diff --git a/docs/custom-providers.md b/docs/custom-providers.md
index 2d11ab171..b1b3ce2da 100644
--- a/docs/custom-providers.md
+++ b/docs/custom-providers.md
@@ -457,26 +457,25 @@ Paseo tools such as subagent creation come from the shared internal tool catalog
 }
 ```
 
-ACP agents normally receive access to Paseo's filesystem and terminal through
-the client capabilities advertised during initialization. For a compliant agent
-running in a container or remote environment, disable those capabilities so it
-keeps file and command execution in the agent environment:
+ACP agents execute filesystem and terminal operations in their own environment
+by default. To let a compliant agent delegate those operations to Paseo instead,
+enable the corresponding client capabilities:
 
 ```json
 {
   "agents": {
     "providers": {
-      "container-agent": {
+      "local-agent": {
         "extends": "acp",
-        "label": "Container Agent",
-        "command": ["container-agent", "acp"],
+        "label": "Local Agent",
+        "command": ["local-agent", "acp"],
         "params": {
           "clientCapabilities": {
             "fs": {
-              "readTextFile": false,
-              "writeTextFile": false
+              "readTextFile": true,
+              "writeTextFile": true
             },
-            "terminal": false
+            "terminal": true
           }
         }
       }
@@ -485,9 +484,9 @@ keeps file and command execution in the agent environment:
 }
 ```
 
-The defaults remain enabled for compatibility with local ACP agents. Configure
-both environments with equivalent absolute workspace paths before enabling
-client filesystem or terminal delegation across a process boundary.
+Only enable capabilities Paseo should execute. When the agent and Paseo run in
+different environments, configure equivalent absolute workspace paths before
+delegating filesystem or terminal operations to Paseo.
 
 ### Generic ACP diagnostics
 
diff --git a/packages/server/src/server/agent/providers/acp-agent.test.ts b/packages/server/src/server/agent/providers/acp-agent.test.ts
index 21152ac4b..641a19ccd 100644
--- a/packages/server/src/server/agent/providers/acp-agent.test.ts
+++ b/packages/server/src/server/agent/providers/acp-agent.test.ts
@@ -52,13 +52,13 @@ import { asInternals } from "../../test-utils/class-mocks.js";
 import * as spawnUtils from "../../../utils/spawn.js";
 
 describe("buildACPClientCapabilities", () => {
-  test("preserves the default client filesystem and terminal capabilities", () => {
+  test("keeps filesystem and terminal execution with the agent by default", () => {
     expect(buildACPClientCapabilities()).toEqual({
       fs: {
-        readTextFile: true,
-        writeTextFile: true,
+        readTextFile: false,
+        writeTextFile: false,
       },
-      terminal: true,
+      terminal: false,
     });
   });
 
@@ -68,17 +68,17 @@ describe("buildACPClientCapabilities", () => {
         { source: "provider" },
         {
           fs: {
-            readTextFile: false,
+            readTextFile: true,
           },
-          terminal: false,
+          terminal: true,
         },
       ),
     ).toEqual({
       fs: {
-        readTextFile: false,
-        writeTextFile: true,
+        readTextFile: true,
+        writeTextFile: false,
       },
-      terminal: false,
+      terminal: true,
       _meta: { source: "provider" },
     });
   });
diff --git a/packages/server/src/server/agent/providers/acp-agent.ts b/packages/server/src/server/agent/providers/acp-agent.ts
index 23ce328b1..f166dc372 100644
--- a/packages/server/src/server/agent/providers/acp-agent.ts
+++ b/packages/server/src/server/agent/providers/acp-agent.ts
@@ -231,10 +231,10 @@ export const DEFAULT_ACP_CAPABILITIES: AgentCapabilityFlags = {
 
 const BASE_ACP_CLIENT_CAPABILITIES: ACPClientCapabilities = {
   fs: {
-    readTextFile: true,
-    writeTextFile: true,
+    readTextFile: false,
+    writeTextFile: false,
   },
-  terminal: true,
+  terminal: false,
 };
 
 export type ACPClientCapabilityMeta = Record<string, unknown>;
diff --git a/packages/server/src/server/agent/providers/generic-acp-agent.diagnostic.test.ts b/packages/server/src/server/agent/providers/generic-acp-agent.diagnostic.test.ts
index 4b9749030..785838bb6 100644
--- a/packages/server/src/server/agent/providers/generic-acp-agent.diagnostic.test.ts
+++ b/packages/server/src/server/agent/providers/generic-acp-agent.diagnostic.test.ts
@@ -108,10 +108,10 @@ describe("GenericACPAgentClient diagnostics", () => {
         providerParams: {
           clientCapabilities: {
             fs: {
-              readTextFile: false,
-              writeTextFile: false,
+              readTextFile: true,
+              writeTextFile: true,
             },
-            terminal: false,
+            terminal: true,
           },
         },
       });
@@ -127,19 +127,19 @@ describe("GenericACPAgentClient diagnostics", () => {
         {
           clientCapabilities: {
             fs: {
-              readTextFile: false,
-              writeTextFile: false,
+              readTextFile: true,
+              writeTextFile: true,
             },
-            terminal: false,
+            terminal: true,
           },
         },
         {
           clientCapabilities: {
             fs: {
-              readTextFile: false,
-              writeTextFile: false,
+              readTextFile: true,
+              writeTextFile: true,
             },
-            terminal: false,
+            terminal: true,
           },
         },
       ]);