diff --git a/packages/ui/src/features/settings/settingsStore.test.ts b/packages/ui/src/features/settings/settingsStore.test.ts
index a220df98cd..b645566426 100644
--- a/packages/ui/src/features/settings/settingsStore.test.ts
+++ b/packages/ui/src/features/settings/settingsStore.test.ts
@@ -75,6 +75,33 @@ describe("feature settingsStore cloud selections", () => {
 
     expect(useSettingsStore.getState().allowBypassPermissions).toBe(true);
   });
+
+  it.each([
+    ["lastUsedWorkspaceMode", "local", "cloud"],
+    ["debugLogsCloudRuns", false, true],
+  ] as const)("rehydrates %s", async (field, initial, persisted) => {
+    getItem.mockResolvedValue(
+      JSON.stringify({ state: { [field]: persisted }, version: 0 }),
+    );
+
+    useSettingsStore.setState({ [field]: initial } as Parameters<
+      typeof useSettingsStore.setState
+    >[0]);
+
+    await useSettingsStore.persist.rehydrate();
+
+    expect(useSettingsStore.getState()[field]).toBe(persisted);
+  });
+
+  it("flips _hasHydrated once the persisted snapshot lands", async () => {
+    getItem.mockResolvedValue(JSON.stringify({ state: {}, version: 0 }));
+
+    useSettingsStore.setState({ _hasHydrated: false });
+
+    await useSettingsStore.persist.rehydrate();
+
+    expect(useSettingsStore.getState()._hasHydrated).toBe(true);
+  });
 });
 
 describe("feature settingsStore terminal font", () => {
diff --git a/packages/ui/src/features/settings/settingsStore.ts b/packages/ui/src/features/settings/settingsStore.ts
index ddf2c314a5..8baf4134cf 100644
--- a/packages/ui/src/features/settings/settingsStore.ts
+++ b/packages/ui/src/features/settings/settingsStore.ts
@@ -130,6 +130,9 @@ interface SettingsStore {
   shouldShowHint: (key: string, max?: number) => boolean;
   recordHintShown: (key: string) => void;
   markHintLearned: (key: string) => void;
+
+  _hasHydrated: boolean;
+  setHasHydrated: (hydrated: boolean) => void;
 }
 
 // ---------- Store ----------
@@ -259,6 +262,9 @@ export const useSettingsStore = create<SettingsStore>()(
             },
           };
         }),
+
+      _hasHydrated: false,
+      setHasHydrated: (hydrated) => set({ _hasHydrated: hydrated }),
     }),
     {
       name: "settings-storage",
@@ -309,6 +315,9 @@ export const useSettingsStore = create<SettingsStore>()(
         // Onboarding hints
         hints: state.hints,
       }),
+      onRehydrateStorage: () => (state) => {
+        state?.setHasHydrated(true);
+      },
       merge: (persisted, current) => {
         const merged = {
           ...current,
diff --git a/packages/ui/src/features/task-detail/components/TaskInput.tsx b/packages/ui/src/features/task-detail/components/TaskInput.tsx
index 8086c49656..b228986a11 100644
--- a/packages/ui/src/features/task-detail/components/TaskInput.tsx
+++ b/packages/ui/src/features/task-detail/components/TaskInput.tsx
@@ -117,6 +117,7 @@ export function TaskInput({
     lastUsedInitialTaskMode,
     setLastUsedReasoningEffort,
     setLastUsedModel,
+    _hasHydrated: settingsHydrated,
   } = useSettingsStore();
 
   const editorRef = useRef<EditorHandle>(null);
@@ -211,7 +212,17 @@ export function TaskInput({
     return lastUsedWorkspaceMode || "local";
   });
 
+  const didResolveWorkspaceModeRef = useRef(false);
+  useEffect(() => {
+    if (didResolveWorkspaceModeRef.current) return;
+    if (!settingsHydrated) return;
+    didResolveWorkspaceModeRef.current = true;
+    if (initialCloudRepository) return;
+    setWorkspaceModeState(lastUsedWorkspaceMode || "local");
+  }, [settingsHydrated, lastUsedWorkspaceMode, initialCloudRepository]);
+
   const setWorkspaceMode = (mode: WorkspaceMode) => {
+    didResolveWorkspaceModeRef.current = true;
     setWorkspaceModeState(mode);
     setLastUsedWorkspaceMode(mode);
     if (mode !== "cloud") {