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+# Phase 01: Merge PR #745 - Isolated Credentials
+
+**PR:** https://github.com/thedotmack/claude-mem/pull/745
+**Branch:** `fix/isolated-credentials-733`
+**Status:** Has conflicts, needs rebase
+**Review:** Approved by bayanoj330-dev
+**Priority:** HIGH - Foundation for credential isolation, required by PR #847
+
+## Summary
+
+Fixes API key hijacking issue (#733) where SDK would use `ANTHROPIC_API_KEY` from random project `.env` files instead of Claude Code CLI subscription billing.
+
+**Root Cause:** The SDK's `query()` function inherits from `process.env` when no `env` option is passed.
+
+**Solution:** Centralized credential management via `~/.claude-mem/.env` with `EnvManager.ts`.
+
+## Files Changed
+
+| File | Change |
+|------|--------|
+| `src/shared/EnvManager.ts` | NEW: Centralized credential storage and isolated env builder |
+| `src/services/worker/SDKAgent.ts` | Pass isolated env to SDK `query()` |
+| `src/services/worker/GeminiAgent.ts` | Use `getCredential()` instead of `process.env` |
+| `src/services/worker/OpenRouterAgent.ts` | Use `getCredential()` instead of `process.env` |
+| `src/shared/SettingsDefaultsManager.ts` | Add `CLAUDE_MEM_CLAUDE_AUTH_METHOD` setting |
+
+## Dependencies
+
+- **None** - This is a foundation PR
+
+## Tasks
+
+- [x] Checkout PR branch `fix/isolated-credentials-733` and rebase onto main to resolve conflicts
+  - ✓ Resolved 4 conflicts (3 build artifacts, 1 source file)
+  - ✓ Merged both main's zombie process cleanup and PR's isolated credentials into SDKAgent.ts
+  - ✓ Commit 006ff401 now sits on top of main (aedee33c)
+- [ ] Review `EnvManager.ts` implementation for security and correctness
+- [ ] Verify build succeeds after rebase
+- [ ] Run test suite to ensure no regressions
+- [ ] Merge PR #745 to main with admin override if needed
+- [ ] Verify auth method shows "Claude Code CLI (subscription billing)" in logs after merge
+
+## Verification
+
+```bash
+# After merge, check logs for correct auth method
+grep -i "authMethod" ~/.claude-mem/logs/*.log | tail -5
+```
+
+## Notes
+
+- This PR creates the `EnvManager.ts` module that PR #847 depends on
+- The isolated env approach ensures SDK subprocess never sees random API keys from parent process
+- If no `ANTHROPIC_API_KEY` is in `~/.claude-mem/.env`, Claude Code CLI billing is used (default)