diff --git a/extensions/git/README.md b/extensions/git/README.md
index 9ec18cb54..a6986dee3 100644
--- a/extensions/git/README.md
+++ b/extensions/git/README.md
@@ -32,20 +32,6 @@ Configuration is stored in `.specify/extensions/git/git-config.yml`:
 ```yaml
 # Branch numbering strategy: "sequential" or "timestamp"
 branch_numbering: sequential
-
-# Branch name template
-branch_template: "{number}-{short_name}"
-
-# Whether to fetch remotes before computing next branch number
-auto_fetch: true
-```
-
-### Environment Variable Override
-
-Set `SPECKIT_GIT_BRANCH_NUMBERING` to override the `branch_numbering` config value:
-
-```bash
-export SPECKIT_GIT_BRANCH_NUMBERING=timestamp
 ```
 
 ## Installation
diff --git a/extensions/git/config-template.yml b/extensions/git/config-template.yml
index 95b3960d2..9873689ed 100644
--- a/extensions/git/config-template.yml
+++ b/extensions/git/config-template.yml
@@ -3,10 +3,3 @@
 
 # Branch numbering strategy: "sequential" (001, 002, ...) or "timestamp" (YYYYMMDD-HHMMSS)
 branch_numbering: sequential
-
-# Branch name template (used with sequential numbering)
-# Available placeholders: {number}, {short_name}
-branch_template: "{number}-{short_name}"
-
-# Whether to run `git fetch --all --prune` before computing the next branch number
-auto_fetch: true
diff --git a/extensions/git/extension.yml b/extensions/git/extension.yml
index ab5b68ea1..dab006fa8 100644
--- a/extensions/git/extension.yml
+++ b/extensions/git/extension.yml
@@ -45,5 +45,3 @@ tags:
 
 defaults:
   branch_numbering: sequential
-  branch_template: "{number}-{short_name}"
-  auto_fetch: true
diff --git a/extensions/git/scripts/bash/create-new-feature.sh b/extensions/git/scripts/bash/create-new-feature.sh
index b2d06564a..584b33e61 100644
--- a/extensions/git/scripts/bash/create-new-feature.sh
+++ b/extensions/git/scripts/bash/create-new-feature.sh
@@ -176,21 +176,39 @@ clean_branch_name() {
 # were initialised with --no-git.
 SCRIPT_DIR="$(CDPATH="" cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 
-# Source common.sh: try the core scripts directory first (standard layout),
-# then fall back to the extension's sibling copy.
+# Source common.sh using the following priority:
+#  1. common.sh next to this script (source checkout layout)
+#  2. .specify/scripts/bash/common.sh under the project root (installed project)
+#  3. scripts/bash/common.sh under the project root (source checkout fallback)
+#  4. git-common.sh next to this script (minimal fallback)
+_common_loaded=false
+
 if [ -f "$SCRIPT_DIR/common.sh" ]; then
     source "$SCRIPT_DIR/common.sh"
+    _common_loaded=true
 else
     # When running from an extension install (.specify/extensions/git/scripts/bash/),
-    # resolve common.sh from the project's core scripts directory.
-    _ext_repo_root="$(cd "$SCRIPT_DIR/../../../../.." 2>/dev/null && pwd)"
-    if [ -f "$_ext_repo_root/scripts/bash/common.sh" ]; then
-        source "$_ext_repo_root/scripts/bash/common.sh"
+    # resolve to .specify/ (4 levels up), then to the project root (5 levels up).
+    _dot_specify="$(cd "$SCRIPT_DIR/../../../.." 2>/dev/null && pwd)"
+    _project_root="$(cd "$SCRIPT_DIR/../../../../.." 2>/dev/null && pwd)"
+
+    if [ -n "$_dot_specify" ] && [ -f "$_dot_specify/scripts/bash/common.sh" ]; then
+        source "$_dot_specify/scripts/bash/common.sh"
+        _common_loaded=true
+    elif [ -n "$_project_root" ] && [ -f "$_project_root/scripts/bash/common.sh" ]; then
+        source "$_project_root/scripts/bash/common.sh"
+        _common_loaded=true
     elif [ -f "$SCRIPT_DIR/git-common.sh" ]; then
         source "$SCRIPT_DIR/git-common.sh"
+        _common_loaded=true
     fi
 fi
 
+if [ "$_common_loaded" != "true" ]; then
+    echo "Error: Could not locate common.sh or git-common.sh. Please ensure the Specify core scripts are installed." >&2
+    exit 1
+fi
+
 if git rev-parse --show-toplevel >/dev/null 2>&1; then
     REPO_ROOT=$(git rev-parse --show-toplevel)
     HAS_GIT=true
diff --git a/extensions/git/scripts/powershell/create-new-feature.ps1 b/extensions/git/scripts/powershell/create-new-feature.ps1
index 76831d3ae..a2cd6ee02 100644
--- a/extensions/git/scripts/powershell/create-new-feature.ps1
+++ b/extensions/git/scripts/powershell/create-new-feature.ps1
@@ -146,20 +146,37 @@ if (-not $fallbackRoot) {
 }
 
 # Load common functions (includes Resolve-Template).
-# Try the core scripts directory first (standard layout), then fall back
-# to the extension's sibling copy.
+# Search locations in priority order:
+#  1. common.ps1 next to this script (source checkout layout)
+#  2. .specify/scripts/powershell/common.ps1 under the project root (installed project)
+#  3. scripts/powershell/common.ps1 under the project root (source checkout fallback)
+#  4. git-common.ps1 next to this script (minimal fallback)
+$commonLoaded = $false
+
 if (Test-Path "$PSScriptRoot/common.ps1") {
     . "$PSScriptRoot/common.ps1"
+    $commonLoaded = $true
 } else {
-    # When running from an extension install (.specify/extensions/git/scripts/powershell/),
-    # resolve common.ps1 from the project's core scripts directory.
-    $extRepoRoot = (Resolve-Path (Join-Path $PSScriptRoot "../../../../..") -ErrorAction SilentlyContinue)
-    $coreCommon = if ($extRepoRoot) { Join-Path $extRepoRoot "scripts/powershell/common.ps1" } else { "" }
-    if ($coreCommon -and (Test-Path $coreCommon)) {
-        . $coreCommon
-    } elseif (Test-Path "$PSScriptRoot/git-common.ps1") {
-        . "$PSScriptRoot/git-common.ps1"
+    $coreCommonCandidates = @()
+
+    if ($fallbackRoot) {
+        $coreCommonCandidates += (Join-Path $fallbackRoot ".specify/scripts/powershell/common.ps1")
+        $coreCommonCandidates += (Join-Path $fallbackRoot "scripts/powershell/common.ps1")
     }
+
+    $coreCommonCandidates += "$PSScriptRoot/git-common.ps1"
+
+    foreach ($candidate in $coreCommonCandidates) {
+        if ($candidate -and (Test-Path $candidate)) {
+            . $candidate
+            $commonLoaded = $true
+            break
+        }
+    }
+}
+
+if (-not $commonLoaded) {
+    throw "Unable to locate common script file. Please ensure the Specify core scripts are installed."
 }
 
 try {
diff --git a/src/specify_cli/__init__.py b/src/specify_cli/__init__.py
index e6a7fde58..d8e408297 100644
--- a/src/specify_cli/__init__.py
+++ b/src/specify_cli/__init__.py
@@ -1195,7 +1195,7 @@ def _install_bundled_git_extension(project_path: Path) -> bool:
         return False
 
     try:
-        from .extensions import ExtensionManager, ExtensionError
+        from .extensions import ExtensionManager
         manager = ExtensionManager(project_path)
 
         # Skip if already installed (e.g. via preset)
diff --git a/templates/commands/specify.md b/templates/commands/specify.md
index 537876185..d0bbdfb95 100644
--- a/templates/commands/specify.md
+++ b/templates/commands/specify.md
@@ -73,14 +73,28 @@ Given that feature description, do this:
      - "Create a dashboard for analytics" → "analytics-dashboard"
      - "Fix payment processing timeout bug" → "fix-payment-timeout"
 
-2. **Create the feature branch** by running the script with `--short-name` (and `--json`). In sequential mode, do NOT pass `--number` — the script auto-detects the next available number. In timestamp mode, the script generates a `YYYYMMDD-HHMMSS` prefix automatically:
+2. **Create the feature branch** (unless already handled by a `before_specify` hook — see Pre-Execution Checks above). If a mandatory `before_specify` hook for `speckit.git.feature` already executed and created the branch, **skip this step entirely** and use the branch/spec information from the hook result. Otherwise:
 
    **Git extension check**: Before running the branch creation script, check if the git extension is enabled:
    - Check if `.specify/extensions/.registry` exists (a single JSON file tracking all extensions)
    - If it exists, read the JSON and look for `extensions.git`; verify its `"enabled"` field is `true` (or not explicitly `false`)
-   - If the git extension is **disabled** (explicitly `"enabled": false`), **skip branch creation entirely** — proceed directly to step 3 using a spec directory name derived from the short name (e.g., `specs/<short-name>/`)
+   - If the git extension is **disabled** (explicitly `"enabled": false`), **skip branch creation entirely** — do **not** run the branch creation script. Instead:
+     - Derive a spec directory name from the short name, e.g. `specs/<short-name>/`
+     - Explicitly set the following variables so later steps can use them:
+       - `FEATURE_DIR="specs/<short-name>"`
+       - `SPEC_FILE="$FEATURE_DIR/spec.md"`
+     - Ensure the directory and spec file exist:
+       - Bash:
+         - `mkdir -p "$FEATURE_DIR"`
+         - `: > "$SPEC_FILE"`
+       - PowerShell:
+         - `New-Item -ItemType Directory -Path $env:FEATURE_DIR -Force | Out-Null`
+         - `New-Item -ItemType File -Path $env:SPEC_FILE -Force | Out-Null`
+     - Then proceed directly to step 3 using `FEATURE_DIR` and `SPEC_FILE`
    - If the registry file does not exist, proceed with branch creation using the default behavior (backward compatibility)
 
+   Run the script with `--short-name` (and `--json`). In sequential mode, do NOT pass `--number` — the script auto-detects the next available number. In timestamp mode, the script generates a `YYYYMMDD-HHMMSS` prefix automatically:
+
    **Branch numbering mode**: Before running the script, determine the branch numbering strategy:
    1. Check `.specify/extensions/git/git-config.yml` for `branch_numbering` value (extension config takes precedence)
    2. If not found, check `.specify/init-options.json` for `branch_numbering` value (backward compatibility)
@@ -89,8 +103,8 @@ Given that feature description, do this:
    - If `"sequential"` or absent, do not add any extra flag (default behavior)
 
    **Script resolution**: Use the extension's bundled scripts when available, falling back to core scripts:
-   - If `.specify/extensions/git/scripts/bash/create-new-feature.sh` exists, use it
-   - Otherwise, fall back to `{SCRIPT}`
+   - **Bash**: If `.specify/extensions/git/scripts/bash/create-new-feature.sh` exists, use it; otherwise, fall back to `{SCRIPT}`
+   - **PowerShell**: If `.specify/extensions/git/scripts/powershell/create-new-feature.ps1` exists, use it; otherwise, fall back to `{SCRIPT}`
 
    - Bash example: `{SCRIPT} --json --short-name "user-auth" "Add user authentication"`
    - Bash (timestamp): `{SCRIPT} --json --timestamp --short-name "user-auth" "Add user authentication"`
diff --git a/tests/test_branch_numbering.py b/tests/test_branch_numbering.py
index 74eadf22e..d521d311a 100644
--- a/tests/test_branch_numbering.py
+++ b/tests/test_branch_numbering.py
@@ -87,3 +87,54 @@ class TestBranchNumberingValidation:
         result = runner.invoke(app, ["init", str(tmp_path / "proj"), "--ai", "claude", "--branch-numbering", "timestamp", "--ignore-agent-tools"])
         assert result.exit_code == 0
         assert "Invalid --branch-numbering" not in (result.output or "")
+
+
+class TestGitExtensionAutoInstall:
+    """Tests for bundled git extension auto-install during specify init."""
+
+    def test_git_extension_installed_during_init(self, tmp_path: Path, monkeypatch):
+        """verify that `specify init` auto-installs the bundled git extension."""
+        from typer.testing import CliRunner
+        from specify_cli import app
+
+        def _fake_download(project_path, *args, **kwargs):
+            Path(project_path).mkdir(parents=True, exist_ok=True)
+
+        monkeypatch.setattr("specify_cli.download_and_extract_template", _fake_download)
+
+        project_dir = tmp_path / "proj"
+        runner = CliRunner()
+        result = runner.invoke(app, ["init", str(project_dir), "--ai", "claude", "--ignore-agent-tools"])
+        assert result.exit_code == 0
+
+        # Extension files should exist
+        ext_dir = project_dir / ".specify" / "extensions" / "git"
+        assert ext_dir.is_dir(), "git extension directory not created"
+        assert (ext_dir / "extension.yml").is_file(), "extension.yml not installed"
+
+        # Registry should contain the git extension
+        registry_file = project_dir / ".specify" / "extensions" / ".registry"
+        assert registry_file.is_file(), "extension registry not created"
+        registry = json.loads(registry_file.read_text())
+        assert "git" in registry.get("extensions", {}), "git not in registry"
+        assert registry["extensions"]["git"]["enabled"] is True
+
+    def test_git_extension_noop_when_already_installed(self, tmp_path: Path):
+        """_install_bundled_git_extension should no-op if git is already installed."""
+        from specify_cli import _install_bundled_git_extension
+        from specify_cli.extensions import ExtensionManager
+
+        project_dir = tmp_path / "proj"
+        (project_dir / ".specify").mkdir(parents=True)
+
+        # First install
+        result1 = _install_bundled_git_extension(project_dir)
+        assert result1 is True
+
+        # Second install should also succeed (no-op)
+        result2 = _install_bundled_git_extension(project_dir)
+        assert result2 is True
+
+        # Only one entry in registry
+        manager = ExtensionManager(project_dir)
+        assert manager.registry.is_installed("git")