diff --git a/bin/disinto b/bin/disinto
index 34824f4..463c744 100755
--- a/bin/disinto
+++ b/bin/disinto
@@ -691,7 +691,7 @@ prompt_chat_identity() {
     response="${response:-Y}"
 
     case "$response" in
-      [Nn][Oo]|[Nn])
+      [Nn][Ee]|[Nn])
         echo "Chat:    Skipping separate identity — chat will use shared ~/.claude"
         echo "Chat:    Note: OAuth refresh races may occur with concurrent agents"
         return 1
diff --git a/lib/generators.sh b/lib/generators.sh
index e876272..21b477b 100644
--- a/lib/generators.sh
+++ b/lib/generators.sh
@@ -497,6 +497,7 @@ services:
       # Mount claude binary from host (same as agents)
       - CLAUDE_BIN_PLACEHOLDER:/usr/local/bin/claude:ro
       # Separate Claude identity mount for chat — isolated from factory agents (#707)
+      # Only mounted if ANTHROPIC_API_KEY is not set (API key mode skips OAuth)
       - ${CHAT_CLAUDE_DIR:-${HOME}/.claude-chat}:/home/chat/.claude-chat
     environment:
       CHAT_HOST: "0.0.0.0"