diff --git a/packages/cli/package.json b/packages/cli/package.json
index af151f8..e07d4c9 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@mosaic/cli",
-  "version": "0.0.4",
+  "version": "0.0.5",
   "type": "module",
   "main": "dist/index.js",
   "types": "dist/index.d.ts",
diff --git a/packages/mosaic/framework/tools/_scripts/mosaic-sync-skills b/packages/mosaic/framework/tools/_scripts/mosaic-sync-skills
index 45ea77d..f044988 100755
--- a/packages/mosaic/framework/tools/_scripts/mosaic-sync-skills
+++ b/packages/mosaic/framework/tools/_scripts/mosaic-sync-skills
@@ -56,25 +56,39 @@ if [[ $fetch -eq 1 ]]; then
   if [[ -d "$SKILLS_REPO_DIR/.git" ]]; then
     echo "[mosaic-skills] Updating skills source: $SKILLS_REPO_DIR"
 
-    # Stash any local changes (dirty index or worktree) before pulling
-    local_changes=0
-    if ! git -C "$SKILLS_REPO_DIR" diff --quiet 2>/dev/null || \
-       ! git -C "$SKILLS_REPO_DIR" diff --cached --quiet 2>/dev/null; then
-      local_changes=1
-      echo "[mosaic-skills] Stashing local changes..."
-      git -C "$SKILLS_REPO_DIR" stash push -q -m "mosaic-sync-skills auto-stash"
+    # Detect ANY dirty state: modified, staged, or untracked files.
+    # Use git status --porcelain which catches everything pull --rebase cares about.
+    dirty=""
+    dirty="$(git -C "$SKILLS_REPO_DIR" status --porcelain 2>/dev/null || true)"
+
+    if [[ -n "$dirty" ]]; then
+      echo "[mosaic-skills] Stashing local changes (including untracked)..."
+      git -C "$SKILLS_REPO_DIR" stash push -q --include-untracked -m "mosaic-sync-skills auto-stash" 2>/dev/null || {
+        echo "[mosaic-skills] WARN: stash failed — skipping pull, using existing checkout" >&2
+        dirty="skip-pull"
+      }
     fi
 
-    if ! git -C "$SKILLS_REPO_DIR" pull --rebase; then
-      echo "[mosaic-skills] WARN: pull failed — continuing with existing checkout" >&2
+    if [[ "$dirty" != "skip-pull" ]]; then
+      if ! git -C "$SKILLS_REPO_DIR" pull --rebase 2>/dev/null; then
+        echo "[mosaic-skills] WARN: pull failed — continuing with existing checkout" >&2
+        # Abort any in-progress rebase so the repo isn't left in a broken state
+        git -C "$SKILLS_REPO_DIR" rebase --abort 2>/dev/null || true
+      fi
     fi
 
-    # Restore stashed changes
-    if [[ $local_changes -eq 1 ]]; then
+    # Restore stashed changes if we stashed anything
+    if [[ -n "$dirty" && "$dirty" != "skip-pull" ]]; then
       echo "[mosaic-skills] Restoring local changes..."
       git -C "$SKILLS_REPO_DIR" stash pop -q 2>/dev/null || \
         echo "[mosaic-skills] WARN: stash pop had conflicts — check $SKILLS_REPO_DIR" >&2
     fi
+
+    # Hint: customized skills belong in skills-local/, not in the canonical repo
+    if [[ -n "$dirty" ]]; then
+      echo "[mosaic-skills] TIP: Put customized skills in $MOSAIC_LOCAL_SKILLS_DIR/ instead"
+      echo "[mosaic-skills]      Files there are never overwritten and take precedence."
+    fi
   else
     echo "[mosaic-skills] Cloning skills source to: $SKILLS_REPO_DIR"
     mkdir -p "$(dirname "$SKILLS_REPO_DIR")"
diff --git a/packages/mosaic/package.json b/packages/mosaic/package.json
index 2e4d272..5be115f 100644
--- a/packages/mosaic/package.json
+++ b/packages/mosaic/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@mosaic/mosaic",
-  "version": "0.0.4",
+  "version": "0.0.5",
   "description": "Mosaic agent framework — installation wizard and meta package",
   "type": "module",
   "main": "dist/index.js",
diff --git a/packages/mosaic/src/runtime/update-checker.ts b/packages/mosaic/src/runtime/update-checker.ts
index 0d9878e..cc67cf6 100644
--- a/packages/mosaic/src/runtime/update-checker.ts
+++ b/packages/mosaic/src/runtime/update-checker.ts
@@ -122,10 +122,18 @@ export function semverLt(a: string, b: string): boolean {
 
 // ─── Cache ──────────────────────────────────────────────────────────────────
 
-function readCache(): UpdateCheckResult | null {
+/** Cache stores only the latest registry version (the expensive network call).
+ *  The installed version is always checked fresh — it's a local `npm ls`. */
+interface RegistryCache {
+  latest: string;
+  checkedAt: string;
+  registry: string;
+}
+
+function readCache(): RegistryCache | null {
   try {
     if (!existsSync(CACHE_FILE)) return null;
-    const raw = JSON.parse(readFileSync(CACHE_FILE, 'utf-8')) as UpdateCheckResult;
+    const raw = JSON.parse(readFileSync(CACHE_FILE, 'utf-8')) as RegistryCache;
     const age = Date.now() - new Date(raw.checkedAt).getTime();
     if (age > CACHE_TTL_MS) return null;
     return raw;
@@ -134,10 +142,10 @@ function readCache(): UpdateCheckResult | null {
   }
 }
 
-function writeCache(result: UpdateCheckResult): void {
+function writeCache(entry: RegistryCache): void {
   try {
     mkdirSync(CACHE_DIR, { recursive: true });
-    writeFileSync(CACHE_FILE, JSON.stringify(result, null, 2) + '\n', 'utf-8');
+    writeFileSync(CACHE_FILE, JSON.stringify(entry, null, 2) + '\n', 'utf-8');
   } catch {
     // Best-effort — cache is not critical
   }
@@ -174,29 +182,40 @@ export function getLatestVersion(): string {
 }
 
 /**
- * Perform an update check — uses cache when fresh, otherwise hits registry.
+ * Perform an update check — uses registry cache when fresh, always checks
+ * installed version fresh (local npm ls is cheap, caching it causes stale
+ * "update available" banners after an upgrade).
  * Never throws.
  */
 export function checkForUpdate(options?: { skipCache?: boolean }): UpdateCheckResult {
+  const current = getInstalledVersion();
+
+  let latest: string;
+  let checkedAt: string;
+
   if (!options?.skipCache) {
     const cached = readCache();
-    if (cached) return cached;
+    if (cached) {
+      latest = cached.latest;
+      checkedAt = cached.checkedAt;
+    } else {
+      latest = getLatestVersion();
+      checkedAt = new Date().toISOString();
+      writeCache({ latest, checkedAt, registry: REGISTRY });
+    }
+  } else {
+    latest = getLatestVersion();
+    checkedAt = new Date().toISOString();
+    writeCache({ latest, checkedAt, registry: REGISTRY });
   }
 
-  const current = getInstalledVersion();
-  const latest = getLatestVersion();
-  const updateAvailable = !!(current && latest && semverLt(current, latest));
-
-  const result: UpdateCheckResult = {
+  return {
     current,
     latest,
-    updateAvailable,
-    checkedAt: new Date().toISOString(),
+    updateAvailable: !!(current && latest && semverLt(current, latest)),
+    checkedAt,
     registry: REGISTRY,
   };
-
-  writeCache(result);
-  return result;
 }
 
 /**