diff --git a/.beastmode/artifacts/design/2026-04-12-lockfile-path-fix-dcd0.md b/.beastmode/artifacts/design/2026-04-12-lockfile-path-fix-dcd0.md
new file mode 100644
index 00000000..5a732e38
--- /dev/null
+++ b/.beastmode/artifacts/design/2026-04-12-lockfile-path-fix-dcd0.md
@@ -0,0 +1,45 @@
+---
+phase: design
+epic-id: bm-dcd0
+epic-slug: lockfile-path-fix-dcd0
+epic-name: Lockfile Path Fix
+---
+
+## Problem Statement
+
+The watch loop lockfile path is hardcoded to `cli/.beastmode-watch.lock`. When the CLI runs from a different working directory (e.g., inside a worktree), the resolved path points to a non-existent directory, causing an ENOENT error that prevents the dashboard from starting.
+
+## Solution
+
+Move the lockfile from `cli/.beastmode-watch.lock` to `.beastmode/.beastmode-watch.lock`. The `.beastmode/` directory is project-rooted and always exists, making the lockfile resilient to working directory changes.
+
+## User Stories
+
+1. As a developer running `beastmode dashboard`, I want the lockfile to resolve correctly regardless of working directory, so that the dashboard starts without ENOENT errors.
+2. As a developer with a stale lockfile from a previous session, I want the stale-PID detection to work at the new path, so that I don't get locked out.
+3. As a developer, I want the lockfile gitignored at its new path, so that it never gets committed.
+
+## Implementation Decisions
+
+- Change `lockfilePath()` in `cli/src/lockfile.ts` to resolve to `.beastmode/` instead of `cli/`.
+- Update the test in `cli/src/__tests__/watch.test.ts` that hardcodes the `cli/` path for the stale lockfile scenario.
+- Update `.gitignore` entry from `.beastmode-watch.lock` to `.beastmode/.beastmode-watch.lock`.
+- Update context doc references in `context/design/orchestration.md` and `context/design/cli.md` to reflect the new path.
+
+## Testing Decisions
+
+- Existing lockfile tests (acquire, release, stale detection) cover the behavior — only the path constant and the stale-lockfile test setup need updating.
+- No new tests required; the fix is a path change, not a behavior change.
+
+## Out of Scope
+
+- Lockfile format changes.
+- Additional lockfile features (timeout, retry, etc.).
+
+## Further Notes
+
+None.
+
+## Deferred Ideas
+
+None.
diff --git a/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.md b/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.md
new file mode 100644
index 00000000..69f28aa3
--- /dev/null
+++ b/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.md
@@ -0,0 +1,35 @@
+---
+phase: implement
+epic-id: bm-dcd0
+epic-slug: lockfile-path-fix-dcd0
+feature-id: lockfile-path-fix-dcd0.1
+feature-name: Lockfile Path Fix
+feature-slug: lockfile-path-fix-dcd0.1
+status: completed
+---
+
+# Implementation Report: Lockfile Path Fix
+
+**Date:** 2026-04-12
+**Feature Plan:** .beastmode/artifacts/plan/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix.1.md
+**Tasks completed:** 3/3
+**Review cycles:** 6 (spec: 3, quality: 3)
+**Concerns:** 0
+**BDD verification:** skipped
+
+## Completed Tasks
+- Task 1: Update lockfile path and test (haiku) — clean
+- Task 2: Update .gitignore entry (haiku) — clean
+- Task 3: Update context documentation (haiku) — clean
+
+## Concerns
+None.
+
+## Blocked Tasks
+None.
+
+## BDD Verification
+- Result: skipped
+- Reason: No Integration Test Scenarios in feature plan — skip gate classified this feature as non-behavioral.
+
+All tasks completed cleanly — no concerns or blockers.
diff --git a/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.tasks.md b/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.tasks.md
new file mode 100644
index 00000000..057bd5f9
--- /dev/null
+++ b/.beastmode/artifacts/implement/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix-dcd0.1.tasks.md
@@ -0,0 +1,220 @@
+# Lockfile Path Fix -- Write Tasks
+
+## Goal
+
+Move the watch loop lockfile from `cli/.beastmode-watch.lock` to `.beastmode/.beastmode-watch.lock` so that the lockfile resolves correctly regardless of working directory. The `.beastmode/` directory is project-rooted and always exists, eliminating ENOENT errors when the dashboard runs from worktree directories.
+
+## Architecture
+
+Single-constant path change in `cli/src/lockfile.ts`. All lockfile consumers (acquire, release, read, stale detection) call the same `lockfilePath()` function, so changing the constant propagates everywhere. No behavioral changes -- only the resolved filesystem path differs.
+
+## Tech Stack
+
+- Runtime: Bun
+- Language: TypeScript
+- Test runner: vitest (run via `bun --bun vitest run`)
+- Test location: `cli/src/__tests__/watch.test.ts`
+
+## File Structure
+
+| File | Action | Responsibility |
+|------|--------|---------------|
+| `cli/src/lockfile.ts` | Modify | Change path resolution from `cli/` to `.beastmode/`; update module doc comment |
+| `cli/src/__tests__/watch.test.ts` | Modify | Update hardcoded stale-lockfile path in test from `cli/` to `.beastmode/` |
+| `.gitignore` | Modify | Replace bare `.beastmode-watch.lock` with specific `.beastmode/.beastmode-watch.lock` |
+| `.beastmode/context/design/orchestration.md` | Modify | Update path reference in Recovery section |
+| `.beastmode/context/design/cli.md` | Modify | Update path reference in Recovery Model section |
+
+## Wave Isolation
+
+| Wave | Tasks | Files | Parallel-safe | Reason |
+|------|-------|-------|---------------|--------|
+| 1 | T1, T2, T3 | T1: `cli/src/lockfile.ts`, `cli/src/__tests__/watch.test.ts` / T2: `.gitignore` / T3: `.beastmode/context/design/orchestration.md`, `.beastmode/context/design/cli.md` | no | T2 and T3 are independent but T1 must precede test verification; sequential is safer for 3 trivial tasks |
+
+## Tasks
+
+### Task 1: Update lockfile path and test
+
+**Wave:** 1
+**Depends on:** -
+
+**Files:**
+- Modify: `cli/src/lockfile.ts:4,17`
+- Modify: `cli/src/__tests__/watch.test.ts:57`
+- Test: `cli/src/__tests__/watch.test.ts`
+
+- [x] **Step 1: Update the module doc comment in lockfile.ts**
+
+In `cli/src/lockfile.ts`, replace the doc comment on line 4 that says `cli/.beastmode-watch.lock` with `.beastmode/.beastmode-watch.lock`:
+
+```typescript
+/**
+ * Lockfile manager — prevents duplicate watch instances.
+ *
+ * Creates .beastmode/.beastmode-watch.lock on start, removes on clean shutdown.
+ * Detects stale lockfiles by checking if the PID is still running.
+ */
+```
+
+The old comment reads:
+
+```typescript
+/**
+ * Lockfile manager — prevents duplicate watch instances.
+ *
+ * Creates cli/.beastmode-watch.lock on start, removes on clean shutdown.
+ * Detects stale lockfiles by checking if the PID is still running.
+ */
+```
+
+- [x] **Step 2: Change the path constant in lockfilePath()**
+
+In `cli/src/lockfile.ts`, line 17, change `"cli"` to `".beastmode"` in the `lockfilePath` function:
+
+```typescript
+function lockfilePath(projectRoot: string): string {
+  return resolve(projectRoot, ".beastmode", LOCKFILE_NAME);
+}
+```
+
+The old code reads:
+
+```typescript
+function lockfilePath(projectRoot: string): string {
+  return resolve(projectRoot, "cli", LOCKFILE_NAME);
+}
+```
+
+- [x] **Step 3: Update the stale-lockfile test path**
+
+In `cli/src/__tests__/watch.test.ts`, line 57, change the hardcoded lockfile path in the "detects stale lockfile (dead PID)" test from `"cli"` to `".beastmode"`:
+
+```typescript
+    const lockPath = resolve(TEST_ROOT, ".beastmode", ".beastmode-watch.lock");
+```
+
+The old code reads:
+
+```typescript
+    const lockPath = resolve(TEST_ROOT, "cli", ".beastmode-watch.lock");
+```
+
+- [x] **Step 4: Run all lockfile tests to verify they pass**
+
+Run: `cd cli && bun --bun vitest run src/__tests__/watch.test.ts -t "lockfile" --reporter=verbose`
+
+Expected: All 4 lockfile tests PASS:
+- acquires lock when no lockfile exists
+- prevents duplicate lock acquisition
+- releases lock cleanly
+- detects stale lockfile (dead PID)
+
+Note: The test setup already creates both `cli/` and `.beastmode/` directories under `TEST_ROOT` (see `setupTestRoot()` at line 13-17 of watch.test.ts), so no test fixture changes are needed beyond the path string.
+
+- [x] **Step 5: Run the full watch test suite to verify nothing else broke**
+
+Run: `cd cli && bun --bun vitest run src/__tests__/watch.test.ts --reporter=verbose`
+
+Expected: All tests in the file PASS (lockfile, DispatchTracker, and WatchLoop tests).
+
+- [x] **Step 6: Commit**
+
+```bash
+git add cli/src/lockfile.ts cli/src/__tests__/watch.test.ts
+git commit -m "fix(lockfile): resolve lockfile path to .beastmode/ instead of cli/"
+```
+
+### Task 2: Update .gitignore entry
+
+**Wave:** 1
+**Depends on:** Task 1
+
+**Files:**
+- Modify: `.gitignore:10`
+
+- [x] **Step 1: Replace the gitignore entry**
+
+In `.gitignore`, line 10, replace the bare pattern `.beastmode-watch.lock` with the specific path `.beastmode/.beastmode-watch.lock`:
+
+```
+.beastmode/.beastmode-watch.lock
+```
+
+The old entry reads:
+
+```
+.beastmode-watch.lock
+```
+
+The full `.gitignore` after this change should read:
+
+```
+# Beastmode session state and worktrees
+.beastmode/state/
+.beastmode/sessions/
+.beastmode/worktrees/
+.beastmode/pipeline/
+.beastmode/config.yaml
+.claude/worktrees/
+.claude/settings.local.json
+.beastmode/artifacts/**/*.output.json
+.beastmode/.beastmode-watch.lock
+.DS_Store
+```
+
+- [x] **Step 2: Verify the gitignore entry works**
+
+Run: `cd /Users/D038720/Code/github.com/bugroger/beastmode/.claude/worktrees/lockfile-path-fix-dcd0 && git check-ignore .beastmode/.beastmode-watch.lock`
+
+Expected: Output `.beastmode/.beastmode-watch.lock` (the path is ignored).
+
+- [x] **Step 3: Commit**
+
+```bash
+git add .gitignore
+git commit -m "fix(gitignore): update lockfile entry to match new .beastmode/ path"
+```
+
+### Task 3: Update context documentation
+
+**Wave:** 1
+**Depends on:** Task 1
+
+**Files:**
+- Modify: `.beastmode/context/design/orchestration.md:31`
+- Modify: `.beastmode/context/design/cli.md:34`
+
+- [x] **Step 1: Update orchestration.md**
+
+In `.beastmode/context/design/orchestration.md`, line 31, replace the old path with the new one:
+
+```markdown
+- Lockfile (`.beastmode/.beastmode-watch.lock`) prevents duplicate watch instances — single orchestrator guarantee
+```
+
+The old line reads:
+
+```markdown
+- Lockfile (`cli/.beastmode-watch.lock`) prevents duplicate watch instances — single orchestrator guarantee
+```
+
+- [x] **Step 2: Update cli.md**
+
+In `.beastmode/context/design/cli.md`, line 34, replace the old path with the new one:
+
+```markdown
+- Lockfile (`.beastmode/.beastmode-watch.lock`) prevents duplicate watch instances
+```
+
+The old line reads:
+
+```markdown
+- Lockfile (`cli/.beastmode-watch.lock`) prevents duplicate watch instances
+```
+
+- [x] **Step 3: Commit**
+
+```bash
+git add .beastmode/context/design/orchestration.md .beastmode/context/design/cli.md
+git commit -m "docs: update lockfile path references in context docs"
+```
diff --git a/.beastmode/artifacts/plan/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix.1.md b/.beastmode/artifacts/plan/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix.1.md
new file mode 100644
index 00000000..09cf7239
--- /dev/null
+++ b/.beastmode/artifacts/plan/2026-04-12-lockfile-path-fix-dcd0--lockfile-path-fix.1.md
@@ -0,0 +1,41 @@
+---
+phase: plan
+epic-id: bm-dcd0
+epic-slug: lockfile-path-fix-dcd0
+feature-name: Lockfile Path Fix
+wave: 1
+---
+
+# Lockfile Path Fix
+
+**Design:** `.beastmode/artifacts/design/2026-04-12-lockfile-path-fix-dcd0.md`
+
+## User Stories
+
+1. As a developer running `beastmode dashboard`, I want the lockfile to resolve correctly regardless of working directory, so that the dashboard starts without ENOENT errors.
+2. As a developer with a stale lockfile from a previous session, I want the stale-PID detection to work at the new path, so that I don't get locked out.
+3. As a developer, I want the lockfile gitignored at its new path, so that it never gets committed.
+
+## What to Build
+
+Change the lockfile resolution from the `cli/` subdirectory to the `.beastmode/` directory, which is project-rooted and always exists regardless of working directory.
+
+The lockfile module's path function currently resolves to `<projectRoot>/cli/<lockfile-name>`. Change it to resolve to `<projectRoot>/.beastmode/<lockfile-name>`. This is a single-constant change — all consumers (acquire, release, read, stale detection) go through the same path function, so behavior is preserved.
+
+Update the test that manually constructs the lockfile path for the stale-PID scenario to use the new `.beastmode/` directory.
+
+Update the `.gitignore` entry to match the new specific path `.beastmode/.beastmode-watch.lock` instead of the bare pattern `.beastmode-watch.lock`.
+
+Update context documentation references in orchestration and CLI design docs that cite the old `cli/.beastmode-watch.lock` path.
+
+## Integration Test Scenarios
+
+<!-- No behavioral scenarios — skip gate classified this feature as non-behavioral -->
+
+## Acceptance Criteria
+
+- [ ] `lockfilePath()` resolves to `<projectRoot>/.beastmode/.beastmode-watch.lock`
+- [ ] Existing lockfile tests pass (acquire, release, stale detection) with no behavior changes
+- [ ] `.gitignore` contains the new path entry
+- [ ] Context docs reference the new path
+- [ ] Dashboard starts without ENOENT when run from a worktree directory
diff --git a/.beastmode/artifacts/release/2026-04-12-lockfile-path-fix-dcd0.md b/.beastmode/artifacts/release/2026-04-12-lockfile-path-fix-dcd0.md
new file mode 100644
index 00000000..bfa93f32
--- /dev/null
+++ b/.beastmode/artifacts/release/2026-04-12-lockfile-path-fix-dcd0.md
@@ -0,0 +1,34 @@
+---
+phase: release
+epic-id: lockfile-path-fix-dcd0
+epic-slug: lockfile-path-fix-dcd0
+bump: patch
+---
+
+# Release: lockfile-path-fix-dcd0
+
+**Version:** v0.127.2
+**Date:** 2026-04-12
+
+## Highlights
+
+Fixes ENOENT error when starting the dashboard from a worktree by moving the watch loop lockfile from `cli/` to the project-rooted `.beastmode/` directory.
+
+## Fixes
+
+- Resolve lockfile path to `.beastmode/.beastmode-watch.lock` instead of `cli/.beastmode-watch.lock`
+- Update `.gitignore` entry to match new lockfile path
+
+## Docs
+
+- Update lockfile path references in `context/design/orchestration.md` and `context/design/cli.md`
+
+## Full Changelog
+
+- `8ba83c61` fix(lockfile): resolve lockfile path to .beastmode/ instead of cli/
+- `e4876797` fix(gitignore): update lockfile entry to match new .beastmode/ path
+- `6a4bcb9a` docs: update lockfile path references in context docs
+- `cacdd19c` implement(lockfile-path-fix-dcd0): checkpoint
+- `5f49351b` validate(lockfile-path-fix-dcd0): checkpoint
+- `64dcf079` plan(lockfile-path-fix-dcd0): checkpoint
+- `c076f7ed` design(lockfile-path-fix-dcd0): checkpoint
diff --git a/.beastmode/artifacts/validate/2026-04-12-lockfile-path-fix-dcd0.md b/.beastmode/artifacts/validate/2026-04-12-lockfile-path-fix-dcd0.md
new file mode 100644
index 00000000..3cf4d043
--- /dev/null
+++ b/.beastmode/artifacts/validate/2026-04-12-lockfile-path-fix-dcd0.md
@@ -0,0 +1,56 @@
+---
+phase: validate
+epic-id: lockfile-path-fix-dcd0
+epic-slug: lockfile-path-fix-dcd0
+status: passed
+---
+
+# Validation Report: Lockfile Path Fix
+
+**Date:** 2026-04-12
+**Epic:** lockfile-path-fix-dcd0
+
+## Status: PASS
+
+### Tests
+
+**Lockfile-specific tests:** 4/4 PASS
+- acquires lock when no lockfile exists
+- prevents duplicate lock acquisition
+- releases lock cleanly
+- detects stale lockfile (dead PID)
+
+**Full watch test suite:** 26/26 PASS
+
+**Full project test suite:** 1812 pass, 2 fail
+
+| Failing Test | File Touched by Epic | Verdict |
+|---|---|---|
+| readme-update.integration.test.ts — "contains npx beastmode uninstall command" | No | Pre-existing |
+| tree-view.test.ts — "renders leaf entries under feature" | No | Pre-existing |
+
+Both failures are pre-existing on main, unrelated to lockfile path changes.
+
+**Baseline comparison:** 1812 passing vs 1773 baseline (post dashboard-spinner-bug-fixes) — net +39, no regressions introduced.
+
+### Types
+
+37 type errors — all pre-existing in untouched files. Matches baseline (37 errors across 13 files from dashboard-spinner-bug-fixes baseline).
+
+No new type errors introduced.
+
+### Lint
+
+Skipped — no lint command configured.
+
+### Custom Gates
+
+None configured.
+
+### Acceptance Criteria Verification
+
+From design doc:
+1. **Lockfile resolves to `.beastmode/.beastmode-watch.lock`** — PASS (verified via `lockfilePath()` constant change + all 4 lockfile tests passing)
+2. **No behavioral changes** — PASS (26/26 watch tests pass, same behavior, different path)
+3. **`.gitignore` covers new path** — PASS (entry updated to `.beastmode/.beastmode-watch.lock`)
+4. **Context docs updated** — PASS (orchestration.md and cli.md updated)
diff --git a/.beastmode/context/design/cli.md b/.beastmode/context/design/cli.md
index 6e077176..eeba5a73 100644
--- a/.beastmode/context/design/cli.md
+++ b/.beastmode/context/design/cli.md
@@ -31,7 +31,7 @@
 ## Recovery Model
 - State files are the recovery point, not sessions — stateless session model
 - On startup, scan for existing worktrees with uncommitted changes and re-dispatch from last committed state
-- Lockfile (`cli/.beastmode-watch.lock`) prevents duplicate watch instances
+- Lockfile (`.beastmode/.beastmode-watch.lock`) prevents duplicate watch instances
 
 ## Manifest Lifecycle
 - CLI creates manifest at first phase dispatch (design) via store.create(slug) before dispatching — manifest exists throughout the entire skill session
diff --git a/.beastmode/context/design/orchestration.md b/.beastmode/context/design/orchestration.md
index d5f69ba5..e8f41ec9 100644
--- a/.beastmode/context/design/orchestration.md
+++ b/.beastmode/context/design/orchestration.md
@@ -28,7 +28,7 @@
 ## Recovery
 - State files are the recovery point, not sessions — on startup, scan for existing worktrees with uncommitted changes
 - ALWAYS re-dispatch from last committed state on recovery — no session persistence required
-- Lockfile (`cli/.beastmode-watch.lock`) prevents duplicate watch instances — single orchestrator guarantee
+- Lockfile (`.beastmode/.beastmode-watch.lock`) prevents duplicate watch instances — single orchestrator guarantee
 
 ## Lifecycle
 - Start via `beastmode dashboard`, stop via Ctrl+C — foreground process with explicit control
diff --git a/.claude-plugin/marketplace.json b/.claude-plugin/marketplace.json
index e9fdb0ce..34c51ea1 100644
--- a/.claude-plugin/marketplace.json
+++ b/.claude-plugin/marketplace.json
@@ -8,7 +8,7 @@
     {
       "name": "beastmode",
       "description": "Agentic workflow skills for Claude Code. Activate beastmode.",
-      "version": "0.127.1",
+      "version": "0.127.2",
       "source": "./plugin"
     }
   ]
diff --git a/.gitignore b/.gitignore
index 22ee0073..a486737f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -7,5 +7,5 @@
 .claude/worktrees/
 .claude/settings.local.json
 .beastmode/artifacts/**/*.output.json
-.beastmode-watch.lock
+.beastmode/.beastmode-watch.lock
 .DS_Store
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5d202368..223ca0c3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,21 @@ All notable changes to beastmode.
 
 ---
 
+## v0.127.2 — Lockfile Path Fix (2026-04-12)
+
+Fix ENOENT error when starting the dashboard from a worktree by moving the watch loop lockfile from `cli/` to the project-rooted `.beastmode/` directory.
+
+### Fixes
+
+- Resolve lockfile path to `.beastmode/.beastmode-watch.lock` instead of `cli/.beastmode-watch.lock`
+- Update `.gitignore` entry to match new lockfile path
+
+### Docs
+
+- Update lockfile path references in orchestration and CLI context docs
+
+---
+
 ## v0.127.1 — One-Sentence Project Bootstrap (2026-04-12)
 
 Replace the multi-step Install section in the README with a single "Get the Party Started" prose paragraph that users paste into Claude Code to bootstrap their entire project in one shot.
diff --git a/cli/src/__tests__/watch.test.ts b/cli/src/__tests__/watch.test.ts
index 17f5df8f..42379287 100644
--- a/cli/src/__tests__/watch.test.ts
+++ b/cli/src/__tests__/watch.test.ts
@@ -54,7 +54,7 @@ describe("lockfile", () => {
 
   it("detects stale lockfile (dead PID)", () => {
     // Write a lockfile with a definitely-dead PID
-    const lockPath = resolve(TEST_ROOT, "cli", ".beastmode-watch.lock");
+    const lockPath = resolve(TEST_ROOT, ".beastmode", ".beastmode-watch.lock");
     writeFileSync(
       lockPath,
       JSON.stringify({ pid: 999999999, startedAt: new Date().toISOString() }),
diff --git a/cli/src/lockfile.ts b/cli/src/lockfile.ts
index b03b19cc..93bfa14b 100644
--- a/cli/src/lockfile.ts
+++ b/cli/src/lockfile.ts
@@ -1,7 +1,7 @@
 /**
  * Lockfile manager — prevents duplicate watch instances.
  *
- * Creates cli/.beastmode-watch.lock on start, removes on clean shutdown.
+ * Creates .beastmode/.beastmode-watch.lock on start, removes on clean shutdown.
  * Detects stale lockfiles by checking if the PID is still running.
  */
 
@@ -14,7 +14,7 @@ import type { LockfileInfo } from "./dispatch/index.js";
 const LOCKFILE_NAME = ".beastmode-watch.lock";
 
 function lockfilePath(projectRoot: string): string {
-  return resolve(projectRoot, "cli", LOCKFILE_NAME);
+  return resolve(projectRoot, ".beastmode", LOCKFILE_NAME);
 }
 
 /** Check if a process with the given PID is still running. */
diff --git a/package.json b/package.json
index d79d4d0a..b653a678 100644
--- a/package.json
+++ b/package.json
@@ -9,7 +9,8 @@
   "files": [
     "src/npx-cli/",
     "plugin/",
-    "cli/"
+    "cli/",
+    ".claude-plugin/"
   ],
   "scripts": {
     "test:npx": "node --test src/npx-cli/__tests__/*.test.mjs",
diff --git a/plugin/plugin.json b/plugin/plugin.json
index 953c890b..b6d2740e 100644
--- a/plugin/plugin.json
+++ b/plugin/plugin.json
@@ -1,7 +1,7 @@
 {
   "name": "beastmode",
   "description": "Agentic workflow skills for Claude Code. Activate beastmode.",
-  "version": "0.127.1",
+  "version": "0.127.2",
   "author": {
     "name": "bugroger"
   },
diff --git a/src/npx-cli/config-merger.mjs b/src/npx-cli/config-merger.mjs
index 2948c668..1a0389cb 100644
--- a/src/npx-cli/config-merger.mjs
+++ b/src/npx-cli/config-merger.mjs
@@ -37,8 +37,8 @@ async function mergeKnownMarketplaces(homeDir) {
 
   data['beastmode-marketplace'] = {
     source: {
-      source: 'npm',
-      name: 'beastmode',
+      source: 'directory',
+      path: join(homeDir, '.claude', 'plugins', 'marketplaces', 'bugroger'),
     },
     installLocation: join(homeDir, '.claude', 'plugins', 'marketplaces', 'bugroger'),
     lastUpdated: new Date().toISOString(),
diff --git a/src/npx-cli/index.mjs b/src/npx-cli/index.mjs
index 7f142d9d..f2f5b842 100755
--- a/src/npx-cli/index.mjs
+++ b/src/npx-cli/index.mjs
@@ -18,6 +18,9 @@ switch (command) {
       homeDir: homedir(),
       packageDir,
     });
+    if (!result.success) {
+      console.error(`Install failed at step "${result.step}": ${result.error}`);
+    }
     process.exit(result.success ? 0 : 1);
     break;
   }
diff --git a/src/npx-cli/plugin-copier.mjs b/src/npx-cli/plugin-copier.mjs
index 01c76646..93223abc 100644
--- a/src/npx-cli/plugin-copier.mjs
+++ b/src/npx-cli/plugin-copier.mjs
@@ -1,5 +1,5 @@
 // src/npx-cli/plugin-copier.mjs
-import { cp, rm, mkdir } from 'node:fs/promises';
+import { cp, rm, mkdir, symlink } from 'node:fs/promises';
 import { join } from 'node:path';
 
 /**
@@ -19,12 +19,12 @@ export async function copyPlugin({ homeDir, packageDir, version }) {
 
   // Clean-replace marketplace directory
   await rm(marketplaceDir, { recursive: true, force: true });
-  await mkdir(marketplaceDir, { recursive: true });
+  await mkdir(join(marketplaceDir, '.claude-plugin'), { recursive: true });
 
-  // Copy marketplace.json to marketplace dir
+  // Copy marketplace.json into .claude-plugin/ subdir (where Claude Code expects it)
   await cp(
     join(pluginMetaDir, 'marketplace.json'),
-    join(marketplaceDir, 'marketplace.json')
+    join(marketplaceDir, '.claude-plugin', 'marketplace.json')
   );
 
   // Clean-replace cache directory
@@ -34,6 +34,9 @@ export async function copyPlugin({ homeDir, packageDir, version }) {
   // Copy plugin tree to cache dir (includes plugin.json, skills/, agents/, hooks/)
   await cp(pluginSourceDir, cacheDir, { recursive: true });
 
+  // Symlink plugin content into marketplace dir so "source": "./plugin" resolves
+  await symlink(cacheDir, join(marketplaceDir, 'plugin'));
+
   console.log(`Plugin files copied to ${marketplaceDir}`);
   console.log(`Plugin cache written to ${cacheDir}`);
 }