diff --git a/apps/server/src/lib/sdk-options.ts b/apps/server/src/lib/sdk-options.ts
index 85dc3eb3..e7fc3578 100644
--- a/apps/server/src/lib/sdk-options.ts
+++ b/apps/server/src/lib/sdk-options.ts
@@ -173,18 +173,6 @@ function buildClaudeMdOptions(config: CreateSdkOptionsConfig): {
     result.systemPrompt.append = config.systemPrompt;
   }
 
-  console.log(
-    '[SDK Options] CLAUDE.md auto-loading enabled:',
-    JSON.stringify(
-      {
-        systemPrompt: result.systemPrompt,
-        settingSources: result.settingSources,
-      },
-      null,
-      2
-    )
-  );
-
   return result;
 }
 
diff --git a/apps/server/src/lib/settings-helpers.ts b/apps/server/src/lib/settings-helpers.ts
index 9bf48361..477c81ec 100644
--- a/apps/server/src/lib/settings-helpers.ts
+++ b/apps/server/src/lib/settings-helpers.ts
@@ -15,7 +15,7 @@ import type { SettingsService } from '../services/settings-service.js';
  */
 export async function getAutoLoadClaudeMdSetting(
   projectPath: string,
-  settingsService?: SettingsService,
+  settingsService?: SettingsService | null,
   logPrefix = '[SettingsHelper]'
 ): Promise<boolean> {
   if (!settingsService) {
@@ -40,6 +40,6 @@ export async function getAutoLoadClaudeMdSetting(
     return result;
   } catch (error) {
     console.error(`${logPrefix} Failed to load autoLoadClaudeMd setting:`, error);
-    return false;
+    throw error;
   }
 }
diff --git a/apps/server/src/services/agent-service.ts b/apps/server/src/services/agent-service.ts
index e25efebe..e5402424 100644
--- a/apps/server/src/services/agent-service.ts
+++ b/apps/server/src/services/agent-service.ts
@@ -17,6 +17,7 @@ import { ProviderFactory } from '../providers/provider-factory.js';
 import { createChatOptions, validateWorkingDirectory } from '../lib/sdk-options.js';
 import { PathNotAllowedError } from '@automaker/platform';
 import type { SettingsService } from './settings-service.js';
+import { getAutoLoadClaudeMdSetting } from '../lib/settings-helpers.js';
 
 interface Message {
   id: string;
@@ -190,7 +191,11 @@ export class AgentService {
       const effectiveWorkDir = workingDirectory || session.workingDirectory;
 
       // Load autoLoadClaudeMd setting (project setting takes precedence over global)
-      const autoLoadClaudeMd = await this.getAutoLoadClaudeMdSetting(effectiveWorkDir);
+      const autoLoadClaudeMd = await getAutoLoadClaudeMdSetting(
+        effectiveWorkDir,
+        this.settingsService,
+        '[AgentService]'
+      );
 
       // Load project context files (CLAUDE.md, CODE_QUALITY.md, etc.)
       // Note: When autoLoadClaudeMd is enabled, SDK handles CLAUDE.md loading via settingSources
@@ -604,37 +609,6 @@ You have full access to the codebase and can:
 - Execute tests and builds`;
   }
 
-  /**
-   * Get the autoLoadClaudeMd setting, with project settings taking precedence over global.
-   * Returns false if settings service is not available.
-   */
-  private async getAutoLoadClaudeMdSetting(projectPath: string): Promise<boolean> {
-    if (!this.settingsService) {
-      console.log('[AgentService] SettingsService not available, autoLoadClaudeMd disabled');
-      return false;
-    }
-
-    try {
-      // Check project settings first (takes precedence)
-      const projectSettings = await this.settingsService.getProjectSettings(projectPath);
-      if (projectSettings.autoLoadClaudeMd !== undefined) {
-        console.log(
-          `[AgentService] autoLoadClaudeMd from project settings: ${projectSettings.autoLoadClaudeMd}`
-        );
-        return projectSettings.autoLoadClaudeMd;
-      }
-
-      // Fall back to global settings
-      const globalSettings = await this.settingsService.getGlobalSettings();
-      const result = globalSettings.autoLoadClaudeMd ?? false;
-      console.log(`[AgentService] autoLoadClaudeMd from global settings: ${result}`);
-      return result;
-    } catch (error) {
-      console.error('[AgentService] Failed to load autoLoadClaudeMd setting:', error);
-      return false;
-    }
-  }
-
   private generateId(): string {
     return `msg_${Date.now()}_${Math.random().toString(36).substring(2, 11)}`;
   }
diff --git a/apps/server/src/services/auto-mode-service.ts b/apps/server/src/services/auto-mode-service.ts
index af9ef746..83fb3feb 100644
--- a/apps/server/src/services/auto-mode-service.ts
+++ b/apps/server/src/services/auto-mode-service.ts
@@ -32,6 +32,7 @@ import {
 } from '../lib/sdk-options.js';
 import { FeatureLoader } from './feature-loader.js';
 import type { SettingsService } from './settings-service.js';
+import { getAutoLoadClaudeMdSetting } from '../lib/settings-helpers.js';
 
 const execAsync = promisify(exec);
 
@@ -1100,7 +1101,11 @@ Format your response as a structured markdown document.`;
       const provider = ProviderFactory.getProviderForModel(analysisModel);
 
       // Load autoLoadClaudeMd setting
-      const autoLoadClaudeMd = await this.getAutoLoadClaudeMdSetting(projectPath);
+      const autoLoadClaudeMd = await getAutoLoadClaudeMdSetting(
+        projectPath,
+        this.settingsService,
+        '[AutoMode]'
+      );
 
       // Use createCustomOptions for centralized SDK configuration with CLAUDE.md support
       const sdkOptions = createCustomOptions({
@@ -1797,7 +1802,11 @@ This mock response was generated because AUTOMAKER_MOCK_AGENT=true was set.
     }
 
     // Load autoLoadClaudeMd setting (project setting takes precedence over global)
-    const autoLoadClaudeMd = await this.getAutoLoadClaudeMdSetting(finalProjectPath);
+    const autoLoadClaudeMd = await getAutoLoadClaudeMdSetting(
+      finalProjectPath,
+      this.settingsService,
+      '[AutoMode]'
+    );
 
     // Build SDK options using centralized configuration for feature implementation
     const sdkOptions = createAutoModeOptions({
@@ -2515,35 +2524,4 @@ Begin implementing task ${task.id} now.`;
       }
     });
   }
-
-  /**
-   * Get the autoLoadClaudeMd setting, with project settings taking precedence over global.
-   * Returns false if settings service is not available.
-   */
-  private async getAutoLoadClaudeMdSetting(projectPath: string): Promise<boolean> {
-    if (!this.settingsService) {
-      console.log('[AutoMode] SettingsService not available, autoLoadClaudeMd disabled');
-      return false;
-    }
-
-    try {
-      // Check project settings first (takes precedence)
-      const projectSettings = await this.settingsService.getProjectSettings(projectPath);
-      if (projectSettings.autoLoadClaudeMd !== undefined) {
-        console.log(
-          `[AutoMode] autoLoadClaudeMd from project settings: ${projectSettings.autoLoadClaudeMd}`
-        );
-        return projectSettings.autoLoadClaudeMd;
-      }
-
-      // Fall back to global settings
-      const globalSettings = await this.settingsService.getGlobalSettings();
-      const result = globalSettings.autoLoadClaudeMd ?? false;
-      console.log(`[AutoMode] autoLoadClaudeMd from global settings: ${result}`);
-      return result;
-    } catch (error) {
-      console.error('[AutoMode] Failed to load autoLoadClaudeMd setting:', error);
-      return false;
-    }
-  }
 }