diff --git a/.github/actions/setup-test-environment/action.yml b/.github/actions/setup-test-environment/action.yml
index 2ef053fc8..6d094b67d 100644
--- a/.github/actions/setup-test-environment/action.yml
+++ b/.github/actions/setup-test-environment/action.yml
@@ -1,29 +1,13 @@
 name: 'Setup Test Environment'
-description: 'Installs tools, starts Supabase, runs migrations/seeds, and exports env vars.'
-
-outputs:
-  database-url:
-    description: 'Supabase DB Connection URL'
-    value: ${{ steps.start_supabase.outputs.db_url }}
-  supabase-url:
-    description: 'Supabase API URL'
-    value: ${{ steps.start_supabase.outputs.supabase_url }}
-  supabase-anon-key:
-    description: 'Supabase Anon Key'
-    value: ${{ steps.start_supabase.outputs.supabase_anon_key }}
-  supabase-service-role-key:
-    description: 'Supabase Service Role Key'
-    value: ${{ steps.start_supabase.outputs.supabase_service_role_key }}
-  jwt-secret:
-    description: 'Supabase JWT Secret'
-    value: ${{ steps.start_supabase.outputs.jwt_secret }}
+description: 'Installs tools, starts Supabase, runs migrations, and seeds the database.'
 
 runs:
   using: "composite"
   steps:
-    - name: Install Supabase CLI
-      shell: bash
-      run: npm install --global supabase@latest
+    - name: Setup Supabase CLI
+      uses: supabase/setup-cli@v1
+      with:
+        version: latest # Or pin to a specific version
 
     - name: Install Rust
       uses: actions-rs/toolchain@v1
@@ -39,71 +23,37 @@ runs:
       shell: bash
       run: cargo install diesel_cli --no-default-features --features postgres
 
-    - name: Start Supabase & Set Outputs
-      id: start_supabase
+    - name: Start Supabase
       shell: bash
       run: |
-        supabase start &> supabase_output.log &
-        echo "Waiting for Supabase services to initialize..."
-        sleep 30 # Initial wait time, adjust as needed
+        echo "Starting Supabase..."
+        supabase start
 
-        # Wait for DB to be connectable
-        n=0
-        until [ "$n" -ge 30 ] || pg_isready -h 127.0.0.1 -p 54322 -U postgres; do
-          n=$((n+1))
-          echo "Waiting for DB... Attempt $n/30"
-          sleep 2
-        done
-        if ! pg_isready -h 127.0.0.1 -p 54322 -U postgres; then
-          echo "::error::Supabase DB did not become ready in time."
-          cat supabase_output.log
+        echo "Waiting a bit for services to stabilize after start..."
+        sleep 15 # Adjust if needed, Supabase start should block but sometimes a small delay helps
+
+        echo "Checking Supabase status..."
+        supabase status
+        if [ $? -ne 0 ]; then
+          echo "::error::Supabase failed to start correctly."
+          # Attempt to fetch logs if possible (might not be available easily with setup-cli)
+          # supabase logs --project-ref local # This might need project-ref
           exit 1
         fi
 
-        echo "Supabase services seem ready. Extracting config..."
-        cat supabase_output.log
-
-        # Extract variables and set them as outputs
-        DB_URL_VAL=$(grep 'DB URL:' supabase_output.log | sed 's/.*DB URL: *//')
-        SUPABASE_URL_VAL=$(grep 'API URL:' supabase_output.log | sed 's/.*API URL: *//')
-        SUPABASE_ANON_KEY_VAL=$(grep 'anon key:' supabase_output.log | sed 's/.*anon key: *//')
-        SUPABASE_SERVICE_ROLE_KEY_VAL=$(grep 'service_role key:' supabase_output.log | sed 's/.*service_role key: *//')
-        JWT_SECRET_VAL=$(grep 'JWT secret:' supabase_output.log | sed 's/.*JWT secret: *//')
-
-        # Check if variables were extracted
-        if [ -z "$DB_URL_VAL" ] || [ -z "$SUPABASE_URL_VAL" ] || [ -z "$SUPABASE_ANON_KEY_VAL" ] || [ -z "$SUPABASE_SERVICE_ROLE_KEY_VAL" ] || [ -z "$JWT_SECRET_VAL" ]; then
-          echo "::error::Failed to extract Supabase configuration from output."
-          cat supabase_output.log
-          exit 1
-        fi
-
-        echo "db_url=$DB_URL_VAL" >> $GITHUB_OUTPUT
-        echo "supabase_url=$SUPABASE_URL_VAL" >> $GITHUB_OUTPUT
-        echo "supabase_anon_key=$SUPABASE_ANON_KEY_VAL" >> $GITHUB_OUTPUT
-        echo "supabase_service_role_key=$SUPABASE_SERVICE_ROLE_KEY_VAL" >> $GITHUB_OUTPUT
-        echo "jwt_secret=$JWT_SECRET_VAL" >> $GITHUB_OUTPUT
-
-        echo "Supabase started and configured."
+        echo "Supabase started."
 
     - name: Run Migrations
       working-directory: ./api # Assuming migrations are always relative to api
       shell: bash
       run: diesel migration run
       env:
-        # Use the output from the previous step
-        DATABASE_URL: ${{ steps.start_supabase.outputs.db_url }}
+        DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres
 
     - name: Seed Database
       shell: bash
       run: |
-        # Extract connection details from DB_URL
-        DB_URL_VAL="${{ steps.start_supabase.outputs.db_url }}"
-        PGUSER=$(echo "$DB_URL_VAL" | awk -F '[/:]' '{print $4}')
-        PGPASSWORD=$(echo "$DB_URL_VAL" | awk -F '[:@]' '{print $3}')
-        PGHOST=$(echo "$DB_URL_VAL" | awk -F '[@:]' '{print $4}')
-        PGPORT=$(echo "$DB_URL_VAL" | awk -F '[:/]' '{print $6}')
-        PGDATABASE=$(echo "$DB_URL_VAL" | awk -F '/' '{print $NF}')
-
-        PGPASSWORD=$PGPASSWORD psql -h $PGHOST -p $PGPORT -U $PGUSER -d $PGDATABASE -f ./api/libs/database/seed.sql
+        # Use hardcoded default credentials for local Supabase
+        PGPASSWORD=postgres psql -h 127.0.0.1 -p 54322 -U postgres -d postgres -f ./api/libs/database/seed.sql
       env:
-        DATABASE_URL: ${{ steps.start_supabase.outputs.db_url }} 
\ No newline at end of file
+        DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres # Also set here just in case seed script needs it
\ No newline at end of file
diff --git a/.github/workflows/api-testing.yml b/.github/workflows/api-testing.yml
index 34e6cee7c..b22a5e3ca 100644
--- a/.github/workflows/api-testing.yml
+++ b/.github/workflows/api-testing.yml
@@ -33,19 +33,18 @@ jobs:
       # Node.js setup removed
 
       - name: Setup Test Environment
-        id: setup_env # Give an ID to reference outputs
         uses: ./.github/actions/setup-test-environment
 
       - name: Run API Tests
         working-directory: ./api # Tests run from the api directory
         run: cargo test --workspace # Run tests for all packages in the api workspace
         env:
-          # Pass necessary env vars from setup action outputs
-          DATABASE_URL: ${{ steps.setup_env.outputs.database-url }}
+          # Use hardcoded default values and secrets
+          DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres
           REDIS_URL: redis://localhost:6379 # Connect to the Redis service container
-          JWT_SECRET: ${{ steps.setup_env.outputs.jwt-secret }}
-          SUPABASE_URL: ${{ steps.setup_env.outputs.supabase-url }}
-          SUPABASE_SERVICE_ROLE_KEY: ${{ steps.setup_env.outputs.supabase-service-role-key }}
+          JWT_SECRET: ${{ secrets.GH_ACTIONS_SUPABASE_JWT_SECRET }} # Use secret
+          SUPABASE_URL: http://127.0.0.1:54321 # Default local URL
+          SUPABASE_SERVICE_ROLE_KEY: ${{ secrets.GH_ACTIONS_SUPABASE_SERVICE_ROLE_KEY }} # Use secret
           RUST_LOG: debug # Or adjust as needed
 
           # Sensitive values from Secrets
diff --git a/.github/workflows/cli-testing.yml b/.github/workflows/cli-testing.yml
index ac8caeaad..02252cd48 100644
--- a/.github/workflows/cli-testing.yml
+++ b/.github/workflows/cli-testing.yml
@@ -32,50 +32,23 @@ jobs:
 
       # Node.js setup removed - not needed for cargo test
 
-      - name: Install Supabase CLI
-        run: npm install --global supabase@latest
-
-      - name: Install Rust
-        uses: actions-rs/toolchain@v1
-        with:
-          toolchain: stable
-          profile: minimal
-          override: true
-
-      - name: Cache Rust dependencies
-        uses: Swatinem/rust-cache@v2
-        # Consider a different cache key if CLI dependencies are separate
-        # with:
-        #   key: ${{ runner.os }}-cargo-cli-${{ hashFiles('**/cli/Cargo.lock') }}
-
-      - name: Install Diesel CLI
-        run: cargo install diesel_cli --no-default-features --features postgres
-
       - name: Setup Test Environment
-        id: setup_env # Give an ID to reference outputs
         uses: ./.github/actions/setup-test-environment
 
       - name: Run CLI Tests
         working-directory: ./cli # Tests run from the cli directory
         run: cargo test --workspace # Run tests for all packages in the cli workspace
         env:
-          # Pass necessary env vars from setup action outputs
-          DATABASE_URL: ${{ steps.setup_env.outputs.database-url }}
+          # Use hardcoded default values and secrets
+          DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres
           REDIS_URL: redis://localhost:6379 # Connect to the Redis service container
-          JWT_SECRET: ${{ steps.setup_env.outputs.jwt-secret }}
-          SUPABASE_URL: ${{ steps.setup_env.outputs.supabase-url }}
-          SUPABASE_SERVICE_ROLE_KEY: ${{ steps.setup_env.outputs.supabase-service-role-key }}
+          JWT_SECRET: ${{ secrets.GH_ACTIONS_SUPABASE_JWT_SECRET }} # Use secret
+          SUPABASE_URL: http://127.0.0.1:54321 # Default local URL
+          SUPABASE_SERVICE_ROLE_KEY: ${{ secrets.GH_ACTIONS_SUPABASE_SERVICE_ROLE_KEY }} # Use secret
           RUST_LOG: debug # Or adjust as needed
 
           # Add any other environment variables your CLI tests might require
 
-          # Sensitive values from Secrets (if needed by CLI tests)
-          OPENAI_API_KEY: ${{ secrets.GH_ACTIONS_OPENAI_API_KEY }}
-          RESEND_API_KEY: ${{ secrets.GH_ACTIONS_RESEND_API_KEY }}
-          COHERE_API_KEY: ${{ secrets.GH_ACTIONS_COHERE_API_KEY }}
-          LLM_API_KEY: ${{ secrets.GH_ACTIONS_LLM_API_KEY }}
-          LLM_BASE_URL: ${{ secrets.GH_ACTIONS_LLM_BASE_URL }}
-
       - name: Stop Supabase # Use the cleanup action
         uses: ./.github/actions/stop-supabase
         if: always() # Ensure Supabase is stopped even if tests fail
diff --git a/.github/workflows/web-testing.yml b/.github/workflows/web-testing.yml
index f65754e8e..07d24c6b0 100644
--- a/.github/workflows/web-testing.yml
+++ b/.github/workflows/web-testing.yml
@@ -36,7 +36,6 @@ jobs:
           node-version: '20'
 
       - name: Setup Test Environment
-        id: setup_env # Give an ID to reference outputs
         uses: ./.github/actions/setup-test-environment
 
       # Build/Run/Wait steps remain for web testing as it needs the API server running
@@ -45,7 +44,7 @@ jobs:
         run: cargo build --release
         env:
           # Potentially needed if build process requires env vars, though unlikely
-          DATABASE_URL: ${{ steps.setup_env.outputs.database-url }}
+          DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres
 
       - name: Run API Server
         working-directory: ./api
@@ -53,13 +52,13 @@ jobs:
           ./target/release/server & # Run in background
           echo $! > /tmp/api-server.pid # Store PID for later cleanup
         env:
-          # Core Supabase/DB/Redis vars from setup action outputs
-          DATABASE_URL: ${{ steps.setup_env.outputs.database-url }}
-          POOLER_URL: ${{ steps.setup_env.outputs.database-url }} # Assuming pooler uses same DB
+          # Core Supabase/DB/Redis vars - use hardcoded values and secrets
+          DATABASE_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres
+          POOLER_URL: postgres://postgres:postgres@127.0.0.1:54322/postgres # Assuming pooler uses same DB
           REDIS_URL: redis://localhost:6379 # Use localhost as it runs on the runner accessing the service
-          JWT_SECRET: ${{ steps.setup_env.outputs.jwt-secret }}
-          SUPABASE_URL: ${{ steps.setup_env.outputs.supabase-url }}
-          SUPABASE_SERVICE_ROLE_KEY: ${{ steps.setup_env.outputs.supabase-service-role-key }}
+          JWT_SECRET: ${{ secrets.GH_ACTIONS_SUPABASE_JWT_SECRET }} # Use secret
+          SUPABASE_URL: http://127.0.0.1:54321 # Default local URL
+          SUPABASE_SERVICE_ROLE_KEY: ${{ secrets.GH_ACTIONS_SUPABASE_SERVICE_ROLE_KEY }} # Use secret
 
           # Non-sensitive / Default values
           ENVIRONMENT: development
@@ -76,7 +75,6 @@ jobs:
           LLM_API_KEY: ${{ secrets.GH_ACTIONS_LLM_API_KEY }}
           LLM_BASE_URL: ${{ secrets.GH_ACTIONS_LLM_BASE_URL }}
 
-
       - name: Wait for API Server
         run: |
           echo "Waiting for API server (localhost:3001) to be ready..."
@@ -104,9 +102,9 @@ jobs:
           # API runs on localhost within the runner
           NEXT_PUBLIC_API_URL: http://localhost:3001
           NEXT_PUBLIC_URL: http://localhost:3000 # Assuming default URL for the app itself
-          # Use Supabase details from the setup action outputs
-          NEXT_PUBLIC_SUPABASE_URL: ${{ steps.setup_env.outputs.supabase-url }}
-          NEXT_PUBLIC_SUPABASE_ANON_KEY: ${{ steps.setup_env.outputs.supabase-anon-key }}
+          # Use Supabase details - default URL and secret anon key
+          NEXT_PUBLIC_SUPABASE_URL: http://127.0.0.1:54321 # Default local URL
+          NEXT_PUBLIC_SUPABASE_ANON_KEY: ${{ secrets.GH_ACTIONS_SUPABASE_ANON_KEY }} # Use secret
           NEXT_PUBLIC_WEB_SOCKET_URL: ws://localhost:3001 # Assuming WS connects to API
 
           # Pass any other required NEXT_PUBLIC_ variables