diff --git a/packages/coding-agent/src/core/package-manager.ts b/packages/coding-agent/src/core/package-manager.ts
index 1ee3db55..41021532 100644
--- a/packages/coding-agent/src/core/package-manager.ts
+++ b/packages/coding-agent/src/core/package-manager.ts
@@ -5,6 +5,7 @@ import { homedir, tmpdir } from "node:os";
 import { basename, dirname, join, relative, resolve } from "node:path";
 import { minimatch } from "minimatch";
 import { CONFIG_DIR_NAME } from "../config.js";
+import { looksLikeGitUrl } from "../utils/git.js";
 import type { PackageSource, SettingsManager } from "./settings-manager.js";
 
 export interface PathMetadata {
@@ -522,7 +523,7 @@ export class DefaultPackageManager implements PackageManager {
 			};
 		}
 
-		if (source.startsWith("git:") || this.looksLikeGitUrl(source)) {
+		if (source.startsWith("git:") || looksLikeGitUrl(source)) {
 			const repoSpec = source.startsWith("git:") ? source.slice("git:".length).trim() : source;
 			const [repo, ref] = repoSpec.split("@");
 			const normalized = repo.replace(/^https?:\/\//, "").replace(/\.git$/, "");
@@ -542,12 +543,6 @@ export class DefaultPackageManager implements PackageManager {
 		return { type: "local", path: source };
 	}
 
-	private looksLikeGitUrl(source: string): boolean {
-		const gitHosts = ["github.com", "gitlab.com", "bitbucket.org", "codeberg.org"];
-		const normalized = source.replace(/^https?:\/\//, "");
-		return gitHosts.some((host) => normalized.startsWith(`${host}/`));
-	}
-
 	/**
 	 * Get a unique identity for a package, ignoring version/ref.
 	 * Used to detect when the same package is in both global and project settings.
diff --git a/packages/coding-agent/src/core/settings-manager.ts b/packages/coding-agent/src/core/settings-manager.ts
index acdf8e8d..dfc75826 100644
--- a/packages/coding-agent/src/core/settings-manager.ts
+++ b/packages/coding-agent/src/core/settings-manager.ts
@@ -195,39 +195,9 @@ export class SettingsManager {
 			}
 		}
 
-		// Migrate npm:/git: sources from extensions array to packages array
-		if (Array.isArray(settings.extensions)) {
-			const localExtensions: string[] = [];
-			const packageSources: string[] = [];
-
-			for (const ext of settings.extensions) {
-				if (typeof ext !== "string") continue;
-				if (ext.startsWith("npm:") || ext.startsWith("git:") || SettingsManager.looksLikeGitUrl(ext)) {
-					packageSources.push(ext);
-				} else {
-					localExtensions.push(ext);
-				}
-			}
-
-			if (packageSources.length > 0) {
-				const existingPackages = Array.isArray(settings.packages) ? settings.packages : [];
-				settings.packages = [...existingPackages, ...packageSources];
-				settings.extensions = localExtensions.length > 0 ? localExtensions : undefined;
-				if (settings.extensions === undefined) {
-					delete settings.extensions;
-				}
-			}
-		}
-
 		return settings as Settings;
 	}
 
-	private static looksLikeGitUrl(source: string): boolean {
-		const gitHosts = ["github.com", "gitlab.com", "bitbucket.org", "codeberg.org"];
-		const normalized = source.replace(/^https?:\/\//, "");
-		return gitHosts.some((host) => normalized.startsWith(`${host}/`));
-	}
-
 	private loadProjectSettings(): Settings {
 		// In-memory mode: return stored in-memory project settings
 		if (!this.persist) {
diff --git a/packages/coding-agent/src/utils/git.ts b/packages/coding-agent/src/utils/git.ts
new file mode 100644
index 00000000..30363c32
--- /dev/null
+++ b/packages/coding-agent/src/utils/git.ts
@@ -0,0 +1,6 @@
+const GIT_HOSTS = ["github.com", "gitlab.com", "bitbucket.org", "codeberg.org"];
+
+export function looksLikeGitUrl(source: string): boolean {
+	const normalized = source.replace(/^https?:\/\//, "");
+	return GIT_HOSTS.some((host) => normalized.startsWith(`${host}/`));
+}