);
           return socket as unknown as WebSocketLike;
         },
@@ -683,7 +707,10 @@ const timer = setInterval(() => {
         })
         .toMatchObject({
           status: "running",
-          detail: { log: expect.stringContaining("setup started") },
+          detail: {
+            log: "",
+            commands: [expect.objectContaining({ log: expect.stringContaining("setup started") })],
+          },
         });
     };
     for (const worktreeSlug of ["noisy-a", "noisy-b", "noisy-c"]) {
@@ -712,7 +739,10 @@ const timer = setInterval(() => {
     const initial = await details.ready;
     expect(initial.snapshot).toMatchObject({
       status: "running",
-      detail: { log: expect.stringContaining("setup started") },
+      detail: {
+        log: "",
+        commands: [expect.objectContaining({ log: expect.stringContaining("setup started") })],
+      },
     });
     await expect
       .poll(
@@ -745,7 +775,7 @@ const timer = setInterval(() => {
           viewerMessages.filter(
             (message) =>
               message.type === "workspace_setup_progress" &&
-              message.payload.detail.log.includes("wave-0:"),
+              setupCommandOutput(message.payload.detail).includes("wave-0:"),
           ).length,
       )
       .toBeGreaterThan(0);
@@ -776,10 +806,12 @@ const timer = setInterval(() => {
       .filter(
         (message) =>
           message.type === "workspace_setup_progress" &&
-          message.payload.detail.log.includes("wave-0:"),
+          setupCommandOutput(message.payload.detail).includes("wave-0:"),
       )
       .map((message) =>
-        message.type === "workspace_setup_progress" ? message.payload.detail.log : "",
+        message.type === "workspace_setup_progress"
+          ? setupCommandOutput(message.payload.detail)
+          : "",
       );
     expect(waveLogs.length).toBe(new Set(waveLogs).size);
     const restoredSnapshots: unknown[] = [];
@@ -792,7 +824,12 @@ const timer = setInterval(() => {
     await expect.poll(() => restoredSnapshots.length, { timeout: 10000 }).toBe(2);
     expect(details.subscriptionId).not.toBe(beforeReconnect);
     expect(restoredSnapshots[1]).toMatchObject({
-      snapshot: { detail: { log: expect.stringContaining("wave-0:") } },
+      snapshot: {
+        detail: {
+          log: "",
+          commands: [expect.objectContaining({ log: expect.stringContaining("wave-0:") })],
+        },
+      },
     });
     const subscriptionId = details.subscriptionId;
     await details.release();
@@ -804,7 +841,8 @@ const timer = setInterval(() => {
     // Wait until the daemon has consumed the output before checking wire silence.
     await expect
       .poll(
-        async () => (await viewer.fetchWorkspaceSetupStatus(workspace.id)).snapshot?.detail.log,
+        async () =>
+          (await viewer.fetchWorkspaceSetupStatus(workspace.id)).snapshot?.detail.commands[0]?.log,
         {
           timeout: 30000,
         },
@@ -815,8 +853,22 @@ const timer = setInterval(() => {
     );
     const resumed = viewer.observeWorkspaceSetup(workspace.id);
     observations.push(resumed);
-    expect((await resumed.ready).snapshot?.detail.log).toContain("wave-1:");
+    expect((await resumed.ready).snapshot?.detail.commands[0]?.log).toContain("wave-1:");
     expect(resumed.subscriptionId).not.toBe(subscriptionId);
+    expect(setupWireTypes).toEqual(
+      new Set([
+        "workspace_setup_progress",
+        "workspace_setup_status_response",
+        "workspace.setup.subscribe.response",
+      ]),
+    );
+    expect(setupWireDetails.length).toBeGreaterThan(0);
+    expect(setupWireDetails.every((detail) => detail.log === "")).toBe(true);
+    expect(
+      setupWireDetails.some((detail) =>
+        detail.commands.some((command) => command.log.includes("wave-1:")),
+      ),
+    ).toBe(true);
     writeFileSync(path.join(workspaces[1]!.workspaceDirectory!, "finish.txt"), "fail");
     await expect
       .poll(
@@ -849,3 +901,58 @@ const timer = setInterval(() => {
     await rm(tempRoot, { recursive: true, force: true, maxRetries: 10, retryDelay: 100 });
   }
 }, 180000);
+
+test("legacy agent git creation retains setup output in its readable chat timeline", async () => {
+  const daemon = await createTestPaseoDaemon();
+  const { repoDir, tempRoot } = createGitRepoWithBranch();
+  const client = new DaemonClient({ url: `ws://127.0.0.1:${daemon.port}/ws` });
+  try {
+    writeFileSync(
+      path.join(repoDir, "paseo.json"),
+      JSON.stringify({ worktree: { setup: ["echo legacy-setup-output"] } }),
+    );
+    execFileSync("git", ["add", "paseo.json"], { cwd: repoDir });
+    execFileSync("git", ["-c", "commit.gpgsign=false", "commit", "-m", "setup fixture"], {
+      cwd: repoDir,
+      stdio: "pipe",
+    });
+    await client.connect();
+    const agent = await client.createAgent({
+      provider: "codex",
+      cwd: repoDir,
+      git: {
+        createWorktree: true,
+        createNewBranch: true,
+        baseBranch: "main",
+        newBranchName: "legacy-setup",
+        worktreeSlug: "legacy-setup",
+      },
+    });
+    await expect
+      .poll(
+        async () => {
+          const timeline = await client.fetchAgentTimeline(agent.id, { limit: 100 });
+          return timeline.entries
+            .map((entry) => entry.item)
+            .find(
+              (item) =>
+                item.type === "tool_call" &&
+                item.name === "paseo_worktree_setup" &&
+                item.status === "completed",
+            );
+        },
+        { timeout: 10000 },
+      )
+      .toMatchObject({
+        detail: {
+          type: "worktree_setup",
+          log: expect.stringContaining("legacy-setup-output"),
+          commands: [expect.objectContaining({ log: "legacy-setup-output\n" })],
+        },
+      });
+  } finally {
+    await client.close();
+    await daemon.close();
+    await rm(tempRoot, { recursive: true, force: true });
+  }
+});
diff --git a/packages/server/src/server/worktree-bootstrap.test.ts b/packages/server/src/server/worktree-bootstrap.test.ts
index 5e5ac1762e..42f48dbe22 100644
--- a/packages/server/src/server/worktree-bootstrap.test.ts
+++ b/packages/server/src/server/worktree-bootstrap.test.ts
@@ -5,7 +5,11 @@ import { join } from "path";
 import { tmpdir } from "os";
 
 import type { AgentTimelineItem } from "./agent/agent-sdk-types.js";
-import { runAsyncWorktreeBootstrap, spawnWorkspaceScript } from "./worktree-bootstrap.js";
+import {
+  buildWorktreeSetupDetail,
+  runAsyncWorktreeBootstrap,
+  spawnWorkspaceScript,
+} from "./worktree-bootstrap.js";
 import { ensureWorkspaceServicePortPlan } from "./workspace-service-port-registry.js";
 import { ScriptRouteStore } from "./script-proxy.js";
 import { createBranchChangeRouteHandler } from "./script-route-branch-handler.js";
@@ -63,6 +67,30 @@ async function createBootstrapWorktreeForTest(
   return { worktree, shouldBootstrap: true };
 }
 
+describe("workspace setup detail", () => {
+  it("serializes output only in command logs while retaining the legacy string field", () => {
+    const detail = buildWorktreeSetupDetail({
+      worktree: { worktreePath: "/workspace", branchName: "feature" },
+      results: [
+        {
+          command: "echo ready",
+          cwd: "/workspace",
+          stdout: "ready\n",
+          stderr: "",
+          exitCode: 0,
+          durationMs: 10,
+        },
+      ],
+    });
+    const serialized = JSON.stringify(detail);
+    expect(JSON.parse(serialized)).toMatchObject({
+      log: "",
+      commands: [{ log: "ready\n", status: "completed", exitCode: 0 }],
+    });
+    expect(serialized.split("ready\\n")).toHaveLength(2);
+  });
+});
+
 describe("runAsyncWorktreeBootstrap", () => {
   let tempDir: string;
   let repoDir: string;
diff --git a/packages/server/src/server/worktree-bootstrap.ts b/packages/server/src/server/worktree-bootstrap.ts
index 4bd49b1c2d..861ca185a0 100644
--- a/packages/server/src/server/worktree-bootstrap.ts
+++ b/packages/server/src/server/worktree-bootstrap.ts
@@ -325,18 +325,15 @@ export function buildWorktreeSetupDetail(input: {
       ...(result.durationMs > 0 ? { durationMs: result.durationMs } : {}),
     };
   });
-  const renderedLog = buildWorktreeSetupLog({
-    results: input.results,
-    outputAccumulatorsByIndex: input.outputAccumulatorsByIndex,
-  });
-
   return {
     type: "worktree_setup",
     worktreePath: input.worktree.worktreePath,
     branchName: input.worktree.branchName,
-    log: renderedLog.log,
+    // COMPAT(workspaceSetupCombinedLog): added in v0.12.0, remove after 2027-04-20 once legacy wire schemas no longer require log.
+    // Setup clients render commands[].log; retain the required wire field without duplicating output.
+    log: "",
     commands,
-    ...(renderedLog.truncated || anyCommandTruncated ? { truncated: true } : {}),
+    ...(anyCommandTruncated ? { truncated: true } : {}),
   };
 }
 
@@ -354,6 +351,10 @@ function buildSetupTimelineItem(input: {
     outputAccumulatorsByIndex: input.outputAccumulatorsByIndex,
   });
 
+  // Legacy agent creation still emits timeline cards whose released renderers read only detail.log.
+  // Keep their output here rather than concatenating every workspace setup snapshot.
+  detail.log = buildWorktreeSetupLog(input).log;
+
   if (input.status === "running") {
     return {
       type: "tool_call",
diff --git a/packages/server/src/server/worktree-session.test.ts b/packages/server/src/server/worktree-session.test.ts
index b146c59f31..4fddf0dbbd 100644
--- a/packages/server/src/server/worktree-session.test.ts
+++ b/packages/server/src/server/worktree-session.test.ts
@@ -983,7 +983,7 @@ describe("runWorktreeSetupInBackground", () => {
       const setupOutputMessage = runningMessages.find((message) =>
         message.payload.detail.commands[0]?.log.includes("phase-one"),
       );
-      expect(setupOutputMessage?.payload.detail.log).toContain("phase-one");
+      expect(setupOutputMessage?.payload.detail.log).toBe("");
       expect(setupOutputMessage?.payload.detail.commands[0]).toMatchObject({
         index: 1,
         command: "sh -c \"printf 'phase-one\\\\n'; sleep 0.1; printf 'phase-two\\\\n'\"",
@@ -1001,7 +1001,7 @@ describe("runWorktreeSetupInBackground", () => {
           branchName: "feature-running-setup",
         },
       });
-      expect(progressMessages.at(-1)?.payload.detail.log).toContain("phase-two");
+      expect(progressMessages.at(-1)?.payload.detail.log).toBe("");
       expect(progressMessages.at(-1)?.payload.detail.commands[0]).toMatchObject({
         index: 1,
         command: "sh -c \"printf 'phase-one\\\\n'; sleep 0.1; printf 'phase-two\\\\n'\"",