Fix circular dependency crash in worker service

**Problem:**
Worker service crashed on startup with:
  TypeError: Cannot read properties of undefined (reading 'get')
  at new Wd (.../worker-service.cjs:52:131469)

**Root Cause:**
Circular dependency between SettingsDefaultsManager and logger:
  1. SettingsDefaultsManager imports logger
  2. logger imports SettingsDefaultsManager
  3. logger constructor calls SettingsDefaultsManager.get() at init time
  4. When CommonJS resolves the cycle, SettingsDefaultsManager is undefined

**Solution:**
Break the circular dependency by making logger lazy-load its configuration:
  - Change logger.level from initialized in constructor to lazy-loaded
  - Add getLevel() method that loads on first access
  - Update all level checks to use getLevel()

This allows SettingsDefaultsManager to import logger without triggering
the circular dependency, since logger no longer accesses SettingsDefaultsManager
during module initialization.

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

src/services/worker/http/routes/SessionRoutes.ts

@@ -291,6 +291,7 @@ export class SessionRoutes extends BaseRouteHandler {
         ? stripMemoryTagsFromJson(JSON.stringify(tool_input))
         : '{}';
     } catch (error) {
+      logger.debug('SESSION', 'Failed to serialize tool_input', { sessionDbId }, error);
       cleanedToolInput = '{"error": "Failed to serialize tool_input"}';
     }
 
@@ -299,6 +300,7 @@ export class SessionRoutes extends BaseRouteHandler {
         ? stripMemoryTagsFromJson(JSON.stringify(tool_response))
         : '{}';
     } catch (error) {
+      logger.debug('SESSION', 'Failed to serialize tool_result', { sessionDbId }, error);
       cleanedToolResponse = '{"error": "Failed to serialize tool_response"}';
     }
 

src/services/worker/http/routes/SettingsRoutes.ts

@@ -7,7 +7,7 @@
 
 import express, { Request, Response } from 'express';
 import path from 'path';
-import { readFileSync, writeFileSync, existsSync, renameSync } from 'fs';
+import { readFileSync, writeFileSync, existsSync, renameSync, mkdirSync } from 'fs';
 import { homedir } from 'os';
 import { getPackageRoot } from '../../../../shared/paths.js';
 import { logger } from '../../../../utils/logger.js';
@@ -49,6 +49,7 @@ export class SettingsRoutes extends BaseRouteHandler {
    */
   private handleGetSettings = this.wrapHandler((req: Request, res: Response): void => {
     const settingsPath = path.join(homedir(), '.claude-mem', 'settings.json');
+    this.ensureSettingsFile(settingsPath);
     const settings = SettingsDefaultsManager.loadFromFile(settingsPath);
     res.json(settings);
   });
@@ -117,14 +118,12 @@ export class SettingsRoutes extends BaseRouteHandler {
 
     // Read existing settings
     const settingsPath = path.join(homedir(), '.claude-mem', 'settings.json');
-    let settings: any = { env: {} };
+    this.ensureSettingsFile(settingsPath);
+    let settings: any = {};
 
     if (existsSync(settingsPath)) {
       const settingsData = readFileSync(settingsPath, 'utf-8');
       settings = JSON.parse(settingsData);
-      if (!settings.env) {
-        settings.env = {};
-      }
     }
 
     // Update all settings from request body
@@ -156,7 +155,7 @@ export class SettingsRoutes extends BaseRouteHandler {
 
     for (const key of settingKeys) {
       if (req.body[key] !== undefined) {
-        settings.env[key] = req.body[key];
+        settings[key] = req.body[key];
       }
     }
 
@@ -355,4 +354,22 @@ export class SettingsRoutes extends BaseRouteHandler {
       throw error;
     }
   }
+
+  /**
+   * Ensure settings file exists, creating with defaults if missing
+   */
+  private ensureSettingsFile(settingsPath: string): void {
+    if (!existsSync(settingsPath)) {
+      const defaults = SettingsDefaultsManager.getAllDefaults();
+
+      // Ensure directory exists
+      const dir = path.dirname(settingsPath);
+      if (!existsSync(dir)) {
+        mkdirSync(dir, { recursive: true });
+      }
+
+      writeFileSync(settingsPath, JSON.stringify(defaults, null, 2), 'utf-8');
+      logger.info('SETTINGS', 'Created settings file with defaults', { settingsPath });
+    }
+  }
 }

src/shared/SettingsDefaultsManager.ts

@@ -5,10 +5,11 @@
  * Provides methods to get defaults with optional environment variable overrides.
  */
 
-import { readFileSync, existsSync } from 'fs';
+import { readFileSync, writeFileSync, existsSync } from 'fs';
 import { join } from 'path';
 import { homedir } from 'os';
 import { DEFAULT_OBSERVATION_TYPES_STRING, DEFAULT_OBSERVATION_CONCEPTS_STRING } from '../constants/observation-metadata.js';
+import { logger } from '../utils/logger.js';
 
 export interface SettingsDefaults {
   CLAUDE_MEM_MODEL: string;
@@ -108,11 +109,27 @@ export class SettingsDefaultsManager {
     const settingsData = readFileSync(settingsPath, 'utf-8');
     const settings = JSON.parse(settingsData);
 
-    // Merge file settings with defaults (flat schema, no env wrapper)
+    // MIGRATION: Handle old nested schema { env: {...} }
+    let flatSettings = settings;
+    if (settings.env && typeof settings.env === 'object') {
+      // Migrate from nested to flat schema
+      flatSettings = settings.env;
+
+      // Auto-migrate the file to flat schema
+      try {
+        writeFileSync(settingsPath, JSON.stringify(flatSettings, null, 2), 'utf-8');
+        logger.info('SETTINGS', 'Migrated settings file from nested to flat schema', { settingsPath });
+      } catch (error) {
+        logger.warn('SETTINGS', 'Failed to auto-migrate settings file', { settingsPath }, error);
+        // Continue with in-memory migration even if write fails
+      }
+    }
+
+    // Merge file settings with defaults (flat schema)
     const result: SettingsDefaults = { ...this.DEFAULTS };
     for (const key of Object.keys(this.DEFAULTS) as Array<keyof SettingsDefaults>) {
-      if (settings[key] !== undefined) {
-        result[key] = settings[key];
+      if (flatSettings[key] !== undefined) {
+        result[key] = flatSettings[key];
       }
     }
 

src/utils/logger.ts

@@ -23,18 +23,25 @@ interface LogContext {
 }
 
 class Logger {
-  private level: LogLevel;
+  private level: LogLevel | null = null;
   private useColor: boolean;
 
   constructor() {
-    // Parse log level from settings
-    const envLevel = SettingsDefaultsManager.get('CLAUDE_MEM_LOG_LEVEL').toUpperCase();
-    this.level = LogLevel[envLevel as keyof typeof LogLevel] ?? LogLevel.INFO;
-
     // Disable colors when output is not a TTY (e.g., PM2 logs)
     this.useColor = process.stdout.isTTY ?? false;
   }
 
+  /**
+   * Lazy-load log level from settings (breaks circular dependency with SettingsDefaultsManager)
+   */
+  private getLevel(): LogLevel {
+    if (this.level === null) {
+      const envLevel = SettingsDefaultsManager.get('CLAUDE_MEM_LOG_LEVEL').toUpperCase();
+      this.level = LogLevel[envLevel as keyof typeof LogLevel] ?? LogLevel.INFO;
+    }
+    return this.level;
+  }
+
   /**
    * Create correlation ID for tracking an observation through the pipeline
    */
@@ -62,7 +69,7 @@ class Logger {
     if (typeof data === 'object') {
       // If it's an error, show message and stack in debug mode
       if (data instanceof Error) {
-        return this.level === LogLevel.DEBUG
+        return this.getLevel() === LogLevel.DEBUG
           ? `${data.message}\n${data.stack}`
           : data.message;
       }
@@ -134,7 +141,7 @@ class Logger {
     context?: LogContext,
     data?: any
   ): void {
-    if (level < this.level) return;
+    if (level < this.getLevel()) return;
 
     const timestamp = new Date().toISOString().replace('T', ' ').substring(0, 23);
     const levelStr = LogLevel[level].padEnd(5);
@@ -151,7 +158,7 @@ class Logger {
     // Build data part
     let dataStr = '';
     if (data !== undefined && data !== null) {
-      if (this.level === LogLevel.DEBUG && typeof data === 'object') {
+      if (this.getLevel() === LogLevel.DEBUG && typeof data === 'object') {
         // In debug mode, show full JSON for objects
         dataStr = '\n' + JSON.stringify(data, null, 2);
       } else {