diff --git a/lib/crates/fabro-cli/src/commands/install.rs b/lib/crates/fabro-cli/src/commands/install.rs
index 2be384d2f..79dc54173 100644
--- a/lib/crates/fabro-cli/src/commands/install.rs
+++ b/lib/crates/fabro-cli/src/commands/install.rs
@@ -1463,12 +1463,10 @@ async fn run_install_github_inner(
 
     let existing_config_contents =
         std::fs::read_to_string(&config_path).context("failed to read existing settings.toml")?;
-    let parsed_settings = fabro_config::parse_settings_layer(&existing_config_contents)
-        .context("failed to parse existing settings.toml")?;
     let storage_dir = args
         .storage_dir
         .clone_path()
-        .or_else(|| local_server::storage_dir(&parsed_settings).ok())
+        .or_else(|| local_server::storage_dir_from_toml(&existing_config_contents).ok())
         .unwrap_or_else(default_storage_dir);
     let server_was_running =
         ServerDaemon::load_running(&Storage::new(&storage_dir).runtime_directory())?.is_some();
diff --git a/lib/crates/fabro-cli/src/local_server.rs b/lib/crates/fabro-cli/src/local_server.rs
index 997e41e18..34dcebe8a 100644
--- a/lib/crates/fabro-cli/src/local_server.rs
+++ b/lib/crates/fabro-cli/src/local_server.rs
@@ -7,11 +7,17 @@
 use std::path::PathBuf;
 
 use anyhow::Result;
-use fabro_config::ServerSettingsBuilder;
 use fabro_config::bind::BindRequest;
+use fabro_config::{ServerSettingsBuilder, parse_settings_layer};
 use fabro_types::ServerSettings;
 use fabro_types::settings::{ServerAuthMethod, SettingsLayer};
 
+pub(crate) fn storage_dir_from_toml(source: &str) -> Result<PathBuf> {
+    let settings = parse_settings_layer(source)
+        .map_err(|err| anyhow::anyhow!("failed to parse settings file: {err}"))?;
+    storage_dir(&settings)
+}
+
 pub(crate) fn storage_dir(settings: &SettingsLayer) -> Result<PathBuf> {
     storage_dir_with_lookup(settings, &|name| std::env::var(name).ok())
 }
@@ -60,3 +66,32 @@ pub(crate) fn config_log_level(settings: &SettingsLayer) -> Option<String> {
 fn resolved_server_settings(settings: &SettingsLayer) -> Result<ServerSettings> {
     ServerSettingsBuilder::from_layer(settings).map_err(Into::into)
 }
+
+#[cfg(test)]
+mod tests {
+    use std::path::PathBuf;
+
+    use super::storage_dir_from_toml;
+
+    #[test]
+    fn storage_dir_from_toml_reads_explicit_root_without_full_server_resolution() {
+        let path = storage_dir_from_toml(
+            r#"
+_version = 1
+
+[server.storage]
+root = "/srv/fabro"
+"#,
+        )
+        .expect("storage root should resolve");
+
+        assert_eq!(path, PathBuf::from("/srv/fabro"));
+    }
+
+    #[test]
+    fn storage_dir_from_toml_defaults_without_auth_methods() {
+        let path = storage_dir_from_toml("_version = 1\n").expect("default storage dir");
+
+        assert_eq!(path, fabro_config::user::default_storage_dir());
+    }
+}