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The server only loads environment variables from .paperclip/.env, which is not the standard location users expect. When DATABASE_URL is set in a .env file in the project root (cwd), it is silently ignored, requiring users to manually export the variable. Add a fallback that loads cwd/.env after .paperclip/.env with override:false, so the Paperclip-specific env file always takes precedence but standard .env files in the project root are also picked up. Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com> Co-Authored-By: Paperclip <noreply@paperclip.ing>