diff --git a/apps/server/src/server.ts b/apps/server/src/server.ts
index 959cad396ac22..3e6f8805ea77f 100644
--- a/apps/server/src/server.ts
+++ b/apps/server/src/server.ts
@@ -492,7 +492,9 @@ const layerCheckpointStore = CheckpointStore.layer.pipe(Layer.provide(layerVcsDr
 
 const layerPortScanner = PortScanner.layer.pipe(Layer.provide(ProcessRunner.layer));
 
-const layerTerminal = TerminalManager.layer.pipe(
+const layerTerminal = TerminalManager.layer(
+  ProviderInstanceRegistryHydration.deriveProviderInstanceConfigMap,
+).pipe(
   Layer.provide(layerPtyAdapter),
   Layer.provide(layerPortScanner),
   Layer.provide(layerNativeTelemetry),
diff --git a/apps/server/src/serverSettings.test.ts b/apps/server/src/serverSettings.test.ts
index e733a7ab8cf88..3ca2d29da7c81 100644
--- a/apps/server/src/serverSettings.test.ts
+++ b/apps/server/src/serverSettings.test.ts
@@ -1,3 +1,4 @@
+import { deriveProviderInstanceConfigMap } from "./provider/ProviderInstanceRegistryHydration.ts";
 import * as NodeCrypto from "@effect/platform-node/NodeCrypto";
 import * as NodeServices from "@effect/platform-node/NodeServices";
 import {
@@ -2074,6 +2075,7 @@ it.layer(Layer.mergeAll(NodeServices.layer, NodeCrypto.layer))("server settings"
       });
 
       const environment = yield* resolveProviderInstanceTerminalEnvironment({
+        deriveProviderInstanceConfigMap,
         serverSettings,
         path,
         rawProviderInstanceId: instanceId,
diff --git a/apps/server/src/terminal/Manager.test.ts b/apps/server/src/terminal/Manager.test.ts
index 6c147c2a944e9..eb7bc2dee2343 100644
--- a/apps/server/src/terminal/Manager.test.ts
+++ b/apps/server/src/terminal/Manager.test.ts
@@ -1,3 +1,4 @@
+import { deriveProviderInstanceConfigMap } from "../provider/ProviderInstanceRegistryHydration.ts";
 import * as NodeCrypto from "@effect/platform-node/NodeCrypto";
 import * as NodeServices from "@effect/platform-node/NodeServices";
 import { assert, it } from "@effect/vitest";
@@ -2054,6 +2055,7 @@ it.layer(
       const path = yield* Path.Path;
       const serverSettings = yield* ServerSettings.ServerSettingsService;
       const environment = yield* TerminalManager.resolveProviderInstanceTerminalEnvironment({
+        deriveProviderInstanceConfigMap,
         serverSettings,
         path,
         rawProviderInstanceId: "configured_home",
diff --git a/apps/server/src/terminal/Manager.ts b/apps/server/src/terminal/Manager.ts
index 7cecd01db7603..48409c9139725 100644
--- a/apps/server/src/terminal/Manager.ts
+++ b/apps/server/src/terminal/Manager.ts
@@ -67,7 +67,7 @@ import * as ServerConfig from "../config.ts";
 import { mergeProviderInstanceEnvironment } from "@t3tools/provider-core/server/instanceEnvironment";
 import { resolveCodexHomeLayout } from "../provider/Drivers/CodexHomeLayout.ts";
 import { makeClaudeEnvironment } from "../provider/Drivers/ClaudeHome.ts";
-import { deriveProviderInstanceConfigMap } from "../provider/ProviderInstanceRegistryHydration.ts";
+import type { deriveProviderInstanceConfigMap } from "../provider/ProviderInstanceRegistryHydration.ts";
 import * as ServerSettings from "../serverSettings.ts";
 import { increment, terminalSessionsTotal } from "../observability/Metrics.ts";
 import { expandHomeVariable } from "@t3tools/provider-core/server/pathExpansion";
@@ -1451,6 +1451,7 @@ interface TerminalManagerOptions {
 export const resolveProviderInstanceTerminalEnvironment = Effect.fn(
   "terminal.resolveProviderInstanceTerminalEnvironment",
 )(function* (input: {
+  readonly deriveProviderInstanceConfigMap: typeof deriveProviderInstanceConfigMap;
   readonly serverSettings: ServerSettings.ServerSettingsService["Service"];
   readonly path: Path.Path;
   readonly rawProviderInstanceId: string;
@@ -1460,7 +1461,7 @@ export const resolveProviderInstanceTerminalEnvironment = Effect.fn(
   const settings = yield* input.serverSettings.getSettings.pipe(
     Effect.mapError((cause) => new TerminalProviderEnvironmentError({ providerInstanceId, cause })),
   );
-  const instance = deriveProviderInstanceConfigMap(settings)[providerInstanceId];
+  const instance = input.deriveProviderInstanceConfigMap(settings)[providerInstanceId];
   if (instance === undefined) {
     return yield* new TerminalProviderInstanceNotFoundError({ providerInstanceId });
   }
@@ -1490,7 +1491,9 @@ export const resolveProviderInstanceTerminalEnvironment = Effect.fn(
 });
 
 /** @public */
-export const make = Effect.fn("TerminalManager.make")(function* () {
+export const make = Effect.fn("TerminalManager.make")(function* (
+  deriveConfigMap: typeof deriveProviderInstanceConfigMap,
+) {
   const { terminalLogsDir, providerStatusCacheDir, baseDir } = yield* ServerConfig.ServerConfig;
   const ptyAdapter = yield* PtyAdapter.PtyAdapter;
   const portDiscovery = yield* PortScanner.PortDiscovery;
@@ -1501,6 +1504,7 @@ export const make = Effect.fn("TerminalManager.make")(function* () {
     "terminal.resolveProviderInstanceEnvironment",
   )((rawProviderInstanceId: string, env: Record<string, string> | undefined) =>
     resolveProviderInstanceTerminalEnvironment({
+      deriveProviderInstanceConfigMap: deriveConfigMap,
       serverSettings,
       path,
       rawProviderInstanceId,
@@ -3509,4 +3513,5 @@ export const makeWithOptions = Effect.fn("TerminalManager.makeWithOptions")(func
   });
 });
 
-export const layer = Layer.effect(TerminalManager, make()).pipe(Layer.provide(ProcessRunner.layer));
+export const layer = (deriveConfigMap: typeof deriveProviderInstanceConfigMap) =>
+  Layer.effect(TerminalManager, make(deriveConfigMap)).pipe(Layer.provide(ProcessRunner.layer));