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The daemon.state.json.lock lives on the home PVC and survives pod restarts, causing happy daemon start to fail on every reboot. Moving HAPPY_HOME_DIR to /workspace (emptyDir) means the entire happy state directory is ephemeral and always clean on startup. The rm -f in init-repo.sh is kept as a safety net for the within-run case but is now a no-op on fresh starts. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>