diff --git a/docs/manage-sandboxes/backup-restore.mdx b/docs/manage-sandboxes/backup-restore.mdx
index 20f5bf8711b..2a1921b6aa3 100644
--- a/docs/manage-sandboxes/backup-restore.mdx
+++ b/docs/manage-sandboxes/backup-restore.mdx
@@ -38,6 +38,14 @@ Snapshots capture all workspace state directories defined in the agent manifest
 Agent manifests can also declare durable top-level state files.
 Treat snapshot directories as private local data.
 
+<AgentOnly variant="openclaw">
+<Warning>
+Inside an OpenClaw sandbox, `~` expands to `/sandbox`, not to the OpenClaw workspace.
+Files such as `~/USER.md` and `~/SOUL.md` are therefore outside OpenClaw's managed state and are not included in snapshots.
+Store them as `$OPENCLAW_WORKSPACE_DIR/USER.md` and `$OPENCLAW_WORKSPACE_DIR/SOUL.md` so snapshot and restore operations preserve them.
+</Warning>
+</AgentOnly>
+
 Before NemoClaw marks a snapshot complete, it strips recognized credential values from copied JSON, YAML, and `.env` files.
 It preserves OpenShell credential placeholders so rebuild can reattach the host-side provider.
 If NemoClaw cannot sanitize a copied configuration or environment file, it omits that file from the snapshot.
diff --git a/docs/manage-sandboxes/workspace-files.mdx b/docs/manage-sandboxes/workspace-files.mdx
index 06512c760cd..8531abfac02 100644
--- a/docs/manage-sandboxes/workspace-files.mdx
+++ b/docs/manage-sandboxes/workspace-files.mdx
@@ -41,6 +41,13 @@ All workspace files reside inside the sandbox filesystem:
     └── 2026-03-19.md
 ```
 
+<Warning>
+Inside an OpenClaw sandbox, `~` expands to `/sandbox`, not to the OpenClaw workspace.
+Do not create workspace files as `~/USER.md` or `~/SOUL.md`.
+Those paths resolve to `/sandbox/USER.md` and `/sandbox/SOUL.md`, which are outside OpenClaw's managed state and are not included in snapshots.
+Use `$OPENCLAW_WORKSPACE_DIR/USER.md` and `$OPENCLAW_WORKSPACE_DIR/SOUL.md` instead.
+</Warning>
+
 ## Multi-Agent Deployments
 
 A single NemoClaw sandbox can host more than one OpenClaw agent.
diff --git a/docs/security/credential-storage.mdx b/docs/security/credential-storage.mdx
index 2ed84d4ec39..3f493a19c5e 100644
--- a/docs/security/credential-storage.mdx
+++ b/docs/security/credential-storage.mdx
@@ -21,10 +21,10 @@ Provider credential commands do not rotate this token.
 A non-root start while Shields are up preserves the sealed token because the sandbox user cannot replace the protected configuration.
 If the sealed gateway token or required auth profile is unavailable, the start fails instead of weakening the sealed configuration.
 The error tells you to lower Shields before you restart.
-When the sealed `credentials` directory is empty, NemoClaw grants the sandbox group search-only access with mode `0710`.
-This access lets OpenClaw confirm that optional credential files are absent during start.
-The sandbox group cannot list, create, or remove entries, and it cannot read credential files.
-A non-empty `credentials` directory remains root-only.
+When Shields are up, NemoClaw sets every present `credentials` root to `root:sandbox` with mode `0710`, whether it is empty or non-empty.
+This search-only access lets OpenClaw confirm that optional credential files are absent during start.
+The sandbox group cannot list, create, or remove entries in the root.
+Every descendant remains `root:root` with no group or world permission bits, so the sandbox group cannot read credential files.
 </AgentOnly>
 <AgentOnly variant="hermes">
 NemoClaw manages Hermes API credentials and provider credentials through the same OpenShell provider boundary.
diff --git a/test/e2e/live/snapshot-commands.test.ts b/test/e2e/live/snapshot-commands.test.ts
index e0e1dd2bb1b..fe4200d1195 100644
--- a/test/e2e/live/snapshot-commands.test.ts
+++ b/test/e2e/live/snapshot-commands.test.ts
@@ -41,8 +41,11 @@ const BACKUP_DIR = path.resolve(BACKUP_ROOT, SANDBOX_NAME);
 if (!BACKUP_DIR.startsWith(`${path.resolve(BACKUP_ROOT)}${path.sep}`)) {
   throw new Error(`snapshot backup directory escaped rebuild-backups root: ${BACKUP_DIR}`);
 }
-const MARKER_FILE = "/sandbox/.openclaw/workspace/snapshot-marker.txt";
-const SECOND_MARKER = "/sandbox/.openclaw/workspace/snapshot-marker-2.txt";
+const OPENCLAW_WORKSPACE_PATH = "/sandbox/.openclaw/workspace";
+const MARKER_FILE = `${OPENCLAW_WORKSPACE_PATH}/snapshot-marker.txt`;
+const SECOND_MARKER = `${OPENCLAW_WORKSPACE_PATH}/snapshot-marker-2.txt`;
+const USER_FILE = `${OPENCLAW_WORKSPACE_PATH}/USER.md`;
+const SOUL_FILE = `${OPENCLAW_WORKSPACE_PATH}/SOUL.md`;
 const BASELINE_EXCLUSION_KEY = "openclaw_docs";
 const LIVE_TIMEOUT_MS = 36 * 60_000;
 const INFERENCE_API_KEY = "nvapi-snapshot-commands-fixture-credential";
@@ -317,6 +320,7 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
       "confirm Docker and start hermetic inference",
       "onboard the snapshot sandbox",
       "create and list the first snapshot",
+      "destroy, freshly onboard, and restore canonical OpenClaw workspace files",
       "restore the first snapshot into a clone",
       "verify the restored clone state and gateway pairing",
       "create a second snapshot from changed workspace",
@@ -338,6 +342,7 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
       "onboard authenticates to a hermetic compatible inference endpoint",
       "snapshot create reports Snapshot v<N> created",
       "snapshot list shows versioned snapshots and parseable timestamps",
+      "snapshot restore recovers canonical OpenClaw USER.md and SOUL.md after destroy and fresh same-name onboarding",
       "baseline exclusions remain active in registry and live policy across rebuild",
       "snapshot restore --to carries baseline exclusions into clone registry and live policy",
       "snapshot restore --to returns only after restored gateway pairing is authenticated",
@@ -491,13 +496,20 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
 
   const markerContent = `SNAPSHOT_E2E_${Date.now()}`;
   const secondContent = `SNAPSHOT_E2E_SECOND_${Date.now()}`;
+  const userContent = `SNAPSHOT_E2E_USER_${Date.now()}`;
+  const soulContent = `SNAPSHOT_E2E_SOUL_${Date.now()}`;
 
   const writeMarker = await sandbox.exec(
     SANDBOX_NAME,
     [
       "sh",
       "-lc",
-      `mkdir -p /sandbox/.openclaw/workspace && printf '%s' '${markerContent}' > ${MARKER_FILE}`,
+      `set -eu
+test "$OPENCLAW_WORKSPACE_DIR" = ${JSON.stringify(OPENCLAW_WORKSPACE_PATH)}
+mkdir -p "$OPENCLAW_WORKSPACE_DIR"
+printf '%s' ${JSON.stringify(markerContent)} > ${JSON.stringify(MARKER_FILE)}
+printf '%s' ${JSON.stringify(userContent)} > "$OPENCLAW_WORKSPACE_DIR/USER.md"
+printf '%s' ${JSON.stringify(soulContent)} > "$OPENCLAW_WORKSPACE_DIR/SOUL.md"`,
     ],
     {
       artifactName: "phase-2-write-marker",
@@ -513,6 +525,20 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
     markerContent,
     "phase-2-read-marker",
   );
+  await expectSandboxFileContent(
+    sandbox,
+    SANDBOX_NAME,
+    USER_FILE,
+    userContent,
+    "phase-2-read-user-file",
+  );
+  await expectSandboxFileContent(
+    sandbox,
+    SANDBOX_NAME,
+    SOUL_FILE,
+    soulContent,
+    "phase-2-read-soul-file",
+  );
 
   progress.phase("create and list the first snapshot");
   const firstCreate = await host.command("nemoclaw", [SANDBOX_NAME, "snapshot", "create"], {
@@ -534,6 +560,102 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
   const timestamp = firstSnapshotTimestamp(resultText(list));
   await artifacts.writeJson("phase-4-first-snapshot.json", { timestamp });
 
+  progress.phase("destroy, freshly onboard, and restore canonical OpenClaw workspace files");
+  const destroySource = await host.command("nemoclaw", [SANDBOX_NAME, "destroy", "--yes"], {
+    artifactName: "phase-4-destroy-source",
+    env: commandEnv(),
+    timeoutMs: 120_000,
+  });
+  expect(destroySource.exitCode, resultText(destroySource)).toBe(0);
+
+  const freshOnboard = await host.command(
+    "nemoclaw",
+    ["onboard", "--fresh", "--non-interactive", "--yes", "--yes-i-accept-third-party-software"],
+    {
+      artifactName: "phase-4-fresh-onboard-source",
+      env: commandEnv(inferenceConfig),
+      redactionValues: [INFERENCE_API_KEY],
+      timeoutMs: 20 * 60_000,
+    },
+  );
+  expect(freshOnboard.exitCode, resultText(freshOnboard)).toBe(0);
+
+  const reapplyBaselineExclusion = await host.command(
+    "nemoclaw",
+    [SANDBOX_NAME, "policy", "exclude", BASELINE_EXCLUSION_KEY, "--force"],
+    {
+      artifactName: "phase-4-reapply-baseline-exclusion",
+      env: commandEnv(),
+      timeoutMs: 60_000,
+    },
+  );
+  expect(reapplyBaselineExclusion.exitCode, resultText(reapplyBaselineExclusion)).toBe(0);
+  await expectBaselineExclusionAgreement(
+    host,
+    sandbox,
+    SANDBOX_NAME,
+    "phase-4-after-reapplying-baseline-exclusion",
+  );
+
+  const replacementHasNoSnapshotMarkers = await sandbox.exec(
+    SANDBOX_NAME,
+    [
+      "sh",
+      "-lc",
+      `set -eu
+! grep -F ${JSON.stringify(userContent)} ${JSON.stringify(USER_FILE)}
+! grep -F ${JSON.stringify(soulContent)} ${JSON.stringify(SOUL_FILE)}
+test ! -e ${JSON.stringify(MARKER_FILE)}`,
+    ],
+    {
+      artifactName: "phase-4-verify-fresh-workspace",
+      env: commandEnv(),
+      timeoutMs: 30_000,
+    },
+  );
+  expect(
+    replacementHasNoSnapshotMarkers.exitCode,
+    resultText(replacementHasNoSnapshotMarkers),
+  ).toBe(0);
+
+  const replacementRestore = await host.command(
+    "nemoclaw",
+    [SANDBOX_NAME, "snapshot", "restore", timestamp],
+    {
+      artifactName: "phase-4-restore-source-after-fresh-onboard",
+      env: commandEnv(),
+      timeoutMs: 120_000,
+    },
+  );
+  expect(classifySnapshotRestoreResult(replacementRestore)).toBe("restored");
+  await expectSandboxFileContent(
+    sandbox,
+    SANDBOX_NAME,
+    MARKER_FILE,
+    markerContent,
+    "phase-4-read-restored-source-marker",
+  );
+  await expectSandboxFileContent(
+    sandbox,
+    SANDBOX_NAME,
+    USER_FILE,
+    userContent,
+    "phase-4-read-restored-user-file",
+  );
+  await expectSandboxFileContent(
+    sandbox,
+    SANDBOX_NAME,
+    SOUL_FILE,
+    soulContent,
+    "phase-4-read-restored-soul-file",
+  );
+  await expectBaselineExclusionAgreement(
+    host,
+    sandbox,
+    SANDBOX_NAME,
+    "phase-4-restored-source-baseline-exclusion",
+  );
+
   progress.phase("restore the first snapshot into a clone");
   const cloneRestore = await host.command(
     "nemoclaw",
@@ -912,7 +1034,9 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
     PROTECTED_CREDENTIALS_DIR,
     "phase-11-protected-credentials-dir-before-backup",
   );
-  expect(protectedDirBeforeBackup).toEqual({ mode: "700", owner: "root:root" });
+  // Confidentiality roots remain search-only for the sandbox group; every
+  // descendant stays root-only and unreadable to the sandbox.
+  expect(protectedDirBeforeBackup).toEqual({ mode: "710", owner: "root:sandbox" });
   const protectedFileBeforeBackup = await rootSandboxPathMetadata(
     host,
     rebuiltContainerId,
@@ -993,7 +1117,7 @@ test("snapshot commands preserve create/list/latest restore/targeted restore/no-
       PROTECTED_CREDENTIALS_DIR,
       "phase-11-protected-credentials-dir-after-backup",
     ),
-  ).toEqual({ mode: "700", owner: "root:root" });
+  ).toEqual({ mode: "710", owner: "root:sandbox" });
   expect(
     await rootSandboxPathMetadata(
       host,