diff --git a/packages/app/e2e/browser/settings-auto-archive-merged.spec.ts b/packages/app/e2e/browser/settings-auto-archive-merged.spec.ts
new file mode 100644
index 0000000000..6f94d881b2
--- /dev/null
+++ b/packages/app/e2e/browser/settings-auto-archive-merged.spec.ts
@@ -0,0 +1,42 @@
+import { readFile, writeFile } from "node:fs/promises";
+import path from "node:path";
+import { expect, test, type Page } from "../support/fixtures";
+import { gotoAppShell, openSettings } from "../support/helpers/app";
+import { getServerId } from "../support/helpers/server-id";
+import { openHostSection, openSettingsHost } from "../support/helpers/settings";
+
+// Reproduction for https://github.com/getpaseo/paseo/issues/5769: when the host rejects
+// the change, the switch goes back to off and the app says nothing about why.
+test.describe("Archive merged PR workspaces setting", () => {
+  test("a rejected change tells the user why the switch went back off", async ({ page }) => {
+    const serverId = getServerId();
+    await gotoAppShell(page);
+    await openSettings(page);
+    await openSettingsHost(page, serverId);
+    await openHostSection(page, serverId, "workspaces");
+    const toggle = archiveMergedSwitch(page);
+    await expect(toggle).toHaveAttribute("aria-checked", "false");
+
+    await withUnreadableDaemonConfig(async () => {
+      await toggle.click();
+
+      await expect(toggle).toHaveAttribute("aria-checked", "false");
+      await expect(page.getByText("Unable to update workspaces")).toBeVisible();
+    });
+  });
+});
+
+function archiveMergedSwitch(page: Page) {
+  return page.getByRole("switch", { name: "Archive merged PR workspaces" });
+}
+
+async function withUnreadableDaemonConfig(run: () => Promise<void>): Promise<void> {
+  const configPath = path.join(process.env.E2E_PASEO_HOME!, "config.json");
+  const original = await readFile(configPath, "utf8");
+  await writeFile(configPath, "{ not json");
+  try {
+    await run();
+  } finally {
+    await writeFile(configPath, original);
+  }
+}