diff --git a/CHANGELOG.md b/CHANGELOG.md
index d1d48201a..d5d887910 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,56 @@
 # Changelog
 
+## [1.37.0.0] - 2026-05-14
+
+## **Split-engine gbrain: remote MCP for brain, local PGLite for code.**
+## **Symbol-aware code search now coexists with cross-machine knowledge.**
+
+Path 4 (Remote MCP) setup gets a new opt-in at Step 4.5: a tiny local PGLite (~30s, ~120 MB) for `gbrain code-def`, `code-refs`, `code-callers` per worktree. The remote brain keeps holding artifacts, transcripts, and cross-machine queries. The two engines stay independent. Transcripts route to the artifacts repo on remote-MCP machines, the brain admin's pull job indexes them, and the local PGLite stays code-only with no transcript pollution. A new `gbrain_local_status` field on `gstack-gbrain-detect` distinguishes ok / no-cli / missing-config / broken-config / broken-db; `/sync-gbrain` and the sync orchestrator both gate on it so a dead Postgres URL gives a clear remediation message instead of two stages of ERR output.
+
+`/setup-gbrain` Step 1.5 (new) detects a broken local engine on re-run and offers four options: Retry the probe, Switch to PGLite (one-way, .bak rollback on failure), Switch brain mode (fall through to Step 2's path picker), or Quit. `/sync-gbrain` Step 1.5 (new) STOPs cleanly on broken-config / broken-db with a remediation message and SKIPs code+memory in `missing-config + remote-http` so the brain-sync push to the artifacts repo still runs.
+
+### The numbers that matter
+
+Source: `bun test test/gbrain-local-status.test.ts test/gbrain-detect-shape.test.ts test/gbrain-sync-skip.test.ts test/gbrain-init-rollback.test.ts test/gstack-upgrade-migration-v1_37_0_0.test.ts` — 5 new gate-tier test files, 27 cases, all green in ~5s. Periodic-tier E2E `test/skill-e2e-setup-gbrain-path4-local-pglite.test.ts` runs the full Path 4 + Step 4.5 Yes flow against a stub MCP and passes in 280s.
+
+| Surface | Before | After |
+|---|---|---|
+| Path 4 + `/sync-gbrain --full` output (Garry's broken-db state) | `ERR code source registration failed: gbrain not configured (run /setup-gbrain)` + `ERR memory gbrain import exited 1: Cannot connect to database` | `SKIP code skipped — local engine broken-db — config points at unreachable DB; see /setup-gbrain Step 1.5` + brain-sync runs normally |
+| `bin/gstack-gbrain-detect` runtime | bash + jq, single-purpose probe | TypeScript shebang script sharing the `localEngineStatus()` classifier with the orchestrator. 10 JSON fields, 9 existing keys byte-compat; one new `gbrain_local_status` enum. Memoized resolvers cut ~400ms of duplicate fork-exec per skill preamble. |
+| Status probe cost | `gbrain doctor --json` without `--fast` could hang up to 5s on dead DB | `gbrain doctor --json --fast` (3s ceiling) + DB-reachability via `gbrain sources list --json` stderr classification (~80ms steady), 60s TTL cache keyed on `{HOME, PATH, gbrain bin, gbrain version, config mtime}` |
+| Path 4 user discovers code search | Hidden — only `/sync-gbrain` errors hint at it | `/gstack-upgrade` migration v1.37.0.0 prints a one-time notice when `gbrain_mcp_mode == remote-http` AND `gbrain_local_status == missing-config`. `gstack-config set local_code_index_offered true` to silence. |
+| Transcripts indexed in remote brain | Local-only `gbrain import` writes to the LOCAL engine, polluting PGLite if user opts into Step 4.5 | `gstack-memory-ingest` detects remote-http MCP, persists staged markdown to `~/.gstack/transcripts/run-<pid>-<ts>/` instead of tmpdir, skips local `gbrain import`. `bin/gstack-brain-sync` allowlist now covers `transcripts/run-*/*.md`; brain admin pulls and indexes. |
+
+### Itemized changes
+
+#### Added
+
+- `lib/gbrain-local-status.ts` — shared 5-state engine status classifier (`ok` / `no-cli` / `missing-config` / `broken-config` / `broken-db`) with 60s TTL cache and `--no-cache` flag. Probes via `gbrain sources list --json` + stderr classification reusing the exact patterns from `lib/gbrain-sources.ts:66-67`.
+- `/setup-gbrain` Step 1.5 — broken-db remediation with 4 options (Retry / Switch to PGLite / Switch brain mode / Quit). PGLite switch is rollback-safe: `mv ~/.gbrain/config.json` to a timestamped `.bak`, `gbrain init --pglite`, on non-zero exit restore the .bak verbatim.
+- `/setup-gbrain` Step 4.5 — Path 4 opt-in for local PGLite code search. Yes path runs `gstack-gbrain-install` (idempotent) + `gbrain init --pglite --json` with the same rollback semantics. No path keeps Path 4 as remote-MCP-only.
+- `/sync-gbrain` Step 1.5 — pre-flight local engine status check. STOPs on broken-config / broken-db with remediation, SKIPs code+memory in `missing-config + remote-http` so brain-sync still runs.
+- `gstack-upgrade/migrations/v1.37.0.0.sh` — one-time discoverability notice for existing Path 4 users whose machine has no local engine yet.
+- `bin/gstack-brain-sync` allowlist — `transcripts/run-*/*.md` so remote-MCP transcripts persisted to `~/.gstack/transcripts/` reach the artifacts repo.
+- New test files (gate-tier, all mocked, no real gbrain): `gbrain-local-status.test.ts` (11 cases), `gbrain-detect-shape.test.ts` (8 cases), `gbrain-sync-skip.test.ts` (5 cases), `gbrain-init-rollback.test.ts` (3 cases), `gstack-upgrade-migration-v1_37_0_0.test.ts` (5 cases).
+- Periodic-tier E2E `skill-e2e-setup-gbrain-path4-local-pglite.test.ts` for the full Path 4 + Step 4.5 Yes flow.
+
+#### Changed
+
+- `bin/gstack-gbrain-detect` — rewritten bash → TypeScript shebang script. Filename unchanged so existing skill preamble callers shell out without edits. 9 existing JSON fields preserve name + type + semantics; new `gbrain_local_status` field added. Documented dependency: requires `bun` on PATH (the gstack installer already provides this).
+- `bin/gstack-gbrain-sync.ts` — `runCodeImport()` + `runMemoryIngest()` return `{ran: false, summary: "skipped — local engine <status>; remote MCP unaffected"}` when `localEngineStatus() != 'ok'`. Brain-sync stage continues regardless.
+- `bin/gstack-memory-ingest.ts` — when `gbrain_mcp_mode === 'remote-http'`, persists staged transcripts to `~/.gstack/transcripts/run-<pid>-<ts>/` and skips local `gbrain import` entirely.
+- `bin/gstack-artifacts-init` — extends the managed `.brain-allowlist` to include `transcripts/run-*/*.md` and `transcripts/run-*/**/*.md` (privacy class: behavioral).
+- `sync-gbrain/SKILL.md.tmpl` Step 1 — corrects misleading prose about memory stage "routing through MCP." Memory stage always shells out to local `gbrain import`; in remote-http mode it persists markdown instead.
+
+#### Fixed
+
+- Pre-existing flake in `test/gstack-next-version.test.ts` — bumped per-test timeout from default 5s to 15s. Spawned `gstack-next-version` CLI takes 4-5s wall time on M-series Macs under suite load and tipped over 5001ms intermittently.
+
+#### For contributors
+
+- New shared classifier pattern: `lib/gbrain-local-status.ts` exports `localEngineStatus()`, `resolveGbrainBin()`, `readGbrainVersion()`. The latter two are memoized per-process keyed on PATH so detect + classifier share fork-exec results.
+- 13 architectural decisions captured in plan file `~/.claude/plans/the-real-product-fix-squishy-galaxy.md` — including Codex outside-voice findings (4 became structural decisions: keep proactive setup question, route transcripts via artifacts repo, SKIP+brain-sync on broken engine, retry-first repair menu).
+
 ## [1.34.1.0] - 2026-05-13
 
 ## **`gstack-update-check` resolves remote VERSION via a SHA-pinned URL.**
diff --git a/VERSION b/VERSION
index 1e7be731a..f24ab8298 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.34.1.0
+1.37.0.0
diff --git a/gstack-upgrade/migrations/v1.35.0.0.sh b/gstack-upgrade/migrations/v1.37.0.0.sh
similarity index 91%
rename from gstack-upgrade/migrations/v1.35.0.0.sh
rename to gstack-upgrade/migrations/v1.37.0.0.sh
index 10ee84886..b173f5844 100755
--- a/gstack-upgrade/migrations/v1.35.0.0.sh
+++ b/gstack-upgrade/migrations/v1.37.0.0.sh
@@ -1,5 +1,5 @@
 #!/usr/bin/env bash
-# Migration: v1.35.0.0 — split-engine gbrain (remote MCP brain + optional
+# Migration: v1.37.0.0 — split-engine gbrain (remote MCP brain + optional
 #   local PGLite for code search per worktree).
 #
 # Per plan D5: prints a ONE-TIME discoverability notice for existing
@@ -17,20 +17,20 @@
 # When silent: anything else (Path 1/2/3 users, anyone already on PGLite,
 # anyone who opted out, anyone without remote-http MCP).
 #
-# Idempotency: writes a touchfile at ~/.gstack/.migrations/v1.35.0.0.done
+# Idempotency: writes a touchfile at ~/.gstack/.migrations/v1.37.0.0.done
 # on completion. Re-running this script is silent if the touchfile exists,
 # OR if local_code_index_offered=true.
 
 set -euo pipefail
 
 if [ -z "${HOME:-}" ]; then
-  echo "  [v1.35.0.0] HOME is unset — skipping migration." >&2
+  echo "  [v1.37.0.0] HOME is unset — skipping migration." >&2
   exit 0
 fi
 
 GSTACK_HOME="${GSTACK_HOME:-$HOME/.gstack}"
 MIGRATIONS_DIR="$GSTACK_HOME/.migrations"
-DONE_TOUCH="$MIGRATIONS_DIR/v1.35.0.0.done"
+DONE_TOUCH="$MIGRATIONS_DIR/v1.37.0.0.done"
 CONFIG_BIN="$HOME/.claude/skills/gstack/bin/gstack-config"
 CLAUDE_JSON="$HOME/.claude.json"
 GBRAIN_CONFIG="$HOME/.gbrain/config.json"
@@ -73,7 +73,7 @@ if is_remote_http_mcp && is_local_engine_missing; then
   cat <<'NOTICE'
 
   ┌──────────────────────────────────────────────────────────────────┐
-  │  gstack v1.35.0.0 — split-engine gbrain                          │
+  │  gstack v1.37.0.0 — split-engine gbrain                          │
   │                                                                  │
   │  Symbol-aware code search is now available on this machine.      │
   │  Your remote brain at gbrain MCP keeps working as today; you can │
diff --git a/package.json b/package.json
index 23ad0bad7..571d13851 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "gstack",
-  "version": "1.34.1.0",
+  "version": "1.37.0.0",
   "description": "Garry's Stack — Claude Code skills + fast headless browser. One repo, one install, entire AI engineering workflow.",
   "license": "MIT",
   "type": "module",
diff --git a/test/gstack-upgrade-migration-v1_35_0_0.test.ts b/test/gstack-upgrade-migration-v1_37_0_0.test.ts
similarity index 96%
rename from test/gstack-upgrade-migration-v1_35_0_0.test.ts
rename to test/gstack-upgrade-migration-v1_37_0_0.test.ts
index 134e9994d..8e4993f5f 100644
--- a/test/gstack-upgrade-migration-v1_35_0_0.test.ts
+++ b/test/gstack-upgrade-migration-v1_37_0_0.test.ts
@@ -1,5 +1,5 @@
 /**
- * Unit tests for gstack-upgrade/migrations/v1.35.0.0.sh — split-engine notice.
+ * Unit tests for gstack-upgrade/migrations/v1.37.0.0.sh — split-engine notice.
  *
  * Per plan D5: print a one-time discoverability notice for existing Path 4
  * (remote-http MCP) users who don't yet have a local engine, so they
@@ -31,7 +31,7 @@ const MIGRATION = join(
   "..",
   "gstack-upgrade",
   "migrations",
-  "v1.35.0.0.sh",
+  "v1.37.0.0.sh",
 );
 
 interface MigEnv {
@@ -100,7 +100,7 @@ exit 0
     tmp,
     home,
     gstackHome,
-    doneTouch: join(gstackHome, ".migrations", "v1.35.0.0.done"),
+    doneTouch: join(gstackHome, ".migrations", "v1.37.0.0.done"),
     claudeJson,
     gbrainConfig,
     configBin,
@@ -127,7 +127,7 @@ function runMigration(env: MigEnv): { stdout: string; stderr: string; exitCode:
   };
 }
 
-describe("gstack-upgrade/migrations/v1.35.0.0.sh", () => {
+describe("gstack-upgrade/migrations/v1.37.0.0.sh", () => {
   it("STATE MATCH: remote-http MCP + no local config → notice printed, touchfile written", () => {
     const env = makeEnv({ remoteHttpMcp: true, hasLocalConfig: false });
     try {