diff --git a/scripts/recover-gsd-1364.ps1 b/scripts/recover-gsd-1364.ps1
new file mode 100644
index 000000000..f83b48372
--- /dev/null
+++ b/scripts/recover-gsd-1364.ps1
@@ -0,0 +1,415 @@
+# recover-gsd-1364.ps1 - Recovery script for issue #1364 (Windows)
+#
+# CRITICAL DATA-LOSS BUG: GSD versions 2.30.0-2.35.x unconditionally added
+# ".gsd" to .gitignore via ensureGitignore(), causing git to report all
+# tracked .gsd/ files as deleted. Fixed in v2.36.0 (PR #1367).
+#
+# This script:
+#   1. Detects whether the repo was affected
+#   2. Finds the last clean commit before the damage
+#   3. Restores all deleted .gsd/ files from that commit
+#   4. Removes the bad ".gsd" line from .gitignore (if .gsd/ is tracked)
+#   5. Prints a ready-to-commit summary
+#
+# Usage:
+#   powershell -ExecutionPolicy Bypass -File scripts\recover-gsd-1364.ps1 [-DryRun]
+#
+# Options:
+#   -DryRun   Show what would be done without making any changes
+#
+# Requirements: git >= 2.x, PowerShell >= 5.1, Git for Windows
+
+[CmdletBinding()]
+param(
+    [switch]$DryRun
+)
+
+$ErrorActionPreference = 'Stop'
+
+# ── Helpers ───────────────────────────────────────────────────────────────────
+
+function Write-Info    { param($msg) Write-Host "[info]  $msg" -ForegroundColor Cyan }
+function Write-Ok      { param($msg) Write-Host "[ok]    $msg" -ForegroundColor Green }
+function Write-Warn    { param($msg) Write-Host "[warn]  $msg" -ForegroundColor Yellow }
+function Write-Err     { param($msg) Write-Host "[error] $msg" -ForegroundColor Red }
+function Write-Section { param($msg) Write-Host "`n$msg" -ForegroundColor White }
+
+function Exit-Fatal {
+    param($msg)
+    Write-Err $msg
+    exit 1
+}
+
+function Invoke-Git {
+    param([string[]]$Args, [switch]$AllowFailure)
+    try {
+        $result = & git @Args 2>&1
+        if ($LASTEXITCODE -ne 0) {
+            if ($AllowFailure) { return "" }
+            throw "git $($Args -join ' ') exited $LASTEXITCODE"
+        }
+        return ($result -join "`n").Trim()
+    } catch {
+        if ($AllowFailure) { return "" }
+        throw
+    }
+}
+
+# Run or dry-run a git command
+function Invoke-GitOrDryRun {
+    param([string[]]$GitArgs, [string]$Display)
+    if ($DryRun) {
+        Write-Host "  (dry-run) git $Display" -ForegroundColor Yellow
+    } else {
+        Invoke-Git $GitArgs | Out-Null
+    }
+}
+
+# Check whether a path is a symlink OR a junction (Windows uses junctions for
+# the .gsd external-state migration via symlinkSync(..., "junction"))
+function Test-ReparsePoint {
+    param([string]$Path)
+    if (-not (Test-Path $Path)) { return $false }
+    $item = Get-Item -LiteralPath $Path -Force -ErrorAction SilentlyContinue
+    if (-not $item) { return $false }
+    # LinkType covers: SymbolicLink, Junction, HardLink
+    return ($item.LinkType -eq 'SymbolicLink' -or $item.LinkType -eq 'Junction')
+}
+
+# ── Preflight ─────────────────────────────────────────────────────────────────
+
+Write-Section "── Preflight ───────────────────────────────────────────────────────"
+
+# Verify git is available
+if (-not (Get-Command git -ErrorAction SilentlyContinue)) {
+    Exit-Fatal "git not found on PATH. Install Git for Windows from https://git-scm.com"
+}
+
+# Must be run from inside a git repo
+$gitDirCheck = & git rev-parse --git-dir 2>&1
+if ($LASTEXITCODE -ne 0) {
+    Exit-Fatal "Not inside a git repository. Run this from your project root."
+}
+
+$repoRoot = Invoke-Git @('rev-parse', '--show-toplevel')
+Set-Location $repoRoot
+Write-Info "Repo root: $repoRoot"
+
+if ($DryRun) {
+    Write-Warn "DRY-RUN mode — no changes will be made."
+}
+
+# ── Step 1: Detect .gsd/ ─────────────────────────────────────────────────────
+
+Write-Section "── Step 1: Detect .gsd/ directory ─────────────────────────────────"
+
+$gsdDir = Join-Path $repoRoot '.gsd'
+$GsdIsSymlink = $false
+
+if (-not (Test-Path $gsdDir)) {
+    Write-Ok ".gsd/ does not exist in this repo — not affected."
+    exit 0
+}
+
+if (Test-ReparsePoint $gsdDir) {
+    # Scenario C: migration succeeded (symlink/junction in place) but git index was never
+    # cleaned — tracked .gsd/* files still appear as deleted through the reparse point.
+    $GsdIsSymlink = $true
+    Write-Warn ".gsd/ is a symlink/junction — checking for stale git index entries (Scenario C)..."
+} else {
+    Write-Info ".gsd/ is a real directory (Scenario A/B)."
+}
+
+# ── Step 2: Check .gitignore for .gsd entry ──────────────────────────────────
+
+Write-Section "── Step 2: Check .gitignore for .gsd entry ─────────────────────────"
+
+$gitignorePath = Join-Path $repoRoot '.gitignore'
+
+if (-not (Test-Path $gitignorePath) -and -not $GsdIsSymlink) {
+    Write-Ok ".gitignore does not exist — not affected."
+    exit 0
+}
+
+$gitignoreLines = @()
+$gsdIgnoreLine  = $null
+if (Test-Path $gitignorePath) {
+    $gitignoreLines = Get-Content $gitignorePath -Encoding UTF8
+    $gsdIgnoreLine  = $gitignoreLines | Where-Object {
+        $trimmed = $_.Trim()
+        $trimmed -eq '.gsd' -and -not $trimmed.StartsWith('#')
+    } | Select-Object -First 1
+}
+
+if ($GsdIsSymlink) {
+    # Symlink layout: .gsd SHOULD be ignored (it's external state).
+    if (-not $gsdIgnoreLine) {
+        Write-Warn '".gsd" missing from .gitignore — will add (migration complete, .gsd/ is external).'
+    } else {
+        Write-Ok '".gsd" already in .gitignore — correct for external-state layout.'
+    }
+} else {
+    # Real-directory layout: .gsd should NOT be ignored.
+    if (-not $gsdIgnoreLine) {
+        Write-Ok '".gsd" not found in .gitignore — .gitignore not affected.'
+    } else {
+        Write-Warn '".gsd" found in .gitignore — this is the bad pattern from #1364.'
+    }
+}
+
+# ── Step 3: Find deleted .gsd/ files ─────────────────────────────────────────
+
+Write-Section "── Step 3: Find deleted .gsd/ files ───────────────────────────────"
+
+# Files deleted in working tree (tracked but missing)
+$deletedRaw = Invoke-Git @('ls-files', '--deleted', '--', '.gsd/*') -AllowFailure
+$deletedFiles = if ($deletedRaw) { $deletedRaw -split "`n" | Where-Object { $_ } } else { @() }
+
+# Files tracked in HEAD right now
+$trackedInHeadRaw = Invoke-Git @('ls-tree', '-r', '--name-only', 'HEAD', '--', '.gsd/') -AllowFailure
+$trackedInHead = if ($trackedInHeadRaw) { $trackedInHeadRaw -split "`n" | Where-Object { $_ } } else { @() }
+
+$deletedFromHistory = @()
+if ($GsdIsSymlink) {
+    # Scenario C: migration succeeded. Files are safe via reparse point.
+    # Only index entries can be stale — no need to scan commit history.
+    if ($trackedInHead.Count -eq 0 -and $deletedFiles.Count -eq 0) {
+        Write-Ok "No stale index entries found — symlink/junction layout is healthy."
+        if (-not $gsdIgnoreLine) {
+            Write-Info "Add .gsd to .gitignore manually to complete the migration."
+        }
+        exit 0
+    }
+    $indexCount = if ($trackedInHead.Count -gt 0) { $trackedInHead.Count } else { $deletedFiles.Count }
+    Write-Warn "Scenario C: $indexCount .gsd/ file(s) tracked in git index but inaccessible through reparse point."
+    Write-Info "Files are safe in external storage — only the git index needs cleaning."
+} else {
+    # Files deleted in committed history (post-commit damage scenario — Scenario B)
+    $deletedHistoryRaw = Invoke-Git @('log', '--all', '--diff-filter=D', '--name-only', '--format=', '--', '.gsd/*') -AllowFailure
+    $deletedFromHistory = if ($deletedHistoryRaw) {
+        $deletedHistoryRaw -split "`n" | Where-Object { $_ -match '^\.gsd' } | Sort-Object -Unique
+    } else { @() }
+
+    # Nothing was ever tracked in any scenario
+    if ($trackedInHead.Count -eq 0 -and $deletedFiles.Count -eq 0 -and $deletedFromHistory.Count -eq 0) {
+        Write-Ok "No .gsd/ files tracked in this repo — not affected by #1364."
+        if ($gsdIgnoreLine) {
+            Write-Warn '".gsd" is still in .gitignore but there is nothing to restore.'
+        }
+        exit 0
+    }
+
+    # Determine scenario
+    if ($trackedInHead.Count -gt 0) {
+        Write-Info "Scenario A: $($trackedInHead.Count) .gsd/ files still tracked in HEAD."
+    } elseif ($deletedFromHistory.Count -gt 0) {
+        Write-Warn "Scenario B: $($deletedFromHistory.Count) .gsd/ file(s) were tracked but deleted in a committed change:"
+        $deletedFromHistory | Select-Object -First 20 | ForEach-Object { Write-Host "    - $_" }
+        if ($deletedFromHistory.Count -gt 20) {
+            Write-Host "    ... and $($deletedFromHistory.Count - 20) more"
+        }
+    }
+
+    if ($deletedFiles.Count -gt 0) {
+        Write-Warn "$($deletedFiles.Count) .gsd/ file(s) are missing from working tree (tracked but deleted/gitignored):"
+        $deletedFiles | Select-Object -First 20 | ForEach-Object { Write-Host "    - $_" }
+        if ($deletedFiles.Count -gt 20) {
+            Write-Host "    ... and $($deletedFiles.Count - 20) more"
+        }
+    }
+
+    # HEAD has files and working tree is clean — only .gitignore needs fixing
+    if ($trackedInHead.Count -gt 0 -and $deletedFiles.Count -eq 0) {
+        if (-not $gsdIgnoreLine) {
+            Write-Ok "No action needed — .gsd/ is tracked in HEAD and .gitignore is clean."
+            exit 0
+        }
+        Write-Info ".gsd/ is tracked in HEAD and working tree is clean — only .gitignore needs fixing."
+    }
+}
+
+# ── Step 4: Find last clean commit (Scenario A/B only) ───────────────────────
+
+Write-Section "── Step 4: Find last clean commit ──────────────────────────────────"
+
+$damageCommit   = $null
+$cleanCommit    = $null
+$restorableFiles = @()
+
+if ($GsdIsSymlink) {
+    Write-Info "Scenario C: symlink/junction layout — skipping commit history scan (no file restore needed)."
+} else {
+    Write-Info "Scanning git log to find when .gsd was added to .gitignore..."
+
+    # Strategy 1: find first commit that added ".gsd" to .gitignore
+    $gitignoreCommits = Invoke-Git @('log', '--format=%H', '--', '.gitignore') -AllowFailure
+    if ($gitignoreCommits) {
+        foreach ($sha in ($gitignoreCommits -split "`n" | Where-Object { $_ })) {
+            $content = Invoke-Git @('show', "${sha}:.gitignore") -AllowFailure
+            if ($content -and ($content -split "`n" | Where-Object { $_.Trim() -eq '.gsd' })) {
+                $damageCommit = $sha
+                break
+            }
+        }
+    }
+
+    # Strategy 2: find commit that deleted .gsd/ files
+    if (-not $damageCommit -and $deletedFromHistory.Count -gt 0) {
+        Write-Info "Searching for the commit that deleted .gsd/ files from the index..."
+        $deleteCommits = Invoke-Git @('log', '--all', '--diff-filter=D', '--format=%H', '--', '.gsd/*') -AllowFailure
+        if ($deleteCommits) {
+            $damageCommit = ($deleteCommits -split "`n" | Where-Object { $_ } | Select-Object -First 1)
+        }
+    }
+
+    if (-not $damageCommit) {
+        Write-Warn "Could not pinpoint the damage commit — falling back to HEAD."
+        $cleanCommit = 'HEAD'
+    } else {
+        $damageMsg = Invoke-Git @('log', '--format=%s', '-1', $damageCommit) -AllowFailure
+        Write-Info "Damage commit: $damageCommit ($damageMsg)"
+        $cleanCommit = "${damageCommit}^"
+        $cleanMsg = Invoke-Git @('log', '--format=%s', '-1', $cleanCommit) -AllowFailure
+        if (-not $cleanMsg) { $cleanMsg = 'unknown' }
+        Write-Info "Restoring from: $cleanCommit — $cleanMsg"
+    }
+
+    # Verify restore point has .gsd/ files
+    $restorable = Invoke-Git @('ls-tree', '-r', '--name-only', $cleanCommit, '--', '.gsd/') -AllowFailure
+    $restorableFiles = if ($restorable) { $restorable -split "`n" | Where-Object { $_ } } else { @() }
+
+    if ($restorableFiles.Count -eq 0) {
+        Exit-Fatal "No .gsd/ files found in restore point $cleanCommit — cannot recover. Check git log manually."
+    }
+
+    Write-Ok "Restore point has $($restorableFiles.Count) .gsd/ files available."
+}
+
+# ── Step 5: Clean index (Scenario C) or restore deleted files (Scenario A/B) ─
+
+if ($GsdIsSymlink) {
+    Write-Section "── Step 5: Clean stale git index entries ───────────────────────────"
+
+    Write-Info "Running: git rm -r --cached --ignore-unmatch .gsd/ ..."
+    Invoke-GitOrDryRun -GitArgs @('rm', '-r', '--cached', '--ignore-unmatch', '.gsd') -Display "rm -r --cached --ignore-unmatch .gsd"
+
+    if (-not $DryRun) {
+        $stillStaleRaw = Invoke-Git @('ls-files', '--deleted', '--', '.gsd/*') -AllowFailure
+        $stillStale = if ($stillStaleRaw) { $stillStaleRaw -split "`n" | Where-Object { $_ } } else { @() }
+        if ($stillStale.Count -eq 0) {
+            Write-Ok "Git index cleaned — no stale .gsd/ entries remain."
+        } else {
+            Write-Warn "$($stillStale.Count) stale entr(ies) still present — may need manual cleanup."
+        }
+    }
+} else {
+    Write-Section "── Step 5: Restore deleted .gsd/ files ────────────────────────────"
+
+    $needsRestore = ($deletedFiles.Count -gt 0) -or ($deletedFromHistory.Count -gt 0 -and $trackedInHead.Count -eq 0)
+
+    if (-not $needsRestore) {
+        Write-Ok "No deleted files to restore — skipping."
+    } else {
+        Write-Info "Restoring .gsd/ files from $cleanCommit..."
+        Invoke-GitOrDryRun -GitArgs @('checkout', $cleanCommit, '--', '.gsd/') -Display "checkout $cleanCommit -- .gsd/"
+
+        if (-not $DryRun) {
+            $stillMissingRaw = Invoke-Git @('ls-files', '--deleted', '--', '.gsd/*') -AllowFailure
+            $stillMissing = if ($stillMissingRaw) { $stillMissingRaw -split "`n" | Where-Object { $_ } } else { @() }
+            if ($stillMissing.Count -eq 0) {
+                Write-Ok "All .gsd/ files restored successfully."
+            } else {
+                Write-Warn "$($stillMissing.Count) file(s) still missing after restore — may need manual recovery:"
+                $stillMissing | Select-Object -First 10 | ForEach-Object { Write-Host "    - $_" }
+            }
+        }
+    }
+}
+
+# ── Step 6: Fix .gitignore ────────────────────────────────────────────────────
+
+Write-Section "── Step 6: Fix .gitignore ──────────────────────────────────────────"
+
+if ($GsdIsSymlink) {
+    # Scenario C: .gsd IS external — it should be in .gitignore.  Add if missing.
+    if (-not $gsdIgnoreLine) {
+        Write-Info 'Adding ".gsd" to .gitignore (migration complete — .gsd/ is external state)...'
+        if ($DryRun) {
+            Write-Host "  (dry-run) Would append: .gsd" -ForegroundColor Yellow
+        } else {
+            $appendLines = @('', '# GSD external state (symlink/junction — added by recover-gsd-1364)', '.gsd')
+            Add-Content -LiteralPath $gitignorePath -Value $appendLines -Encoding UTF8
+            Write-Ok '".gsd" added to .gitignore.'
+        }
+    } else {
+        Write-Ok '".gsd" already in .gitignore — correct for external-state layout.'
+    }
+} else {
+    # Scenario A/B: .gsd is a real tracked directory — remove the bad ignore line.
+    if (-not $gsdIgnoreLine) {
+        Write-Ok '".gsd" not in .gitignore — nothing to fix.'
+    } else {
+        Write-Info 'Removing bare ".gsd" line from .gitignore...'
+        if ($DryRun) {
+            Write-Host "  (dry-run) Would remove line: .gsd" -ForegroundColor Yellow
+        } else {
+            # Filter out the exact bare ".gsd" line — preserve all other content including
+            # sub-path patterns like ".gsd/", ".gsd/activity/" and comments
+            $cleaned = $gitignoreLines | Where-Object { $_.Trim() -ne '.gsd' }
+            # Write with UTF-8 no BOM to match git's expectations
+            [System.IO.File]::WriteAllLines($gitignorePath, $cleaned, [System.Text.UTF8Encoding]::new($false))
+            Write-Ok '".gsd" line removed from .gitignore.'
+        }
+    }
+}
+
+# ── Step 7: Stage changes ─────────────────────────────────────────────────────
+
+Write-Section "── Step 7: Stage recovery changes ──────────────────────────────────"
+
+if (-not $DryRun) {
+    $changed = Invoke-Git @('status', '--short', '--', '.gsd/', '.gitignore') -AllowFailure
+    if (-not $changed) {
+        Write-Ok "No staged changes — working tree was already clean."
+    } else {
+        if ($GsdIsSymlink) {
+            # Scenario C: git rm --cached already staged the index cleanup.
+            # Only stage .gitignore — adding .gsd/ would fail (now gitignored).
+            Invoke-Git @('add', '.gitignore') -AllowFailure | Out-Null
+        } else {
+            Invoke-Git @('add', '.gsd/', '.gitignore') -AllowFailure | Out-Null
+        }
+        $stagedRaw  = Invoke-Git @('diff', '--cached', '--name-only', '--', '.gsd/', '.gitignore') -AllowFailure
+        $stagedFiles = if ($stagedRaw) { $stagedRaw -split "`n" | Where-Object { $_ } } else { @() }
+        Write-Ok "$($stagedFiles.Count) file(s) staged and ready to commit."
+    }
+}
+
+# ── Summary ───────────────────────────────────────────────────────────────────
+
+Write-Section "── Summary ──────────────────────────────────────────────────────────"
+
+if ($DryRun) {
+    Write-Host "Dry-run complete. Re-run without -DryRun to apply changes." -ForegroundColor Yellow
+} else {
+    $finalStagedRaw  = Invoke-Git @('diff', '--cached', '--name-only', '--', '.gsd/', '.gitignore') -AllowFailure
+    $finalStaged = if ($finalStagedRaw) { $finalStagedRaw -split "`n" | Where-Object { $_ } } else { @() }
+
+    if ($finalStaged.Count -gt 0) {
+        Write-Host "Recovery complete. Commit with:" -ForegroundColor Green
+        Write-Host ""
+        if ($GsdIsSymlink) {
+            Write-Host '  git commit -m "fix: clean stale .gsd/ index entries after external-state migration"'
+        } else {
+            Write-Host '  git commit -m "fix: restore .gsd/ files deleted by #1364 regression"'
+        }
+        Write-Host ""
+        Write-Host "Staged files:"
+        $finalStaged | Select-Object -First 20 | ForEach-Object { Write-Host "  + $_" }
+        if ($finalStaged.Count -gt 20) {
+            Write-Host "  ... and $($finalStaged.Count - 20) more"
+        }
+    } else {
+        Write-Ok "Repo is healthy — no recovery needed."
+    }
+}
diff --git a/scripts/recover-gsd-1364.sh b/scripts/recover-gsd-1364.sh
new file mode 100755
index 000000000..0dfe3c3ec
--- /dev/null
+++ b/scripts/recover-gsd-1364.sh
@@ -0,0 +1,386 @@
+#!/usr/bin/env bash
+# recover-gsd-1364.sh — Recovery script for issue #1364 (Linux / macOS)
+#
+# For Windows use the PowerShell equivalent:
+#   powershell -ExecutionPolicy Bypass -File scripts\recover-gsd-1364.ps1 [-DryRun]
+#
+# CRITICAL DATA-LOSS BUG: GSD versions 2.30.0–2.35.x unconditionally added
+# ".gsd" to .gitignore via ensureGitignore(), causing git to report all
+# tracked .gsd/ files as deleted. Fixed in v2.36.0 (PR #1367).
+# Three residual vectors remain on v2.36.0–v2.38.0 — see PR #1635 for details.
+#
+# This script:
+#   1. Detects whether the repo was affected
+#   2. Finds the last clean commit before the damage
+#   3. Restores all deleted .gsd/ files from that commit
+#   4. Removes the bad ".gsd" line from .gitignore (if .gsd/ is tracked)
+#   5. Prints a ready-to-commit summary
+#
+# Usage:
+#   bash scripts/recover-gsd-1364.sh [--dry-run]
+#
+# Options:
+#   --dry-run   Show what would be done without making any changes
+#
+# Requirements: git >= 2.x, bash >= 4.x
+
+set -euo pipefail
+
+# ─── Colours ──────────────────────────────────────────────────────────────────
+
+RED='\033[0;31m'
+YELLOW='\033[1;33m'
+GREEN='\033[0;32m'
+CYAN='\033[0;36m'
+BOLD='\033[1m'
+RESET='\033[0m'
+
+# ─── Args ─────────────────────────────────────────────────────────────────────
+
+DRY_RUN=false
+for arg in "$@"; do
+  case "$arg" in
+    --dry-run) DRY_RUN=true ;;
+    *) echo "Unknown argument: $arg" >&2; exit 1 ;;
+  esac
+done
+
+# ─── Helpers ──────────────────────────────────────────────────────────────────
+
+info()    { echo -e "${CYAN}[info]${RESET}  $*"; }
+ok()      { echo -e "${GREEN}[ok]${RESET}    $*"; }
+warn()    { echo -e "${YELLOW}[warn]${RESET}  $*"; }
+error()   { echo -e "${RED}[error]${RESET} $*" >&2; }
+section() { echo -e "\n${BOLD}$*${RESET}"; }
+
+die() {
+  error "$*"
+  exit 1
+}
+
+# Run or print-only depending on --dry-run
+run() {
+  if $DRY_RUN; then
+    echo -e "  ${YELLOW}(dry-run)${RESET} $*"
+  else
+    eval "$*"
+  fi
+}
+
+# ─── Preflight ────────────────────────────────────────────────────────────────
+
+section "── Preflight ───────────────────────────────────────────────────────"
+
+# Must be run from a git repo root
+if ! git rev-parse --git-dir > /dev/null 2>&1; then
+  die "Not inside a git repository. Run this from your project root."
+fi
+
+REPO_ROOT="$(git rev-parse --show-toplevel)"
+cd "$REPO_ROOT"
+info "Repo root: $REPO_ROOT"
+
+if $DRY_RUN; then
+  warn "DRY-RUN mode — no changes will be made."
+fi
+
+# ─── Step 1: Check if .gsd/ exists ────────────────────────────────────────────
+
+section "── Step 1: Detect .gsd/ directory ────────────────────────────────────"
+
+GSD_DIR="$REPO_ROOT/.gsd"
+GSD_IS_SYMLINK=false
+
+if [[ ! -e "$GSD_DIR" ]]; then
+  ok ".gsd/ does not exist in this repo — not affected."
+  exit 0
+fi
+
+if [[ -L "$GSD_DIR" ]]; then
+  # Scenario C: migration succeeded (symlink in place) but git index was never
+  # cleaned — tracked .gsd/* files still appear as deleted through the symlink.
+  GSD_IS_SYMLINK=true
+  warn ".gsd/ is a symlink — checking for stale git index entries (Scenario C)..."
+else
+  info ".gsd/ is a real directory (Scenario A/B)."
+fi
+
+# ─── Step 2: Check if .gsd is in .gitignore ───────────────────────────────────
+
+section "── Step 2: Check .gitignore for .gsd entry ────────────────────────────"
+
+GITIGNORE="$REPO_ROOT/.gitignore"
+
+if [[ ! -f "$GITIGNORE" ]] && ! $GSD_IS_SYMLINK; then
+  ok ".gitignore does not exist — not affected."
+  exit 0
+fi
+
+# Look for a bare ".gsd" line (not a comment, not a sub-path like .gsd/)
+GSD_IGNORE_LINE=""
+if [[ -f "$GITIGNORE" ]]; then
+  while IFS= read -r line; do
+    trimmed="${line#"${line%%[![:space:]]*}"}"
+    trimmed="${trimmed%"${trimmed##*[![:space:]]}"}"
+    if [[ "$trimmed" == ".gsd" ]] && [[ "${trimmed:0:1}" != "#" ]]; then
+      GSD_IGNORE_LINE="$trimmed"
+      break
+    fi
+  done < "$GITIGNORE"
+fi
+
+if $GSD_IS_SYMLINK; then
+  # Symlink layout: .gsd SHOULD be ignored (it's external state).
+  # Missing = needs adding. Present = correct.
+  if [[ -z "$GSD_IGNORE_LINE" ]]; then
+    warn '".gsd" missing from .gitignore — will add (migration complete, .gsd/ is external).'
+  else
+    ok '".gsd" already in .gitignore — correct for external-state layout.'
+  fi
+else
+  # Real-directory layout: .gsd should NOT be ignored.
+  if [[ -z "$GSD_IGNORE_LINE" ]]; then
+    ok '".gsd" not found in .gitignore — .gitignore not affected.'
+  else
+    warn '".gsd" found in .gitignore — this is the bad pattern from #1364.'
+  fi
+fi
+
+# ─── Step 3: Find deleted .gsd/ tracked files ─────────────────────────────────
+
+section "── Step 3: Find deleted .gsd/ files ───────────────────────────────────"
+
+# Files showing as deleted in the working tree (tracked in index but missing)
+DELETED_FILES="$(git ls-files --deleted -- '.gsd/*' 2>/dev/null || true)"
+
+# Files tracked in HEAD right now
+TRACKED_IN_HEAD="$(git ls-tree -r --name-only HEAD -- '.gsd/' 2>/dev/null || true)"
+
+if $GSD_IS_SYMLINK; then
+  # Scenario C: migration succeeded. Files are safe via symlink.
+  # Only index entries can be stale — no need to scan commit history.
+  if [[ -z "$TRACKED_IN_HEAD" ]] && [[ -z "$DELETED_FILES" ]]; then
+    ok "No stale index entries found — symlink layout is healthy."
+    if [[ -z "$GSD_IGNORE_LINE" ]]; then
+      info "Add .gsd to .gitignore manually to complete the migration."
+    fi
+    exit 0
+  fi
+  INDEX_COUNT="$(echo "${TRACKED_IN_HEAD:-$DELETED_FILES}" | wc -l | tr -d ' ')"
+  warn "Scenario C: ${INDEX_COUNT} .gsd/ file(s) tracked in git index but inaccessible through symlink."
+  info "Files are safe in external storage — only the git index needs cleaning."
+else
+  # Files deleted via a committed git rm --cached (Scenario B)
+  DELETED_FROM_HISTORY="$(git log --all --diff-filter=D --name-only --format="" -- '.gsd/*' 2>/dev/null \
+    | grep '^\.gsd' | sort -u || true)"
+
+  if [[ -z "$TRACKED_IN_HEAD" ]] && [[ -z "$DELETED_FILES" ]] && [[ -z "$DELETED_FROM_HISTORY" ]]; then
+    ok "No .gsd/ files tracked in this repo — not affected by #1364."
+    if [[ -n "$GSD_IGNORE_LINE" ]]; then
+      warn '".gsd" is still in .gitignore but there is nothing to restore.'
+    fi
+    exit 0
+  fi
+
+  if [[ -n "$TRACKED_IN_HEAD" ]]; then
+    TRACKED_COUNT="$(echo "$TRACKED_IN_HEAD" | wc -l | tr -d ' ')"
+    info "Scenario A: ${TRACKED_COUNT} .gsd/ files still tracked in HEAD."
+  elif [[ -n "$DELETED_FROM_HISTORY" ]]; then
+    DELETED_HIST_COUNT="$(echo "$DELETED_FROM_HISTORY" | wc -l | tr -d ' ')"
+    warn "Scenario B: ${DELETED_HIST_COUNT} .gsd/ file(s) deleted in a committed change:"
+    echo "$DELETED_FROM_HISTORY" | head -20 | while IFS= read -r f; do echo "    - $f"; done
+    if (( DELETED_HIST_COUNT > 20 )); then echo "    ... and $((DELETED_HIST_COUNT - 20)) more"; fi
+  fi
+
+  if [[ -n "$DELETED_FILES" ]]; then
+    DELETED_COUNT="$(echo "$DELETED_FILES" | wc -l | tr -d ' ')"
+    warn "${DELETED_COUNT} .gsd/ file(s) missing from working tree:"
+    echo "$DELETED_FILES" | head -20 | while IFS= read -r f; do echo "    - $f"; done
+    if (( DELETED_COUNT > 20 )); then echo "    ... and $((DELETED_COUNT - 20)) more"; fi
+  fi
+
+  if [[ -n "$TRACKED_IN_HEAD" ]] && [[ -z "$DELETED_FILES" ]]; then
+    if [[ -z "$GSD_IGNORE_LINE" ]]; then
+      ok "No action needed — .gsd/ is tracked in HEAD and .gitignore is clean."
+      exit 0
+    fi
+    info ".gsd/ is tracked in HEAD and working tree is clean — only .gitignore needs fixing."
+  fi
+fi
+
+# ─── Step 4: Find the last clean commit (Scenario A/B only) ───────────────────
+
+section "── Step 4: Find last clean commit ──────────────────────────────────────"
+
+DAMAGE_COMMIT=""
+CLEAN_COMMIT=""
+RESTORABLE=""
+
+if $GSD_IS_SYMLINK; then
+  info "Scenario C: symlink layout — skipping commit history scan (no file restore needed)."
+else
+  # Find the commit where ".gsd" was first added to .gitignore
+  # by walking the log and finding the first commit where .gitignore contained ".gsd"
+  info "Scanning git log to find when .gsd was added to .gitignore..."
+
+  # Strategy 1: find the first commit that added ".gsd" to .gitignore
+  while IFS= read -r sha; do
+    content="$(git show "${sha}:.gitignore" 2>/dev/null || true)"
+    if echo "$content" | grep -qx '\.gsd' 2>/dev/null; then
+      DAMAGE_COMMIT="$sha"
+      break
+    fi
+  done < <(git log --format="%H" -- .gitignore)
+
+  # Strategy 2: if .gsd files were committed as deleted, find that commit
+  if [[ -z "$DAMAGE_COMMIT" ]] && [[ -n "${DELETED_FROM_HISTORY:-}" ]]; then
+    info "Searching for the commit that deleted .gsd/ files from the index..."
+    DAMAGE_COMMIT="$(git log --all --diff-filter=D --format="%H" -- '.gsd/*' 2>/dev/null | head -1 || true)"
+  fi
+
+  if [[ -z "$DAMAGE_COMMIT" ]]; then
+    warn "Could not pinpoint the damage commit — falling back to HEAD."
+    CLEAN_COMMIT="HEAD"
+  else
+    info "Damage commit: $DAMAGE_COMMIT ($(git log --format='%s' -1 "$DAMAGE_COMMIT"))"
+    CLEAN_COMMIT="${DAMAGE_COMMIT}^"
+    CLEAN_MSG="$(git log --format='%s' -1 "$CLEAN_COMMIT" 2>/dev/null || echo "unknown")"
+    info "Restoring from: $CLEAN_COMMIT — $CLEAN_MSG"
+  fi
+
+  # Verify the clean commit actually has .gsd/ files
+  RESTORABLE="$(git ls-tree -r --name-only "$CLEAN_COMMIT" -- '.gsd/' 2>/dev/null || true)"
+  if [[ -z "$RESTORABLE" ]]; then
+    die "No .gsd/ files found in restore point $CLEAN_COMMIT — cannot recover. Check git log manually."
+  fi
+
+  RESTORABLE_COUNT="$(echo "$RESTORABLE" | wc -l | tr -d ' ')"
+  ok "Restore point has ${RESTORABLE_COUNT} .gsd/ files available."
+fi
+
+# ─── Step 5: Clean index (Scenario C) or restore deleted files (Scenario A/B) ─
+
+if $GSD_IS_SYMLINK; then
+  section "── Step 5: Clean stale git index entries ───────────────────────────────"
+
+  info "Running: git rm -r --cached --ignore-unmatch .gsd/ ..."
+  run "git rm -r --cached --ignore-unmatch .gsd"
+  if ! $DRY_RUN; then
+    STILL_STALE="$(git ls-files --deleted -- '.gsd/*' 2>/dev/null || true)"
+    if [[ -z "$STILL_STALE" ]]; then
+      ok "Git index cleaned — no stale .gsd/ entries remain."
+    else
+      warn "$(echo "$STILL_STALE" | wc -l | tr -d ' ') stale entr(ies) still present — may need manual cleanup."
+    fi
+  fi
+else
+  section "── Step 5: Restore deleted .gsd/ files ────────────────────────────────"
+
+  NEEDS_RESTORE=false
+  [[ -n "$DELETED_FILES" ]] && NEEDS_RESTORE=true
+  [[ -n "${DELETED_FROM_HISTORY:-}" ]] && [[ -z "$TRACKED_IN_HEAD" ]] && NEEDS_RESTORE=true
+
+  if ! $NEEDS_RESTORE; then
+    ok "No deleted files to restore — skipping."
+  else
+    info "Restoring .gsd/ files from $CLEAN_COMMIT..."
+    run "git checkout \"$CLEAN_COMMIT\" -- .gsd/"
+    if ! $DRY_RUN; then
+      STILL_MISSING="$(git ls-files --deleted -- '.gsd/*' 2>/dev/null || true)"
+      if [[ -z "$STILL_MISSING" ]]; then
+        ok "All .gsd/ files restored successfully."
+      else
+        MISS_COUNT="$(echo "$STILL_MISSING" | wc -l | tr -d ' ')"
+        warn "${MISS_COUNT} file(s) still missing after restore — may need manual recovery:"
+        echo "$STILL_MISSING" | head -10 | while IFS= read -r f; do echo "    - $f"; done
+      fi
+    fi
+  fi
+fi
+
+# ─── Step 6: Fix .gitignore ───────────────────────────────────────────────────
+
+section "── Step 6: Fix .gitignore ───────────────────────────────────────────────"
+
+if $GSD_IS_SYMLINK; then
+  # Scenario C: .gsd IS external — it should be in .gitignore.  Add if missing.
+  if [[ -z "$GSD_IGNORE_LINE" ]]; then
+    info 'Adding ".gsd" to .gitignore (migration complete — .gsd/ is external state)...'
+    if $DRY_RUN; then
+      echo -e "  ${YELLOW}(dry-run)${RESET} Would append: .gsd"
+    else
+      printf '\n# GSD external state (symlink — added by recover-gsd-1364)\n.gsd\n' >> "$GITIGNORE"
+      ok '".gsd" added to .gitignore.'
+    fi
+  else
+    ok '".gsd" already in .gitignore — correct for external-state layout.'
+  fi
+else
+  # Scenario A/B: .gsd is a real tracked directory — remove the bad ignore line.
+  if [[ -z "$GSD_IGNORE_LINE" ]]; then
+    ok '".gsd" not in .gitignore — nothing to fix.'
+  else
+    info 'Removing bare ".gsd" line from .gitignore...'
+    if $DRY_RUN; then
+      echo -e "  ${YELLOW}(dry-run)${RESET} Would remove line: .gsd"
+    else
+      # Remove the exact line ".gsd" (not comments, not .gsd/ subdirs)
+      # Use a temp file for portability (no sed -i on all platforms)
+      TMP="$(mktemp)"
+      grep -v '^\.gsd$' "$GITIGNORE" > "$TMP" || true
+      mv "$TMP" "$GITIGNORE"
+      ok '".gsd" line removed from .gitignore.'
+    fi
+  fi
+fi
+
+# ─── Step 7: Stage changes ────────────────────────────────────────────────────
+
+section "── Step 7: Stage recovery changes ──────────────────────────────────────"
+
+if ! $DRY_RUN; then
+  CHANGED="$(git status --short -- '.gsd/' .gitignore 2>/dev/null || true)"
+  if [[ -z "$CHANGED" ]]; then
+    ok "No staged changes — working tree was already clean."
+  else
+    if $GSD_IS_SYMLINK; then
+      # Scenario C: the git rm --cached already staged the index cleanup.
+      # Only stage .gitignore — adding .gsd/ would fail (now gitignored).
+      git add .gitignore 2>/dev/null || true
+    else
+      git add .gsd/ .gitignore 2>/dev/null || true
+    fi
+    STAGED_COUNT="$(git diff --cached --name-only -- '.gsd/' .gitignore | wc -l | tr -d ' ')"
+    ok "${STAGED_COUNT} file(s) staged and ready to commit."
+  fi
+fi
+
+# ─── Summary ──────────────────────────────────────────────────────────────────
+
+section "── Summary ──────────────────────────────────────────────────────────────"
+
+if $DRY_RUN; then
+  echo -e "${YELLOW}Dry-run complete. Re-run without --dry-run to apply changes.${RESET}"
+else
+  FINAL_STAGED="$(git diff --cached --name-only -- '.gsd/' .gitignore 2>/dev/null | wc -l | tr -d ' ')"
+  if (( FINAL_STAGED > 0 )); then
+    echo -e "${GREEN}Recovery complete. Commit with:${RESET}"
+    echo ""
+    if $GSD_IS_SYMLINK; then
+      echo "  git commit -m \"fix: clean stale .gsd/ index entries after external-state migration\""
+    else
+      echo "  git commit -m \"fix: restore .gsd/ files deleted by #1364 regression\""
+    fi
+    echo ""
+    echo "Staged files:"
+    git diff --cached --name-only -- '.gsd/' .gitignore | head -20 | while IFS= read -r f; do
+      echo "  + $f"
+    done
+    TOTAL_STAGED="$(git diff --cached --name-only -- '.gsd/' .gitignore | wc -l | tr -d ' ')"
+    if (( TOTAL_STAGED > 20 )); then
+      echo "  ... and $((TOTAL_STAGED - 20)) more"
+    fi
+  else
+    ok "Repo is healthy — no recovery needed."
+  fi
+fi