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agent.py

@@ -308,8 +308,13 @@ class CUGAAgent:
 
         logger.info("Setting up CUGA agent...")
 
-        # Enable ActivityTracker for tool call tracking
-        settings.update({"ADVANCED_FEATURES": {"TRACKER_ENABLED": True}}, merge=True)
+        # Enable ActivityTracker and set policy toggle via Dynaconf directly
+        # (env vars are only read on first import, so we must update settings at runtime)
+        settings.update({
+            "ADVANCED_FEATURES": {"TRACKER_ENABLED": True},
+            "POLICY": {"ENABLED": self.policies_enabled},
+        }, merge=True)
+        logger.info(f"Dynaconf POLICY.ENABLED set to {self.policies_enabled}")
 
         # Initialize tool provider (will load from registry)
         self.tool_provider = CombinedToolProvider()
@@ -325,21 +330,16 @@ class CUGAAgent:
         self.agent = CugaAgent(tool_provider=self.tool_provider)
         logger.info("CUGA agent initialized")
 
-        # Load policies if enabled
+        # Load or clear policies based on toggle
         if self.policies_enabled:
             await self._load_policies()
         else:
-            logger.info("Policies disabled")
-
-    async def _load_policies(self):
-        """Load policies from policies.json using CUGA SDK."""
-        policies_json = Path(__file__).parent / "policies" / "policies.json"
-        if not policies_json.exists():
-            logger.warning(f"policies.json not found: {policies_json}")
-            return
+            await self._clear_policies()
+            logger.info("Policies disabled and cleared")
 
+    async def _clear_policies(self):
+        """Remove all persisted policies from the vector DB."""
         try:
-            # Clear any persisted policies first
             existing = await self.agent.policies.list()
             for policy in existing:
                 await self.agent.policies.delete(policy["id"])
@@ -348,6 +348,15 @@ class CUGAAgent:
         except Exception as e:
             logger.warning(f"Failed to clear policies: {e}")
 
+    async def _load_policies(self):
+        """Load policies from policies.json using CUGA SDK."""
+        policies_json = Path(__file__).parent / "policies" / "policies.json"
+        if not policies_json.exists():
+            logger.warning(f"policies.json not found: {policies_json}")
+            return
+
+        await self._clear_policies()
+
         try:
             result = await self.agent.policies.load_from_json(
                 str(policies_json), clear_existing=True