diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index 485f19b4c6..407aeac597 100755
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -813,12 +813,8 @@ export async function loadCliConfig(
     coreTools: settings.tools?.core || undefined,
     allowedTools: allowedTools.length > 0 ? allowedTools : undefined,
     policyEngineConfig,
-<<<<<<< HEAD
     policyUpdateConfirmationRequest,
-    excludeTools,
-=======
     excludeTools: finalExcludeTools,
->>>>>>> 45fcd9869 (Fix: Enable write_file in Plan Mode via workspace policy)
     toolDiscoveryCommand: settings.tools?.discoveryCommand,
     toolCallCommand: settings.tools?.callCommand,
     mcpServerCommand,
diff --git a/packages/core/src/policy/config.ts b/packages/core/src/policy/config.ts
index e66ed2e2e7..f636e769d7 100644
--- a/packages/core/src/policy/config.ts
+++ b/packages/core/src/policy/config.ts
@@ -74,9 +74,6 @@ export function getPolicyDirectories(
     dirs.push(workspacePoliciesDir);
   }
 
-  // Admin tier (highest priority)
-  dirs.push(Storage.getSystemPoliciesDir());
-
   // Default tier (lowest priority)
   dirs.push(defaultPoliciesDir ?? DEFAULT_CORE_POLICIES_DIR);
 
@@ -180,11 +177,7 @@ export async function createPolicyEngineConfig(
   const policyDirs = getPolicyDirectories(
     defaultPoliciesDir,
     settings.policyPaths,
-<<<<<<< HEAD
-    settings.workspacePoliciesDir,
-=======
     workspacePoliciesDir,
->>>>>>> 45fcd9869 (Fix: Enable write_file in Plan Mode via workspace policy)
   );
   const securePolicyDirs = await filterSecurePolicyDirectories(policyDirs);