diff --git a/packages/cli/src/auth/install/applyProviderInstallPlan.test.ts b/packages/cli/src/auth/install/applyProviderInstallPlan.test.ts
index e28f32f42..20206b333 100644
--- a/packages/cli/src/auth/install/applyProviderInstallPlan.test.ts
+++ b/packages/cli/src/auth/install/applyProviderInstallPlan.test.ts
@@ -13,6 +13,7 @@ import type { ProviderInstallPlan } from '../types.js';
 vi.mock('../../utils/settingsUtils.js', () => ({
   backupSettingsFile: vi.fn(),
   restoreSettingsFromBackup: vi.fn(),
+  cleanupSettingsBackup: vi.fn(),
 }));
 
 vi.mock('../../config/modelProvidersScope.js', () => ({
@@ -20,12 +21,18 @@ vi.mock('../../config/modelProvidersScope.js', () => ({
 }));
 
 function createSettings(modelProviders = {}) {
+  const settingsObj = {
+    settings: {},
+    originalSettings: {},
+    path: '/tmp/settings.json',
+  };
   return {
     merged: {
       modelProviders,
     },
     setValue: vi.fn(),
-    forScope: vi.fn(() => ({ path: '/tmp/settings.json' })),
+    forScope: vi.fn(() => settingsObj),
+    recomputeMerged: vi.fn(),
   };
 }
 
diff --git a/packages/cli/src/auth/install/applyProviderInstallPlan.ts b/packages/cli/src/auth/install/applyProviderInstallPlan.ts
index e08507a10..03a9807d4 100644
--- a/packages/cli/src/auth/install/applyProviderInstallPlan.ts
+++ b/packages/cli/src/auth/install/applyProviderInstallPlan.ts
@@ -8,6 +8,7 @@ import type { ModelProvidersConfig } from '@qwen-code/qwen-code-core';
 import { getPersistScopeForModelSelection } from '../../config/modelProvidersScope.js';
 import {
   backupSettingsFile,
+  cleanupSettingsBackup,
   restoreSettingsFromBackup,
 } from '../../utils/settingsUtils.js';
 import type {
@@ -61,6 +62,14 @@ export async function applyProviderInstallPlan(
   backupSettingsFile(settingsFile.path);
 
   const previousEnvValues = new Map<string, string | undefined>();
+  const previousSettingsSnapshot = structuredClone(settingsFile.settings);
+  const previousOriginalSnapshot = structuredClone(
+    settingsFile.originalSettings,
+  );
+  const previousModelProviders: ModelProvidersConfig = {
+    ...((settings.merged.modelProviders as ModelProvidersConfig | undefined) ??
+      {}),
+  };
 
   try {
     for (const [key, value] of Object.entries(plan.env ?? {})) {
@@ -133,12 +142,23 @@ export async function applyProviderInstallPlan(
       await config.refreshAuth(plan.authType);
     }
 
+    cleanupSettingsBackup(settingsFile.path);
+
     return {
       persistScope,
       updatedModelProviders,
     };
   } catch (error) {
     restoreSettingsFromBackup(settingsFile.path);
+
+    // Restore in-memory settings state
+    settingsFile.settings = previousSettingsSnapshot;
+    settingsFile.originalSettings = previousOriginalSnapshot;
+    settings.recomputeMerged();
+
+    // Restore in-memory config state
+    config.reloadModelProvidersConfig(previousModelProviders);
+
     for (const [key, prev] of previousEnvValues) {
       if (prev === undefined) {
         delete process.env[key];
diff --git a/packages/cli/src/auth/providers/alibaba/codingPlan.ts b/packages/cli/src/auth/providers/alibaba/codingPlan.ts
index c3d2dd330..dde31c5e9 100644
--- a/packages/cli/src/auth/providers/alibaba/codingPlan.ts
+++ b/packages/cli/src/auth/providers/alibaba/codingPlan.ts
@@ -83,8 +83,8 @@ export const codingPlanProvider: ProviderConfig = {
       ? 'ModelStudio Coding Plan for Global/Intl'
       : 'ModelStudio Coding Plan',
   apiKeyPlaceholder: 'sk-sp-...',
-  validateApiKey: (key, baseUrl) =>
-    baseUrl === CODING_PLAN_CHINA_BASE_URL && !key.startsWith('sk-sp-')
+  validateApiKey: (key) =>
+    !key.startsWith('sk-sp-')
       ? 'Invalid API key. Coding Plan API keys start with "sk-sp-". Please check.'
       : null,
   ownsModel: (model) =>
diff --git a/packages/cli/src/commands/auth/openrouter.test.ts b/packages/cli/src/commands/auth/openrouter.test.ts
index 69199e3ce..4d30753bc 100644
--- a/packages/cli/src/commands/auth/openrouter.test.ts
+++ b/packages/cli/src/commands/auth/openrouter.test.ts
@@ -48,6 +48,8 @@ vi.mock('../../config/config.js', () => ({
 
 vi.mock('../../utils/settingsUtils.js', () => ({
   backupSettingsFile: mockBackupSettingsFile,
+  restoreSettingsFromBackup: vi.fn(),
+  cleanupSettingsBackup: vi.fn(),
 }));
 
 vi.mock('../../config/modelProvidersScope.js', () => ({
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index 38e86bc9c..613b88589 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -438,6 +438,10 @@ export class LoadedSettings {
     saveSettings(settingsFile, createSettingsUpdate(key, value));
   }
 
+  recomputeMerged(): void {
+    this._merged = this.computeMergedSettings();
+  }
+
   /**
    * Get user-level hooks from user settings (not merged with workspace).
    * These hooks should always be loaded regardless of folder trust.
diff --git a/packages/cli/src/ui/AppContainer.test.tsx b/packages/cli/src/ui/AppContainer.test.tsx
index dc939016f..059a65fe7 100644
--- a/packages/cli/src/ui/AppContainer.test.tsx
+++ b/packages/cli/src/ui/AppContainer.test.tsx
@@ -79,6 +79,12 @@ vi.mock('./hooks/useIdeTrustListener.js');
 vi.mock('./hooks/useMessageQueue.js');
 vi.mock('./hooks/useAutoAcceptIndicator.js');
 vi.mock('./hooks/useGitBranchName.js');
+vi.mock('./hooks/useProviderUpdates.js', () => ({
+  useProviderUpdates: vi.fn(() => ({
+    providerUpdateRequest: undefined,
+    dismissProviderUpdate: vi.fn(),
+  })),
+}));
 vi.mock('./contexts/VimModeContext.js');
 vi.mock('./contexts/SessionContext.js');
 vi.mock('./contexts/AgentViewContext.js', () => ({
diff --git a/packages/cli/src/ui/auth/useAuth.test.ts b/packages/cli/src/ui/auth/useAuth.test.ts
index f07411ef8..f51f53694 100644
--- a/packages/cli/src/ui/auth/useAuth.test.ts
+++ b/packages/cli/src/ui/auth/useAuth.test.ts
@@ -28,6 +28,8 @@ vi.mock('../hooks/useQwenAuth.js', () => ({
 
 vi.mock('../../utils/settingsUtils.js', () => ({
   backupSettingsFile: vi.fn(),
+  restoreSettingsFromBackup: vi.fn(),
+  cleanupSettingsBackup: vi.fn(),
 }));
 
 vi.mock('../../config/modelProvidersScope.js', () => ({
diff --git a/packages/cli/src/ui/hooks/useProviderUpdates.test.ts b/packages/cli/src/ui/hooks/useProviderUpdates.test.ts
index 78c56c389..e595ce77f 100644
--- a/packages/cli/src/ui/hooks/useProviderUpdates.test.ts
+++ b/packages/cli/src/ui/hooks/useProviderUpdates.test.ts
@@ -25,6 +25,8 @@ import {
 
 vi.mock('../../utils/settingsUtils.js', () => ({
   backupSettingsFile: vi.fn(),
+  restoreSettingsFromBackup: vi.fn(),
+  cleanupSettingsBackup: vi.fn(),
 }));
 
 const chinaTemplate = buildProviderTemplate(
diff --git a/packages/cli/src/utils/settingsUtils.ts b/packages/cli/src/utils/settingsUtils.ts
index 64344dd7e..a651fab12 100644
--- a/packages/cli/src/utils/settingsUtils.ts
+++ b/packages/cli/src/utils/settingsUtils.ts
@@ -624,7 +624,7 @@ export function getEffectiveDisplayValue(
 
 /**
  * Backup a settings file before modification.
- * Creates a backup with `.orig` suffix if the file exists and backup doesn't already exist.
+ * Always creates a fresh backup with `.orig` suffix (overwrites any stale backup).
  * @param filePath - Path to the settings file to backup
  * @returns boolean indicating whether a backup was created
  */
@@ -632,10 +632,8 @@ export function backupSettingsFile(filePath: string): boolean {
   try {
     if (fs.existsSync(filePath)) {
       const backupPath = `${filePath}.orig`;
-      if (!fs.existsSync(backupPath)) {
-        fs.renameSync(filePath, backupPath);
-        return true;
-      }
+      fs.copyFileSync(filePath, backupPath);
+      return true;
     }
   } catch (_e) {
     // Ignore backup errors, proceed without backup
@@ -645,6 +643,7 @@ export function backupSettingsFile(filePath: string): boolean {
 
 /**
  * Restore a settings file from its `.orig` backup created by {@link backupSettingsFile}.
+ * Removes the backup file after a successful restore.
  * @param filePath - Path to the settings file to restore
  * @returns boolean indicating whether the restore succeeded
  */
@@ -653,6 +652,7 @@ export function restoreSettingsFromBackup(filePath: string): boolean {
     const backupPath = `${filePath}.orig`;
     if (fs.existsSync(backupPath)) {
       fs.copyFileSync(backupPath, filePath);
+      fs.unlinkSync(backupPath);
       return true;
     }
   } catch (_e) {
@@ -661,4 +661,19 @@ export function restoreSettingsFromBackup(filePath: string): boolean {
   return false;
 }
 
+/**
+ * Remove the `.orig` backup after a successful operation.
+ * @param filePath - Path to the settings file whose backup should be removed
+ */
+export function cleanupSettingsBackup(filePath: string): void {
+  try {
+    const backupPath = `${filePath}.orig`;
+    if (fs.existsSync(backupPath)) {
+      fs.unlinkSync(backupPath);
+    }
+  } catch (_e) {
+    // Ignore cleanup errors — non-critical
+  }
+}
+
 export const TEST_ONLY = { clearFlattenedSchema };
diff --git a/packages/vscode-ide-companion/src/services/settingsWriter.ts b/packages/vscode-ide-companion/src/services/settingsWriter.ts
index de274db00..9c88198b2 100644
--- a/packages/vscode-ide-companion/src/services/settingsWriter.ts
+++ b/packages/vscode-ide-companion/src/services/settingsWriter.ts
@@ -145,8 +145,14 @@ export function writeCodingPlanConfig(
   }));
   providers[AuthType.USE_OPENAI] = [...planModels, ...nonCodingPlan];
 
-  // Coding Plan metadata
-  settings.codingPlan = { region: codingRegion, version: planConfig.version };
+  // Coding Plan metadata — write to the providerMetadata namespace that
+  // the CLI now reads from. Remove legacy top-level key if present.
+  const providerMetadata = ensureNestedObject(settings, 'providerMetadata');
+  providerMetadata['coding-plan'] = {
+    region: codingRegion,
+    version: planConfig.version,
+  };
+  delete settings.codingPlan;
 
   // Default model
   const defaultModelId = planConfig.template[0]?.id ?? 'qwen3.5-plus';
@@ -214,6 +220,11 @@ export function writeModelProvidersConfig(params: {
   for (const plan of SUBSCRIPTION_PLAN_OPTIONS) {
     delete settings[plan.metadataKey];
   }
+  const pm = settings.providerMetadata as Record<string, unknown> | undefined;
+  if (pm) {
+    delete pm['coding-plan'];
+    delete pm['token-plan'];
+  }
 
   writeSettings(settings);
 }
@@ -297,10 +308,15 @@ export function clearPersistedAuth(): void {
       delete env['OPENAI_API_KEY'];
     }
 
-    // Remove subscription plan metadata
+    // Remove subscription plan metadata (legacy + new namespace)
     for (const plan of SUBSCRIPTION_PLAN_OPTIONS) {
       delete settings[plan.metadataKey];
     }
+    const pm = settings.providerMetadata as Record<string, unknown> | undefined;
+    if (pm) {
+      delete pm['coding-plan'];
+      delete pm['token-plan'];
+    }
 
     writeSettings(settings);
   } catch (error) {