- Added WorkerService to handle long-running HTTP service with session management.
- Implemented endpoints for initializing, observing, finalizing, checking status, and deleting sessions.
- Integrated with Claude SDK for processing observations and generating responses.
- Added port allocator utility to dynamically find available ports for the service.
- Configured TypeScript settings for the project.
- Removed `path-discovery.ts` service and replaced its usage with a new `paths.ts` module.
- Updated all commands and services to utilize the new path constants and helper functions.
- Ensured all necessary directories are created using the new utility functions.
- Improved code readability and maintainability by centralizing path configurations.
- Added CLI commands for context, new session, save observation, and summary.
- Created HooksDatabase for managing SDK sessions and observations.
- Implemented migration 004 to add new tables: sdk_sessions, observation_queue, observations, and session_summaries.
- Developed hook functions for context display, session initialization, observation queuing, and session finalization.
- Added comprehensive tests for database schema and hook functionality.
- Documented Phase 1 implementation in PHASE1-COMPLETE.md.