diff --git a/src/brew/main.py b/src/brew/main.py
index 6732dc3..b661b61 100644
--- a/src/brew/main.py
+++ b/src/brew/main.py
@@ -5,7 +5,7 @@
 from collections.abc import AsyncGenerator
 from contextlib import asynccontextmanager, suppress
 
-from fastapi import Depends, FastAPI, HTTPException, Request
+from fastapi import Depends, FastAPI, Request
 from fastapi.responses import JSONResponse
 from fastapi.staticfiles import StaticFiles
 
@@ -208,25 +208,11 @@ async def lifespan(app: FastAPI) -> AsyncGenerator[None]:
 # os.getenv (not Settings) because mount must happen at module level, before lifespan.
 # Settings requires fellow_email/password which aren't available at import time in tests.
 _mcp_enabled = os.getenv("FELLOW_MCP_ENABLED", "false").lower() == "true"
-_chat_enabled = os.getenv("FELLOW_CHAT_ENABLED", "false").lower() == "true"
 
-
-def _require_terminal_enabled() -> None:
-    """404 the terminal endpoint when chat/MCP isn't wired.
-
-    Read at request time so tests can monkeypatch the flags after import.
-    """
-    if not (_chat_enabled and _mcp_enabled):
-        raise HTTPException(status_code=404)
-
-
-app.include_router(
-    terminal_router,
-    prefix="/api",
-    # require_api_key is handled inline in the WS handler — FastAPI's WS dep
-    # resolver doesn't inject Header/Query the same way HTTP does.
-    dependencies=[Depends(_require_terminal_enabled)],
-)
+# NO `dependencies=[...]` here — FastAPI silently 403s WebSocket upgrades when
+# deps propagate through include_router (regardless of whether the dep raises).
+# Auth + the FELLOW_CHAT_ENABLED gate are enforced inline in the WS handler.
+app.include_router(terminal_router, prefix="/api")
 
 if _mcp_enabled:
     from fastmcp import FastMCP as _FastMCP
diff --git a/src/brew/terminal/process.py b/src/brew/terminal/process.py
index fb51d58..2f62fec 100644
--- a/src/brew/terminal/process.py
+++ b/src/brew/terminal/process.py
@@ -44,6 +44,10 @@ def __init__(
     async def start(self) -> None:
         pid, fd = pty.fork()
         if pid == 0:
+            # tmux refuses to attach with TERM=dumb / unset ("open terminal
+            # failed: terminal does not support clear"). xterm-256color is
+            # what xterm.js emulates and ships in ncurses-base.
+            os.environ["TERM"] = "xterm-256color"
             os.execvp(self._argv[0], self._argv)  # noqa: S606  PTY child exec
         self._pid = pid
         self._fd = fd
diff --git a/src/brew/terminal/router.py b/src/brew/terminal/router.py
index 018d3ec..8c5e803 100644
--- a/src/brew/terminal/router.py
+++ b/src/brew/terminal/router.py
@@ -1,41 +1,48 @@
-"""WebSocket endpoint at /api/terminal/ws."""
+"""WebSocket endpoint at /api/terminal/ws.
+
+Auth and feature-gating are enforced INLINE rather than via
+include_router(dependencies=[...]) — FastAPI silently 403s WS upgrades
+when deps are propagated through include_router, regardless of whether
+the deps actually raise. See PR commit history for the investigation.
+"""
 
 from __future__ import annotations
 
-from typing import TYPE_CHECKING, Annotated
+import os
 
-from fastapi import APIRouter, Depends, WebSocket, status
+from fastapi import APIRouter, WebSocket, status
 
 from brew.dependencies import get_settings
 from brew.terminal.dependencies import get_terminal_service
 
-if TYPE_CHECKING:
-    from brew.config import Settings
-    from brew.terminal.service import TerminalService
-
 router = APIRouter()
 
 
+def _terminal_enabled() -> bool:
+    chat = os.getenv("FELLOW_CHAT_ENABLED", "false").lower() == "true"
+    mcp = os.getenv("FELLOW_MCP_ENABLED", "false").lower() == "true"
+    return chat and mcp
+
+
 def _extract_api_key(ws: WebSocket) -> str | None:
     return ws.headers.get("x-api-key") or ws.query_params.get("api_key")
 
 
+def _api_key_valid(ws: WebSocket) -> bool:
+    expected = get_settings().api_key
+    if expected is None:
+        return True
+    provided = _extract_api_key(ws)
+    return provided is not None and provided == expected.get_secret_value()
+
+
 @router.websocket("/terminal/ws")
-async def terminal_ws(
-    ws: WebSocket,
-    service: Annotated[TerminalService, Depends(get_terminal_service)],
-    settings: Annotated[Settings, Depends(get_settings)],
-) -> None:
-    # Auth inline: include_router(dependencies=[...]) propagates deps to WS
-    # routes, but FastAPI's WS dependency resolver doesn't inject Header/Query
-    # parameters the same way HTTP does, so the shared `require_api_key` dep
-    # can't read the credential. Read directly from the WS scope instead.
-    if settings.api_key is not None:
-        provided = _extract_api_key(ws)
-        if provided is None or provided != settings.api_key.get_secret_value():
-            await ws.close(code=status.WS_1008_POLICY_VIOLATION)
-            return
+async def terminal_ws(ws: WebSocket) -> None:
+    if not _terminal_enabled() or not _api_key_valid(ws):
+        await ws.close(code=status.WS_1008_POLICY_VIOLATION)
+        return
 
+    service = get_terminal_service()
     await ws.accept()
     async with service.attached() as session:
         await session.run(ws)