diff --git a/nix/templates/harness-base.nix b/nix/templates/harness-base.nix
index 39ac5684..e7b0fdb5 100644
--- a/nix/templates/harness-base.nix
+++ b/nix/templates/harness-base.nix
@@ -37,38 +37,8 @@ let
   # (claude merges the `env` from the user settings on top of these
   # managed ones), so the token is read from disk at start and never
   # touches the store.
-  # Base claude-code environment applied to every agent regardless of OTEL.
-  # Shipped via the managed settings `env` block so claude and `hivectl
-  # choom` both inherit them without a launch wrapper.
-  baseClaudeEnv = {
-    # Suppress analytics, survey pings, and other non-essential outbound
-    # traffic — agents are headless and don't need any of that.
-    CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC = "1";
-    DO_NOT_TRACK = "1";
-    # Disable claude's self-update machinery; package management is nix's job.
-    DISABLE_AUTOUPDATER = "1";
-    DISABLE_UPDATES = "1";
-    # Keep plugin updates synchronized on install; prefer HTTPS for fetches.
-    CLAUDE_CODE_PLUGIN_PREFER_HTTPS = "1";
-    CLAUDE_CODE_SYNC_PLUGIN_INSTALL = "1";
-    FORCE_AUTOUPDATE_PLUGINS = "1";
-    # Suppress the "install GitHub app" prompt — not applicable in-hive.
-    DISABLE_INSTALL_GITHUB_APP_COMMAND = "1";
-    # Disable Anthropic's hosted claude.ai MCP servers; the hive supplies its own.
-    ENABLE_CLAUDEAI_MCP_SERVERS = "0";
-    # Resume an interrupted turn on reconnect (recovers from transient MCP flaps).
-    CLAUDE_CODE_RESUME_INTERRUPTED_TURN = "1";
-    # Use the simpler system prompt variant suited to headless operation.
-    CLAUDE_CODE_SIMPLE_SYSTEM_PROMPT = "1";
-    # Tag remote-control sessions with "<hive>-<agent>" for identification.
-    CLAUDE_REMOTE_CONTROL_SESSION_NAME_PREFIX = "${hiveDisplayName}-${userName}";
-  };
   otelSettingsEnv = {
     CLAUDE_CODE_ENABLE_TELEMETRY = "1";
-    # Attach feedback-survey data to the OTEL pipeline.
-    CLAUDE_CODE_ENABLE_FEEDBACK_SURVEY_FOR_OTEL = "1";
-    # Emit OTEL SDK diagnostics to stderr for easier log capture.
-    CLAUDE_CODE_OTEL_DIAG_STDERR = "1";
     OTEL_METRICS_EXPORTER = "otlp";
     OTEL_LOGS_EXPORTER = "otlp";
     OTEL_TRACES_EXPORTER = "otlp";
@@ -81,8 +51,6 @@ let
     OTEL_RESOURCE_ATTRIBUTES =
       "service.name=hyperhive-agent,agent=${userName},hive=${hiveDisplayName},swarm=${swarmDisplayName}"
       + lib.optionalString (otelCfg.extraResourceAttributes != "") ",${otelCfg.extraResourceAttributes}";
-    # Include the Claude Code version label in emitted metrics.
-    OTEL_METRICS_INCLUDE_VERSION = "1";
   }
   // lib.optionalAttrs (otelCfg.metricIntervalMs != null) {
     OTEL_METRIC_EXPORT_INTERVAL = toString otelCfg.metricIntervalMs;
@@ -1208,26 +1176,25 @@ in
     # deliberately NOT shipped here: effort is controlled live via the
     # `--effort` CLI flag (HIVE_DEFAULT_EFFORT / the per-agent UI slider),
     # which managed scope would otherwise override and lock.
-    # Hive-enforced settings merged with a per-agent `env` block at BUILD
-    # time via `jq` (not eval-time `readFile`, which would be import-from-
-    # derivation). The `env` block is always present: `baseClaudeEnv` sets
-    # behaviour flags and the remote-control session prefix for every agent;
-    # `otelSettingsEnv` is merged on top when OTEL is enabled. claude-code
-    # auto-discovers this file in every context (harness turn-loop AND
-    # `hivectl choom`) so no launch wrapper is needed.
+    # Base hive-enforced settings, plus — when OTEL is enabled — an `env`
+    # block so Claude Code exports telemetry natively from the settings
+    # file it reads in every context (harness turn-loop AND `hivectl
+    # choom`), with no launch wrapper. With OTEL off it's the shared
+    # static asset verbatim; with OTEL on it's a per-agent merge (the
+    # resource attributes carry the agent name) done at BUILD time via
+    # `jq` — not eval-time `readFile`, which would be import-from-
+    # derivation.
     environment.etc."claude-code/managed-settings.json".source =
       let
         baseSettings = "${pkgs.hyperhive-assets}/share/hyperhive/prompts/claude-settings.json";
-        # Merge base env (always) with OTEL env (when enabled). jq is always
-        # run — `baseClaudeEnv` contains per-agent values (e.g.
-        # CLAUDE_REMOTE_CONTROL_SESSION_NAME_PREFIX) that can't live in the
-        # static store asset.
-        allEnv = baseClaudeEnv // lib.optionalAttrs otelCfg.enable otelSettingsEnv;
       in
-      pkgs.runCommand "managed-settings.json" { nativeBuildInputs = [ pkgs.jq ]; } ''
-        jq --argjson env ${lib.escapeShellArg (builtins.toJSON allEnv)} \
-          '. + { env: $env }' ${baseSettings} > "$out"
-      '';
+      if !otelCfg.enable then
+        baseSettings
+      else
+        pkgs.runCommand "managed-settings.json" { nativeBuildInputs = [ pkgs.jq ]; } ''
+          jq --argjson env ${lib.escapeShellArg (builtins.toJSON otelSettingsEnv)} \
+            '. + { env: $env }' ${baseSettings} > "$out"
+        '';
 
     # Inject the OTEL auth header (a secret) into the agent's *user*
     # claude settings at runtime, keeping it out of the world-readable