diff --git a/workspace-server/internal/handlers/delegation_test.go b/workspace-server/internal/handlers/delegation_test.go
index 14c447bf..f64ea12e 100644
--- a/workspace-server/internal/handlers/delegation_test.go
+++ b/workspace-server/internal/handlers/delegation_test.go
@@ -1304,12 +1304,8 @@ func TestExtractResponseText_ValidJSONNoResult(t *testing.T) {
 	}
 }
 
-func TestExtractResponseText_ResultNotMap(t *testing.T) {
-	got := extractResponseText([]byte(`{"result": "just a string"}`))
-	if got != `{"result": "just a string"}` {
-		t.Errorf("result is string: got %q, want raw body", got)
-	}
-}
+// TestExtractResponseText_* cases live in delegation_extract_response_text_test.go
+// to keep pure-helper tests in their own file.
 
 func TestExtractResponseText_PartsTextKind(t *testing.T) {
 	body := []byte(`{"result":{"parts":[{"kind":"text","text":"Hello from agent"}]}}`)
diff --git a/workspace-server/internal/handlers/org_import.go b/workspace-server/internal/handlers/org_import.go
index 2e06479f..2bf86ac8 100644
--- a/workspace-server/internal/handlers/org_import.go
+++ b/workspace-server/internal/handlers/org_import.go
@@ -487,11 +487,13 @@ func (h *OrgHandler) createWorkspaceTree(ws OrgWorkspace, parentID *string, absX
 		// timeout (caught 2026-05-08 right after dev-only org/import).
 		loadPersonaEnvFile(ws.FilesDir, envVars)
 		if orgBaseDir != "" {
-			// 1. Org root .env (shared defaults)
-			parseEnvFile(filepath.Join(orgBaseDir, ".env"), envVars)
-			// 2. Workspace-specific .env (overrides)
-			if ws.FilesDir != "" {
-				parseEnvFile(filepath.Join(orgBaseDir, ws.FilesDir, ".env"), envVars)
+			// Load org root and workspace-specific .env files. loadWorkspaceEnv
+			// applies resolveInsideRoot to ws.FilesDir, closing the CWE-22 /
+			// mc#786 path-traversal regression introduced when the guard was
+			// dropped from createWorkspaceTree.
+			workspaceEnv := loadWorkspaceEnv(orgBaseDir, ws.FilesDir)
+			for k, v := range workspaceEnv {
+				envVars[k] = v // workspace-specific overrides org root
 			}
 		}
 		// Store as workspace secrets via DB (encrypted if key is set, raw otherwise)
diff --git a/workspace-server/internal/handlers/org_test.go b/workspace-server/internal/handlers/org_test.go
index 19dbece9..bb1a742e 100644
--- a/workspace-server/internal/handlers/org_test.go
+++ b/workspace-server/internal/handlers/org_test.go
@@ -354,39 +354,9 @@ func TestExpandWithEnv_UnsetVar(t *testing.T) {
 	}
 }
 
-func TestHasUnresolvedVarRef_NoVars(t *testing.T) {
-	if hasUnresolvedVarRef("plain text", "plain text") {
-		t.Error("plain text should not be flagged")
-	}
-}
-
-func TestHasUnresolvedVarRef_LiteralDollar(t *testing.T) {
-	// "$5" is a literal price, not a var ref — should NOT be flagged
-	if hasUnresolvedVarRef("price: $5", "price: $5") {
-		t.Error("literal $5 should not be flagged as unresolved")
-	}
-}
-
-func TestHasUnresolvedVarRef_Resolved(t *testing.T) {
-	// Original had ${VAR}, expanded to "value" — fully resolved
-	if hasUnresolvedVarRef("${VAR}", "value") {
-		t.Error("fully resolved var should not be flagged")
-	}
-}
-
-func TestHasUnresolvedVarRef_Unresolved(t *testing.T) {
-	// Original had ${VAR}, expanded to "" — unresolved
-	if !hasUnresolvedVarRef("${VAR}", "") {
-		t.Error("unresolved var should be flagged")
-	}
-}
-
-func TestHasUnresolvedVarRef_DollarVarSyntax(t *testing.T) {
-	// $VAR syntax (no braces) — also a real ref
-	if !hasUnresolvedVarRef("$MISSING_VAR", "") {
-		t.Error("$VAR syntax should be detected as ref when unresolved")
-	}
-}
+// TestHasUnresolvedVarRef_* cases live in org_helpers_pure_test.go to keep
+// pure-helper tests in their own file. Keep TestExpandWithEnv_UnsetVar here
+// since expandWithEnv is used across multiple org handlers.
 
 func eqStringSlice(a, b []string) bool {
 	if len(a) != len(b) {