diff --git a/package-lock.json b/package-lock.json
index f98a94182..a46897802 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "gsd-pi",
-  "version": "2.21.0",
+  "version": "2.20.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "gsd-pi",
-      "version": "2.21.0",
+      "version": "2.20.0",
       "hasInstallScript": true,
       "license": "MIT",
       "workspaces": [
diff --git a/src/resources/extensions/gsd/docs/preferences-reference.md b/src/resources/extensions/gsd/docs/preferences-reference.md
index 20e5455c8..0700b51cf 100644
--- a/src/resources/extensions/gsd/docs/preferences-reference.md
+++ b/src/resources/extensions/gsd/docs/preferences-reference.md
@@ -123,7 +123,7 @@ Setting `prefer_skills: []` does **not** disable skill discovery — it just mea
   - `commit_type`: string — override the conventional commit type prefix. Must be one of: `feat`, `fix`, `refactor`, `docs`, `test`, `chore`, `perf`, `ci`, `build`, `style`. Default: inferred from diff content.
   - `main_branch`: string — the primary branch name for new git repos (e.g., `"main"`, `"master"`, `"trunk"`). Also used by `getMainBranch()` as the preferred branch when auto-detection is ambiguous. Default: `"main"`.
   - `merge_strategy`: `"squash"` or `"merge"` — controls how worktree branches are merged back. `"squash"` combines all commits into one; `"merge"` preserves individual commits. Default: `"squash"`.
-  - `isolation`: `"worktree"` or `"branch"` — controls auto-mode git isolation strategy. `"worktree"` creates a milestone worktree for isolated work; `"branch"` works directly in the project root (useful for submodule-heavy repos). Default: `"worktree"`.
+  - `isolation`: `"worktree"`, `"branch"`, or `"none"` — controls auto-mode git isolation strategy. `"worktree"` creates a milestone worktree for isolated work; `"branch"` works directly in the project root but creates a milestone branch (useful for submodule-heavy repos); `"none"` works directly on the current branch with no worktree or milestone branch (ideal for step-mode with hot reloads). Default: `"worktree"`.
   - `commit_docs`: boolean — when `false`, prevents GSD from committing `.gsd/` planning artifacts to git. The `.gsd/` folder is added to `.gitignore` and kept local-only. Useful for teams where only some members use GSD, or when company policy requires a clean repository. Default: `true`.
   - `worktree_post_create`: string — script to run after a worktree is created (both auto-mode and manual `/worktree`). Receives `SOURCE_DIR` and `WORKTREE_DIR` as environment variables. Can be absolute or relative to project root. Runs with 30-second timeout. Failure is non-fatal (logged as warning). Default: none.