diff --git a/packages/core/src/config/config.ts b/packages/core/src/config.ts
similarity index 55%
rename from packages/core/src/config/config.ts
rename to packages/core/src/config.ts
index 2afa9a91ba..77c8a98e27 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config.ts
@@ -3,18 +3,74 @@ export * as Config from "./config"
 import path from "path"
 import { type ParseError, parse } from "jsonc-parser"
 import { Context, Effect, Layer, Option, Schema } from "effect"
-import { AppFileSystem } from "../filesystem"
-import { Global } from "../global"
-import { Location } from "../location"
-import { Policy } from "../policy"
-import { AbsolutePath } from "../schema"
-import { ConfigV2 } from "./schema"
+import { AppFileSystem } from "./filesystem"
+import { Global } from "./global"
+import { Location } from "./location"
+import { Policy } from "./policy"
+import { AbsolutePath } from "./schema"
+import { ConfigExperimental } from "./config/experimental"
+import { ConfigPlugin } from "./config/plugin"
+import { ConfigProvider } from "./config/provider"
+import { ConfigReference } from "./config/reference"
+import { ConfigWatcher } from "./config/watcher"
+
+export class Info extends Schema.Class<Info>("Config.Info")({
+  $schema: Schema.optional(Schema.String).annotate({
+    description: "JSON schema reference for configuration validation",
+  }),
+  shell: Schema.String.pipe(Schema.optional).annotate({
+    description: "Default shell to use for terminal and shell tool execution",
+  }),
+  model: Schema.String.pipe(Schema.optional).annotate({
+    description: "Default model to use when no session or agent model is selected",
+  }),
+  autoupdate: Schema.Union([Schema.Boolean, Schema.Literal("notify")]).pipe(Schema.optional).annotate({
+    description: "Automatically update or notify when a new version is available",
+  }),
+  snapshots: Schema.Boolean.pipe(Schema.optional).annotate({
+    description: "Enable snapshots used for undo and revert behavior",
+  }),
+  watcher: ConfigWatcher.Info.pipe(Schema.optional).annotate({
+    description: "Filesystem watcher configuration",
+  }),
+  skills: Schema.String.pipe(Schema.Array, Schema.optional).annotate({
+    description: "Additional paths or URLs to discover skills from",
+  }),
+  instructions: Schema.String.pipe(Schema.Array, Schema.optional).annotate({
+    description: "Additional paths or URLs supplying ambient instructions",
+  }),
+  references: ConfigReference.Info.pipe(Schema.optional).annotate({
+    description: "Named local directories or Git repositories available as external context",
+  }),
+  plugins: ConfigPlugin.Plugins.pipe(Schema.optional).annotate({
+    description: "Ordered external plugin packages to load",
+  }),
+  experimental: ConfigExperimental.Experimental.pipe(Schema.optional),
+  providers: Schema.Record(Schema.String, ConfigProvider.Info).pipe(Schema.optional),
+}) {}
+
+export class FileSource extends Schema.Class<FileSource>("Config.FileSource")({
+  type: Schema.Literal("file"),
+  path: Schema.String,
+}) {}
+
+export class MemorySource extends Schema.Class<MemorySource>("Config.MemorySource")({
+  type: Schema.Literal("memory"),
+}) {}
+
+export const Source = Schema.Union([FileSource, MemorySource]).pipe(Schema.toTaggedUnion("type"))
+export type Source = typeof Source.Type
+
+export class Loaded extends Schema.Class<Loaded>("Config.Loaded")({
+  source: Source,
+  info: Info,
+}) {}
 
 export interface Interface {
   /** Returns supplemental config directories from lowest to highest priority. */
   readonly directories: () => Effect.Effect<AbsolutePath[]>
   /** Loads location config files from lowest to highest priority. */
-  readonly get: () => Effect.Effect<ConfigV2.Loaded[]>
+  readonly get: () => Effect.Effect<Loaded[]>
 }
 
 export class Service extends Context.Service<Service, Interface>()("@opencode/v2/Config") {}
@@ -39,15 +95,15 @@ export const layer = Layer.effect(
       // Accept legacy fields while v2 is migrated incrementally; recognized
       // fields still have to satisfy the v2 schema.
       const info = Option.getOrUndefined(
-        Schema.decodeUnknownOption(ConfigV2.Info)(input, { errors: "all", onExcessProperty: "ignore" }),
+        Schema.decodeUnknownOption(Info)(input, { errors: "all", onExcessProperty: "ignore" }),
       )
       if (!info) return
-      return new ConfigV2.Loaded({ source: new ConfigV2.FileSource({ type: "file", path: filepath }), info })
+      return new Loaded({ source: new FileSource({ type: "file", path: filepath }), info })
     })
 
     const loadDirectory = Effect.fnUntraced(function* (directory: AbsolutePath) {
       return yield* Effect.forEach(names, (file) => loadFile(path.join(directory, file))).pipe(
-        Effect.map((configs) => configs.filter((config): config is ConfigV2.Loaded => config !== undefined)),
+        Effect.map((configs) => configs.filter((config): config is Loaded => config !== undefined)),
       )
     })
 
@@ -74,7 +130,7 @@ export const layer = Layer.effect(
           .pipe(Effect.orDie)).toReversed()
     const direct = yield* Effect.forEach(directPaths, loadFile).pipe(
       Effect.orDie,
-      Effect.map((configs) => configs.filter((config): config is ConfigV2.Loaded => config !== undefined)),
+      Effect.map((configs) => configs.filter((config): config is Loaded => config !== undefined)),
     )
     const supplementary = yield* Effect.forEach(directories, loadDirectory).pipe(Effect.orDie)
     // Apply general settings first and more specific settings last:
diff --git a/packages/core/src/config/experimental.ts b/packages/core/src/config/experimental.ts
new file mode 100644
index 0000000000..377ed26ade
--- /dev/null
+++ b/packages/core/src/config/experimental.ts
@@ -0,0 +1,18 @@
+export * as ConfigExperimental from "./experimental"
+
+import { Schema } from "effect"
+import { Catalog } from "../catalog"
+import { Policy as PolicyV2 } from "../policy"
+
+// Each core domain exports the policy actions it supports. Adding an action to
+// this union makes it valid in authored config while keeping Policy generic.
+export const PolicyAction = Schema.Union([Catalog.PolicyActions])
+
+export class Policy extends Schema.Class<Policy>("Config.Experimental.Policy")({
+  ...PolicyV2.Info.fields,
+  action: PolicyAction,
+}) {}
+
+export class Experimental extends Schema.Class<Experimental>("Config.Experimental")({
+  policies: Policy.pipe(Schema.Array, Schema.optional),
+}) {}
diff --git a/packages/core/src/config/plugin.ts b/packages/core/src/config/plugin.ts
new file mode 100644
index 0000000000..4268a7f79d
--- /dev/null
+++ b/packages/core/src/config/plugin.ts
@@ -0,0 +1,13 @@
+export * as ConfigPlugin from "./plugin"
+
+import { Schema } from "effect"
+
+export class Entry extends Schema.Class<Entry>("Config.Plugin.Entry")({
+  package: Schema.String,
+  options: Schema.Record(Schema.String, Schema.Unknown).pipe(Schema.optional),
+}) {}
+
+export const Plugin = Schema.Union([Schema.String, Entry])
+export type Plugin = typeof Plugin.Type
+
+export const Plugins = Plugin.pipe(Schema.Array)
diff --git a/packages/core/src/config/provider.ts b/packages/core/src/config/provider.ts
index 47d839302c..d4c6d0848e 100644
--- a/packages/core/src/config/provider.ts
+++ b/packages/core/src/config/provider.ts
@@ -2,7 +2,7 @@ export * as ConfigProvider from "./provider"
 
 import { Effect, Schema } from "effect"
 import { Catalog } from "../catalog"
-import { Config } from "./config"
+import { Config } from "../config"
 import { ProviderV2 } from "../provider"
 import { ModelV2 } from "../model"
 import { PluginV2 } from "../plugin"
diff --git a/packages/core/src/config/reference.ts b/packages/core/src/config/reference.ts
new file mode 100644
index 0000000000..55878bfab0
--- /dev/null
+++ b/packages/core/src/config/reference.ts
@@ -0,0 +1,17 @@
+export * as ConfigReference from "./reference"
+
+import { Schema } from "effect"
+
+export class Git extends Schema.Class<Git>("Config.Reference.Git")({
+  repository: Schema.String,
+  branch: Schema.String.pipe(Schema.optional),
+}) {}
+
+export class Local extends Schema.Class<Local>("Config.Reference.Local")({
+  path: Schema.String,
+}) {}
+
+export const Entry = Schema.Union([Schema.String, Git, Local])
+export type Entry = typeof Entry.Type
+
+export const Info = Schema.Record(Schema.String, Entry)
diff --git a/packages/core/src/config/schema.ts b/packages/core/src/config/schema.ts
deleted file mode 100644
index e69f6161bb..0000000000
--- a/packages/core/src/config/schema.ts
+++ /dev/null
@@ -1,47 +0,0 @@
-export * as ConfigV2 from "./schema"
-
-import { Schema } from "effect"
-import { Catalog } from "../catalog"
-import { Policy as PolicyV2 } from "../policy"
-import { ConfigProvider } from "./provider"
-
-// Each core domain exports the policy actions it supports. Adding an action to
-// this union makes it valid in authored config while keeping Policy generic.
-export const PolicyAction = Schema.Union([Catalog.PolicyActions])
-
-export class Policy extends Schema.Class<Policy>("ConfigV2.Policy")({
-  ...PolicyV2.Info.fields,
-  action: PolicyAction,
-}) {}
-
-export class Experimental extends Schema.Class<Experimental>("ConfigV2.Experimental")({
-  policies: Policy.pipe(Schema.Array, Schema.optional),
-}) {}
-
-export class Info extends Schema.Class<Info>("ConfigV2.Info")({
-  $schema: Schema.optional(Schema.String).annotate({
-    description: "JSON schema reference for configuration validation",
-  }),
-  shell: Schema.String.pipe(Schema.optional).annotate({
-    description: "Default shell to use for terminal and shell tool execution",
-  }),
-  experimental: Experimental.pipe(Schema.optional),
-  providers: Schema.Record(Schema.String, ConfigProvider.Info).pipe(Schema.optional),
-}) {}
-
-export class FileSource extends Schema.Class<FileSource>("ConfigV2.FileSource")({
-  type: Schema.Literal("file"),
-  path: Schema.String,
-}) {}
-
-export class MemorySource extends Schema.Class<MemorySource>("ConfigV2.MemorySource")({
-  type: Schema.Literal("memory"),
-}) {}
-
-export const Source = Schema.Union([FileSource, MemorySource]).pipe(Schema.toTaggedUnion("type"))
-export type Source = typeof Source.Type
-
-export class Loaded extends Schema.Class<Loaded>("ConfigV2.Loaded")({
-  source: Source,
-  info: Info,
-}) {}
diff --git a/packages/core/src/config/watcher.ts b/packages/core/src/config/watcher.ts
new file mode 100644
index 0000000000..be5c91a9bf
--- /dev/null
+++ b/packages/core/src/config/watcher.ts
@@ -0,0 +1,7 @@
+export * as ConfigWatcher from "./watcher"
+
+import { Schema } from "effect"
+
+export class Info extends Schema.Class<Info>("Config.Watcher")({
+  ignore: Schema.String.pipe(Schema.Array, Schema.optional),
+}) {}
diff --git a/packages/core/src/location-layer.ts b/packages/core/src/location-layer.ts
index 905206fd63..67293f7c5f 100644
--- a/packages/core/src/location-layer.ts
+++ b/packages/core/src/location-layer.ts
@@ -3,7 +3,7 @@ import { Location } from "./location"
 import { Catalog } from "./catalog"
 import { PluginBoot } from "./plugin/boot"
 import { Policy } from "./policy"
-import { Config } from "./config/config"
+import { Config } from "./config"
 
 export class LocationServiceMap extends LayerMap.Service<LocationServiceMap>()("@opencode/example/LocationServiceMap", {
   lookup: (ref: Location.Ref) => {
diff --git a/packages/core/src/plugin/boot.ts b/packages/core/src/plugin/boot.ts
index e6c3ac74a1..c8c8b4061a 100644
--- a/packages/core/src/plugin/boot.ts
+++ b/packages/core/src/plugin/boot.ts
@@ -3,7 +3,7 @@ export * as PluginBoot from "./boot"
 import { Context, Deferred, Effect, Layer } from "effect"
 import { AccountV2 } from "../account"
 import { Catalog } from "../catalog"
-import { Config } from "../config/config"
+import { Config } from "../config"
 import { ConfigProvider } from "../config/provider"
 import { EventV2 } from "../event"
 import { Npm } from "../npm"
diff --git a/packages/core/test/config/config.test.ts b/packages/core/test/config/config.test.ts
index a376c78211..a6f6489e17 100644
--- a/packages/core/test/config/config.test.ts
+++ b/packages/core/test/config/config.test.ts
@@ -2,9 +2,8 @@ import path from "path"
 import fs from "fs/promises"
 import { describe, expect } from "bun:test"
 import { Effect, Layer } from "effect"
-import { Config } from "@opencode-ai/core/config/config"
+import { Config } from "@opencode-ai/core/config"
 import { ConfigProvider } from "@opencode-ai/core/config/provider"
-import { ConfigV2 } from "@opencode-ai/core/config/schema"
 import { AppFileSystem } from "@opencode-ai/core/filesystem"
 import { Global } from "@opencode-ai/core/global"
 import { Location } from "@opencode-ai/core/location"
@@ -105,8 +104,8 @@ describe("Config", () => {
             expect(documents).toHaveLength(3)
             expect(documents.map((document) => document.source.type)).toEqual(["file", "file", "file"])
             expect(documents.map((document) => document.info.$schema)).toEqual(["base", "middle", "last"])
-            expect(documents[0]).toBeInstanceOf(ConfigV2.Loaded)
-            expect(documents[0]?.source).toBeInstanceOf(ConfigV2.FileSource)
+            expect(documents[0]).toBeInstanceOf(Config.Loaded)
+            expect(documents[0]?.source).toBeInstanceOf(Config.FileSource)
             expect(documents[0]?.source.type === "file" ? documents[0].source.path : undefined).toBe(
               path.join(tmp.path, "config.json"),
             )
@@ -155,7 +154,7 @@ describe("Config", () => {
     ),
   )
 
-  it.live("loads recognized v2 fields from config files that still contain legacy fields", () =>
+  it.live("loads supported scalar and resource configuration", () =>
     Effect.acquireRelease(
       Effect.promise(() => tmpdir()),
       (tmp) => Effect.promise(() => tmp[Symbol.asyncDispose]()),
@@ -168,8 +167,20 @@ describe("Config", () => {
               JSON.stringify({
                 shell: "/bin/bash",
                 model: "anthropic/claude",
-                disabled_providers: ["openai"],
-                server: { port: 4096 },
+                autoupdate: "notify",
+                snapshots: false,
+                watcher: { ignore: ["node_modules/**", "dist/**", ".git"] },
+                skills: ["./skills", "~/shared-skills", "https://example.com/.well-known/skills/"],
+                instructions: ["CONTRIBUTING.md", ".cursor/rules/*.md", "https://example.com/shared-rules.md"],
+                references: {
+                  local: { path: "../library" },
+                  sdk: { repository: "github.com/example/sdk", branch: "main" },
+                  shorthand: "github.com/example/docs",
+                },
+                plugins: [
+                  "opencode-helicone-session",
+                  { package: "@my-org/audit-plugin", options: { endpoint: "https://audit.example.com" } },
+                ],
               }),
             ),
           )
@@ -180,6 +191,29 @@ describe("Config", () => {
 
             expect(documents).toHaveLength(1)
             expect(documents[0]?.info.shell).toBe("/bin/bash")
+            expect(documents[0]?.info.model).toBe("anthropic/claude")
+            expect(documents[0]?.info.autoupdate).toBe("notify")
+            expect(documents[0]?.info.snapshots).toBe(false)
+            expect(documents[0]?.info.watcher).toEqual({ ignore: ["node_modules/**", "dist/**", ".git"] })
+            expect(documents[0]?.info.skills).toEqual([
+              "./skills",
+              "~/shared-skills",
+              "https://example.com/.well-known/skills/",
+            ])
+            expect(documents[0]?.info.instructions).toEqual([
+              "CONTRIBUTING.md",
+              ".cursor/rules/*.md",
+              "https://example.com/shared-rules.md",
+            ])
+            expect(documents[0]?.info.references).toEqual({
+              local: { path: "../library" },
+              sdk: { repository: "github.com/example/sdk", branch: "main" },
+              shorthand: "github.com/example/docs",
+            })
+            expect(documents[0]?.info.plugins).toEqual([
+              "opencode-helicone-session",
+              { package: "@my-org/audit-plugin", options: { endpoint: "https://audit.example.com" } },
+            ])
           }).pipe(Effect.provide(testLayer(tmp.path)))
         }),
       ),
diff --git a/packages/core/test/config/provider.test.ts b/packages/core/test/config/provider.test.ts
index 6f9b3181f2..ed1f18b7d7 100644
--- a/packages/core/test/config/provider.test.ts
+++ b/packages/core/test/config/provider.test.ts
@@ -1,9 +1,8 @@
 import { describe, expect } from "bun:test"
 import { Effect, Schema } from "effect"
 import { Catalog } from "@opencode-ai/core/catalog"
-import { Config } from "@opencode-ai/core/config/config"
+import { Config } from "@opencode-ai/core/config"
 import { ConfigProvider } from "@opencode-ai/core/config/provider"
-import { ConfigV2 } from "@opencode-ai/core/config/schema"
 import { ModelV2 } from "@opencode-ai/core/model"
 import { PluginV2 } from "@opencode-ai/core/plugin"
 import { ProviderV2 } from "@opencode-ai/core/provider"
@@ -21,7 +20,7 @@ function options(headers: Record<string, string>, variant?: string) {
   }
 }
 
-const decode = Schema.decodeUnknownSync(ConfigV2.Info)
+const decode = Schema.decodeUnknownSync(Config.Info)
 
 describe("ConfigProvider.Plugin", () => {
   it.effect("loads configured providers and applies later model overrides", () =>
@@ -34,8 +33,8 @@ describe("ConfigProvider.Plugin", () => {
         directories: () => Effect.succeed([]),
         get: () =>
           Effect.succeed([
-            new ConfigV2.Loaded({
-              source: new ConfigV2.MemorySource({ type: "memory" }),
+            new Config.Loaded({
+              source: new Config.MemorySource({ type: "memory" }),
               info: decode({
                 providers: {
                   custom: {
@@ -63,8 +62,8 @@ describe("ConfigProvider.Plugin", () => {
                 },
               }),
             }),
-            new ConfigV2.Loaded({
-              source: new ConfigV2.MemorySource({ type: "memory" }),
+            new Config.Loaded({
+              source: new Config.MemorySource({ type: "memory" }),
               info: decode({
                 providers: {
                   custom: {
@@ -95,8 +94,8 @@ describe("ConfigProvider.Plugin", () => {
                 },
               }),
             }),
-            new ConfigV2.Loaded({
-              source: new ConfigV2.MemorySource({ type: "memory" }),
+            new Config.Loaded({
+              source: new Config.MemorySource({ type: "memory" }),
               info: decode({
                 providers: {
                   custom: { name: "Renamed" },
diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index 0bf23b3c68..8dc8c6ee54 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -43,7 +43,7 @@ import { ConfigSkills } from "./skills"
 import { ConfigVariable } from "./variable"
 import { Npm } from "@opencode-ai/core/npm"
 import { withTransientReadRetry } from "@/util/effect-http-client"
-import { ConfigV2 } from "@opencode-ai/core/config/schema"
+import { ConfigExperimental } from "@opencode-ai/core/config/experimental"
 
 const log = Log.create({ service: "config" })
 
@@ -302,7 +302,7 @@ export const Info = Schema.Struct({
       mcp_timeout: Schema.optional(PositiveInt).annotate({
         description: "Timeout in milliseconds for model context protocol (MCP) requests",
       }),
-      policies: Schema.optional(Schema.mutable(Schema.Array(ConfigV2.Policy))).annotate({
+      policies: Schema.optional(Schema.mutable(Schema.Array(ConfigExperimental.Policy))).annotate({
         description: "Policy statements applied to supported resources, such as provider access",
       }),
     }),
diff --git a/specs/v2/config.md b/specs/v2/config.md
index 74e896dbdf..196c3fc4b3 100644
--- a/specs/v2/config.md
+++ b/specs/v2/config.md
@@ -36,20 +36,71 @@ Settings that affect process startup, shell execution, or network serving. Revie
 
 Configuration that introduces location-scoped project resources or discoverable content.
 
-| Field          | Current Purpose                         | Status  | Notes |
-| -------------- | --------------------------------------- | ------- | ----- |
-| `command`      | User-defined commands                   | pending |       |
-| `skills`       | Additional skill locations              | pending |       |
-| `reference`    | Named git or local directory references | pending |       |
-| `instructions` | Additional instruction file patterns    | pending |       |
+| Field          | Current Purpose                         | Status | Notes                                                                                                         |
+| -------------- | --------------------------------------- | ------ | ------------------------------------------------------------------------------------------------------------- |
+| `command`      | User-defined commands                   | remove | Do not port as v2 config; named reusable user workflows belong to skills.                                   |
+| `skills`       | Additional skill locations              | redesign | Replace `{ paths?, urls? }` with a single array of local path or remote URL discovery sources.                           |
+| `reference`    | Named git or local directory references | redesign | Rename to plural `references`; retain named local path and Git repository external-context entries.        |
+| `instructions` | Additional ambient instruction sources  | keep     | Keep as one array of local paths, glob patterns, or remote URLs supplying automatically included context.   |
+
+V2 does not expose separate user-authored command configuration. Skills should cover named reusable prompt workflows, whether invoked directly by the user or loaded by an agent. Internal command routing and built-in commands may remain runtime concerns without creating a `command` or `commands` config field.
+
+This intentionally does not port legacy command-only behavior such as per-command `model`, `agent`, `subtask`, prompt shell expansion, or positional/template substitution. If a related capability is needed in v2, it should be designed in the owning domain rather than preserved through a second workflow definition system.
+
+Keep `skills` as discovery-source configuration rather than inline workflow definitions. Skill content remains owned by `SKILL.md`; each `skills` entry is either a local search root or a remote discovery URL. Direct invocation behavior can be designed separately without expanding the config shape.
+
+```jsonc
+{
+  "skills": ["./team-skills", "~/shared-skills", "https://example.com/.well-known/skills/"],
+}
+```
+
+Keep ambient instructions separate from skills. Instructions are automatically included as model context, while skills are loaded or invoked intentionally. Each source is unambiguously either a local path/glob or a URL, so v2 keeps the simple array shape:
+
+```jsonc
+{
+  "instructions": ["CONTRIBUTING.md", "docs/guidelines.md", ".cursor/rules/*.md", "https://example.com/shared-rules.md"],
+}
+```
+
+Keep named external context references as a v2 configuration capability, renamed to plural `references` because it is a collection keyed by alias. References declare local directories or Git repositories that can later be addressed as `@alias` or `@alias/path` when the v2 runtime implements this behavior.
+
+```jsonc
+{
+  "references": {
+    "design-system": { "path": "../ui-library" },
+    "sdk": { "repository": "github.com/example/sdk", "branch": "main" },
+  },
+}
+```
+
+Retain the compact string entry form as well: values starting with `.`, `/`, or `~` represent local paths, and other strings represent Git repositories.
 
 ## Group 4: Plugins
 
 Plugin loading has source-path and scope-sensitive behavior, so it should be reviewed separately from other project resources.
 
-| Field    | Current Purpose               | Status  | Notes                                                  |
-| -------- | ----------------------------- | ------- | ------------------------------------------------------ |
-| `plugin` | User-specified plugin modules | pending | Existing loader records origin and global/local scope. |
+| Field    | Current Purpose               | Status   | Notes                                                                                                                 |
+| -------- | ----------------------------- | -------- | --------------------------------------------------------------------------------------------------------------------- |
+| `plugin` | User-specified plugin modules | redesign | Rename to plural `plugins`; retain ordered loading with package strings or `{ package, options? }` entries.         |
+
+Plugin order remains part of the v2 configuration contract because hook registration and execution can depend on load order. Replace legacy option tuples with readable object entries:
+
+```jsonc
+{
+  "plugins": [
+    "opencode-helicone-session",
+    {
+      "package": "@my-org/audit-plugin",
+      "options": {
+        "endpoint": "https://audit.example.com",
+      },
+    },
+  ],
+}
+```
+
+The configured `plugins` list represents package-loaded plugins only. Local plugin code remains discovered from plugin directories such as `.opencode/plugins/`; v2 does not port arbitrary configured local paths or file URLs into this field.
 
 ## Group 5: Filesystem And Tool Runtime
 
@@ -57,8 +108,8 @@ Settings controlling local file observation, snapshots, language tooling, and to
 
 | Field         | Current Purpose                         | Status  | Notes |
 | ------------- | --------------------------------------- | ------- | ----- |
-| `watcher`     | Ignore patterns for filesystem watching | pending |       |
-| `snapshot`    | Enable filesystem snapshot tracking     | pending |       |
+| `watcher`     | Ignore patterns for filesystem watching | keep     | Keep `{ ignore?: string[] }`; this configures the filesystem watcher subsystem. |
+| `snapshot`    | Enable filesystem snapshot tracking     | redesign | Rename to plural `snapshots`; controls creation of snapshots used for undo and revert behavior. |
 | `formatter`   | Configure formatters                    | pending |       |
 | `lsp`         | Configure language servers              | pending |       |
 | `attachment`  | Configure attachment/image processing   | pending |       |
@@ -79,13 +130,13 @@ Settings affecting sharing behavior or user/account identity rather than model e
 
 Provider catalog customization and model-choice configuration. The new core work has started here.
 
-| Field                | Current Purpose                                   | Status   | Notes                                                                                   |
-| -------------------- | ------------------------------------------------- | -------- | --------------------------------------------------------------------------------------- |
-| `provider`           | Custom provider configuration and model overrides | pending  | New core schema currently uses `providers`; decide public key compatibility.            |
-| `disabled_providers` | Disable automatically loaded providers            | redesign | Replace with `experimental.policies: [{ effect: "deny", action: "provider.use", resource: "..." }]`. |
-| `enabled_providers`  | Restrict enabled providers to an allowlist        | redesign | Replace with ordered `provider.use` allow/deny statements and wildcard resources.       |
-| `model`              | Default model selection                           | pending  |                                                                                         |
-| `small_model`        | Small/utility model selection                     | pending  |                                                                                         |
+| Field                | Current Purpose                                   | Status   | Notes                                                                                                                   |
+| -------------------- | ------------------------------------------------- | -------- | ----------------------------------------------------------------------------------------------------------------------- |
+| `provider`           | Custom provider configuration and model overrides | redesign | Rename to plural `providers` in v2; do not preserve the legacy singular key. Review nested provider/model fields separately. |
+| `disabled_providers` | Disable automatically loaded providers            | redesign | Replace with `experimental.policies: [{ effect: "deny", action: "provider.use", resource: "..." }]`.               |
+| `enabled_providers`  | Restrict enabled providers to an allowlist        | redesign | Replace with ordered `provider.use` allow/deny statements and wildcard resources.                                       |
+| `model`              | Default model selection                           | keep     | Keep as the fallback model when an active session or agent does not specify a model.                                   |
+| `small_model`        | Small/utility model selection                     | remove   | Do not port; its only runtime consumer is title generation, which can use an explicit `title` agent model override.    |
 
 Provider selection rules belong in `experimental.policies` rather than provider entries or repeated top-level provider fields. Initial proposed shape:
 
@@ -112,6 +163,12 @@ See [provider-policy.md](./provider-policy.md) for the provider policy semantics
 
 Policy evaluation will consume authored config documents in reverse order while preserving statement order inside each document. The precedence of `.opencode` policy sources remains open until `.opencode` configuration is reviewed.
 
+Provider configuration uses the plural `providers` key in v2. This intentionally differs from the legacy singular `provider` key; v2 does not add a compatibility alias while its configuration surface is still being defined.
+
+Keep `model` as the default model fallback. It is application-wide behavior used when an active session or agent has no explicit model selection, so it does not belong inside any individual provider configuration.
+
+Do not port `small_model`. In the current runtime it is only consulted while generating a session title: the `title` agent model wins first, then `small_model`, then automatic/current-model fallback. In v2, users who need a specific title model should configure the `title` agent directly rather than use a separate top-level model setting.
+
 ## Group 8: Agents And Permissions
 
 Agent behavior and tool-access policy. Review together because agent configuration can contain permissions and model choices.