diff --git a/crates/omnigraph-config/src/merge.rs b/crates/omnigraph-config/src/merge.rs
index d7671ce..f7f63ca 100644
--- a/crates/omnigraph-config/src/merge.rs
+++ b/crates/omnigraph-config/src/merge.rs
@@ -61,12 +61,13 @@ pub fn merge_layers(layers: Vec<LoadedLayer>) -> (OmnigraphConfig, Provenance) {
             legacy_keys: _,
         } = config;
 
-        if layer_version.is_some() {
-            version = layer_version;
-        }
+        // `version`/`base_dir` follow the highest *loaded-from-file* layer (project
+        // over global), like every other scalar — not "any layer that set it". The
+        // synthetic State layer (not loaded-from-file) contributes neither.
         if layer_loaded {
             loaded_from_file = true;
             base_dir = layer_base_dir;
+            version = layer_version;
         }
 
         // Settings-objects — deep-merge per leaf.
@@ -291,4 +292,15 @@ mod tests {
             "provenance must iterate in deterministic sorted order"
         );
     }
+
+    #[test]
+    fn merge_version_follows_highest_loaded_layer() {
+        // A legacy (no `version:`) project layered under a `version: 1` global
+        // yields the project's version (None) — highest-precedence wins, like any
+        // scalar, not "any layer that set it".
+        let (g, _g) = config("version: 1\n");
+        let (p, _p) = config("defaults:\n  graph: x\n");
+        let (merged, _) = merge_layers(vec![layer(Layer::Global, g), layer(Layer::Project, p)]);
+        assert_eq!(merged.version, None);
+    }
 }
diff --git a/docs/user/cli-reference.md b/docs/user/cli-reference.md
index 05655ea..115ac86 100644
--- a/docs/user/cli-reference.md
+++ b/docs/user/cli-reference.md
@@ -25,7 +25,7 @@ A reference for the `omnigraph` binary's command surface and `omnigraph.yaml` sc
 | `cleanup --keep N --older-than 7d --confirm` | destructive version GC |
 | `embed` | offline JSONL embedding pipeline |
 | `policy validate \| test \| explain` | Cedar tooling. Selects `defaults.graph`, else `serve.graphs`, else top-level `policy.file` |
-| `config view [--resolved] [--show-origin] [--json] [<graph>]` | print the merged config; `--show-origin` labels each field with its source layer; `--resolved <graph>` prints the typed locator (embedded/remote) |
+| `config view [--resolved] [--show-origin] [--json] [<graph>]` | print the merged config (null/empty pruned); `--show-origin` labels each field with its source layer; `--resolved <graph>` prints the full typed locator (embedded/remote, incl. region/endpoint/policy). `--resolved` and `--show-origin` are mutually exclusive |
 | `use <graph>` | set the active graph (writes `~/.omnigraph/state/active.yaml`); a bare command then targets it |
 | `version` / `-v` | print `omnigraph 0.3.x` |
 
@@ -110,7 +110,8 @@ directory with no project file (the `kubectl`/`gh` posture). Precedence, low →
 
 **Global dir resolution:** `OMNIGRAPH_CONFIG` (explicit file) > `OMNIGRAPH_HOME` (dir) >
 `$XDG_CONFIG_HOME/omnigraph` (if set) > `~/.omnigraph`. The global file is
-`<dir>/config.yaml`.
+`<dir>/config.yaml`. An explicit `OMNIGRAPH_CONFIG` that names a missing file is an
+**error** (a typo fails loudly); a missing default-location file is simply "no global layer".
 
 **Merge semantics:** settings-objects (`defaults`, `serve`) deep-merge per field; the
 named-resource maps (`servers`, `graphs`, `aliases`) union by key, with a higher