diff --git a/server/src/routes/agents.ts b/server/src/routes/agents.ts
index 7e9c1e36..42aa1df5 100644
--- a/server/src/routes/agents.ts
+++ b/server/src/routes/agents.ts
@@ -1,5 +1,7 @@
 import { Router, type Request } from "express";
 import { generateKeyPairSync, randomUUID } from "node:crypto";
+import { mkdir, stat } from "node:fs/promises";
+import { homedir } from "node:os";
 import path from "node:path";
 import type { Db } from "@paperclipai/db";
 import { agents as agentsTable, companies, heartbeatRuns, issues as issuesTable } from "@paperclipai/db";
@@ -44,6 +46,7 @@ import {
   workspaceOperationService,
 } from "../services/index.js";
 import { conflict, forbidden, notFound, unprocessable } from "../errors.js";
+import { logger } from "../middleware/logger.js";
 import { assertBoard, assertCompanyAccess, assertInstanceAdmin, getActorInfo } from "./authz.js";
 import { findServerAdapter, listAdapterModels } from "../adapters/index.js";
 import { redactEventPayload } from "../redaction.js";
@@ -474,6 +477,69 @@ export function agentRoutes(db: Db) {
     return ensureGatewayDeviceKey(adapterType, next);
   }
 
+  // [nexus] Expand a user-provided path: resolve `~` / `~/foo` to the server
+  // process's home directory and convert to absolute form. Returns null if
+  // the input is not a non-empty string.
+  function expandUserPath(candidate: unknown): string | null {
+    if (typeof candidate !== "string") return null;
+    const trimmed = candidate.trim();
+    if (trimmed.length === 0) return null;
+    const home = homedir();
+    let expanded: string;
+    if (trimmed === "~") {
+      expanded = home;
+    } else if (trimmed.startsWith("~/")) {
+      expanded = path.join(home, trimmed.slice(2));
+    } else {
+      expanded = trimmed;
+    }
+    return path.resolve(expanded);
+  }
+
+  // [nexus] Zero-terminal bug fix: when a user sets a working directory via
+  // the UI, Nexus must expand `~` and create the directory if it doesn't
+  // exist — we can't make the user ssh in and mkdir anything. Mutates
+  // adapter_config.cwd in place (returning a new object) and ensures the
+  // directory exists on disk. Throws unprocessable on filesystem errors.
+  async function normalizeAdapterConfigPaths(
+    adapterConfig: Record<string, unknown>,
+  ): Promise<Record<string, unknown>> {
+    const rawCwd = adapterConfig.cwd;
+    if (typeof rawCwd !== "string" || rawCwd.trim().length === 0) {
+      return adapterConfig;
+    }
+    const resolved = expandUserPath(rawCwd);
+    if (!resolved) return adapterConfig;
+    if (!path.isAbsolute(resolved)) {
+      throw unprocessable(
+        `adapterConfig.cwd must be an absolute path after tilde expansion (got ${resolved})`,
+      );
+    }
+    try {
+      await mkdir(resolved, { recursive: true });
+    } catch (err) {
+      const reason = err instanceof Error ? err.message : String(err);
+      throw unprocessable(`Could not create workspace directory ${resolved}: ${reason}`);
+    }
+    try {
+      const stats = await stat(resolved);
+      if (!stats.isDirectory()) {
+        throw unprocessable(`Workspace path ${resolved} exists but is not a directory`);
+      }
+    } catch (err) {
+      if (err && typeof err === "object" && "status" in err) throw err;
+      const reason = err instanceof Error ? err.message : String(err);
+      throw unprocessable(`Could not stat workspace directory ${resolved}: ${reason}`);
+    }
+    if (resolved !== rawCwd) {
+      logger.info(
+        { original: rawCwd, resolved },
+        "normalized agent adapter_config.cwd (tilde expansion / absolute path / mkdir)",
+      );
+    }
+    return { ...adapterConfig, cwd: resolved };
+  }
+
   async function assertAdapterConfigConstraints(
     companyId: string,
     adapterType: string | null | undefined,
@@ -757,11 +823,11 @@ export function agentRoutes(db: Db) {
         adapterType: type,
         config: {},
       });
-      const hasCliNotFound = result.checks.some(
-        (c: { level: string; code?: string }) =>
-          c.level === "error" && (c.code?.includes("not_found") || c.code?.includes("cli"))
-      );
-      res.json({ available: !hasCliNotFound, status: result.status, checks: result.checks });
+      // An adapter is unavailable if the overall test failed OR if any check
+      // indicates a missing CLI / binary / URL (covers both local adapters
+      // that need a CLI and remote adapters like OpenClaw that need a URL).
+      const available = result.status !== "fail";
+      res.json({ available, status: result.status, checks: result.checks });
     } catch {
       res.json({ available: false, status: "error" });
     }
@@ -1276,11 +1342,14 @@ export function agentRoutes(db: Db) {
       requestedAdapterConfig,
       Array.isArray(requestedDesiredSkills) ? requestedDesiredSkills : undefined,
     );
-    const normalizedAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
+    let normalizedAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
       companyId,
       desiredSkillAssignment.adapterConfig,
       { strictMode: strictSecretsMode },
     );
+    // [nexus] Expand ~ in cwd and create the directory if it doesn't exist.
+    // Zero-terminal means users should never have to mkdir anything.
+    normalizedAdapterConfig = await normalizeAdapterConfigPaths(normalizedAdapterConfig);
     await assertAdapterConfigConstraints(
       companyId,
       hireInput.adapterType,
@@ -1440,11 +1509,13 @@ export function agentRoutes(db: Db) {
       requestedAdapterConfig,
       Array.isArray(requestedDesiredSkills) ? requestedDesiredSkills : undefined,
     );
-    const normalizedAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
+    let normalizedAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
       companyId,
       desiredSkillAssignment.adapterConfig,
       { strictMode: strictSecretsMode },
     );
+    // [nexus] Expand ~ in cwd and create the directory if it doesn't exist.
+    normalizedAdapterConfig = await normalizeAdapterConfigPaths(normalizedAdapterConfig);
     await assertAdapterConfigConstraints(
       companyId,
       createInput.adapterType,
@@ -1866,11 +1937,13 @@ export function agentRoutes(db: Db) {
         requestedAdapterType,
         rawEffectiveAdapterConfig,
       );
-      const normalizedEffectiveAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
+      let normalizedEffectiveAdapterConfig = await secretsSvc.normalizeAdapterConfigForPersistence(
         existing.companyId,
         effectiveAdapterConfig,
         { strictMode: strictSecretsMode },
       );
+      // [nexus] Expand ~ in cwd and create the directory if it doesn't exist.
+      normalizedEffectiveAdapterConfig = await normalizeAdapterConfigPaths(normalizedEffectiveAdapterConfig);
       patchData.adapterConfig = syncInstructionsBundleConfigFromFilePath(existing, normalizedEffectiveAdapterConfig);
     }
     if (touchesAdapterConfiguration && requestedAdapterType === "opencode_local") {