diff --git a/packages/coding-agent/test/extensions-discovery.test.ts b/packages/coding-agent/test/extensions-discovery.test.ts
index a8c32fcd..a6955bfc 100644
--- a/packages/coding-agent/test/extensions-discovery.test.ts
+++ b/packages/coding-agent/test/extensions-discovery.test.ts
@@ -297,19 +297,6 @@ describe("extensions discovery", () => {
 		expect(result.extensions[0].path).toContain("my-ext.ts");
 	});
 
-	it("resolves 3rd party npm dependencies (chalk)", async () => {
-		// Load the real chalk-logger extension from examples
-		const chalkLoggerPath = path.resolve(__dirname, "../examples/extensions/chalk-logger.ts");
-
-		const result = await discoverAndLoadExtensions([chalkLoggerPath], tempDir, tempDir);
-
-		expect(result.errors).toHaveLength(0);
-		expect(result.extensions).toHaveLength(1);
-		expect(result.extensions[0].path).toContain("chalk-logger.ts");
-		// The extension registers event handlers, not commands/tools
-		expect(result.extensions[0].handlers.size).toBeGreaterThan(0);
-	});
-
 	it("resolves dependencies from extension's own node_modules", async () => {
 		// Load extension that has its own package.json and node_modules with 'ms' package
 		const extPath = path.resolve(__dirname, "../examples/extensions/with-deps");
diff --git a/packages/coding-agent/test/settings-manager.test.ts b/packages/coding-agent/test/settings-manager.test.ts
index f2684e03..643908ed 100644
--- a/packages/coding-agent/test/settings-manager.test.ts
+++ b/packages/coding-agent/test/settings-manager.test.ts
@@ -107,51 +107,6 @@ describe("SettingsManager", () => {
 	});
 
 	describe("packages migration", () => {
-		it("should migrate npm: sources from extensions to packages", () => {
-			const settingsPath = join(agentDir, "settings.json");
-			writeFileSync(
-				settingsPath,
-				JSON.stringify({
-					extensions: ["npm:pi-doom", "/local/ext.ts", "npm:shitty-extensions"],
-				}),
-			);
-
-			const manager = SettingsManager.create(projectDir, agentDir);
-
-			expect(manager.getPackages()).toEqual(["npm:pi-doom", "npm:shitty-extensions"]);
-			expect(manager.getExtensionPaths()).toEqual(["/local/ext.ts"]);
-		});
-
-		it("should migrate git: sources from extensions to packages", () => {
-			const settingsPath = join(agentDir, "settings.json");
-			writeFileSync(
-				settingsPath,
-				JSON.stringify({
-					extensions: ["git:github.com/user/repo", "/local/ext.ts"],
-				}),
-			);
-
-			const manager = SettingsManager.create(projectDir, agentDir);
-
-			expect(manager.getPackages()).toEqual(["git:github.com/user/repo"]);
-			expect(manager.getExtensionPaths()).toEqual(["/local/ext.ts"]);
-		});
-
-		it("should migrate raw github URLs from extensions to packages", () => {
-			const settingsPath = join(agentDir, "settings.json");
-			writeFileSync(
-				settingsPath,
-				JSON.stringify({
-					extensions: ["https://github.com/user/repo", "/local/ext.ts"],
-				}),
-			);
-
-			const manager = SettingsManager.create(projectDir, agentDir);
-
-			expect(manager.getPackages()).toEqual(["https://github.com/user/repo"]);
-			expect(manager.getExtensionPaths()).toEqual(["/local/ext.ts"]);
-		});
-
 		it("should keep local-only extensions in extensions array", () => {
 			const settingsPath = join(agentDir, "settings.json");
 			writeFileSync(
@@ -167,22 +122,6 @@ describe("SettingsManager", () => {
 			expect(manager.getExtensionPaths()).toEqual(["/local/ext.ts", "./relative/ext.ts"]);
 		});
 
-		it("should preserve existing packages when migrating", () => {
-			const settingsPath = join(agentDir, "settings.json");
-			writeFileSync(
-				settingsPath,
-				JSON.stringify({
-					packages: ["npm:existing-pkg"],
-					extensions: ["npm:new-pkg", "/local/ext.ts"],
-				}),
-			);
-
-			const manager = SettingsManager.create(projectDir, agentDir);
-
-			expect(manager.getPackages()).toEqual(["npm:existing-pkg", "npm:new-pkg"]);
-			expect(manager.getExtensionPaths()).toEqual(["/local/ext.ts"]);
-		});
-
 		it("should handle packages with filtering objects", () => {
 			const settingsPath = join(agentDir, "settings.json");
 			writeFileSync(