The local daemon's serverId persists while the daemon is stopped, so it isn't among the connected hosts. The settings host-section resolver fell back to it without checking it was connected, resolving the section to an unknown id and rendering "host not found". Extract the fallback into resolveActiveHostServerId, which only uses a serverId when it names a currently connected host (covering both the picker selection and the local daemon), and add regression tests. Co-authored-by: Claude Opus 4.8 (1M context) <noreply@anthropic.com>