diff --git a/chart/values.yaml b/chart/values.yaml
index 19b8281..34a7d38 100644
--- a/chart/values.yaml
+++ b/chart/values.yaml
@@ -12,7 +12,7 @@ githubRepo: ""
 # Happy Coder endpoints
 happyServerUrl: "https://happy.farh.net"
 happyWebappUrl: "https://happy-coder.farh.net"
-happyHomeDir: "/workspace/.happy"
+happyHomeDir: "/home/user/.happy"
 happyExperimental: "true"
 
 # VNC display
diff --git a/scripts/init-repo.sh b/scripts/init-repo.sh
index fe0e675..46b1313 100644
--- a/scripts/init-repo.sh
+++ b/scripts/init-repo.sh
@@ -63,10 +63,9 @@ chown "$RUN_UID:$RUN_GID" "$HOME"
 # so no sudo needed — Happy/Claude Code will find credentials in the correct home dir.
 echo "Starting Happy Coder..."
 
-# HAPPY_HOME_DIR is in /workspace (emptyDir), so it is always fresh on pod start.
-# Remove the lock file as a safety net in case daemon start is called more than
-# once within the same container lifetime.
-rm -f "${HAPPY_HOME_DIR:-/workspace/.happy}/daemon.state.json.lock"
+# Remove stale lock file. HAPPY_HOME_DIR lives on the home PVC so it survives
+# pod restarts — without this cleanup the daemon refuses to start after a crash.
+rm -f "${HAPPY_HOME_DIR:-$HOME/.happy}/daemon.state.json.lock"
 
 cd "$WORKSPACE_DIR"
 happy daemon start || echo "Happy Coder daemon failed to start, continuing anyway..."