diff --git a/src/specify_cli/integrations/agy/__init__.py b/src/specify_cli/integrations/agy/__init__.py
index 9cd522745e..d62bafad40 100644
--- a/src/specify_cli/integrations/agy/__init__.py
+++ b/src/specify_cli/integrations/agy/__init__.py
@@ -1,13 +1,18 @@
 """Antigravity (agy) integration — skills-based agent.
 
-Antigravity uses ``.agent/skills/speckit-<name>/SKILL.md`` layout.
-Explicit command support was deprecated in version 1.20.5;
-``--skills`` defaults to ``True``.
+Antigravity uses ``.agents/skills/speckit-<name>/SKILL.md`` layout (enforced since v1.20.5).
 """
 
 from __future__ import annotations
 
-from ..base import IntegrationOption, SkillsIntegration
+from pathlib import Path
+from typing import TYPE_CHECKING, Any
+
+from ..base import SkillsIntegration
+
+if TYPE_CHECKING:
+    from ..manifest import IntegrationManifest
+
 
 
 class AgyIntegration(SkillsIntegration):
@@ -16,26 +21,32 @@ class AgyIntegration(SkillsIntegration):
     key = "agy"
     config = {
         "name": "Antigravity",
-        "folder": ".agent/",
+        "folder": ".agents/",
         "commands_subdir": "skills",
         "install_url": None,
         "requires_cli": False,
     }
     registrar_config = {
-        "dir": ".agent/skills",
+        "dir": ".agents/skills",
         "format": "markdown",
         "args": "$ARGUMENTS",
         "extension": "/SKILL.md",
     }
     context_file = "AGENTS.md"
 
-    @classmethod
-    def options(cls) -> list[IntegrationOption]:
-        return [
-            IntegrationOption(
-                "--skills",
-                is_flag=True,
-                default=True,
-                help="Install as agent skills (default for Antigravity since v1.20.5)",
-            ),
-        ]
+    def setup(
+        self,
+        project_root: Path,
+        manifest: IntegrationManifest,
+        parsed_options: dict[str, Any] | None = None,
+        **opts: Any,
+    ) -> list[Path]:
+        import click
+
+        click.secho(
+            "Warning: The .agents/ layout requires Antigravity v1.20.5 or newer. "
+            "Please ensure your agy installation is up to date.",
+            fg="yellow",
+            err=True,
+        )
+        return super().setup(project_root, manifest, parsed_options=parsed_options, **opts)
diff --git a/tests/integrations/test_integration_agy.py b/tests/integrations/test_integration_agy.py
index 21cb1d832e..b95caf3bee 100644
--- a/tests/integrations/test_integration_agy.py
+++ b/tests/integrations/test_integration_agy.py
@@ -5,12 +5,17 @@
 
 class TestAgyIntegration(SkillsIntegrationTests):
     KEY = "agy"
-    FOLDER = ".agent/"
+    FOLDER = ".agents/"
     COMMANDS_SUBDIR = "skills"
-    REGISTRAR_DIR = ".agent/skills"
+    REGISTRAR_DIR = ".agents/skills"
     CONTEXT_FILE = "AGENTS.md"
 
-
+    def test_options_include_skills_flag(self):
+        """Override inherited test: AgyIntegration should not expose a --skills flag because .agents/ is its only layout."""
+        from specify_cli.integrations import get_integration
+        i = get_integration(self.KEY)
+        skills_opts = [o for o in i.options() if o.name == "--skills"]
+        assert len(skills_opts) == 0
 class TestAgyAutoPromote:
     """--ai agy auto-promotes to integration path."""
 
@@ -24,4 +29,17 @@ def test_ai_agy_without_ai_skills_auto_promotes(self, tmp_path):
         result = runner.invoke(app, ["init", str(target), "--ai", "agy", "--no-git", "--script", "sh"])
 
         assert result.exit_code == 0, f"init --ai agy failed: {result.output}"
-        assert (target / ".agent" / "skills" / "speckit-plan" / "SKILL.md").exists()
+        assert (target / ".agents" / "skills" / "speckit-plan" / "SKILL.md").exists()
+
+    def test_agy_setup_warning(self, tmp_path):
+        """Agy integration should print a warning about v1.20.5 requirement during setup."""
+        from typer.testing import CliRunner
+        from specify_cli import app
+
+        # Click >= 8.2 separates stdout and stderr natively, mix_stderr is removed
+        runner = CliRunner()
+        target = tmp_path / "test-proj2"
+        result = runner.invoke(app, ["init", str(target), "--ai", "agy", "--no-git", "--script", "sh"])
+
+        assert result.exit_code == 0
+        assert "Warning: The .agents/ layout requires Antigravity v1.20.5 or newer" in result.stderr
diff --git a/tests/test_presets.py b/tests/test_presets.py
index 35c19bdd7f..60322b99a1 100644
--- a/tests/test_presets.py
+++ b/tests/test_presets.py
@@ -2447,7 +2447,7 @@ def test_kimi_preset_skill_override_resolves_script_placeholders(self, project_d
     def test_agy_skill_restored_on_preset_remove(self, project_dir, temp_dir):
         """Agy preset removal should restore native skills instead of deleting them."""
         self._write_init_options(project_dir, ai="agy", ai_skills=True)
-        skills_dir = project_dir / ".agent" / "skills"
+        skills_dir = project_dir / ".agents" / "skills"
         self._create_skill(skills_dir, "speckit-specify", body="before override")
 
         core_command = project_dir / ".specify" / "templates" / "commands" / "specify.md"