diff --git a/CHANGELOG.md b/CHANGELOG.md
index 064f58d6..5f36efff 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## 0.0.13-beta.3 — 2026-07-13
+
+### Fixes
+- Fix the Pi live `pi list` roundtrip e2e tests against pi-coding-agent ≥0.80: newer Pi no longer trusts project-local `.pi/settings.json` by default, so the tests now detect the installed Pi version and pass `pi list --approve` on ≥0.80 (older Pi trusts project settings without the flag and would reject it) to include the project-scope package failproofai's installer writes (previously `pi list` printed "No packages installed." — failing the install roundtrip and making the uninstall roundtrip pass vacuously). Gated behind `detectPiVersion()`, so it only runs where `pi` is installed. (#491)
+
 ## 0.0.13-beta.2 — 2026-07-10
 
 ### Fixes
diff --git a/CLAUDE.md b/CLAUDE.md
index 37b7df1c..b5e98fd5 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -195,6 +195,17 @@ v0.72.1):
 Note: `~/.pi/settings.json` does NOT exist on a fresh install; user-scope
 settings live one level deeper under `~/.pi/agent/`.
 
+**Project-local trust (pi ≥0.80).** Newer Pi (verified against pi-coding-agent
+v0.80.3) no longer trusts a **project-local** `.pi/settings.json` by default:
+`pi list` gained a `--approve`/`-a` flag ("Trust project-local files for this
+command"), and without it project packages are silently ignored (`pi list`
+prints `No packages installed.`). User-scope packages
+(`~/.pi/agent/settings.json`) are always trusted. The live `pi list` roundtrip
+tests in `__tests__/e2e/hooks/pi-integration.e2e.test.ts` detect the installed
+Pi version and pass `--approve` only on ≥0.80 (older Pi trusts project files
+unconditionally and rejects the unknown flag), so they see the project-scope
+package failproofai's installer writes on either side of the cutoff.
+
 **Schema** is a flat string array — `{"packages": ["./relative/path", ...]}`.
 Each entry is a path Pi resolves relative to the directory containing
 `settings.json` (so `<cwd>/.pi/` for project scope). For dogfood we write
diff --git a/__tests__/e2e/hooks/pi-integration.e2e.test.ts b/__tests__/e2e/hooks/pi-integration.e2e.test.ts
index b0c64de9..fa630a80 100644
--- a/__tests__/e2e/hooks/pi-integration.e2e.test.ts
+++ b/__tests__/e2e/hooks/pi-integration.e2e.test.ts
@@ -52,15 +52,24 @@ function writeConfig(cwd: string, enabledPolicies: string[]): void {
   writeFileSync(configPath, JSON.stringify({ enabledPolicies }, null, 2));
 }
 
-function piIsAvailable(): boolean {
+function detectPiVersion(): string | null {
   try {
     const probe = spawnSync("pi", ["--version"], { encoding: "utf8", timeout: 5_000 });
-    return probe.status === 0;
+    if (probe.status !== 0) return null;
+    return probe.stdout.match(/\d+\.\d+\.\d+/)?.[0] ?? null;
   } catch {
-    return false;
+    return null;
   }
 }
 
+// pi ≥0.80 no longer trusts project-local .pi/settings.json by default —
+// `--approve` opts in per command. Older pi trusts it unconditionally and
+// rejects the (unknown) flag, so only pass it where it exists.
+function piListArgs(version: string): string[] {
+  const [major = 0, minor = 0] = version.split(".").map(Number);
+  return major > 0 || minor >= 80 ? ["list", "--approve"] : ["list"];
+}
+
 describe("E2E: Pi integration — hook protocol (handler-only)", () => {
   it("tool_call → PreToolUse: block-sudo emits {permission:'deny', reason}", () => {
     const env = createPiEnv();
@@ -432,8 +441,9 @@ describe("E2E: Pi integration — install/uninstall", () => {
 // Pi actually parses the settings.json failproofai writes.
 // ──────────────────────────────────────────────────────────────────────────
 
-const piPresent = piIsAvailable();
-const describePi = piPresent ? describe : describe.skip;
+const piVersion = detectPiVersion();
+const describePi = piVersion ? describe : describe.skip;
+const PI_LIST_ARGS = piVersion ? piListArgs(piVersion) : ["list"];
 
 describePi("E2E: Pi integration — live `pi list` roundtrip (real binary)", () => {
   it("after policies --install, `pi list` shows the failproofai entry", () => {
@@ -444,8 +454,10 @@ describePi("E2E: Pi integration — live `pi list` roundtrip (real binary)", ()
         { cwd: env.cwd, env: { ...process.env, HOME: env.home, FAILPROOFAI_TELEMETRY_DISABLED: "1", FAILPROOFAI_BINARY_OVERRIDE: BINARY_PATH } },
       );
       // Run `pi list` under the fixture HOME so it doesn't pick up the
-      // developer's real ~/.pi/agent/settings.json state.
-      const result = spawnSync("pi", ["list"], {
+      // developer's real ~/.pi/agent/settings.json state. PI_LIST_ARGS adds
+      // `--approve` on pi ≥0.80 so `pi list` includes the project package
+      // we wrote (older pi trusts project settings without it).
+      const result = spawnSync("pi", PI_LIST_ARGS, {
         cwd: env.cwd,
         encoding: "utf8",
         env: { ...process.env, HOME: env.home },
@@ -469,7 +481,11 @@ describePi("E2E: Pi integration — live `pi list` roundtrip (real binary)", ()
         `bun ${BINARY_PATH} policies --uninstall --cli pi --scope project`,
         { cwd: env.cwd, env: baseEnv },
       );
-      const result = spawnSync("pi", ["list"], {
+      // PI_LIST_ARGS: on pi ≥0.80 `pi list` needs `--approve` to read the
+      // project-local .pi/settings.json (see the install roundtrip above).
+      // Without it, it prints "No packages installed." unconditionally,
+      // making this negative assertion pass vacuously.
+      const result = spawnSync("pi", PI_LIST_ARGS, {
         cwd: env.cwd,
         encoding: "utf8",
         env: { ...process.env, HOME: env.home },