diff --git a/docs/src/content/docs/guide/gh-aw.md b/docs/src/content/docs/guide/gh-aw.md
index 7230929f5..f33793cb9 100644
--- a/docs/src/content/docs/guide/gh-aw.md
+++ b/docs/src/content/docs/guide/gh-aw.md
@@ -148,7 +148,7 @@ Set a repository variable to control which Squad CLI version the workflow uses:
 
 | Variable | Purpose | Default |
 |----------|---------|---------|
-| `SQUAD_CLI_VERSION` | Squad CLI version to install during activation | `0.14.0` |
+| `SQUAD_CLI_VERSION` | Squad CLI version to install during activation | `0.12.0` |
 
 Set it in **Settings → Secrets and variables → Actions → Variables**.
 
diff --git a/test/gh-aw-quality.test.ts b/test/gh-aw-quality.test.ts
index 985eede7f..fde5ca457 100644
--- a/test/gh-aw-quality.test.ts
+++ b/test/gh-aw-quality.test.ts
@@ -1219,6 +1219,25 @@ describe('gh-aw: compiled workflow shell input security contract', () => {
     expect(compiled).not.toMatch(/<!-- squad-[\w-]+(?:-v\d+)? -->/);
   }, 20000);
 
+  it('preserves the published CLI selection in the compiled install step (#1884)', () => {
+    const compiled = lockText();
+    const pin = readText(join(SHARED_DIR, 'squad.md')).match(
+      /SQUAD_CLI_VERSION:\s*\$\{\{\s*vars\.SQUAD_CLI_VERSION\s*\|\|\s*'([^']+)'/,
+    )?.[1];
+
+    expect(pin, 'could not locate the source Squad CLI fallback').toBeDefined();
+    expect(compiled).toMatch(
+      new RegExp(
+        String.raw`name: Install Squad CLI[\s\S]*SQUAD_CLI_VERSION:\s*\$\{\{\s*vars\.SQUAD_CLI_VERSION\s*\|\|\s*'${pin}'\s*\}\}`,
+      ),
+    );
+    expect(compiled).toContain(
+      'npm install --global --prefix "$install_root" "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}"',
+    );
+    expect(compiled).toContain('echo "$install_root/bin" >> "$GITHUB_PATH"');
+    expect(compiled).not.toContain('npx --yes "@bradygaster/squad-cli@');
+  }, 20000);
+
   it('emits no attacker-controlled event text in any compiled run: block', () => {
     const compiled = lockText();
     const blocks = extractRunBlocks(compiled);
@@ -2342,13 +2361,22 @@ describe('gh-aw: shared bootstrap health-before-dispatch contract (#1605)', () =
   const sharedContent = readText(join(SHARED_DIR, 'squad.md'));
 
   it('squad health --json appears in the shared bootstrap', () => {
-    expect(sharedContent).toMatch(/npx\s+--yes\s+"@bradygaster\/squad-cli@\$\{SQUAD_CLI_VERSION\}"\s+health\s+--json/);
+    expect(sharedContent).toMatch(/\bsquad\s+health\s+--json/);
   });
 
   it('health uses --json flag for structured CI output', () => {
     expect(sharedContent).toMatch(/health --json/);
   });
 
+  it('gates health on command capability until the published pin includes it (#1884)', () => {
+    expect(sharedContent).toContain(
+      "squad help | grep -Fq 'Validate team state for CI'",
+    );
+    expect(sharedContent).toContain(
+      'predates the health command; the readiness gate will activate after the next published CLI pin',
+    );
+  });
+
   it('squad health --json appears after squad init (command ordering)', () => {
     const initIdx = sharedContent.indexOf('init --preset default');
     const healthIdx = sharedContent.indexOf('health --json');
@@ -2406,15 +2434,17 @@ describe('gh-aw: shared bootstrap health-before-dispatch contract (#1605)', () =
     expect(healthStepIdx, 'health check must precede upload').toBeLessThan(uploadStepIdx);
   });
 
-  it('health step uses the same CLI version mechanism as init', () => {
+  it('health and init use the globally installed CLI selected before both steps', () => {
     const lines = sharedContent.split('\n');
     const healthLineIdx = lines.findIndex(l => l.includes('health --json'));
     expect(healthLineIdx).toBeGreaterThan(-1);
 
     const healthLine = lines[healthLineIdx];
-    expect(healthLine, 'health must use npx').toContain('npx');
-    expect(healthLine, 'health must reference squad-cli package').toContain('@bradygaster/squad-cli@');
-    expect(healthLine, 'health must use the SQUAD_CLI_VERSION variable').toContain('SQUAD_CLI_VERSION');
+    expect(healthLine, 'health must invoke the installed squad binary').toMatch(/\bsquad health --json/);
+    expect(sharedContent).toContain(
+      'npm install --global --prefix "$install_root" "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}"',
+    );
+    expect(sharedContent).not.toContain('npx --yes "@bradygaster/squad-cli@');
   });
 
   it('continue-on-error on the restore step does not shield health failure from stopping dispatch', () => {
diff --git a/test/squad-cli-pin.test.ts b/test/squad-cli-pin.test.ts
index e61840695..d5dad8794 100644
--- a/test/squad-cli-pin.test.ts
+++ b/test/squad-cli-pin.test.ts
@@ -93,12 +93,30 @@ describe('Squad CLI activation pin (#1825)', () => {
     // version can go stale — and being unreachable, it goes stale invisibly.
     expect(source).not.toMatch(/\$\{SQUAD_CLI_VERSION:-/);
 
-    // Belt and braces: no *other* copy of the version string in an npx invocation.
-    const npxLines = source.split(/\r?\n/).filter((l) => l.includes('squad-cli@'));
-    for (const line of npxLines) {
-      expect(line, `npx line hardcodes a version instead of using the env var: ${line.trim()}`)
-        .not.toContain(`squad-cli@${pin}`);
-    }
+    expect(source).not.toContain('npx --yes "@bradygaster/squad-cli@');
+    expect(source).toContain(
+      'npm install --global --prefix "$install_root" "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}"',
+    );
+    expect(source).not.toContain(`squad-cli@${pin}`);
+  });
+
+  it('binds the selected version on the install step gh-aw preserves (#1884)', () => {
+    const source = readPinFile();
+    const installStep = source.match(
+      /- name: Install Squad CLI[\s\S]*?(?=\n\s+- name:)/,
+    )?.[0];
+
+    expect(installStep, 'could not locate the Squad CLI install step').toBeDefined();
+    expect(installStep).toMatch(
+      /env:\s*\n\s+SQUAD_CLI_VERSION:\s*\$\{\{\s*vars\.SQUAD_CLI_VERSION\s*\|\|\s*'[^']+'\s*\}\}/,
+    );
+    expect(installStep).toContain(
+      'npm install --global --prefix "$install_root" "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}"',
+    );
+    expect(installStep).toContain('echo "$install_root/bin" >> "$GITHUB_PATH"');
+    expect(source).not.toMatch(
+      /activation:\s*\n\s+env:\s*\n\s+SQUAD_CLI_VERSION:/,
+    );
   });
 
   it('keeps the drift guard pointed at npm rather than the repo', () => {
diff --git a/workflows/shared/squad.md b/workflows/shared/squad.md
index 5aa539000..6d8e44fb6 100644
--- a/workflows/shared/squad.md
+++ b/workflows/shared/squad.md
@@ -48,10 +48,9 @@
 #
 # Optional custom Squad CLI version:
 #   vars.SQUAD_CLI_VERSION
-# Default is 0.14.0.
-#   This is the first release containing `squad health`. The shared component
-#   becomes fully operational only after that release is published.
-#   Import this workflow only from refs that post-date that release.
+# Default is 0.12.0.
+#   This is the latest published stable release when this workflow was authored.
+#   The release pipeline updates this pin only after npm publication.
 #
 # Optional model override:
 #   vars.SQUAD_MODEL
@@ -72,8 +71,6 @@ engine:
 
 jobs:
   activation:
-    env:
-      SQUAD_CLI_VERSION: ${{ vars.SQUAD_CLI_VERSION || '0.14.0' }}
     pre-steps:
       - name: Mint Squad GitHub App token
         id: squad-app-token
@@ -84,6 +81,19 @@ jobs:
           private-key: ${{ secrets.SQUAD_GITHUB_APP_PRIVATE_KEY }}
           owner: ${{ vars.SQUAD_GITHUB_APP_OWNER }}
 
+      - name: Install Squad CLI
+        id: squad-cli
+        env:
+          SQUAD_CLI_VERSION: ${{ vars.SQUAD_CLI_VERSION || '0.12.0' }}
+        run: |
+          set -euo pipefail
+          install_root="${RUNNER_TEMP}/squad-cli"
+          npm install --global --prefix "$install_root" "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}"
+          installed_version="$("$install_root/bin/squad" --version)"
+          echo "Installed Squad CLI ${installed_version} (requested ${SQUAD_CLI_VERSION})."
+          echo "version=${installed_version}" >> "$GITHUB_OUTPUT"
+          echo "$install_root/bin" >> "$GITHUB_PATH"
+
       - name: Initialize Squad team
         env:
           GH_TOKEN: ${{ steps.squad-app-token.outputs.token || secrets.SQUAD_GITHUB_TOKEN || github.token }}
@@ -102,14 +112,20 @@ jobs:
             echo "✓ Existing squad team detected with roster entries — skipping init."
           else
             echo "No existing squad team found — running squad init."
-            npx --yes "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}" init --preset default --state-backend local
+            squad init --preset default --state-backend local
           fi
 
       - name: Run Squad health check
         env:
           GH_TOKEN: ${{ steps.squad-app-token.outputs.token || secrets.SQUAD_GITHUB_TOKEN || github.token }}
+          SQUAD_CLI_VERSION: ${{ steps.squad-cli.outputs.version }}
         run: |
-          npx --yes "@bradygaster/squad-cli@${SQUAD_CLI_VERSION}" health --json
+          set -euo pipefail
+          if squad help | grep -Fq 'Validate team state for CI'; then
+            squad health --json
+          else
+            echo "::warning::Squad CLI ${SQUAD_CLI_VERSION} predates the health command; the readiness gate will activate after the next published CLI pin."
+          fi
 
       - name: Upload Squad state artifact
         if: success()
@@ -141,10 +157,11 @@ agent sandbox:
 
 1. **`jobs.activation.pre-steps`** — the repository is already checked out by the
    activation job. This step optionally mints a GitHub App installation token (or
-   uses a supplied PAT), checks whether `.squad/team.md` already exists with
-   roster entries (preserving any previously committed cast), and only runs
-   `squad init` if no usable team is found. It then runs `squad health --json`
-   and uploads the resulting `.squad/` team state plus
+   uses a supplied PAT), installs the selected published Squad CLI globally,
+   checks whether `.squad/team.md` already exists with roster entries (preserving
+   any previously committed cast), and only runs `squad init` if no usable team
+   is found. It then runs `squad health --json` when the installed release
+   supports it and uploads the resulting `.squad/` team state plus
    `.github/agents/squad.agent.md` only when readiness checks pass — all inside
    the activation job with unrestricted egress.