diff --git a/dev_docs/SESSION_STATE.md b/dev_docs/SESSION_STATE.md
index a5245663..81e34499 100644
--- a/dev_docs/SESSION_STATE.md
+++ b/dev_docs/SESSION_STATE.md
@@ -1,51 +1,69 @@
 # CURRENT AI WORKING SESSION — HANDOVER
 
-**Active AI:** Gemini CLI (Antigravity)
+**Active AI:** Claude Haiku 4.5 (Claude Code)
 **Last Updated:** 2026-04-23
-**Current Version:** v1.14.6 (Cleanup Branch: `maintenance/codebase-cleanup`)
-**Status**: 🟢 CLEAN & CONSOLIDATED
+**Current Version:** v1.14.6
+**Status**: 🟢 PHASE 7 PLANNED
 
 ---
 
-## SESSION 39 EXECUTION — Major Codebase Cleanup & Doc Consolidation
+## SESSION 40 EXECUTION — Phase 7 Config Consolidation Planning
 
 ### Work Completed This Session
 
-**1. Documentation Consolidation:**
-- ✅ Created **`DEPLOYMENT.md`**: Unified guide combining 7+ operational/setup files.
-- ✅ Created **`dev_docs/PLAN.md`**: Consolidated active roadmap, requirements, and decisions from `.planning/`.
-- ✅ Updated **`AI_RULES.md`**: Integrated refactoring and testing rules from `AGENTS.md`.
-- ✅ Updated **`PROJECT_ARCHITECTURE.md`**: Added tech stack details and mobile constraints.
-- ✅ Refined **`README.md`** and **`USER_GUIDE.md`**: Removed redundant technical info and simplified for end-users.
+**1. Phase 7 Planning (Config Consolidation):**
+- ✅ Executed `/gsd-plan-phase 7 --skip-research`
+- ✅ Replanned Phase 7 from scratch (existing 18-task .env plan was misaligned with CONTEXT decisions)
+- ✅ Created 4 new comprehensive plans aligned with YAML + Python decisions:
+  - **Plan 07-01**: Create config/ folder structure with YAML files + examples + documentation
+  - **Plan 07-02**: Refactor backend config_loader.py for YAML parsing + deprecate inventory.env
+  - **Plan 07-03**: Convert 4 bash deployment scripts to Python (deploy.py, run_standalone.py, install_service.py, export_prod.py)
+  - **Plan 07-04**: Update Docker/Compose, Dockerfile, .gitignore, documentation
+- ✅ All plans verified and passed gsd-plan-checker (17 tasks, 31 files, all decisions covered)
 
-**2. Workspace Cleanup:**
-- ✅ Deleted 10+ obsolete root markdown files (audits, spacing reports, old guides).
-- ✅ Deleted 3 historical reports from `dev_docs/`.
-- ✅ Deleted redundant directories: `docs/` and `.planning/`.
-- ✅ Removed temporary artifacts: `.coverage`, `.AGENTS.md.swp`, `.env.validation.sh`.
+**2. Phase 7 Decisions Implemented:**
+- ✅ **D-01**: YAML format standardization (backend.yaml, frontend.yaml, network.yaml, docker.yaml)
+- ✅ **D-02**: Secrets management (config/secrets.yaml, git-ignored, .example files)
+- ✅ **D-03**: Example files tracked in git (*.yaml.example)
+- ✅ **D-04**: Complete inventory.env deprecation (no fallback)
+- ✅ **D-05**: Bash → Python script conversion for deployment
+- ✅ **D-06**: Backend config load order: env vars > YAML > defaults
+- ✅ **D-07**: Docker Compose updated for config/ structure
+- ✅ **D-08**: Comprehensive documentation (DEPLOYMENT.md, README.md, config/README.md)
 
-**3. Branching:**
-- All work performed on `maintenance/codebase-cleanup`.
-- No changes made to production code logic, only documentation and workspace organization.
+**3. Plan Structure:**
+- **Wave 1**: Foundation (config/ structure creation)
+- **Wave 2**: Backend refactoring + Python scripts (parallel execution)
+- **Wave 3**: Docker integration + final documentation (depends on Waves 1-2)
 
-### Final Workspace State
-- **SSOT Core**: `AI_RULES.md`, `PROJECT_ARCHITECTURE.md`, `CLAUDE.md`, `GEMINI.md`.
-- **Primary Guides**: `DEPLOYMENT.md`, `README.md`, `USER_GUIDE.md`.
-- **Planning**: `dev_docs/PLAN.md`.
-- **Logs**: `dev_docs/ARCHIVE_LOGS.md`, `dev_docs/SESSION_STATE.md`.
+### Phase 7 Artifact Status
+- **Plans**: `.planning/phases/07-config-consolidation/07-{01,02,03,04}-PLAN.md` ✓ Created
+- **Context**: `.planning/phases/07-config-consolidation/07-CONTEXT.md` ✓ Exists (locked decisions)
+- **Verification**: All 4 plans passed gsd-plan-checker ✓
 
 ---
 
 ## NEXT STEPS
 
-1. **Review & Merge**:
-   - Inspect changes in `maintenance/codebase-cleanup`.
-   - Merge to `dev` if the new documentation structure is satisfactory.
+1. **Execute Phase 7**:
+   ```bash
+   /gsd-execute-phase 7
+   ```
+   - Wave 1: Create config/ folder with YAML files and examples
+   - Wave 2 (parallel): Refactor backend config loader + create Python deployment scripts
+   - Wave 3: Update Docker, documentation, and .gitignore
 
-2. **Resume Phase 5/6**:
-   - Continue with the technical tasks defined in `dev_docs/PLAN.md`.
-   - Phase 6 focus: scale testing and production hardening.
+2. **After Phase 7 Completion**:
+   - All configuration consolidated in config/ folder (YAML format)
+   - inventory.env deprecated and removed
+   - Deployment scripts converted to Python
+   - Docker and standalone deployments fully working with new structure
+   - Comprehensive documentation in place
+
+3. **Future Phases**:
+   - Phase 8+ (as defined in ROADMAP)
+   - Consider advanced config features (hot-reload, KMS encryption, config versioning) for future phases
 
 ---
 
-✓ Done.
+✓ Phase 7 planned and ready for execution.