diff --git a/lib/crates/fabro-cli/src/commands/doctor.rs b/lib/crates/fabro-cli/src/commands/doctor.rs
index fd2cb59cd..5c82a42a0 100644
--- a/lib/crates/fabro-cli/src/commands/doctor.rs
+++ b/lib/crates/fabro-cli/src/commands/doctor.rs
@@ -335,7 +335,9 @@ pub(crate) async fn run_doctor(
             title: "Local".to_string(),
             checks: vec![
                 check_config(
-                    settings_config_path.filter(|path| path.exists()),
+                    settings_config_path
+                        .exists()
+                        .then_some(settings_config_path),
                     &legacy_config_paths,
                 ),
                 check_legacy_env(legacy_env_path),
diff --git a/lib/crates/fabro-cli/src/commands/server/mod.rs b/lib/crates/fabro-cli/src/commands/server/mod.rs
index a9f15a3cb..b82e42e85 100644
--- a/lib/crates/fabro-cli/src/commands/server/mod.rs
+++ b/lib/crates/fabro-cli/src/commands/server/mod.rs
@@ -55,10 +55,12 @@ pub(crate) async fn dispatch(command: ServerCommand, _globals: &GlobalArgs) -> R
             record_path,
             serve_args,
         }) => {
-            let active_config_path = serve_args
-                .config
-                .clone()
-                .or_else(|| user_config::active_settings_path(None));
+            let active_config_path = Some(
+                serve_args
+                    .config
+                    .clone()
+                    .unwrap_or_else(|| user_config::active_settings_path(None)),
+            );
             let bind_addr = if let Some(s) = serve_args.bind.as_deref() {
                 bind::parse_bind(s)?
             } else {
diff --git a/lib/crates/fabro-cli/src/manifest_builder.rs b/lib/crates/fabro-cli/src/manifest_builder.rs
index 8de1c76b1..12e4129d1 100644
--- a/lib/crates/fabro-cli/src/manifest_builder.rs
+++ b/lib/crates/fabro-cli/src/manifest_builder.rs
@@ -86,7 +86,9 @@ pub(crate) fn build_run_manifest(input: ManifestBuildInput) -> Result<BuiltManif
             type_: types::ManifestConfigType::Project,
         });
     }
-    if let Some(path) = active_settings_path(None).filter(|path| path.is_file()) {
+    let settings_path = active_settings_path(None);
+    if settings_path.is_file() {
+        let path = settings_path;
         let source = std::fs::read_to_string(&path)
             .with_context(|| format!("Failed to read {}", path.display()))?;
         configs.push(types::ManifestConfig {
diff --git a/lib/crates/fabro-cli/src/server_client.rs b/lib/crates/fabro-cli/src/server_client.rs
index e04a0e9fd..263afb79f 100644
--- a/lib/crates/fabro-cli/src/server_client.rs
+++ b/lib/crates/fabro-cli/src/server_client.rs
@@ -117,8 +117,7 @@ pub(crate) async fn connect_server_only(args: &ServerTargetArgs) -> Result<Serve
     let settings = user_config::load_settings()?;
     let target = user_config::resolve_server_target(args, &settings)?;
     let runtime = LocalServerRuntime {
-        active_config_path: user_config::active_settings_path(None)
-            .unwrap_or_else(|| PathBuf::from(".fabro/settings.toml")),
+        active_config_path: user_config::active_settings_path(None),
         storage_dir: settings.storage_dir(),
     };
     Ok(ServerStoreClient {
@@ -127,8 +126,7 @@ pub(crate) async fn connect_server_only(args: &ServerTargetArgs) -> Result<Serve
 }
 
 pub(crate) async fn connect_api_client(storage_dir: &Path) -> Result<fabro_api::Client> {
-    let config_path = user_config::active_settings_path(None)
-        .unwrap_or_else(|| PathBuf::from(".fabro/settings.toml"));
+    let config_path = user_config::active_settings_path(None);
     let bind = start::ensure_server_running_for_storage(storage_dir, &config_path)
         .with_context(|| format!("Failed to start fabro server for {}", storage_dir.display()))?;
     match bind {
@@ -169,8 +167,7 @@ pub(crate) async fn connect_server_backed_api_client(
     let settings = user_config::load_settings()?;
     let target = user_config::resolve_server_target(args, &settings)?;
     let runtime = LocalServerRuntime {
-        active_config_path: user_config::active_settings_path(None)
-            .unwrap_or_else(|| PathBuf::from(".fabro/settings.toml")),
+        active_config_path: user_config::active_settings_path(None),
         storage_dir: settings.storage_dir(),
     };
     connect_target_api_client(&target, &runtime).await
diff --git a/lib/crates/fabro-config/src/user.rs b/lib/crates/fabro-config/src/user.rs
index ca7bd2a1d..553c4935c 100644
--- a/lib/crates/fabro-config/src/user.rs
+++ b/lib/crates/fabro-config/src/user.rs
@@ -81,8 +81,8 @@ impl From<ExecConfig> for ExecSettings {
     }
 }
 
-pub fn default_settings_path() -> Option<PathBuf> {
-    Some(Home::from_env().user_config())
+pub fn default_settings_path() -> PathBuf {
+    Home::from_env().user_config()
 }
 
 pub fn default_socket_path() -> PathBuf {
@@ -93,10 +93,10 @@ pub fn legacy_default_storage_root() -> PathBuf {
     Home::from_env().root().to_path_buf()
 }
 
-pub fn active_settings_path(path: Option<&Path>) -> Option<PathBuf> {
+pub fn active_settings_path(path: Option<&Path>) -> PathBuf {
     path.map(Path::to_path_buf)
         .or_else(|| std::env::var_os(FABRO_CONFIG_ENV).map(PathBuf::from))
-        .or_else(default_settings_path)
+        .unwrap_or_else(default_settings_path)
 }
 
 pub fn legacy_user_config_path() -> Option<PathBuf> {
@@ -146,8 +146,7 @@ pub fn load_settings_config(path: Option<&Path>) -> anyhow::Result<ConfigLayer>
     .flatten()
     {
         if legacy_path.is_file() && should_warn_about_legacy_user_config(&legacy_path) {
-            let target = default_settings_path()
-                .unwrap_or_else(|| PathBuf::from(format!("~/.fabro/{SETTINGS_CONFIG_FILENAME}")));
+            let target = default_settings_path();
             eprintln!(
                 "Warning: ignoring legacy config file {}. Rename it to {}.",
                 legacy_path.display(),
@@ -210,7 +209,7 @@ mod tests {
 
         assert_eq!(
             default_settings_path(),
-            Some(home.join(".fabro").join(SETTINGS_CONFIG_FILENAME))
+            home.join(".fabro").join(SETTINGS_CONFIG_FILENAME)
         );
         assert_eq!(default_socket_path(), home.join(".fabro/fabro.sock"));
         assert_eq!(
@@ -247,6 +246,6 @@ mod tests {
         let custom_path = dir.path().join("custom-settings.toml");
         let _guard = EnvGuard::set(FABRO_CONFIG_ENV, Some(&custom_path));
 
-        assert_eq!(active_settings_path(None), Some(custom_path));
+        assert_eq!(active_settings_path(None), custom_path);
     }
 }
diff --git a/lib/crates/fabro-server/src/serve.rs b/lib/crates/fabro-server/src/serve.rs
index 247899689..ae00ea69c 100644
--- a/lib/crates/fabro-server/src/serve.rs
+++ b/lib/crates/fabro-server/src/serve.rs
@@ -61,7 +61,7 @@ fn load_settings(path: Option<&Path>) -> anyhow::Result<Settings> {
 }
 
 fn resolved_config_path(path: Option<&Path>) -> PathBuf {
-    active_settings_path(path).unwrap_or_else(|| PathBuf::from(".fabro/settings.toml"))
+    active_settings_path(path)
 }
 
 fn apply_serve_overrides(base: &Settings, args: &ServeArgs, dry_run_mode: bool) -> Settings {