diff --git a/CHANGELOG.md b/CHANGELOG.md
index 888c5ba..d311412 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,16 @@ CalVer image tags (`stable-YYYY.MM.N`, `dev-YYYY.MM.N`) are produced for every C
 
 ## [Unreleased]
 
+## [0.37.0] — 2026-05-06
+
+Operator-side disk-layout release. Closes the 2026-05-05 shadow-mount class identified in v0.36.0's deploy notes via two independent fixes that operators can adopt separately: (#194 folds in @cvrysanek's #191 + #192). The image-side change is invisible — `STATE_DIR` defaults to the legacy nested path, so existing deployments see no behavior change unless they opt into the new flat layout. Folds in three rounds of Devin Review (3 BUGs + 1 ANALYSIS class, ANALYSIS deferred per the operator-side limitation it describes).
+
+### Added
+- **`STATE_DIR` env var + `docker-compose.flat-mount.yml` overlay** — operators can now place the writable state disk in **parallel** to the data disk (`sdb` at `/data`, `sdc` at `/data-state`) instead of nested (`sdc` at `/data/state` inside `/data`). The flat layout removes three structural fragilities of the legacy nested layout: bind-mount propagation gotchas (the 2026-05-05 shadow-mount class), two-writer collisions on a shared prefix (host's `tls-rotate.timer` as root + container app as uid 999 on the same path), and mount-order coupling on disk resize. `STATE_DIR` defaults to `${DATA_DIR}/state` so existing deployers see no behavior change; opt-in to flat layout via the new overlay + `STATE_DIR=/data-state` per the runbook in `docs/state-dir.md`. Read by `src/db.py:_get_state_dir()`, `app/secrets.py:_state_dir()`, `app/main.py` (`.env_overlay`), `app/instance_config.py` (`instance.yaml` overlay reader), `app/api/admin.py` (writers for both `/api/admin/configure` and `/api/admin/server-config` against the same overlay), `app/api/marketplaces.py` (marketplace PAT persistence into `.env_overlay`), `scripts/ops/agnes-auto-upgrade.sh` (mount-sanity + cert detection), `scripts/ops/agnes-tls-rotate.sh` (`CERT_DIR=$STATE_DIR/certs`). All read/write sites resolve via the same helper so under `STATE_DIR=/data-state` the irreplaceable tier (`system.duckdb`, secrets, `instance.yaml`, `.env_overlay`, certs) lands on sdc consistently — partial migration would silently lose secrets on container restart.
+
+### Changed
+- **`docker-compose.host-mount.yml` switched from "named volume + driver_opts" to direct service-level bind mounts** (`volumes: !override` per service). Docker named volumes have an immutability footgun: once a volume is created, its driver options are fixed for the life of the volume, and editing this file does NOT propagate the new options to existing volumes. This bit a deployer in production: the volume was created before the overlay had `bind,rbind`, kept the old `bind` (non-recursive) propagation, and containers wrote to a shadowed subdirectory of the parent disk instead of the nested child mount. DuckDB went FATAL on a root-owned WAL during a routine container recreate; sign-in broke. Direct service binds re-evaluate options every container start and default to recursive in modern Docker (20.10+) — no immutable state to migrate, no shadow-mount class. Operators on this overlay: next `docker compose up -d` starts containers with direct binds; the old `agnes_data` named volume is no longer referenced and can be removed with `docker volume rm agnes_data` (operator's choice — orphaned but harmless if left). Both `host-mount.yml` and `flat-mount.yml` `volumes: !override` blocks for `caddy` now restate every mount the base service depends on (notably `data:/srv:ro` for the v0.36.0 file_server bypass and `caddy_config:/config` for ACME state) — a Devin-caught regression where `!override` silently dropped these mounts under the new layout, defeating the parquet-download perf bypass.
+
 ## [0.36.0] — 2026-05-05
 
 Combined performance + analyst-clarity bundle. Folds three previously-staged work streams into one PR (#188): the long-running `agnes query --remote` timeout (#181), the Caddy parquet-download bypass (#182), and Pavel's #185 Phase 1 trace findings (silent 44-min first-init, opaque CLI tracebacks, no analyst-Claude size signal). Also performs the Tier 1 event-loop unblocking — the five hottest BQ-touching endpoints were `async def` over synchronous DuckDB / BQ-extension calls, so a single heavy `agnes query --remote` froze every other request for the duration of the BQ wait. The image-side fixes ship in this release; for existing VMs, the new auto-upgrade.sh self-fetches the matching Caddyfile + compose overlays from `main` on its next 5-minute tick, so deployment requires no operator action beyond letting the cron run.
diff --git a/app/api/admin.py b/app/api/admin.py
index fe43805..4469299 100644
--- a/app/api/admin.py
+++ b/app/api/admin.py
@@ -1001,8 +1001,8 @@ async def update_server_config(
     # atomic-write sequence; the audit log sits outside since it operates on
     # local snapshots.
     from app.instance_config import reset_cache
-    data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-    config_path = data_dir / "state" / "instance.yaml"
+    from app.secrets import _state_dir
+    config_path = _state_dir() / "instance.yaml"
     config_path.parent.mkdir(parents=True, exist_ok=True)
 
     with _overlay_write_lock:
@@ -2606,8 +2606,8 @@ async def configure_instance(
     #    — they don't belong in the overlay at all.
     # 2. Patch only the sections this endpoint touches.
     # 3. Write the narrow overlay back atomically (tmp + os.replace).
-    data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-    config_path = data_dir / "state" / "instance.yaml"
+    from app.secrets import _state_dir
+    config_path = _state_dir() / "instance.yaml"
 
     # Same serialization + corrupt-overlay handling as POST /server-config.
     with _overlay_write_lock:
@@ -2683,8 +2683,13 @@ async def configure_instance(
         secrets_to_persist["KEBOOLA_STACK_URL"] = request.keboola_url
 
     if secrets_to_persist:
-        data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-        overlay_path = data_dir / "state" / ".env_overlay"
+        # Resolve via _state_dir() so the path matches app/main.py's
+        # startup-time read of the same overlay. Without this, an operator
+        # on the flat-mount layout (STATE_DIR=/data-state) would write
+        # secrets to /data/state/.env_overlay here while the app reads
+        # from /data-state/.env_overlay — silent loss on next restart.
+        from app.secrets import _state_dir
+        overlay_path = _state_dir() / ".env_overlay"
         overlay_path.parent.mkdir(parents=True, exist_ok=True)
 
         # Merge with existing overlay
diff --git a/app/api/marketplaces.py b/app/api/marketplaces.py
index b802726..f910259 100644
--- a/app/api/marketplaces.py
+++ b/app/api/marketplaces.py
@@ -147,9 +147,17 @@ def _token_env_name(slug: str) -> str:
 
 
 def _persist_token(env_name: str, value: str) -> None:
-    """Write (or update) a single key in data/state/.env_overlay and os.environ."""
-    data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-    overlay_path = data_dir / "state" / ".env_overlay"
+    """Write (or update) a single key in ``${STATE_DIR}/.env_overlay`` and ``os.environ``.
+
+    Path resolution matches ``app/main.py``'s startup-time read; without
+    this alignment, marketplace PATs persisted under the flat-mount
+    layout (``STATE_DIR=/data-state``) would land at
+    ``/data/state/.env_overlay`` while the app reads from
+    ``/data-state/.env_overlay``, silently dropping the token on the
+    next restart.
+    """
+    from app.secrets import _state_dir
+    overlay_path = _state_dir() / ".env_overlay"
     overlay_path.parent.mkdir(parents=True, exist_ok=True)
 
     existing: dict[str, str] = {}
diff --git a/app/instance_config.py b/app/instance_config.py
index 6155608..6901993 100644
--- a/app/instance_config.py
+++ b/app/instance_config.py
@@ -102,8 +102,13 @@ def load_instance_config() -> dict:
     # mirror the resolver here before the deep-merge — without it, the
     # LLM factory receives the literal placeholder and rejects it as an
     # invalid api key (#179 review fix).
-    data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-    overlay_path = data_dir / "state" / "instance.yaml"
+    # Resolve via _state_dir() so the path matches the writer in
+    # app/api/admin.py — under the flat-mount layout (STATE_DIR=/data-state)
+    # both the configure-endpoint and the server-config-endpoint write
+    # ``/data-state/instance.yaml``; reading from ``/data/state/...`` here
+    # would silently load stale config from the regenerable data disk.
+    from app.secrets import _state_dir
+    overlay_path = _state_dir() / "instance.yaml"
     if overlay_path.exists():
         try:
             overlay = yaml.safe_load(overlay_path.read_text()) or {}
diff --git a/app/main.py b/app/main.py
index 371235f..42b3186 100644
--- a/app/main.py
+++ b/app/main.py
@@ -340,7 +340,8 @@ def create_app() -> FastAPI:
     app.add_middleware(RequestIdMiddleware)
 
     # Load .env_overlay (persisted by /api/admin/configure)
-    _overlay = Path(os.environ.get("DATA_DIR", "./data")) / "state" / ".env_overlay"
+    from app.secrets import _state_dir
+    _overlay = _state_dir() / ".env_overlay"
     if _overlay.exists():
         for line in _overlay.read_text().splitlines():
             if "=" in line and not line.startswith("#"):
diff --git a/app/secrets.py b/app/secrets.py
index 41f837d..cb88740 100644
--- a/app/secrets.py
+++ b/app/secrets.py
@@ -7,13 +7,25 @@ from pathlib import Path
 logger = logging.getLogger(__name__)
 
 
+def _state_dir() -> Path:
+    """Return path to writable state directory.
+
+    STATE_DIR env var takes precedence; otherwise defaults to
+    ${DATA_DIR}/state for backward compatibility with deployments
+    that nest state under the data disk. See docs/state-dir.md.
+    """
+    state = os.environ.get("STATE_DIR", "")
+    if state:
+        return Path(state)
+    return Path(os.environ.get("DATA_DIR", "./data")) / "state"
+
+
 def _load_or_generate(env_var: str, file_name: str) -> str:
     """Load secret from env var, or from file, or generate and persist."""
     val = os.environ.get(env_var, "")
     if val:
         return val
-    data_dir = Path(os.environ.get("DATA_DIR", "./data"))
-    secret_path = data_dir / "state" / file_name
+    secret_path = _state_dir() / file_name
     if secret_path.exists():
         val = secret_path.read_text().strip()
         if val:
diff --git a/docker-compose.flat-mount.yml b/docker-compose.flat-mount.yml
new file mode 100644
index 0000000..63125b0
--- /dev/null
+++ b/docker-compose.flat-mount.yml
@@ -0,0 +1,103 @@
+# Flat-mount overlay — parallel host binds for /data and /data-state.
+#
+# Why this overlay
+# ----------------
+# The default deployment topology nests state under data: sdb at /data,
+# sdc at /data/state (i.e. /data/state is a separate disk mounted INSIDE
+# the data disk). That layout works but has known fragility:
+#
+#   - Bind-mount propagation matters. A non-recursive bind hides the
+#     nested mount, leading to silent shadow writes — the production
+#     failure mode that motivated this overlay.
+#
+#   - Two writers, one tree. Host-side timers (tls-rotate.timer)
+#     write to /data/state/certs as root, while the container app
+#     writes to /data/state/system.duckdb as uid 999. Same prefix,
+#     different mount-namespace views = ownership conflicts.
+#
+#   - sdb resize requires umounting sdc first. Mount-order coupling.
+#
+# This overlay removes the nesting by mounting the state disk in
+# PARALLEL to the data disk:
+#
+#   sdb at /data       (analytics, regenerable)
+#   sdc at /data-state (DuckDB, secrets, certs — irreplaceable)
+#
+# Both are direct service-level binds, recursive by default in modern
+# Docker Engine. No volume options to forget. No nested propagation.
+# No two-writer collision (app uses /data-state, host scripts also use
+# /data-state — same path, single namespace).
+#
+# Usage
+# -----
+# 1. On the operator's host: mount the config disk at /data-state
+#    (instead of /data/state). Update fstab. Move existing state
+#    contents from /data/state to /data-state.
+#
+# 2. In /opt/agnes/.env, set STATE_DIR=/data-state. The app's secrets
+#    module + DuckDB code, plus the host-side rotate.sh and
+#    auto-upgrade.sh scripts, all read this var.
+#
+# 3. Compose invocation:
+#
+#    docker compose \
+#      -f docker-compose.yml \
+#      -f docker-compose.prod.yml \
+#      -f docker-compose.flat-mount.yml \
+#      up -d
+#
+# Note: this overlay is mutually exclusive with docker-compose.host-mount.yml.
+# Pick one based on your disk topology.
+#
+# Do NOT use this overlay in CI — /data and /data-state do not exist
+# on GitHub runners.
+
+services:
+  app:
+    volumes: !override
+      - /data:/data
+      - /data-state:/data-state
+      - ./config:/app/config:ro
+
+  extract:
+    volumes: !override
+      - /data:/data
+      - /data-state:/data-state
+      - ./config:/app/config:ro
+
+  scheduler:
+    volumes: !override
+      - /data:/data
+      - /data-state:/data-state
+      - ./config:/app/config:ro
+
+  telegram-bot:
+    volumes: !override
+      - /data:/data
+      - /data-state:/data-state
+
+  ws-gateway:
+    volumes: !override
+      - /data:/data
+      - /data-state:/data-state
+
+  caddy:
+    # `!override` replaces the entire base volumes list, so every mount
+    # the base service depends on must be re-stated here. Two of those
+    # are easy to miss and silently regress functionality:
+    #   - `data:/srv:ro` — Caddy's read-only view of the agnes data dir
+    #     used by the `@download` `file_server` handler in Caddyfile.
+    #     Without it, `try_files /bigquery/data/<id>.parquet …` finds no
+    #     file and every parquet download falls through to the app's
+    #     uvicorn worker — defeating the perf bypass landed in v0.36.0.
+    #   - `caddy_config:/config` — Caddy's autosave/ACME state. Missing
+    #     it doesn't break HTTPS (we feed certs in via `/certs`) but
+    #     loses the autosaved adapter config across recreates.
+    # Same caveat applies to any future `volumes: !override` block —
+    # diff against the base service before merging.
+    volumes: !override
+      - ./Caddyfile:/etc/caddy/Caddyfile:ro
+      - /data-state/certs:/certs:ro
+      - caddy_data:/data
+      - caddy_config:/config
+      - /data:/srv:ro
diff --git a/docker-compose.host-mount.yml b/docker-compose.host-mount.yml
index dd06534..3758a82 100644
--- a/docker-compose.host-mount.yml
+++ b/docker-compose.host-mount.yml
@@ -1,14 +1,41 @@
-# Bind-mount overlay — replaces the `data` named volume with a bind mount
-# to /data on the host.
+# Bind-mount overlay — replaces the `data` named volume with a direct
+# host bind mount per service.
 #
-# Use this when /data is a persistent disk mounted by the VM startup script,
-# so Agnes data lives on the PD (not on the boot disk's Docker volume).
+# Why direct service-level bind, not driver_opts on the named volume
+# ------------------------------------------------------------------
+# The previous version of this file modified the `data` named volume's
+# `driver_opts` to point at /data with `o: bind,rbind`. Docker named
+# volumes have an immutability footgun: once a volume is created, its
+# driver options are fixed for the life of the volume. Editing this
+# file and re-running `docker compose up -d` does NOT propagate the
+# new options to existing volumes — they keep whatever options were
+# in effect at create time.
 #
-# `bind,rbind` (recursive bind) is required when the host nests a second
-# disk under /data — e.g. the dual-disk layout where sdb is mounted on /data
-# and sdc on /data/state. A plain `bind` captures only the top-level mount
-# and silently shadows the sub-mount with an empty subdirectory inside the
-# container, causing the app to write to the wrong disk.
+# This bit a deployer in production: the volume
+# was created before this overlay had `bind,rbind`, kept the old
+# `bind` (non-recursive) propagation, and containers wrote to a
+# shadowed subdirectory of the parent disk instead of the nested
+# child mount. DuckDB went FATAL on a root-owned WAL during a
+# routine container recreate; sign-in broke.
+#
+# Direct service-level bind mounts (`/host/path:/container/path`)
+# don't go through Docker's volume layer at all. They re-evaluate
+# the mount options every container start, and modern Docker Engine
+# (20.10+) defaults to recursive bind for these. No options to
+# forget, no immutable state to migrate, no shadow-mount class.
+#
+# What this overlay does
+# ----------------------
+# `volumes: !override` on each service replaces the base
+# `data:/data` named-volume mount with a direct `/data:/data` host
+# bind. The named volume `data:` declared at the bottom of
+# docker-compose.yml is left intact (still useful for local-dev
+# `compose up` without this overlay) but is no longer referenced
+# by any service when the overlay is active.
+#
+# When the operator's host has a nested mount under /data (e.g. a
+# separate state disk mounted at /data/state), the recursive bind
+# carries that nested mount into every container automatically.
 #
 # Usage (combined with docker-compose.prod.yml):
 #   docker compose \
@@ -17,11 +44,53 @@
 #     -f docker-compose.host-mount.yml \
 #     up -d
 #
-# Do NOT use this overlay in CI — /data does not exist on GitHub runners.
-volumes:
-  data:
-    driver: local
-    driver_opts:
-      type: none
-      o: bind,rbind
-      device: /data
+# Do NOT use this overlay in CI — /data does not exist on GitHub
+# runners.
+#
+# Compose-spec version requirement: !override merge tag is part of
+# the Compose Specification supported by Docker Compose v2.20+ and
+# the compose-go library used by Compose v5+. If you need to support
+# older clients, fork this overlay into per-service files.
+
+services:
+  app:
+    volumes: !override
+      - /data:/data
+      - ./config:/app/config:ro
+
+  extract:
+    volumes: !override
+      - /data:/data
+      - ./config:/app/config:ro
+
+  scheduler:
+    volumes: !override
+      - /data:/data
+      - ./config:/app/config:ro
+
+  telegram-bot:
+    volumes: !override
+      - /data:/data
+
+  ws-gateway:
+    volumes: !override
+      - /data:/data
+
+  caddy:
+    # Caddy was originally inheriting `data:/srv:ro` from the base
+    # service. Once the other services switch to direct binds and
+    # nothing populates the `data:` named volume, that inherited
+    # mount points at an empty Docker-managed volume — and the
+    # @download `try_files /bigquery/data/<id>.parquet …` block
+    # in Caddyfile finds nothing, so every parquet download falls
+    # through to the app's uvicorn worker, defeating the v0.36.0
+    # file_server bypass.
+    #
+    # Restate every mount the base caddy service depends on; mirror
+    # the same caveat that lives in flat-mount.yml.
+    volumes: !override
+      - ./Caddyfile:/etc/caddy/Caddyfile:ro
+      - /data/state/certs:/certs:ro
+      - caddy_data:/data
+      - caddy_config:/config
+      - /data:/srv:ro
diff --git a/docs/state-dir.md b/docs/state-dir.md
new file mode 100644
index 0000000..f89ef4d
--- /dev/null
+++ b/docs/state-dir.md
@@ -0,0 +1,119 @@
+# State directory layout
+
+Agnes splits its persistent data into two tiers:
+
+| Tier | Path | Contents | Backup posture |
+|---|---|---|---|
+| **data** | `/data` | analytics workspace, extracts, DuckDB caches | regenerable |
+| **state** | `${STATE_DIR}` | `system.duckdb`, `.session_secret`, `.jwt_secret`, `certs/*` | irreplaceable |
+
+`STATE_DIR` is an environment variable that selects the host path the state tier is mounted from. Two layouts are supported:
+
+## Layout A — nested (legacy default)
+
+```
+sdb at /data
+sdc at /data/state    (nested inside the data mount)
+```
+
+`STATE_DIR=/data/state` (or unset — that's the default). Used by the original deployment topology.
+
+**Pros**: single bind mount per service (`/data:/data` recursive). Single env var defaults work.
+
+**Cons**:
+- Bind-mount propagation matters. Non-recursive bind silently shadows the nested sdc mount, causing the app to write to an invisible subdirectory of sdb. Recovery requires `docker volume rm` + manual data migration.
+- Two writers (host's `tls-rotate.timer` running as root; container app running as uid 999) share `/data/state` with different mount-namespace views → ownership conflicts.
+- Resizing sdb requires unmounting sdc first.
+
+A production deployment hit this propagation gotcha: a volume was created with non-recursive `bind`, the file was later edited to `bind,rbind`, but Docker named-volume options are immutable after creation, so containers kept writing to a shadowed subdirectory of the parent disk. DuckDB went FATAL on a root-owned WAL during a routine container recreate; sign-in broke. Recovery required `docker volume rm` + per-VM data migration on every affected host.
+
+## Layout B — flat
+
+```
+sdb at /data         (analytics, regenerable)
+sdc at /data-state   (state, irreplaceable — parallel to /data, not nested)
+```
+
+`STATE_DIR=/data-state`. Two parallel host binds per service: `/data:/data` and `/data-state:/data-state`. Use the `docker-compose.flat-mount.yml` overlay.
+
+**Pros**:
+- No nested-mount propagation class. Each disk is its own bind.
+- Single writer per disk (host scripts → certs on sdc, container app → DuckDB on sdc; both at the same path).
+- sdb resize doesn't touch sdc.
+- Direct service binds default to recursive in modern Docker — no `driver_opts` immutability footgun.
+
+**Cons**:
+- One-time per-VM migration: tear down `/data/state` mount, mount sdc at `/data-state` instead, copy state contents.
+- Two binds per service (slightly more compose YAML).
+
+## Choosing
+
+| Situation | Recommendation |
+|---|---|
+| Existing deployment, no plans to expand | stay on layout A |
+| New deployment | layout B (cleaner, no shadow class) |
+| Existing deployment hit by the shadow-mount class above | migrate to layout B |
+| CI / local dev | neither (use ephemeral compose volumes) |
+
+## Migration A → B
+
+Steps to move an existing VM from nested to flat:
+
+```bash
+# 1. Stop containers
+sudo docker compose --env-file /opt/agnes/.env \
+  -f docker-compose.yml -f docker-compose.prod.yml -f docker-compose.host-mount.yml \
+  --profile tls down
+
+# 2. Snapshot the existing state
+sudo cp -a /data/state /tmp/state-backup-$(date -u +%Y%m%dT%H%M%SZ)
+
+# 3. Unmount sdc from /data/state (its current nested location)
+sudo umount /data/state
+sudo rmdir /data/state  # remove the now-empty mount point on sdb
+
+# 4. Create the new flat mount point and remount sdc there
+sudo mkdir /data-state
+echo "LABEL=agnes-state /data-state ext4 defaults,nofail 0 2" | sudo tee -a /etc/fstab
+# (also remove the old /data/state line from fstab)
+sudo mount /data-state
+
+# 5. Restore state from the backup
+sudo cp -a /tmp/state-backup-*/. /data-state/
+
+# 6. Set STATE_DIR in /opt/agnes/.env
+echo "STATE_DIR=/data-state" | sudo tee -a /opt/agnes/.env
+
+# 7. Bring the stack back up with the flat overlay
+cd /opt/agnes
+sudo docker compose --env-file /opt/agnes/.env \
+  -f docker-compose.yml -f docker-compose.prod.yml -f docker-compose.flat-mount.yml \
+  --profile tls up -d
+```
+
+Verify: `sudo docker exec agnes-app-1 ls /data-state` should show `system.duckdb` etc.
+
+## What reads `STATE_DIR`
+
+App code:
+- `src/db.py::_get_state_dir()` — the canonical helper. Used by `get_system_db()` and the schema migration snapshot.
+- `app/secrets.py::_state_dir()` — for `.session_secret`, `.jwt_secret`. Mirrors the helper since `app/` shouldn't import from `src/`.
+- `app/main.py` — for the `.env_overlay` startup file (loaded at process start).
+- `app/instance_config.py` — for the writable `instance.yaml` overlay (read at every config-load).
+- `app/api/admin.py` — for the writable `instance.yaml` overlay (write site of `POST /api/admin/server-config` and `POST /api/admin/configure`) and for `.env_overlay` (write site of `POST /api/admin/configure`).
+- `app/api/marketplaces.py` — for `.env_overlay` (write site of marketplace PAT persistence).
+
+Host scripts:
+- `scripts/ops/agnes-auto-upgrade.sh` — mount-sanity check + cert detection.
+- `scripts/ops/agnes-tls-rotate.sh` — `CERT_DIR=$STATE_DIR/certs`.
+
+Both scripts source `/opt/agnes/.env` with `set -a`, so adding `STATE_DIR=/data-state` to that file propagates everywhere.
+
+## Caddy cert mount
+
+Caddy mounts the cert directory from the host at `/certs:ro`. The host-side path follows `STATE_DIR/certs`:
+
+- Layout A: `/data/state/certs` (in `docker-compose.yml` directly).
+- Layout B: `/data-state/certs` (overridden in `docker-compose.flat-mount.yml`).
+
+Compose-time env substitution happens at `compose up`, not at runtime, so the overlay must be selected at deploy time — there's no single compose YAML that switches based on `STATE_DIR`.
diff --git a/pyproject.toml b/pyproject.toml
index 8fddab2..f925413 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "agnes-the-ai-analyst"
-version = "0.36.0"
+version = "0.37.0"
 description = "Agnes — AI Data Analyst platform for AI analytical systems"
 requires-python = ">=3.11,<3.14"
 license = "MIT"
diff --git a/scripts/ops/agnes-auto-upgrade.sh b/scripts/ops/agnes-auto-upgrade.sh
index 54bdf43..7bc4358 100755
--- a/scripts/ops/agnes-auto-upgrade.sh
+++ b/scripts/ops/agnes-auto-upgrade.sh
@@ -3,50 +3,58 @@
 # Cron fires it every 5 min; pulls latest image for the pinned AGNES_TAG
 # and recreates containers only if the digest moved.
 #
-# Cert-aware: if /data/state/certs/{fullchain,privkey}.pem both exist
+# Cert-aware: if ${STATE_DIR}/certs/{fullchain,privkey}.pem both exist
 # (populated by agnes-tls-rotate.sh), enables the tls overlay so Caddy
 # fronts :443. Absence → plain HTTP on :8000.
+#
+# STATE_DIR is the host path that backs the writable state disk. It
+# defaults to /data/state for backward compatibility with the legacy
+# nested-mount layout (sdb at /data, sdc nested under /data/state).
+# Set STATE_DIR=/data-state in /opt/agnes/.env for the flat layout
+# (sdb at /data, sdc parallel at /data-state) — see docs/state-dir.md.
 set -euo pipefail
 cd /opt/agnes
 # shellcheck disable=SC1091
 set -a; . /opt/agnes/.env; set +a
 
+STATE_DIR="${STATE_DIR:-/data/state}"
+
 # Fail-fast guard: if the VM has a config disk attached, it MUST be
-# mounted at /data/state before any container action. Otherwise the
-# app would write state onto /data (sdb) and lose it on the next
-# container recreate — the regression that motivated this guard.
+# mounted at $STATE_DIR before any container action. Otherwise the
+# app would write state onto the parent filesystem and lose it on the
+# next container recreate — the regression that motivated this guard.
 # Three retries (mount may race with udev on cold boot) then hard exit.
 CONFIG_DEVICE=/dev/disk/by-id/google-config-disk
 if [ -e "$CONFIG_DEVICE" ]; then
   attempt=0
   while [ $attempt -lt 3 ]; do
     attempt=$((attempt + 1))
-    if mountpoint -q /data/state; then
+    if mountpoint -q "$STATE_DIR"; then
       expected_dev=$(readlink -f "$CONFIG_DEVICE")
-      actual_dev=$(findmnt -n -o SOURCE /data/state)
+      actual_dev=$(findmnt -n -o SOURCE "$STATE_DIR")
       if [ "$expected_dev" = "$actual_dev" ]; then
         break
       fi
-      logger -t agnes-auto-upgrade "WARN: /data/state on $actual_dev, expected $expected_dev — attempting remount"
-      umount /data/state 2>/dev/null || true
+      logger -t agnes-auto-upgrade "WARN: $STATE_DIR on $actual_dev, expected $expected_dev — attempting remount"
+      umount "$STATE_DIR" 2>/dev/null || true
     fi
-    mount "$CONFIG_DEVICE" /data/state 2>/dev/null || true
+    mount "$CONFIG_DEVICE" "$STATE_DIR" 2>/dev/null || true
     sleep $((attempt * 2))
   done
 
-  if ! mountpoint -q /data/state || \
-     [ "$(readlink -f "$CONFIG_DEVICE")" != "$(findmnt -n -o SOURCE /data/state)" ]; then
-    logger -t agnes-auto-upgrade "FATAL: config disk not mounted at /data/state — refusing to start containers"
-    echo "FATAL: /data/state is not backed by the config disk." >&2
-    echo "       Refusing to run docker compose — app state must NEVER land on /data (sdb)." >&2
-    echo "       Inspect: mount | grep /data/state ; ls /dev/disk/by-id/google-config-disk" >&2
+  if ! mountpoint -q "$STATE_DIR" || \
+     [ "$(readlink -f "$CONFIG_DEVICE")" != "$(findmnt -n -o SOURCE "$STATE_DIR")" ]; then
+    logger -t agnes-auto-upgrade "FATAL: config disk not mounted at $STATE_DIR — refusing to start containers"
+    echo "FATAL: $STATE_DIR is not backed by the config disk." >&2
+    echo "       Refusing to run docker compose — app state must land on the config disk, not the parent filesystem." >&2
+    echo "       Inspect: mount | grep $STATE_DIR ; ls /dev/disk/by-id/google-config-disk" >&2
     exit 1
   fi
 
   # Re-apply propagation in case a prior container teardown reset it.
   # Idempotent — safe to call when already private.
   mount --make-rprivate /data 2>/dev/null || true
-  mount --make-rprivate /data/state 2>/dev/null || true
+  mount --make-rprivate "$STATE_DIR" 2>/dev/null || true
 fi
 
 IMAGE="ghcr.io/keboola/agnes-the-ai-analyst:${AGNES_TAG:-stable}"
@@ -116,10 +124,10 @@ CONFIG_AFTER=$(hash_config_files)
 # Evaluated AFTER the config re-fetch above so a freshly-added or
 # freshly-removed Caddyfile is reflected in this tick's compose set,
 # not the next one.
-if [ -s /data/state/certs/fullchain.pem ] && [ -s /data/state/certs/privkey.pem ] && [ -s Caddyfile ]; then
+if [ -s "$STATE_DIR/certs/fullchain.pem" ] && [ -s "$STATE_DIR/certs/privkey.pem" ] && [ -s Caddyfile ]; then
     COMPOSE_FILES+=( -f docker-compose.tls.yml )
     PROFILE_ARGS=( --profile tls )
-elif [ -s /data/state/certs/fullchain.pem ] && [ -s /data/state/certs/privkey.pem ]; then
+elif [ -s "$STATE_DIR/certs/fullchain.pem" ] && [ -s "$STATE_DIR/certs/privkey.pem" ]; then
     logger -t agnes-auto-upgrade "WARN: certs present but Caddyfile missing/empty — skipping tls overlay"
 fi
 
diff --git a/scripts/ops/agnes-tls-rotate.sh b/scripts/ops/agnes-tls-rotate.sh
index a4f6ac9..39a2166 100755
--- a/scripts/ops/agnes-tls-rotate.sh
+++ b/scripts/ops/agnes-tls-rotate.sh
@@ -34,7 +34,12 @@ set -a; . /opt/agnes/.env; set +a
 
 [ -n "${TLS_FULLCHAIN_URL:-}" ] || { echo "TLS_FULLCHAIN_URL empty — nothing to rotate"; exit 0; }
 
-CERT_DIR=/data/state/certs
+# STATE_DIR is the host path that backs the writable state disk. Defaults
+# to /data/state for backward compatibility with the legacy nested-mount
+# layout; set STATE_DIR=/data-state in /opt/agnes/.env for the flat layout.
+# See docs/state-dir.md.
+STATE_DIR="${STATE_DIR:-/data/state}"
+CERT_DIR="$STATE_DIR/certs"
 mkdir -p "$CERT_DIR"
 # Match the agnes UID baked into the app image (Dockerfile: useradd --uid 999).
 # Without this, whoever happens to win the create race (this script as root
diff --git a/src/db.py b/src/db.py
index 2591244..681c906 100644
--- a/src/db.py
+++ b/src/db.py
@@ -453,6 +453,23 @@ def _get_data_dir() -> Path:
     return Path(os.environ.get("DATA_DIR", "./data"))
 
 
+def _get_state_dir() -> Path:
+    """Return path to writable state directory.
+
+    Resolution order:
+      1. STATE_DIR env var (explicit override).
+      2. ${DATA_DIR}/state (default — current behavior).
+
+    Use the explicit override when the deployer wants state on a
+    separate disk mounted in parallel with /data rather than nested
+    inside it. See docs/state-dir.md.
+    """
+    state = os.environ.get("STATE_DIR", "")
+    if state:
+        return Path(state)
+    return _get_data_dir() / "state"
+
+
 def get_system_db() -> duckdb.DuckDBPyConnection:
     """Get a connection to the system state database.
 
@@ -461,7 +478,7 @@ def get_system_db() -> duckdb.DuckDBPyConnection:
     so callers can safely close() it without closing the underlying connection.
     """
     global _system_db_conn, _system_db_path
-    db_path = str(_get_data_dir() / "state" / "system.duckdb")
+    db_path = str(_get_state_dir() / "system.duckdb")
 
     with _system_db_lock:
         if _system_db_conn is None or _system_db_path != db_path:
@@ -1754,7 +1771,7 @@ def _v23_to_v24_finalize(conn: duckdb.DuckDBPyConnection) -> None:
             f"`instance.yaml: data_source.bigquery.project`) and restart "
             f"the app to retry the migration. The schema version is NOT "
             f"bumped to 24 until this completes; pre-migration DB "
-            f"snapshot is at `{{DATA_DIR}}/state/system.duckdb.pre-migrate`."
+            f"snapshot is at `{_get_state_dir()}/system.duckdb.pre-migrate`."
         )
 
     conn.execute("BEGIN TRANSACTION")
@@ -1812,7 +1829,7 @@ def _ensure_schema(conn: duckdb.DuckDBPyConnection) -> None:
         # Snapshot before migration for rollback support
         if current > 0:
             try:
-                db_path = Path(os.environ.get("DATA_DIR", "./data")) / "state" / "system.duckdb"
+                db_path = _get_state_dir() / "system.duckdb"
                 if db_path.exists():
                     # Flush WAL to main DB file before copying
                     try: