feat(KB-641): improve terminal session handling and multi-project UX

- Update terminal session result flow for better async handling
- Enhance QuickEntryBox and InlineCreateCard with improved UX
- Refactor CLI project commands with better multi-project support
- Update terminal service tests for new result flow patterns
- Add changeset documentation for tracking changes
- Clean up legacy multi-project migration components
- Improve project detection and settings management

packages/dashboard/src/routes.test.ts

@@ -4748,9 +4748,13 @@ describe("Terminal session routes", () => {
   });
 
   describe("POST /api/terminal/sessions", () => {
-    it("returns 503 when max sessions reached (session is null)", async () => {
+    it("returns 503 when max sessions reached", async () => {
       const mockService = {
-        createSession: vi.fn().mockResolvedValue(null),
+        createSession: vi.fn().mockResolvedValue({
+          success: false,
+          code: "max_sessions",
+          error: "Maximum terminal sessions reached. Please close an existing terminal and try again.",
+        }),
       };
       vi.spyOn(terminalServiceModule, "getTerminalService").mockReturnValue(mockService as any);
 
@@ -4763,7 +4767,102 @@ describe("Terminal session routes", () => {
       );
 
       expect(res.status).toBe(503);
-      expect(res.body.error).toContain("Max sessions");
+      expect(res.body.error).toBe("Maximum terminal sessions reached. Please close an existing terminal and try again.");
+
+      vi.restoreAllMocks();
+    });
+
+    it("returns 400 when shell is not allowed", async () => {
+      const mockService = {
+        createSession: vi.fn().mockResolvedValue({
+          success: false,
+          code: "invalid_shell",
+          error: "Shell not allowed. Please use a supported shell (bash, zsh, sh, cmd, powershell).",
+        }),
+      };
+      vi.spyOn(terminalServiceModule, "getTerminalService").mockReturnValue(mockService as any);
+
+      const res = await REQUEST(
+        buildApp(),
+        "POST",
+        "/api/terminal/sessions",
+        JSON.stringify({}),
+        { "Content-Type": "application/json" },
+      );
+
+      expect(res.status).toBe(400);
+      expect(res.body.error).toBe("Shell not allowed. Please use a supported shell (bash, zsh, sh, cmd, powershell).");
+
+      vi.restoreAllMocks();
+    });
+
+    it("returns 503 when PTY module fails to load", async () => {
+      const mockService = {
+        createSession: vi.fn().mockResolvedValue({
+          success: false,
+          code: "pty_load_failed",
+          error: "Terminal service unavailable. The PTY module could not be loaded.",
+        }),
+      };
+      vi.spyOn(terminalServiceModule, "getTerminalService").mockReturnValue(mockService as any);
+
+      const res = await REQUEST(
+        buildApp(),
+        "POST",
+        "/api/terminal/sessions",
+        JSON.stringify({}),
+        { "Content-Type": "application/json" },
+      );
+
+      expect(res.status).toBe(503);
+      expect(res.body.error).toBe("Terminal service unavailable. The PTY module could not be loaded.");
+
+      vi.restoreAllMocks();
+    });
+
+    it("returns 500 when PTY spawn fails", async () => {
+      const mockService = {
+        createSession: vi.fn().mockResolvedValue({
+          success: false,
+          code: "pty_spawn_failed",
+          error: "Failed to start terminal shell process.",
+        }),
+      };
+      vi.spyOn(terminalServiceModule, "getTerminalService").mockReturnValue(mockService as any);
+
+      const res = await REQUEST(
+        buildApp(),
+        "POST",
+        "/api/terminal/sessions",
+        JSON.stringify({}),
+        { "Content-Type": "application/json" },
+      );
+
+      expect(res.status).toBe(500);
+      expect(res.body.error).toBe("Failed to start terminal shell process.");
+
+      vi.restoreAllMocks();
+    });
+
+    it("returns 201 when session creation succeeds", async () => {
+      const mockService = {
+        createSession: vi.fn().mockResolvedValue({
+          success: true,
+          session: { id: "term-123", shell: "/bin/zsh", cwd: "/test" },
+        }),
+      };
+      vi.spyOn(terminalServiceModule, "getTerminalService").mockReturnValue(mockService as any);
+
+      const res = await REQUEST(
+        buildApp(),
+        "POST",
+        "/api/terminal/sessions",
+        JSON.stringify({}),
+        { "Content-Type": "application/json" },
+      );
+
+      expect(res.status).toBe(201);
+      expect(res.body).toEqual({ sessionId: "term-123", shell: "/bin/zsh", cwd: "/test" });
 
       vi.restoreAllMocks();
     });

packages/dashboard/src/routes.ts

@@ -4221,21 +4221,28 @@ export function createApiRoutes(store: TaskStore, options?: ServerOptions): Rout
       const { cwd, cols, rows } = req.body;
       const terminalService = getTerminalService(store.getRootDir());
 
-      const session = await terminalService.createSession({
+      const result = await terminalService.createSession({
         cwd,
         cols: typeof cols === "number" ? cols : undefined,
         rows: typeof rows === "number" ? rows : undefined,
       });
 
-      if (!session) {
+      if (!result.success) {
-        res.status(503).json({ error: "Failed to create session. Max sessions may be reached." });
+        const statusByCode = {
+          max_sessions: 503,
+          invalid_shell: 400,
+          pty_load_failed: 503,
+          pty_spawn_failed: 500,
+        } as const;
+
+        res.status(statusByCode[result.code]).json({ error: result.error });
         return;
       }
 
       res.status(201).json({
-        sessionId: session.id,
+        sessionId: result.session.id,
-        shell: session.shell,
+        shell: result.session.shell,
-        cwd: session.cwd,
+        cwd: result.session.cwd,
       });
     } catch (err: any) {
       res.status(500).json({ error: err.message || "Failed to create terminal session" });

packages/dashboard/src/terminal-service.test.ts

@@ -47,38 +47,51 @@ describe("TerminalService", () => {
 
   describe("createSession", () => {
     it("creates session with detected shell", async () => {
-      const session = await service.createSession();
+      const result = await service.createSession();
-      
+
-      expect(session).toBeTruthy();
+      expect(result.success).toBe(true);
-      expect(session?.id).toMatch(/^term-\d+-/);
+      if (!result.success) {
-      expect(session?.cwd).toBe(projectRoot);
+        throw new Error("Expected terminal session creation to succeed");
+      }
+      expect(result.session.id).toMatch(/^term-\d+-/);
+      expect(result.session.cwd).toBe(projectRoot);
     });
 
-    it("returns null when session limit reached", async () => {
+    it("returns max_sessions error when session limit reached", async () => {
       const limitedService = new TerminalService(projectRoot, 1);
-      
+
-      const session1 = await limitedService.createSession();
+      const result1 = await limitedService.createSession();
-      expect(session1).toBeTruthy();
+      expect(result1.success).toBe(true);
-      
+
-      const session2 = await limitedService.createSession();
+      const result2 = await limitedService.createSession();
-      expect(session2).toBeNull();
+      expect(result2).toEqual({
-      
+        success: false,
+        code: "max_sessions",
+        error: "Maximum terminal sessions reached. Please close an existing terminal and try again.",
+      });
+
       limitedService.cleanup();
     });
 
     it("rejects shells not in allowlist", async () => {
-      const session = await service.createSession({ shell: "/tmp/evil-shell" });
+      const result = await service.createSession({ shell: "/tmp/evil-shell" });
-      expect(session).toBeNull();
+      expect(result).toEqual({
+        success: false,
+        code: "invalid_shell",
+        error: "Shell not allowed. Please use a supported shell (bash, zsh, sh, cmd, powershell).",
+      });
     });
   });
 
   describe("write", () => {
     it("sends data to PTY", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
-      const result = service.write(session!.id, "ls -la\n");
+      const session = createResult.session;
-      
+
+      const result = service.write(session.id, "ls -la\n");
+
       expect(result).toBe(true);
       expect(mockPtyProcess.write).toHaveBeenCalledWith("ls -la\n");
     });
@@ -89,21 +102,25 @@ describe("TerminalService", () => {
     });
 
     it("rejects data with null bytes", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
-      const result = service.write(session!.id, "test\0malicious");
+      const session = createResult.session;
+
+      const result = service.write(session.id, "test\0malicious");
       expect(result).toBe(false);
     });
   });
 
   describe("resize", () => {
     it("updates PTY dimensions", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
-      const result = service.resize(session!.id, 120, 40);
+      const session = createResult.session;
-      
+
+      const result = service.resize(session.id, 120, 40);
+
       expect(result).toBe(true);
       expect(mockPtyProcess.resize).toHaveBeenCalledWith(120, 40);
     });
@@ -116,11 +133,13 @@ describe("TerminalService", () => {
 
   describe("killSession", () => {
     it("terminates session", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
-      const result = service.killSession(session!.id);
+      const session = createResult.session;
-      
+
+      const result = service.killSession(session.id);
+
       expect(result).toBe(true);
       expect(mockPtyProcess.kill).toHaveBeenCalledWith("SIGTERM");
     });
@@ -134,51 +153,62 @@ describe("TerminalService", () => {
   describe("session management", () => {
     it("enforces session limit", async () => {
       const limitedService = new TerminalService(projectRoot, 2);
-      
+
       const session1 = await limitedService.createSession();
       const session2 = await limitedService.createSession();
       const session3 = await limitedService.createSession();
-      
+
-      expect(session1).toBeTruthy();
+      expect(session1.success).toBe(true);
-      expect(session2).toBeTruthy();
+      expect(session2.success).toBe(true);
-      expect(session3).toBeNull();
+      expect(session3).toEqual({
-      
+        success: false,
+        code: "max_sessions",
+        error: "Maximum terminal sessions reached. Please close an existing terminal and try again.",
+      });
+
       limitedService.cleanup();
     });
 
     it("lists active sessions", async () => {
-      const session1 = await service.createSession();
+      const result1 = await service.createSession();
-      const session2 = await service.createSession();
+      const result2 = await service.createSession();
-      
+      expect(result1.success).toBe(true);
+      expect(result2.success).toBe(true);
+      if (!result1.success || !result2.success) throw new Error("Expected terminal session creation to succeed");
+
       const sessions = service.getAllSessions();
-      
+
       expect(sessions).toHaveLength(2);
-      expect(sessions.some((s: { id: string }) => s.id === session1?.id)).toBe(true);
+      expect(sessions.some((s: { id: string }) => s.id === result1.session.id)).toBe(true);
-      expect(sessions.some((s: { id: string }) => s.id === session2?.id)).toBe(true);
+      expect(sessions.some((s: { id: string }) => s.id === result2.session.id)).toBe(true);
     });
 
     it("cleans up all sessions", async () => {
-      await service.createSession();
+      const result1 = await service.createSession();
-      await service.createSession();
+      const result2 = await service.createSession();
-      
+      expect(result1.success).toBe(true);
+      expect(result2.success).toBe(true);
+
       expect(service.getSessionCount()).toBe(2);
-      
+
       service.cleanup();
-      
+
       expect(service.getSessionCount()).toBe(0);
     });
   });
 
   describe("scrollback buffer", () => {
     it("maintains scrollback buffer", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
+      const session = createResult.session;
+
       mockPtyProcess._onDataCallback?.("output line 1\n");
       mockPtyProcess._onDataCallback?.("output line 2\n");
-      
+
-      const scrollback = service.getScrollback(session!.id);
+      const scrollback = service.getScrollback(session.id);
-      
+
       expect(scrollback).toContain("output line 1");
       expect(scrollback).toContain("output line 2");
     });
@@ -194,38 +224,42 @@ describe("TerminalService", () => {
       const dataMock = vi.fn();
       service.onData(dataMock);
 
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
+      const session = createResult.session;
 
       mockPtyProcess._onDataCallback?.("test data");
       await new Promise((resolve) => setTimeout(resolve, 25));
 
-      expect(dataMock).toHaveBeenCalledWith(session!.id, "test data");
+      expect(dataMock).toHaveBeenCalledWith(session.id, "test data");
     });
 
     it("emits exit events", async () => {
       const exitMock = vi.fn();
       service.onExit(exitMock);
-      
+
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
+      const session = createResult.session;
+
       mockPtyProcess._onExitCallback?.({ exitCode: 0 });
-      
+
-      expect(exitMock).toHaveBeenCalledWith(session!.id, 0);
+      expect(exitMock).toHaveBeenCalledWith(session.id, 0);
     });
 
     it("allows unsubscribing from events", async () => {
       const dataMock = vi.fn();
       const unsub = service.onData(dataMock);
-      
+
       unsub();
-      
+
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      
+
       mockPtyProcess._onDataCallback?.("test");
-      
+
       expect(dataMock).not.toHaveBeenCalled();
     });
   });
@@ -271,31 +305,35 @@ describe("TerminalService", () => {
   describe("activity tracking", () => {
     it("sets lastActivityAt on session creation", async () => {
       const before = new Date();
-      const session = await service.createSession();
+      const createResult = await service.createSession();
       const after = new Date();
 
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
-      expect(session!.lastActivityAt.getTime()).toBeGreaterThanOrEqual(before.getTime());
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
-      expect(session!.lastActivityAt.getTime()).toBeLessThanOrEqual(after.getTime());
+      expect(createResult.session.lastActivityAt.getTime()).toBeGreaterThanOrEqual(before.getTime());
+      expect(createResult.session.lastActivityAt.getTime()).toBeLessThanOrEqual(after.getTime());
     });
 
     it("updates lastActivityAt on write", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
+      const session = createResult.session;
 
-      const initialActivity = session!.lastActivityAt.getTime();
+      const initialActivity = session.lastActivityAt.getTime();
 
       // Small delay to ensure time difference
       await new Promise((resolve) => setTimeout(resolve, 10));
 
-      service.write(session!.id, "hello");
+      service.write(session.id, "hello");
 
-      const updatedSession = service.getSession(session!.id);
+      const updatedSession = service.getSession(session.id);
       expect(updatedSession!.lastActivityAt.getTime()).toBeGreaterThan(initialActivity);
     });
 
     it("includes lastActivityAt in getAllSessions", async () => {
-      await service.createSession();
+      const createResult = await service.createSession();
+      expect(createResult.success).toBe(true);
       const sessions = service.getAllSessions();
 
       expect(sessions).toHaveLength(1);
@@ -305,37 +343,41 @@ describe("TerminalService", () => {
 
   describe("stale session detection", () => {
     it("returns empty array when no sessions are stale", async () => {
-      await service.createSession();
+      const createResult = await service.createSession();
+      expect(createResult.success).toBe(true);
       const stale = service.getStaleSessions(300_000);
       expect(stale).toHaveLength(0);
     });
 
     it("returns sessions older than threshold", async () => {
-      const session = await service.createSession();
+      const createResult = await service.createSession();
-      expect(session).toBeTruthy();
+      expect(createResult.success).toBe(true);
+      if (!createResult.success) throw new Error("Expected terminal session creation to succeed");
+      const session = createResult.session;
 
       // Manually backdate the lastActivityAt
-      session!.lastActivityAt = new Date(Date.now() - 600_000); // 10 min ago
+      session.lastActivityAt = new Date(Date.now() - 600_000); // 10 min ago
 
       const stale = service.getStaleSessions(300_000); // 5 min threshold
       expect(stale).toHaveLength(1);
-      expect(stale[0].id).toBe(session!.id);
+      expect(stale[0].id).toBe(session.id);
     });
 
     it("sorts stale sessions oldest first", async () => {
-      const session1 = await service.createSession();
+      const result1 = await service.createSession();
-      const session2 = await service.createSession();
+      const result2 = await service.createSession();
-      expect(session1).toBeTruthy();
+      expect(result1.success).toBe(true);
-      expect(session2).toBeTruthy();
+      expect(result2.success).toBe(true);
+      if (!result1.success || !result2.success) throw new Error("Expected terminal session creation to succeed");
 
       // session1 is older (more stale)
-      session1!.lastActivityAt = new Date(Date.now() - 700_000);
+      result1.session.lastActivityAt = new Date(Date.now() - 700_000);
-      session2!.lastActivityAt = new Date(Date.now() - 600_000);
+      result2.session.lastActivityAt = new Date(Date.now() - 600_000);
 
       const stale = service.getStaleSessions(300_000);
       expect(stale).toHaveLength(2);
-      expect(stale[0].id).toBe(session1!.id);
+      expect(stale[0].id).toBe(result1.session.id);
-      expect(stale[1].id).toBe(session2!.id);
+      expect(stale[1].id).toBe(result2.session.id);
     });
   });
 
@@ -350,7 +392,10 @@ describe("TerminalService", () => {
 
       const sessions = [];
       for (let i = 0; i < 5; i++) {
-        sessions.push(await svc.createSession());
+        const result = await svc.createSession();
+        expect(result.success).toBe(true);
+        if (!result.success) throw new Error("Expected terminal session creation to succeed");
+        sessions.push(result.session);
       }
       expect(svc.getSessionCount()).toBe(5);
 
@@ -377,7 +422,10 @@ describe("TerminalService", () => {
       // Create 4 sessions (80% of 5)
       const sessions = [];
       for (let i = 0; i < 4; i++) {
-        sessions.push(await svc.createSession());
+        const result = await svc.createSession();
+        expect(result.success).toBe(true);
+        if (!result.success) throw new Error("Expected terminal session creation to succeed");
+        sessions.push(result.session);
       }
       expect(svc.getSessionCount()).toBe(4);
 
@@ -387,7 +435,7 @@ describe("TerminalService", () => {
 
       // Creating a new session should trigger eviction first
       const newSession = await svc.createSession();
-      expect(newSession).toBeTruthy();
+      expect(newSession.success).toBe(true);
       // Should have evicted stale sessions, then created a new one
       // After eviction, we target <= 4 (80%), evict oldest stale sessions
       // Then create the new session
@@ -400,7 +448,8 @@ describe("TerminalService", () => {
       const svc = new TerminalService(projectRoot, 5);
 
       for (let i = 0; i < 5; i++) {
-        await svc.createSession();
+        const result = await svc.createSession();
+        expect(result.success).toBe(true);
       }
       // All sessions are fresh, no stale ones
       const evicted = svc.evictStaleSessions(300_000);

packages/dashboard/src/terminal-service.ts

@@ -162,6 +162,16 @@ export interface TerminalOptions {
   env?: Record<string, string>;
 }
 
+export type CreateSessionErrorCode =
+  | "max_sessions"
+  | "invalid_shell"
+  | "pty_load_failed"
+  | "pty_spawn_failed";
+
+export type CreateSessionResult =
+  | { success: true; session: TerminalSession }
+  | { success: false; error: string; code: CreateSessionErrorCode };
+
 type DataCallback = (sessionId: string, data: string) => void;
 type ExitCallback = (sessionId: string, exitCode: number) => void;
 
@@ -388,7 +398,7 @@ export class TerminalService extends EventEmitter {
   /**
    * Create a new terminal session
    */
-  async createSession(options: TerminalOptions = {}): Promise<TerminalSession | null> {
+  async createSession(options: TerminalOptions = {}): Promise<CreateSessionResult> {
     // Auto-evict stale sessions when at 80% of limit
     if (this.sessions.size >= Math.floor(this.maxSessions * 0.8)) {
       this.evictStaleSessions();
@@ -397,7 +407,11 @@ export class TerminalService extends EventEmitter {
     // Check session limit
     if (this.sessions.size >= this.maxSessions) {
       console.error(`Max sessions (${this.maxSessions}) reached, refusing new session`);
-      return null;
+      return {
+        success: false,
+        code: "max_sessions",
+        error: "Maximum terminal sessions reached. Please close an existing terminal and try again.",
+      };
     }
 
     const id = `term-${Date.now()}-${Math.random().toString(36).slice(2, 11)}`;
@@ -408,7 +422,11 @@ export class TerminalService extends EventEmitter {
     // Validate shell is allowed
     if (!this.isAllowedShell(shell)) {
       console.error(`Shell not allowed: ${shell}`);
-      return null;
+      return {
+        success: false,
+        code: "invalid_shell",
+        error: "Shell not allowed. Please use a supported shell (bash, zsh, sh, cmd, powershell).",
+      };
     }
 
     // Validate and resolve working directory
@@ -439,10 +457,12 @@ export class TerminalService extends EventEmitter {
     try {
       pty = await loadPtyModule();
     } catch (loadErr) {
-      // Native module couldn't be loaded (common in Bun binaries without proper setup)
-      // Return null for graceful degradation - routes will return 503
       console.error(`[terminal] Failed to load PTY module: ${loadErr}`);
-      return null;
+      return {
+        success: false,
+        code: "pty_load_failed",
+        error: "Terminal service unavailable. The PTY module could not be loaded.",
+      };
     }
 
     // Build PTY spawn options
@@ -464,7 +484,11 @@ export class TerminalService extends EventEmitter {
       ptyProcess = pty.spawn(shell, shellArgs, ptyOptions);
     } catch (spawnError) {
       console.error(`[createSession] PTY spawn failed:`, spawnError);
-      return null;
+      return {
+        success: false,
+        code: "pty_spawn_failed",
+        error: "Failed to start terminal shell process.",
+      };
     }
 
     const session: TerminalSession = {
@@ -530,7 +554,7 @@ export class TerminalService extends EventEmitter {
     });
 
     console.info(`Session ${id} created successfully`);
-    return session;
+    return { success: true, session };
   }
 
   /**