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Root cause in ~/.claude/settings.local.json (user-global): 1. UTF-8 BOM + CRLF line endings left by patch_settings_cl_v2_simple.ps1 2. Double-wrapped command "\"bash.exe\" \"wrapper.sh\"" broke Windows argument splitting on the space in "Program Files", making bash.exe try to execute itself as a script. Fix: - Rewrite settings.local.json as UTF-8 (no BOM), LF, with the hook command pointing directly at observe-wrapper.sh and passing "pre"/"post" as a positional arg so HOOK_PHASE is populated correctly in observe.sh. Docs: - docs/fixes/HOOK-FIX-20260421.md — full root-cause analysis. - docs/fixes/apply-hook-fix.sh — idempotent applier script.