diff --git a/.agents/plugins/marketplace.json b/.agents/plugins/marketplace.json
index d7bff5f..8c88745 100644
--- a/.agents/plugins/marketplace.json
+++ b/.agents/plugins/marketplace.json
@@ -6,7 +6,7 @@
   "plugins": [
     {
       "name": "simulator",
-      "version": "2.4.0",
+      "version": "2.4.1",
       "source": {
         "source": "local",
         "path": "./plugins/simulator"
diff --git a/.claude-plugin/marketplace.json b/.claude-plugin/marketplace.json
index 4179577..16ef33a 100644
--- a/.claude-plugin/marketplace.json
+++ b/.claude-plugin/marketplace.json
@@ -9,7 +9,7 @@
       "name": "simulator",
       "source": "./plugins/simulator",
       "description": "Simulator.Company platform assistant. Exposes the Simulator REST API as an MCP server and provides skills for managing actors, forms, graph structures, and financial accounts.",
-      "version": "2.4.0",
+      "version": "2.4.1",
       "author": {
         "name": "Simulator.Company",
         "url": "https://simulator.company"
diff --git a/.gitignore b/.gitignore
index 00e45be..d49606c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -18,3 +18,7 @@ dump.rdb
 # Runtime overlays under .kiro/ are generated from the canonical skills tree —
 # committing them would only invite drift.
 /dist/
+
+# Kiro
+.env
+.kiro
diff --git a/CHANGELOG.md b/CHANGELOG.md
index e1ef795..2b446fa 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## [2.4.1]
+
+### Fixed
+- **Kiro MCP server path resolution in a dev checkout.** `.mcp.kiro.json`'s `${KIRO_PLUGIN_ROOT:-$PWD/.kiro/..}` fallback resolved to the repo root (not `plugins/simulator/`) when a developer opened the repo directly in Kiro without running `install-kiro.sh`, so the server tried (and failed) to run `<repo>/mcp-server/run.sh`. It now probes for `mcp-server/run.sh` at that path and falls back to `plugins/simulator/` when missing. `install-kiro.sh` also now `sed`-resolves the same fallback to the absolute plugin path when generating a workspace's `mcp.json`, instead of a plain copy, so an external workspace's config no longer depends on `KIRO_PLUGIN_ROOT` at all. README's Kiro install instructions updated to match.
+
 ## [2.4.0]
 
 ### Added
diff --git a/README.md b/README.md
index 529c0c1..2b266d9 100644
--- a/README.md
+++ b/README.md
@@ -90,10 +90,10 @@ Kiro has no marketplace command and does not resolve the `$CLAUDE_PLUGIN_ROOT` t
 ```bash
 git clone https://github.com/corezoid/simulator-ai-plugin
 cd simulator-ai-plugin
-plugins/simulator/scripts/install-kiro.sh [workspace-dir]   # defaults to $KIRO_WORKSPACE_DIR or the current dir
+sh plugins/simulator/scripts/install-kiro.sh .   # installs into the current dir; pass another workspace-dir instead of `.` to target elsewhere
 ```
 
-This writes the MCP entry to `<workspace>/.kiro/settings/mcp.json`, symlinks the steering file into `.kiro/steering/`, and hard-copies each skill into `.kiro/skills/<name>/` with `$CLAUDE_PLUGIN_ROOT` replaced by the absolute plugin path. Open the workspace in Kiro and the MCP server, skills, and steering are picked up automatically. The plugin is also published to [kiro.dev/powers](https://kiro.dev/powers) — see [`POWER.md`](POWER.md).
+This writes the MCP entry to `<workspace>/.kiro/settings/mcp.json` with the plugin path resolved to an absolute path (no reliance on `KIRO_PLUGIN_ROOT` or workspace layout), symlinks the steering file into `.kiro/steering/`, and hard-copies each skill into `.kiro/skills/<name>/` with `$CLAUDE_PLUGIN_ROOT` replaced the same way. Open the workspace in Kiro and the MCP server, skills, and steering are picked up automatically. `.mcp.kiro.json` also self-heals if Kiro loads it directly without the script ever having run — it probes for `mcp-server/run.sh` next to its workspace-root guess and falls back to `plugins/simulator/` when that guess misses. The plugin is also published to [kiro.dev/powers](https://kiro.dev/powers) — see [`POWER.md`](POWER.md).
 
 ### Updating
 
diff --git a/plugins/simulator/.claude-plugin/plugin.json b/plugins/simulator/.claude-plugin/plugin.json
index fc8c0bb..84a14ab 100644
--- a/plugins/simulator/.claude-plugin/plugin.json
+++ b/plugins/simulator/.claude-plugin/plugin.json
@@ -1,6 +1,6 @@
 {
   "name": "simulator",
-  "version": "2.4.0",
+  "version": "2.4.1",
   "description": "Simulator.Company platform assistant. Exposes the Simulator REST API as an MCP server and provides skills for managing actors, forms, graph structures, and financial accounts.",
   "author": {
     "name": "Simulator.Company",
diff --git a/plugins/simulator/.codex-plugin/plugin.json b/plugins/simulator/.codex-plugin/plugin.json
index fc8c0bb..84a14ab 100644
--- a/plugins/simulator/.codex-plugin/plugin.json
+++ b/plugins/simulator/.codex-plugin/plugin.json
@@ -1,6 +1,6 @@
 {
   "name": "simulator",
-  "version": "2.4.0",
+  "version": "2.4.1",
   "description": "Simulator.Company platform assistant. Exposes the Simulator REST API as an MCP server and provides skills for managing actors, forms, graph structures, and financial accounts.",
   "author": {
     "name": "Simulator.Company",
diff --git a/plugins/simulator/.kiro-plugin/plugin.json b/plugins/simulator/.kiro-plugin/plugin.json
index 246e9ac..4d8b26a 100644
--- a/plugins/simulator/.kiro-plugin/plugin.json
+++ b/plugins/simulator/.kiro-plugin/plugin.json
@@ -1,6 +1,6 @@
 {
   "name": "simulator",
-  "version": "2.4.0",
+  "version": "2.4.1",
   "description": "Simulator.Company platform assistant. Exposes the Simulator REST API as an MCP server and provides skills for managing actors, forms, graph structures, and financial accounts.",
   "author": {
     "name": "Simulator.Company",
diff --git a/plugins/simulator/.mcp.kiro.json b/plugins/simulator/.mcp.kiro.json
index 28b18a8..9e42a69 100644
--- a/plugins/simulator/.mcp.kiro.json
+++ b/plugins/simulator/.mcp.kiro.json
@@ -2,7 +2,7 @@
   "mcpServers": {
     "simulator": {
       "command": "sh",
-      "args": ["-c", "export PLUGIN_ROOT=\"${KIRO_PLUGIN_ROOT:-$PWD/.kiro/..}\"; export SIMULATOR_WORK_DIR=\"$PWD\"; exec sh \"$PLUGIN_ROOT/mcp-server/run.sh\""]
+      "args": ["-c", "PLUGIN_ROOT=\"${KIRO_PLUGIN_ROOT:-$PWD/.kiro/..}\"; [ -f \"$PLUGIN_ROOT/mcp-server/run.sh\" ] || PLUGIN_ROOT=\"$PLUGIN_ROOT/plugins/simulator\"; [ -f \"$PLUGIN_ROOT/mcp-server/run.sh\" ] || { echo \"ERROR: cannot locate mcp-server/run.sh (checked KIRO_PLUGIN_ROOT and the plugins/simulator fallback under $PLUGIN_ROOT)\" >&2; exit 1; }; export PLUGIN_ROOT SIMULATOR_WORK_DIR=\"$PWD\"; exec sh \"$PLUGIN_ROOT/mcp-server/run.sh\""]
     }
   }
 }
diff --git a/plugins/simulator/scripts/install-kiro.sh b/plugins/simulator/scripts/install-kiro.sh
index 5bc845a..725ae3f 100755
--- a/plugins/simulator/scripts/install-kiro.sh
+++ b/plugins/simulator/scripts/install-kiro.sh
@@ -37,8 +37,13 @@ fi
 
 mkdir -p "$KIRO_DIR/settings" "$KIRO_DIR/steering" "$KIRO_DIR/skills"
 
-# 1) MCP entry — always plain copy (workspace-local edits must not leak back).
-cp "$PLUGIN_ROOT/.mcp.kiro.json" "$KIRO_DIR/settings/mcp.json"
+# 1) MCP entry — resolve the KIRO_PLUGIN_ROOT fallback to the known absolute
+#    plugin path so the generated mcp.json works without the env var being set.
+#    Escape \, & and our # delimiter so a stray one of those in PLUGIN_ROOT
+#    (e.g. a `#` in the clone path) can't corrupt the sed replacement.
+PLUGIN_ROOT_ESCAPED="$(printf '%s\n' "$PLUGIN_ROOT" | sed 's/[\&#]/\\&/g')"
+sed 's#\${KIRO_PLUGIN_ROOT:-\$PWD/.kiro/..}#'"$PLUGIN_ROOT_ESCAPED"'#g' \
+  "$PLUGIN_ROOT/.mcp.kiro.json" > "$KIRO_DIR/settings/mcp.json"
 
 # 2) Steering — small, stable, no token substitution needed. Symlink on POSIX,
 #    hard-copy on Windows shells.