diff --git a/apps/x/packages/core/src/agents/runtime.ts b/apps/x/packages/core/src/agents/runtime.ts
index 3fc28321..baf23c3e 100644
--- a/apps/x/packages/core/src/agents/runtime.ts
+++ b/apps/x/packages/core/src/agents/runtime.ts
@@ -32,7 +32,7 @@ import { getRaw as getNoteTaggingAgentRaw } from "../knowledge/note_tagging_agen
 import { getRaw as getInlineTaskAgentRaw } from "../knowledge/inline_task_agent.js";
 import { getRaw as getAgentNotesAgentRaw } from "../knowledge/agent_notes_agent.js";
 
-const AGENT_NOTES_DIR = path.join(WorkDir, 'knowledge', 'agent-notes');
+const AGENT_NOTES_DIR = path.join(WorkDir, 'knowledge', 'Agent Notes');
 
 function loadAgentNotesContext(): string | null {
     const sections: string[] = [];
@@ -58,7 +58,7 @@ function loadAgentNotesContext(): string | null {
         }
     } catch { /* ignore */ }
 
-    // List other agent-notes files for on-demand access
+    // List other Agent Notes files for on-demand access
     const otherFiles: string[] = [];
     const skipFiles = new Set(['user.md', 'preferences.md', 'inbox.md']);
     try {
@@ -79,7 +79,7 @@ function loadAgentNotesContext(): string | null {
     } catch { /* ignore */ }
 
     if (otherFiles.length > 0) {
-        sections.push(`## More Specific Preferences\nFor more specific preferences, you can read these files using workspace-readFile. Only read them when relevant to the current task.\n\n${otherFiles.map(f => `- knowledge/agent-notes/${f}`).join('\n')}`);
+        sections.push(`## More Specific Preferences\nFor more specific preferences, you can read these files using workspace-readFile. Only read them when relevant to the current task.\n\n${otherFiles.map(f => `- knowledge/Agent Notes/${f}`).join('\n')}`);
     }
 
     if (sections.length === 0) return null;
@@ -1031,7 +1031,7 @@ export async function* streamAgent({
             timeZoneName: 'short'
         });
         let instructionsWithDateTime = `Current date and time: ${currentDateTime}\n\n${agent.instructions}`;
-        // Inject agent-notes context for copilot
+        // Inject Agent Notes context for copilot
         if (state.agentName === 'copilot' || state.agentName === 'rowboatx') {
             const agentNotesContext = loadAgentNotesContext();
             if (agentNotesContext) {
diff --git a/apps/x/packages/core/src/application/lib/builtin-tools.ts b/apps/x/packages/core/src/application/lib/builtin-tools.ts
index 09fed746..5275aaa9 100644
--- a/apps/x/packages/core/src/application/lib/builtin-tools.ts
+++ b/apps/x/packages/core/src/application/lib/builtin-tools.ts
@@ -1266,7 +1266,7 @@ export const BuiltinTools: z.infer<typeof BuiltinToolsSchema> = {
             note: z.string().describe("The observation or preference to remember. Be specific and concise."),
         }),
         execute: async ({ note }: { note: string }) => {
-            const inboxPath = path.join(WorkDir, 'knowledge', 'agent-notes', 'inbox.md');
+            const inboxPath = path.join(WorkDir, 'knowledge', 'Agent Notes', 'inbox.md');
             const dir = path.dirname(inboxPath);
             await fs.mkdir(dir, { recursive: true });
 
diff --git a/apps/x/packages/core/src/knowledge/agent_notes.ts b/apps/x/packages/core/src/knowledge/agent_notes.ts
index e8fdb965..b9f10f38 100644
--- a/apps/x/packages/core/src/knowledge/agent_notes.ts
+++ b/apps/x/packages/core/src/knowledge/agent_notes.ts
@@ -18,7 +18,7 @@ const EMAIL_BATCH_SIZE = 5;
 const RUNS_BATCH_SIZE = 5;
 const GMAIL_SYNC_DIR = path.join(WorkDir, 'gmail_sync');
 const RUNS_DIR = path.join(WorkDir, 'runs');
-const AGENT_NOTES_DIR = path.join(WorkDir, 'knowledge', 'agent-notes');
+const AGENT_NOTES_DIR = path.join(WorkDir, 'knowledge', 'Agent Notes');
 const INBOX_FILE = path.join(AGENT_NOTES_DIR, 'inbox.md');
 const AGENT_ID = 'agent_notes_agent';
 
@@ -265,7 +265,7 @@ async function processAgentNotes(): Promise<void> {
 
     try {
         const timestamp = new Date().toISOString();
-        const message = `Current timestamp: ${timestamp}\n\nProcess the following source material and update the agent-notes folder accordingly.\n\n${messageParts.join('\n\n')}`;
+        const message = `Current timestamp: ${timestamp}\n\nProcess the following source material and update the Agent Notes folder accordingly.\n\n${messageParts.join('\n\n')}`;
 
         const agentRun = await createRun({ agentId: AGENT_ID });
         await createMessage(agentRun.id, message);
diff --git a/apps/x/packages/core/src/knowledge/agent_notes_agent.ts b/apps/x/packages/core/src/knowledge/agent_notes_agent.ts
index 4dd6654a..58aa22a7 100644
--- a/apps/x/packages/core/src/knowledge/agent_notes_agent.ts
+++ b/apps/x/packages/core/src/knowledge/agent_notes_agent.ts
@@ -19,11 +19,11 @@ tools:
 ---
 # Agent Notes
 
-You are the agent-notes agent. You maintain a set of notes about the user in the \`knowledge/agent-notes/\` folder. Your job is to process new source material and update the notes accordingly.
+You are the Agent Notes agent. You maintain a set of notes about the user in the \`knowledge/Agent Notes/\` folder. Your job is to process new source material and update the notes accordingly.
 
 ## Folder Structure
 
-The agent-notes folder contains markdown files that capture what you've learned about the user:
+The Agent Notes folder contains markdown files that capture what you've learned about the user:
 
 - **user.md** — Facts about who the user IS: their identity, role, company, team, projects, relationships, life context. NOT how they write or what they prefer. Each fact is a timestamped bullet point.
 - **preferences.md** — General preferences and explicit rules (e.g., "don't use em-dashes", "no meetings before 11am"). These are injected into the assistant's system prompt on every chat.
@@ -63,8 +63,13 @@ Organize by recipient context. Include concrete examples quoted from actual emai
 ### preferences.md — Explicit rules and preferences
 Things the user has stated they want or don't want.
 
-### Other files — Topic-specific preferences
-Create when you see multiple preferences about a specific skill/topic.
+### Other files — Topic-specific persistent preferences ONLY
+Create a new file ONLY for recurring preference themes where the user has expressed multiple lasting preferences about a specific skill or task type. Examples: \`presentations.md\` (if the user has stated preferences about slide design, deck structure, etc.), \`meeting-prep.md\` (if they have preferences about how meetings are prepared).
+
+Do NOT create files for:
+- One-off facts or transient situations (e.g., "looking for housing in SF" — that's a user.md fact, not a preference file)
+- Topics with only a single observation
+- Things that are better captured in user.md or preferences.md
 
 ## Rules
 
@@ -78,7 +83,8 @@ Create when you see multiple preferences about a specific skill/topic.
 - **Skip ephemeral tasks.** If the user asked the assistant to do a one-off thing (draft an email, write a story, search for something), that is NOT a fact about the user. Skip it entirely.
 - Be concise — bullet points, not paragraphs.
 - Capture context, not blanket rules. BAD: "User prefers casual tone". GOOD: "User prefers casual tone with internal team but formal with investors."
-- If there's nothing new to add, don't modify files unnecessarily.
-- Create the \`style/\` directory if it doesn't exist yet.
+- **If there's nothing new to add to a file, do NOT touch it.** Do not create placeholder content, do not write "no preferences recorded", do not add explanatory notes about what the file is for. Leave it empty or leave it as-is.
+- **Do NOT create files unless you have actual content for them.** An empty or boilerplate file is worse than no file.
+- Create the \`style/\` directory if it doesn't exist yet and you have style content to write.
 `;
 }