diff --git a/.idea/workspace.xml b/.idea/workspace.xml
index 79d3321fd..a3bfbdbc5 100644
--- a/.idea/workspace.xml
+++ b/.idea/workspace.xml
@@ -4,9 +4,7 @@
     <option name="autoReloadType" value="SELECTIVE" />
   </component>
   <component name="ChangeListManager">
-    <list default="true" id="5251c5c9-f2a1-41f2-bc76-10b517091df1" name="Changes" comment="">
-      <change beforePath="$PROJECT_DIR$/.idea/workspace.xml" beforeDir="false" afterPath="$PROJECT_DIR$/.idea/workspace.xml" afterDir="false" />
-    </list>
+    <list default="true" id="5251c5c9-f2a1-41f2-bc76-10b517091df1" name="Changes" comment="" />
     <option name="SHOW_DIALOG" value="false" />
     <option name="HIGHLIGHT_CONFLICTS" value="true" />
     <option name="HIGHLIGHT_NON_ACTIVE_CHANGELIST" value="false" />
@@ -117,7 +115,7 @@
       <workItem from="1754429757112" duration="3503000" />
       <workItem from="1754433799097" duration="517000" />
       <workItem from="1754448353513" duration="2970000" />
-      <workItem from="1754511414251" duration="24525000" />
+      <workItem from="1754511414251" duration="25159000" />
     </task>
     <servers />
   </component>
diff --git a/plogical/upgrade.py b/plogical/upgrade.py
index 066ab9d4c..bf2aed119 100644
--- a/plogical/upgrade.py
+++ b/plogical/upgrade.py
@@ -2360,6 +2360,11 @@ CREATE TABLE `websiteFunctions_backupsv2` (`id` integer AUTO_INCREMENT NOT NULL
     def restoreCriticalFiles(backup_dir, backed_up_files):
         """Restore critical configuration files after upgrade"""
         for original_path, backup_path in backed_up_files.items():
+            # Skip settings.py - we'll handle it separately to preserve INSTALLED_APPS
+            if 'settings.py' in original_path:
+                Upgrade.stdOut(f"Skipping {original_path} - will be handled separately")
+                continue
+            
             try:
                 if os.path.isdir(backup_path):
                     if os.path.exists(original_path):
@@ -2463,23 +2468,23 @@ CREATE TABLE `websiteFunctions_backupsv2` (`id` integer AUTO_INCREMENT NOT NULL
             if not Upgrade.executioner(command, command, 1):
                 Upgrade.stdOut(f"Warning: Failed to checkout branch {branch}, continuing with default branch")
             
-            # Restore all backed up configuration files
+            # Restore all backed up configuration files (except settings.py)
             Upgrade.stdOut("Restoring configuration files...")
             Upgrade.restoreCriticalFiles(backup_dir, backed_up_files)
 
-            ## Update settings file with database credentials while preserving other settings
+            ## Handle settings.py separately to preserve NEW INSTALLED_APPS while keeping old database credentials
             
-            # Read the current settings file (which was just restored from backup)
+            # Read the NEW settings file from the fresh clone (has new INSTALLED_APPS like 'aiScanner')
             settingsData = open(settingsFile, 'r').read()
             
-            # Replace only the DATABASES section while keeping everything else (including INSTALLED_APPS)
+            # Replace only the DATABASES section with our saved credentials
             import re
             
             # More precise pattern to match the entire DATABASES dictionary including nested dictionaries
             # This pattern looks for DATABASES = { ... } including the 'default' and 'rootdb' nested dicts
             database_pattern = r'DATABASES\s*=\s*\{[^}]*\{[^}]*\}[^}]*\{[^}]*\}[^}]*\}'
             
-            # Replace the DATABASES section with our saved credentials
+            # Replace the DATABASES section with our saved credentials from before upgrade
             settingsData = re.sub(database_pattern, completDBString.strip(), settingsData, flags=re.DOTALL)
             
             # Write back the updated settings
@@ -2487,7 +2492,7 @@ CREATE TABLE `websiteFunctions_backupsv2` (`id` integer AUTO_INCREMENT NOT NULL
             writeToFile.write(settingsData)
             writeToFile.close()
 
-            Upgrade.stdOut('Settings file restored with database credentials!')
+            Upgrade.stdOut('Settings file updated with database credentials while preserving new INSTALLED_APPS!')
 
             Upgrade.staticContent()