diff --git a/.claude/hooks/_env_guard.py b/.claude/hooks/_env_guard.py
new file mode 100644
index 00000000..ac17e67e
--- /dev/null
+++ b/.claude/hooks/_env_guard.py
@@ -0,0 +1,38 @@
+"""Helper for pre_tool_env_guard.sh — reads tool-call JSON from stdin and
+prints a "match" line if the call would touch .env or secrets/. Empty
+output means no match (allow)."""
+import json
+import re
+import sys
+
+
+def main() -> None:
+    try:
+        data = json.load(sys.stdin)
+    except Exception:
+        return
+
+    ti = data.get("tool_input", {}) or {}
+    fp = (
+        ti.get("file_path", "")
+        or ti.get("path", "")
+        or ti.get("notebook_path", "")
+    )
+    cmd = ti.get("command", "") or ""
+
+    path_pattern = re.compile(r"(^|/)(\.env(\.|$)|secrets/)")
+    cmd_pattern = re.compile(
+        r"(^|[ \t;|&])\s*(cat|less|more|head|tail|cp|mv|rm)\s+"
+        r"[^|;&]*(?:\.env|secrets/)"
+    )
+
+    if fp and path_pattern.search(fp):
+        print(f"path:{fp}")
+        return
+    if cmd and cmd_pattern.search(cmd):
+        print(f"command:{cmd[:120]}")
+        return
+
+
+if __name__ == "__main__":
+    main()
diff --git a/.claude/hooks/pre_tool_env_guard.sh b/.claude/hooks/pre_tool_env_guard.sh
new file mode 100755
index 00000000..b388a451
--- /dev/null
+++ b/.claude/hooks/pre_tool_env_guard.sh
@@ -0,0 +1,29 @@
+#!/usr/bin/env bash
+# PreToolUse hook — extra explicit refusal for any attempt to touch
+# .env / secrets paths, on top of the permissions.deny rules in
+# .claude/settings.json. Provides a clearer, friendlier message and a
+# log line.
+#
+# Receives the tool-call payload as JSON on stdin:
+#   { "tool_name": "Read|Write|Edit|Bash|...",
+#     "tool_input": { "file_path": "...", "command": "..." } }
+#
+# Exit codes:
+#   0 → allow (silent)
+#   2 → block; stderr is shown to Claude so it knows why
+
+set -euo pipefail
+
+HOOK_DIR="$(cd "$(dirname "$0")" && pwd)"
+
+matches="$(python3 "$HOOK_DIR/_env_guard.py" 2>/dev/null || true)"
+
+if [ -n "$matches" ]; then
+    echo "🚫 Blocked: attempt to access protected path (env / secrets)." >&2
+    echo "   Detail: $matches" >&2
+    echo "   Reason: .env files and secrets/ are off-limits to Claude in this project." >&2
+    echo "   To grant a one-off exception, ask the developer to read the file and paste the relevant value." >&2
+    exit 2
+fi
+
+exit 0
diff --git a/.claude/hooks/session_start.sh b/.claude/hooks/session_start.sh
new file mode 100755
index 00000000..d669a256
--- /dev/null
+++ b/.claude/hooks/session_start.sh
@@ -0,0 +1,33 @@
+#!/usr/bin/env bash
+# SessionStart hook — print branch + working-tree status to give Claude
+# (and the developer) immediate context at the start of a session.
+set -euo pipefail
+
+# Run only inside a git repo
+if ! git rev-parse --is-inside-work-tree >/dev/null 2>&1; then
+    exit 0
+fi
+
+branch="$(git symbolic-ref --short HEAD 2>/dev/null || echo 'detached')"
+upstream="$(git rev-parse --abbrev-ref --symbolic-full-name '@{u}' 2>/dev/null || echo '')"
+
+# Ahead / behind vs upstream
+ahead_behind=""
+if [ -n "$upstream" ]; then
+    counts="$(git rev-list --left-right --count "${upstream}...HEAD" 2>/dev/null || echo '0	0')"
+    behind="$(echo "$counts" | awk '{print $1}')"
+    ahead="$(echo "$counts" | awk '{print $2}')"
+    if [ "$ahead" != "0" ] || [ "$behind" != "0" ]; then
+        ahead_behind=" (ahead $ahead, behind $behind vs $upstream)"
+    fi
+fi
+
+# Working-tree status
+dirty_count="$(git status --porcelain 2>/dev/null | wc -l | tr -d ' ')"
+if [ "$dirty_count" = "0" ]; then
+    state="clean"
+else
+    state="$dirty_count uncommitted change(s)"
+fi
+
+echo "📍 Branch: ${branch}${ahead_behind} — ${state}"
diff --git a/.claude/onboarding/step2_setup/01_settings_analysis.md b/.claude/onboarding/step2_setup/01_settings_analysis.md
new file mode 100644
index 00000000..1a8eb0fa
--- /dev/null
+++ b/.claude/onboarding/step2_setup/01_settings_analysis.md
@@ -0,0 +1,74 @@
+# Step 2 — Settings & Hooks Analysis
+
+Decisions made while configuring `.claude/settings.json` and the hooks
+(Step 2).
+
+## Date: 2026-05-06
+
+## Project Context (PHASE 1 findings)
+- **Backend:** Python (Flask, `uv`). No Ruff / Black / pre-commit config.
+- **Frontend:** Vue 3 + Vite. No Prettier / ESLint config.
+- **Sensitive paths:** `.env`, `.env.example`. No `secrets/` folder
+  exists today; rule blocks the path proactively. User uploads land in
+  `backend/uploads/`. CodeGraph index lives in `.codegraph/`.
+- **Project decision (Step 1):** No enforced formatter — match the
+  surrounding file's style.
+
+## Decisions
+
+| Question | Decision |
+|----------|----------|
+| Q1 — Allow more bash? | **Yes.** Added `npm run:*`, `npm test:*`, `npm install:*`, `git status`, `git diff:*`, `git log:*`, `git show:*`, `git add:*`, `git branch:*`, `git checkout:*`, `git commit:*`, `git restore:*`, `uv run:*`, `uv sync:*`, `docker compose:*`, `docker-compose:*`. |
+| Q2 — Deny additions? | **Yes.** Added Read/Write/Edit denials for `*/uploads/*` and `*/.codegraph/*`. |
+| Q3 — PostToolUse formatter? | **Skipped.** No formatter configured in this project. Matches the established convention (Step 1 — "no enforced formatter at present"). Add later if/when the team adopts one. |
+| Q4 — PreToolUse `.env` guard hook? | **Added** as a friendly, logged refusal layered on top of the `permissions.deny` rules. |
+| Q5 — SessionStart hook? | **Both** — branch + status. Single line: `📍 Branch: <branch> (ahead N, behind M vs upstream) — clean / N uncommitted change(s)`. |
+| Q6 — `.gitignore` for `settings.local.json`? | **Already done in Step 0** — `.claude/settings.local.json` and `.claude/.credentials.json` are ignored. |
+
+## What Was Created / Updated
+
+### `.claude/settings.json`
+- **Permissions:**
+  - `allow` — safe nav (`cd`, `ls`, `find`, `cat`, `mkdir`), `npm` /
+    `uv` task running, common read-only and staging git commands,
+    docker-compose for the recommended deployment path.
+  - `deny` — `.env*`, `secrets/`, `uploads/`, `.codegraph/` (Read /
+    Write / Edit), destructive bash (`rm -f*`, `rm -rf*`,
+    `git push -f*`, `git push --force*`).
+- **Hooks:**
+  - `SessionStart` → `.claude/hooks/session_start.sh`
+  - `PreToolUse` (matcher: `Read|Write|Edit|Bash|NotebookEdit`) →
+    `.claude/hooks/pre_tool_env_guard.sh`
+
+### `.claude/hooks/session_start.sh`
+- Prints branch + ahead/behind vs. upstream + working-tree state
+  (clean / N uncommitted changes) on session start.
+- Silent exit when not inside a git repo.
+
+### `.claude/hooks/pre_tool_env_guard.sh` + `_env_guard.py`
+- Defence-in-depth on top of `permissions.deny`.
+- Inspects `tool_input.file_path` and `tool_input.command` for
+  `.env*` / `secrets/` references.
+- Blocks (`exit 2`) with a clear, friendly stderr message:
+  - what was blocked (path or command excerpt)
+  - why (project policy)
+  - how to grant a one-off exception (developer copy-pastes the
+    relevant value)
+- Tested against positive and negative inputs (Read on `/foo/.env`,
+  bash `cat /foo/.env`, plain `ls`, plain file Read).
+
+### Stop hook
+- **Not configured here** — Step 6 (Quality & Review) covers the
+  full quality-gate Stop hook. Out of scope for Step 2.
+
+## Test Results (PHASE 6 verification)
+- `session_start.sh` prints the expected single-line summary.
+- `pre_tool_env_guard.sh`:
+  - Read `/foo/.env` → blocked, exit 2 ✓
+  - Read `/foo/safe.txt` → allowed, exit 0 ✓
+  - Bash `cat /foo/.env` → blocked, exit 2 ✓
+  - Bash `ls` → allowed, exit 0 ✓
+- `settings.json` parses as valid JSON ✓
+
+## Next
+- Step 3: Planning Tool Integration (MCP server, sprint context).
diff --git a/.claude/settings.json b/.claude/settings.json
index 869cac4c..a9a1d7e2 100644
--- a/.claude/settings.json
+++ b/.claude/settings.json
@@ -5,7 +5,24 @@
       "Bash(ls:*)",
       "Bash(find:*)",
       "Bash(cat:*)",
-      "Bash(mkdir:*)"
+      "Bash(mkdir:*)",
+      "Bash(npm run:*)",
+      "Bash(npm test:*)",
+      "Bash(npm install:*)",
+      "Bash(git status)",
+      "Bash(git status:*)",
+      "Bash(git diff:*)",
+      "Bash(git log:*)",
+      "Bash(git show:*)",
+      "Bash(git add:*)",
+      "Bash(git branch:*)",
+      "Bash(git checkout:*)",
+      "Bash(git commit:*)",
+      "Bash(git restore:*)",
+      "Bash(uv run:*)",
+      "Bash(uv sync:*)",
+      "Bash(docker compose:*)",
+      "Bash(docker-compose:*)"
     ],
     "deny": [
       "Read(*/.env*)",
@@ -14,10 +31,39 @@
       "Write(*/secrets/*)",
       "Edit(*/.env*)",
       "Edit(*/secrets/*)",
+      "Read(*/uploads/*)",
+      "Write(*/uploads/*)",
+      "Edit(*/uploads/*)",
+      "Read(*/.codegraph/*)",
+      "Write(*/.codegraph/*)",
+      "Edit(*/.codegraph/*)",
       "Bash(rm -f*)",
       "Bash(rm -rf*)",
       "Bash(git push -f*)",
       "Bash(git push --force*)"
     ]
+  },
+  "hooks": {
+    "SessionStart": [
+      {
+        "hooks": [
+          {
+            "type": "command",
+            "command": "$CLAUDE_PROJECT_DIR/.claude/hooks/session_start.sh"
+          }
+        ]
+      }
+    ],
+    "PreToolUse": [
+      {
+        "matcher": "Read|Write|Edit|Bash|NotebookEdit",
+        "hooks": [
+          {
+            "type": "command",
+            "command": "$CLAUDE_PROJECT_DIR/.claude/hooks/pre_tool_env_guard.sh"
+          }
+        ]
+      }
+    ]
   }
 }