## Security (Workset A)
- XSS: Verified templates use safe DOM methods (textContent, createElement)
- Secrets: Fail-fast in production mode when L402 secrets not set
- Environment mode: Add TIMMY_ENV (development|production) validation
## Privacy (Workset C)
- Add telemetry_enabled config (default: False for sovereign AI)
- Pass telemetry setting to Agno Agent
- Update .env.example with TELEMETRY_ENABLED and TIMMY_ENV docs
## Agent Intelligence (Workset D)
- Enhanced TIMMY_SYSTEM_PROMPT with:
- Tool usage guidelines (when to use, when not to)
- Memory awareness documentation
- Operating mode documentation
- Help reduce unnecessary tool calls for simple queries
All 895 tests pass.
Telemetry disabled by default aligns with sovereign AI vision.