Upgrades from the pre-bundle layout can leave the unmanaged default image pointing at repo-root artifacts that no longer exist, causing vm start preflight to fail forever. Treat the default image as reconcilable state instead of bailing out when a record exists.
Compute the desired default image from current runtime/config defaults, update an existing unmanaged default in place when its paths diverge, keep managed defaults untouched, and preserve the original ID so existing VMs keep referencing it. Added regression tests covering creation, no-op, reconciliation, managed-image skip, and missing-artifact behavior.
VM start, image build, and network/setup failures were hard to diagnose because bangerd emitted almost no lifecycle logs and the Firecracker SDK logger was discarded. This adds a daemon-wide JSON logger with configurable log level so failures leave breadcrumbs instead of only side effects.
Log the main daemon and VM lifecycle stages, preserve raw Firecracker and image-build helper output in dedicated files, and include those log paths in daemon status and returned errors. Bridge SDK logrus output into the daemon logger at debug level so low-level Firecracker diagnostics are available without making normal info logs unreadable.
Validation: go test ./... and make build. Left unrelated worktree changes out of this commit, including internal/api/types.go, the deleted shell scripts, and my-rootfs.ext4.
Fix the misleading make install path where banger and bangerd still depended on a repo checkout for Firecracker, guest artifacts, image builds, and the SSH key.
Replace repo-root inference with an explicit runtime bundle model: resolve a runtime_dir from env/config/install layout, derive concrete artifact paths from it, and update the daemon, CLI, and image-build flow to use those paths. Keep repo_root only as an explicit compatibility alias instead of auto-detecting it.
Teach customize.sh to run from a read-only bundled runtime tree while writing transient state under XDG/BANGER_STATE_DIR, and make make install copy the runtime assets into PREFIX/lib/banger so installed binaries stay usable outside the repo.
Validate with go test ./..., make build, bash -n customize.sh, and make install DESTDIR=/tmp/banger-install PREFIX=/usr. An out-of-repo installed-binary smoke test was attempted, but this sandbox blocked bangerd from binding its Unix socket (setsockopt: operation not permitted).
Prevent partial VM startup failures from leaking loop devices and dm state on the host.
Move root snapshot setup into a rollback-safe helper that records loop and mapper handles incrementally, tears them down in reverse order on failure, and reuses the same dm/loop cleanup path during normal runtime teardown. Also switch the daemon runner field to a small command-runner interface so the snapshot path can be tested with injected failures.
Add failure-injection coverage for losetup, blockdev, dmsetup, partial teardown, and joined rollback errors. Validated with go test ./... and make build.
Replace the shell-only user workflow with `banger` and `bangerd`: Cobra commands, XDG/SQLite-backed state, managed VM and image lifecycle, and a Bubble Tea TUI for browsing and operating VMs.\n\nKeep Firecracker orchestration behind the daemon so VM specs become persistent objects, and add repo entrypoints for building, installing, and documenting the new flow while still delegating rootfs customization to the existing shell tooling.\n\nHarden the control plane around real usage by reclaiming Firecracker API sockets for the user, restarting stale daemons after rebuilds, and returning the correct `vm.create` payload so the CLI and TUI creation flow work reliably.\n\nValidation: `go test ./...`, `make build`, and a host-side smoke test with `./banger vm create --name codex-smoke`.
