diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index eaac1dd4f30..ac50a5e721f 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -775,7 +775,19 @@ export namespace Config {
   }
 
   export async function update(config: Info) {
-    const filepath = path.join(Instance.directory, "config.json")
+    let filepath = path.join(Instance.directory, "opencode.json")
+    for (const file of [
+      "opencode.json",
+      "opencode.jsonc",
+      path.join(".opencode", "opencode.json"),
+      path.join(".opencode", "opencode.jsonc"),
+    ]) {
+      const fullPath = path.join(Instance.directory, file)
+      if (await Bun.file(fullPath).exists()) {
+        filepath = fullPath
+        break
+      }
+    }
     const existing = await loadFile(filepath)
     await Bun.write(filepath, JSON.stringify(mergeDeep(existing, config), null, 2))
     await Instance.dispose()
diff --git a/packages/opencode/src/project/state.ts b/packages/opencode/src/project/state.ts
index 5846bf85686..a9dc8adcd2b 100644
--- a/packages/opencode/src/project/state.ts
+++ b/packages/opencode/src/project/state.ts
@@ -57,7 +57,7 @@ export namespace State {
 
       tasks.push(task)
     }
-    entries.delete(key)
+    recordsByKey.delete(key)
     await Promise.all(tasks)
     disposalFinished = true
     log.info("state disposal completed", { key })
diff --git a/packages/opencode/test/config/config.test.ts b/packages/opencode/test/config/config.test.ts
index 967972842f5..5f406b1ff57 100644
--- a/packages/opencode/test/config/config.test.ts
+++ b/packages/opencode/test/config/config.test.ts
@@ -1,4 +1,4 @@
-import { test, expect } from "bun:test"
+import { test, expect, describe } from "bun:test"
 import { Config } from "../../src/config/config"
 import { Instance } from "../../src/project/instance"
 import { tmpdir } from "../fixture/fixture"
@@ -327,17 +327,37 @@ Test agent prompt`,
   })
 })
 
-test("updates config and writes to file", async () => {
-  await using tmp = await tmpdir()
-  await Instance.provide({
-    directory: tmp.path,
-    fn: async () => {
-      const newConfig = { model: "updated/model" }
-      await Config.update(newConfig as any)
+describe("updates config and writes to file", async () => {
+  test("should correctly pick existing file to overwrite", async () => {
+    await using tmp = await tmpdir()
+    await Instance.provide({
+      directory: tmp.path,
+      fn: async () => {
+        const files = [path.join(tmp.path, "opencode.jsonc"), path.join(tmp.path, ".opencode", "opencode.json")]
+        const oldConfig = { $schema: "https://opencode.ai/config.json", model: "old/model" }
+        await Bun.write(files[0], JSON.stringify(oldConfig, null, 2))
+        await Bun.write(files[1], JSON.stringify(oldConfig, null, 2))
 
-      const writtenConfig = JSON.parse(await Bun.file(path.join(tmp.path, "config.json")).text())
-      expect(writtenConfig.model).toBe("updated/model")
-    },
+        const newConfig = { $schema: "https://opencode.ai/config.json", model: "updated/model" }
+        await Config.update(newConfig as any)
+
+        const writtenConfig = JSON.parse(await Bun.file(files[0]).text())
+        expect(writtenConfig.model).toBe("updated/model")
+      },
+    })
+  })
+  test("should create new config file if missing", async () => {
+    await using tmp = await tmpdir()
+    await Instance.provide({
+      directory: tmp.path,
+      fn: async () => {
+        const newConfig = { model: "updated/model" }
+        await Config.update(newConfig as any)
+
+        const writtenConfig = JSON.parse(await Bun.file(path.join(tmp.path, "opencode.json")).text())
+        expect(writtenConfig.model).toBe("updated/model")
+      },
+    })
   })
 })