diff --git a/openhands-cli/openhands_cli/agent_chat.py b/openhands-cli/openhands_cli/agent_chat.py
index 1782463502..1e08f0ff16 100644
--- a/openhands-cli/openhands_cli/agent_chat.py
+++ b/openhands-cli/openhands_cli/agent_chat.py
@@ -8,7 +8,6 @@ import sys
 from datetime import datetime
 
 from openhands.sdk import (
-    BaseConversation,
     Message,
     TextContent,
 )
@@ -17,7 +16,7 @@ from prompt_toolkit import print_formatted_text
 from prompt_toolkit.formatted_text import HTML
 
 from openhands_cli.runner import ConversationRunner
-from openhands_cli.setup import MissingAgentSpec, setup_conversation
+from openhands_cli.setup import MissingAgentSpec, setup_conversation, start_fresh_conversation
 from openhands_cli.tui.settings.mcp_screen import MCPScreen
 from openhands_cli.tui.settings.settings_screen import SettingsScreen
 from openhands_cli.tui.status import display_status
@@ -29,32 +28,6 @@ from openhands_cli.user_actions import UserConfirmation, exit_session_confirmati
 from openhands_cli.user_actions.utils import get_session_prompter
 
 
-def _start_fresh_conversation(resume_conversation_id: str | None = None) -> BaseConversation:
-    """Start a fresh conversation by creating a new conversation instance.
-
-    Handles the complete conversation setup process including settings screen
-    if agent configuration is missing.
-
-    Args:
-        resume_conversation_id: Optional conversation ID to resume
-
-    Returns:
-        BaseConversation: A new conversation instance
-    """
-    conversation = None
-    settings_screen = SettingsScreen()
-    try:
-        conversation = setup_conversation(resume_conversation_id)
-        return conversation
-    except MissingAgentSpec:
-        # For first-time users, show the full settings flow with choice between basic/advanced
-        settings_screen.configure_settings(first_time=True)
-
-
-    # Try once again after settings setup attempt
-    return setup_conversation(resume_conversation_id)
-
-
 def _restore_tty() -> None:
     """
     Ensure terminal modes are reset in case prompt_toolkit cleanup didn't run.
@@ -92,7 +65,7 @@ def run_cli_entry(resume_conversation_id: str | None = None) -> None:
     """
 
     try:
-        conversation = _start_fresh_conversation(resume_conversation_id)
+        conversation = start_fresh_conversation(resume_conversation_id)
     except MissingAgentSpec:
         print_formatted_text(HTML('\n<yellow>Setup is required to use OpenHands CLI.</yellow>'))
         print_formatted_text(HTML('\n<yellow>Goodbye! 👋</yellow>'))
@@ -152,7 +125,7 @@ def run_cli_entry(resume_conversation_id: str | None = None) -> None:
             elif command == '/new':
                 try:
                     # Start a fresh conversation (no resume ID = new conversation)
-                    conversation = _start_fresh_conversation()
+                    conversation = setup_conversation()
                     runner = ConversationRunner(conversation)
                     display_welcome(conversation.id, resume=False)
                     print_formatted_text(
@@ -176,7 +149,7 @@ def run_cli_entry(resume_conversation_id: str | None = None) -> None:
             elif command == '/confirm':
                 runner.toggle_confirmation_mode()
                 new_status = (
-                    'enabled' if runner.is_confirmation_mode_enabled else 'disabled'
+                    'enabled' if runner.is_confirmation_mode_active else 'disabled'
                 )
                 print_formatted_text(
                     HTML(f'<yellow>Confirmation mode {new_status}</yellow>')
diff --git a/openhands-cli/openhands_cli/runner.py b/openhands-cli/openhands_cli/runner.py
index d61f70af54..816c3f4c2e 100644
--- a/openhands-cli/openhands_cli/runner.py
+++ b/openhands-cli/openhands_cli/runner.py
@@ -11,6 +11,7 @@ from openhands.sdk.security.confirmation_policy import (
 from openhands_cli.listeners.pause_listener import PauseListener, pause_listener
 from openhands_cli.user_actions import ask_user_confirmation
 from openhands_cli.user_actions.types import UserConfirmation
+from openhands_cli.setup import setup_conversation
 
 
 class ConversationRunner:
@@ -20,20 +21,30 @@ class ConversationRunner:
         self.conversation = conversation
 
     @property
-    def is_confirmation_mode_enabled(self):
-        return self.conversation.confirmation_policy_active
+    def is_confirmation_mode_active(self):
+        return self.conversation.is_confirmation_mode_active
 
     def toggle_confirmation_mode(self):
-        if self.is_confirmation_mode_enabled:
-            self.set_confirmation_policy(NeverConfirm())
-        else:
+        new_confirmation_mode_state = not self.is_confirmation_mode_active
+
+        self.conversation = setup_conversation(
+            self.conversation.id,
+            include_security_analyzer=new_confirmation_mode_state
+        )
+
+        if new_confirmation_mode_state:
+            # Enable confirmation mode: set AlwaysConfirm policy
             self.set_confirmation_policy(AlwaysConfirm())
+        else:
+            # Disable confirmation mode: set NeverConfirm policy and remove security analyzer
+            self.set_confirmation_policy(NeverConfirm())
 
     def set_confirmation_policy(
         self, confirmation_policy: ConfirmationPolicyBase
     ) -> None:
         self.conversation.set_confirmation_policy(confirmation_policy)
 
+
     def _start_listener(self) -> None:
         self.listener = PauseListener(on_pause=self.conversation.pause)
         self.listener.start()
@@ -68,7 +79,7 @@ class ConversationRunner:
         if message:
             self.conversation.send_message(message)
 
-        if self.is_confirmation_mode_enabled:
+        if self.is_confirmation_mode_active:
             self._run_with_confirmation()
         else:
             self._run_without_confirmation()
@@ -145,7 +156,9 @@ class ConversationRunner:
                     '<yellow>Confirmation mode disabled. Agent will proceed without asking.</yellow>'
                 )
             )
-            self.set_confirmation_policy(policy_change)
+
+            # Remove security analyzer when policy is never confirm
+            self.toggle_confirmation_mode()
             return decision
 
         if isinstance(policy_change, ConfirmRisky):
@@ -155,6 +168,8 @@ class ConversationRunner:
                     'LOW/MEDIUM risk actions will auto-confirm, HIGH risk actions will ask for confirmation.</yellow>'
                 )
             )
+
+            # Keep security analyzer, change existing policy
             self.set_confirmation_policy(policy_change)
             return decision
 
diff --git a/openhands-cli/openhands_cli/setup.py b/openhands-cli/openhands_cli/setup.py
index 025a05eb9e..9e74fa99be 100644
--- a/openhands-cli/openhands_cli/setup.py
+++ b/openhands-cli/openhands_cli/setup.py
@@ -9,6 +9,11 @@ from openhands.tools.task_tracker import TaskTrackerTool
 from openhands_cli.listeners import LoadingContext
 from openhands_cli.locations import CONVERSATIONS_DIR, WORK_DIR
 from openhands_cli.tui.settings.store import AgentStore
+from openhands.sdk.security.confirmation_policy import (
+    AlwaysConfirm,
+)
+from openhands_cli.tui.settings.settings_screen import SettingsScreen
+
 
 register_tool('BashTool', BashTool)
 register_tool('FileEditorTool', FileEditorTool)
@@ -21,7 +26,10 @@ class MissingAgentSpec(Exception):
     pass
 
 
-def setup_conversation(conversation_id: str | None = None) -> BaseConversation:
+def setup_conversation(
+    conversation_id: str | None = None,
+    include_security_analyzer: bool = True
+) -> BaseConversation:
     """
     Setup the conversation with agent.
 
@@ -54,8 +62,15 @@ def setup_conversation(conversation_id: str | None = None) -> BaseConversation:
                 'Agent specification not found. Please configure your agent settings.'
             )
 
+
+        if not include_security_analyzer:
+            # Remove security analyzer from agent spec
+            agent = agent.model_copy(
+                update={"security_analyzer": None}
+            )
+
         # Create conversation - agent context is now set in AgentStore.load()
-        conversation = Conversation(
+        conversation: BaseConversation = Conversation(
             agent=agent,
             workspace=Workspace(working_dir=WORK_DIR),
             # Conversation will add /<conversation_id> to this path
@@ -63,7 +78,39 @@ def setup_conversation(conversation_id: str | None = None) -> BaseConversation:
             conversation_id=conversation_id,
         )
 
+        if include_security_analyzer:
+            conversation.set_confirmation_policy(AlwaysConfirm())
+
     print_formatted_text(
         HTML(f'<green>✓ Agent initialized with model: {agent.llm.model}</green>')
     )
     return conversation
+
+
+
+def start_fresh_conversation(
+    resume_conversation_id: str | None = None
+) -> BaseConversation:
+    """Start a fresh conversation by creating a new conversation instance.
+
+    Handles the complete conversation setup process including settings screen
+    if agent configuration is missing.
+
+    Args:
+        resume_conversation_id: Optional conversation ID to resume
+
+    Returns:
+        BaseConversation: A new conversation instance
+    """
+    conversation = None
+    settings_screen = SettingsScreen()
+    try:
+        conversation = setup_conversation(resume_conversation_id)
+        return conversation
+    except MissingAgentSpec:
+        # For first-time users, show the full settings flow with choice between basic/advanced
+        settings_screen.configure_settings(first_time=True)
+
+
+    # Try once again after settings setup attempt
+    return setup_conversation(resume_conversation_id)
diff --git a/openhands-cli/openhands_cli/tui/settings/settings_screen.py b/openhands-cli/openhands_cli/tui/settings/settings_screen.py
index 4aa36cd0e2..35cd76e1de 100644
--- a/openhands-cli/openhands_cli/tui/settings/settings_screen.py
+++ b/openhands-cli/openhands_cli/tui/settings/settings_screen.py
@@ -67,9 +67,7 @@ class SettingsScreen:
                 (
                     '   Confirmation Mode',
                     'Enabled'
-                    if not isinstance(
-                        self.conversation.state.confirmation_policy, NeverConfirm
-                    )
+                    if self.conversation.is_confirmation_mode_active
                     else 'Disabled',
                 ),
                 (
diff --git a/openhands-cli/pyproject.toml b/openhands-cli/pyproject.toml
index b947d0b9ef..9c66ef9521 100644
--- a/openhands-cli/pyproject.toml
+++ b/openhands-cli/pyproject.toml
@@ -96,5 +96,5 @@ disallow_untyped_defs = true
 ignore_missing_imports = true
 
 [tool.uv.sources]
-openhands-sdk = { git = "https://github.com/All-Hands-AI/agent-sdk.git", subdirectory = "openhands/sdk", rev = "3ce74a16565be0e3f7e7617174bd0323e866597f" }
-openhands-tools = { git = "https://github.com/All-Hands-AI/agent-sdk.git", subdirectory = "openhands/tools", rev = "3ce74a16565be0e3f7e7617174bd0323e866597f" }
+openhands-sdk = { git = "https://github.com/All-Hands-AI/agent-sdk.git", subdirectory = "openhands/sdk", rev = "189979a5013751aa86852ab41afe9a79555e62ac" }
+openhands-tools = { git = "https://github.com/All-Hands-AI/agent-sdk.git", subdirectory = "openhands/tools", rev = "189979a5013751aa86852ab41afe9a79555e62ac" }
diff --git a/openhands-cli/tests/commands/test_confirm_command.py b/openhands-cli/tests/commands/test_confirm_command.py
new file mode 100644
index 0000000000..95c8d0a4e0
--- /dev/null
+++ b/openhands-cli/tests/commands/test_confirm_command.py
@@ -0,0 +1,122 @@
+#!/usr/bin/env python3
+
+from unittest.mock import MagicMock, patch, call
+import pytest
+
+from openhands_cli.runner import ConversationRunner
+from openhands.sdk.security.confirmation_policy import AlwaysConfirm, NeverConfirm
+
+CONV_ID = "test-conversation-id"
+
+
+# ---------- Helpers ----------
+def make_conv(enabled: bool) -> MagicMock:
+    """Return a conversation mock in enabled/disabled confirmation mode."""
+    m = MagicMock()
+    m.id = CONV_ID
+    m.agent.security_analyzer = MagicMock() if enabled else None
+    m.confirmation_policy_active = enabled
+    m.is_confirmation_mode_active = enabled
+    return m
+
+
+@pytest.fixture
+def runner_disabled() -> ConversationRunner:
+    """Runner starting with confirmation mode disabled."""
+    return ConversationRunner(make_conv(enabled=False))
+
+
+@pytest.fixture
+def runner_enabled() -> ConversationRunner:
+    """Runner starting with confirmation mode enabled."""
+    return ConversationRunner(make_conv(enabled=True))
+
+
+# ---------- Core toggle behavior (parametrized) ----------
+@pytest.mark.parametrize(
+    "start_enabled, include_security_analyzer, expected_enabled, expected_policy_cls",
+    [
+        # disabled -> enable
+        (False, True, True, AlwaysConfirm),
+        # enabled -> disable
+        (True, False, False, NeverConfirm),
+    ],
+)
+def test_toggle_confirmation_mode_transitions(
+    start_enabled, include_security_analyzer, expected_enabled, expected_policy_cls
+):
+    # Arrange: pick starting runner & prepare the target conversation
+    runner = ConversationRunner(make_conv(enabled=start_enabled))
+    target_conv = make_conv(enabled=expected_enabled)
+
+    with patch("openhands_cli.runner.setup_conversation", return_value=target_conv) as mock_setup:
+        # Act
+        runner.toggle_confirmation_mode()
+
+        # Assert state
+        assert runner.is_confirmation_mode_active is expected_enabled
+        assert runner.conversation is target_conv
+
+        # Assert setup called with same conversation ID + correct analyzer flag
+        mock_setup.assert_called_once_with(CONV_ID, include_security_analyzer=include_security_analyzer)
+
+        # Assert policy applied to the *new* conversation
+        target_conv.set_confirmation_policy.assert_called_once()
+        assert isinstance(target_conv.set_confirmation_policy.call_args.args[0], expected_policy_cls)
+
+
+# ---------- Conversation ID is preserved across multiple toggles ----------
+def test_maintains_conversation_id_across_toggles(runner_disabled: ConversationRunner):
+    enabled_conv = make_conv(enabled=True)
+    disabled_conv = make_conv(enabled=False)
+
+    with patch("openhands_cli.runner.setup_conversation") as mock_setup:
+        mock_setup.side_effect = [enabled_conv, disabled_conv]
+
+        # Toggle on, then off
+        runner_disabled.toggle_confirmation_mode()
+        runner_disabled.toggle_confirmation_mode()
+
+        assert runner_disabled.conversation.id == CONV_ID
+        mock_setup.assert_has_calls(
+            [
+                call(CONV_ID, include_security_analyzer=True),
+                call(CONV_ID, include_security_analyzer=False),
+            ],
+            any_order=False,
+        )
+
+
+# ---------- Idempotency under rapid alternating toggles ----------
+def test_rapid_alternating_toggles_produce_expected_states(runner_disabled: ConversationRunner):
+    enabled_conv = make_conv(enabled=True)
+    disabled_conv = make_conv(enabled=False)
+
+    with patch("openhands_cli.runner.setup_conversation") as mock_setup:
+        mock_setup.side_effect = [enabled_conv, disabled_conv, enabled_conv, disabled_conv]
+
+        # Start disabled
+        assert runner_disabled.is_confirmation_mode_active is False
+
+        # Enable, Disable, Enable, Disable
+        runner_disabled.toggle_confirmation_mode()
+        assert runner_disabled.is_confirmation_mode_active is True
+
+        runner_disabled.toggle_confirmation_mode()
+        assert runner_disabled.is_confirmation_mode_active is False
+
+        runner_disabled.toggle_confirmation_mode()
+        assert runner_disabled.is_confirmation_mode_active is True
+
+        runner_disabled.toggle_confirmation_mode()
+        assert runner_disabled.is_confirmation_mode_active is False
+
+        mock_setup.assert_has_calls(
+            [
+                call(CONV_ID, include_security_analyzer=True),
+                call(CONV_ID, include_security_analyzer=False),
+                call(CONV_ID, include_security_analyzer=True),
+                call(CONV_ID, include_security_analyzer=False),
+            ],
+            any_order=False,
+        )
diff --git a/openhands-cli/tests/test_new_command.py b/openhands-cli/tests/commands/test_new_command.py
similarity index 80%
rename from openhands-cli/tests/test_new_command.py
rename to openhands-cli/tests/commands/test_new_command.py
index 33682c416b..8b6d10249e 100644
--- a/openhands-cli/tests/test_new_command.py
+++ b/openhands-cli/tests/commands/test_new_command.py
@@ -2,36 +2,34 @@
 
 from unittest.mock import MagicMock, patch
 from uuid import UUID
-from openhands_cli.agent_chat import _start_fresh_conversation
-from unittest.mock import MagicMock, patch
 from prompt_toolkit.input.defaults import create_pipe_input
 from prompt_toolkit.output.defaults import DummyOutput
-from openhands_cli.setup import MissingAgentSpec
+from openhands_cli.setup import MissingAgentSpec, start_fresh_conversation
 from openhands_cli.user_actions import UserConfirmation
 
-@patch('openhands_cli.agent_chat.setup_conversation')
+@patch('openhands_cli.setup.setup_conversation')
 def test_start_fresh_conversation_success(mock_setup_conversation):
-    """Test that _start_fresh_conversation creates a new conversation successfully."""
+    """Test that start_fresh_conversation creates a new conversation successfully."""
     # Mock the conversation object
     mock_conversation = MagicMock()
     mock_conversation.id = UUID('12345678-1234-5678-9abc-123456789abc')
     mock_setup_conversation.return_value = mock_conversation
 
     # Call the function
-    result = _start_fresh_conversation()
+    result = start_fresh_conversation()
 
     # Verify the result
     assert result == mock_conversation
     mock_setup_conversation.assert_called_once_with(None)
 
 
-@patch('openhands_cli.agent_chat.SettingsScreen')
-@patch('openhands_cli.agent_chat.setup_conversation')
+@patch('openhands_cli.setup.SettingsScreen')
+@patch('openhands_cli.setup.setup_conversation')
 def test_start_fresh_conversation_missing_agent_spec(
     mock_setup_conversation,
     mock_settings_screen_class
 ):
-    """Test that _start_fresh_conversation handles MissingAgentSpec exception."""
+    """Test that start_fresh_conversation handles MissingAgentSpec exception."""
     # Mock the SettingsScreen instance
     mock_settings_screen = MagicMock()
     mock_settings_screen_class.return_value = mock_settings_screen
@@ -45,7 +43,7 @@ def test_start_fresh_conversation_missing_agent_spec(
     ]
 
     # Call the function
-    result = _start_fresh_conversation()
+    result = start_fresh_conversation()
 
     # Verify the result
     assert result == mock_conversation
@@ -61,9 +59,11 @@ def test_start_fresh_conversation_missing_agent_spec(
 @patch('openhands_cli.agent_chat.exit_session_confirmation')
 @patch('openhands_cli.agent_chat.get_session_prompter')
 @patch('openhands_cli.agent_chat.setup_conversation')
+@patch('openhands_cli.agent_chat.start_fresh_conversation')
 @patch('openhands_cli.agent_chat.ConversationRunner')
 def test_new_command_resets_confirmation_mode(
     mock_runner_cls,
+    mock_start_fresh_conversation,
     mock_setup_conversation,
     mock_get_session_prompter,
     mock_exit_confirm,
@@ -73,11 +73,12 @@ def test_new_command_resets_confirmation_mode(
 
     conv1 = MagicMock(); conv1.id = UUID('aaaaaaaa-aaaa-aaaa-aaaa-aaaaaaaaaaaa')
     conv2 = MagicMock(); conv2.id = UUID('bbbbbbbb-bbbb-bbbb-bbbb-bbbbbbbbbbbb')
-    mock_setup_conversation.side_effect = [conv1, conv2]
+    mock_start_fresh_conversation.return_value = conv1
+    mock_setup_conversation.side_effect = [conv2]
 
     # Distinct runner instances for each conversation
-    runner1 = MagicMock(); runner1.is_confirmation_mode_enabled = True
-    runner2 = MagicMock(); runner2.is_confirmation_mode_enabled = False
+    runner1 = MagicMock(); runner1.is_confirmation_mode_active = True
+    runner2 = MagicMock(); runner2.is_confirmation_mode_active = False
     mock_runner_cls.side_effect = [runner1, runner2]
 
     # Real session fed by a pipe (no interactive confirmation now)
diff --git a/openhands-cli/tests/test_status_command.py b/openhands-cli/tests/commands/test_status_command.py
similarity index 100%
rename from openhands-cli/tests/test_status_command.py
rename to openhands-cli/tests/commands/test_status_command.py
diff --git a/openhands-cli/tests/test_confirmation_mode.py b/openhands-cli/tests/test_confirmation_mode.py
index 44562e6382..f0744fd687 100644
--- a/openhands-cli/tests/test_confirmation_mode.py
+++ b/openhands-cli/tests/test_confirmation_mode.py
@@ -98,6 +98,7 @@ class TestConfirmationMode:
 
         mock_conversation = MagicMock()
         mock_conversation.confirmation_policy_active = False
+        mock_conversation.is_confirmation_mode_active = False
         runner = ConversationRunner(mock_conversation)
 
         # Test enabling confirmation mode
@@ -113,10 +114,11 @@ class TestConfirmationMode:
 
         mock_conversation = MagicMock()
         mock_conversation.confirmation_policy_active = False
+        mock_conversation.is_confirmation_mode_active = False
         runner = ConversationRunner(mock_conversation)
 
         # Verify initial state
-        assert runner.is_confirmation_mode_enabled is False
+        assert runner.is_confirmation_mode_active is False
 
     def test_ask_user_confirmation_empty_actions(self) -> None:
         """Test that ask_user_confirmation returns ACCEPT for empty actions list."""
@@ -373,11 +375,12 @@ class TestConfirmationMode:
         """Test that ConversationRunner disables confirmation mode when NeverConfirm policy is returned."""
         mock_conversation = MagicMock()
         mock_conversation.confirmation_policy_active = True
+        mock_conversation.is_confirmation_mode_active = True
         runner = ConversationRunner(mock_conversation)
 
         # Enable confirmation mode first
         runner.set_confirmation_policy(AlwaysConfirm())
-        assert runner.is_confirmation_mode_enabled is True
+        assert runner.is_confirmation_mode_active is True
 
         # Mock get_unmatched_actions to return some actions
         with patch(
@@ -398,14 +401,26 @@ class TestConfirmationMode:
 
                 # Mock print_formatted_text to avoid output during test
                 with patch('openhands_cli.runner.print_formatted_text'):
-                    result = runner._handle_confirmation_request()
+                    # Mock setup_conversation to avoid real conversation creation
+                    with patch('openhands_cli.runner.setup_conversation') as mock_setup:
+                        # Return a new mock conversation with confirmation mode disabled
+                        new_mock_conversation = MagicMock()
+                        new_mock_conversation.id = mock_conversation.id
+                        new_mock_conversation.is_confirmation_mode_active = False
+                        mock_setup.return_value = new_mock_conversation
+                        
+                        result = runner._handle_confirmation_request()
 
-                    # Verify that confirmation mode was disabled
-                    assert result == UserConfirmation.ACCEPT
-                    # Should have called set_confirmation_policy with NeverConfirm
-                    mock_conversation.set_confirmation_policy.assert_called_with(
-                        NeverConfirm()
-                    )
+                        # Verify that confirmation mode was disabled
+                        assert result == UserConfirmation.ACCEPT
+                        # Should have called setup_conversation to toggle confirmation mode
+                        mock_setup.assert_called_once_with(
+                            mock_conversation.id, include_security_analyzer=False
+                        )
+                        # Should have called set_confirmation_policy with NeverConfirm on new conversation
+                        new_mock_conversation.set_confirmation_policy.assert_called_with(
+                            NeverConfirm()
+                        )
 
     @patch('openhands_cli.user_actions.agent_action.cli_confirm')
     def test_ask_user_confirmation_auto_confirm_safe(
@@ -432,11 +447,12 @@ class TestConfirmationMode:
         """Test that ConversationRunner sets ConfirmRisky policy when policy_change is provided."""
         mock_conversation = MagicMock()
         mock_conversation.confirmation_policy_active = True
+        mock_conversation.is_confirmation_mode_active = True
         runner = ConversationRunner(mock_conversation)
 
         # Enable confirmation mode first
         runner.set_confirmation_policy(AlwaysConfirm())
-        assert runner.is_confirmation_mode_enabled is True
+        assert runner.is_confirmation_mode_active is True
 
         # Mock get_unmatched_actions to return some actions
         with patch(
diff --git a/openhands-cli/tests/test_conversation_runner.py b/openhands-cli/tests/test_conversation_runner.py
index dc15111ea6..447c0edd17 100644
--- a/openhands-cli/tests/test_conversation_runner.py
+++ b/openhands-cli/tests/test_conversation_runner.py
@@ -102,6 +102,11 @@ class TestConversationRunner:
         """
         if final_status == AgentExecutionStatus.FINISHED:
             agent.finish_on_step = 1
+        
+        # Add a mock security analyzer to enable confirmation mode
+        from unittest.mock import MagicMock
+        agent.security_analyzer = MagicMock()
+        
         convo = Conversation(agent)
         convo.state.agent_status = AgentExecutionStatus.WAITING_FOR_CONFIRMATION
         cr = ConversationRunner(convo)
diff --git a/openhands-cli/uv.lock b/openhands-cli/uv.lock
index 9fad3fc7b1..494d47d1fe 100644
--- a/openhands-cli/uv.lock
+++ b/openhands-cli/uv.lock
@@ -1642,8 +1642,8 @@ dev = [
 
 [package.metadata]
 requires-dist = [
-    { name = "openhands-sdk", git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Fsdk&rev=3ce74a16565be0e3f7e7617174bd0323e866597f" },
-    { name = "openhands-tools", git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Ftools&rev=3ce74a16565be0e3f7e7617174bd0323e866597f" },
+    { name = "openhands-sdk", git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Fsdk&rev=189979a5013751aa86852ab41afe9a79555e62ac" },
+    { name = "openhands-tools", git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Ftools&rev=189979a5013751aa86852ab41afe9a79555e62ac" },
     { name = "prompt-toolkit", specifier = ">=3" },
     { name = "typer", specifier = ">=0.17.4" },
 ]
@@ -1667,7 +1667,7 @@ dev = [
 [[package]]
 name = "openhands-sdk"
 version = "1.0.0"
-source = { git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Fsdk&rev=3ce74a16565be0e3f7e7617174bd0323e866597f#3ce74a16565be0e3f7e7617174bd0323e866597f" }
+source = { git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Fsdk&rev=189979a5013751aa86852ab41afe9a79555e62ac#189979a5013751aa86852ab41afe9a79555e62ac" }
 dependencies = [
     { name = "fastmcp" },
     { name = "litellm" },
@@ -1681,7 +1681,7 @@ dependencies = [
 [[package]]
 name = "openhands-tools"
 version = "1.0.0"
-source = { git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Ftools&rev=3ce74a16565be0e3f7e7617174bd0323e866597f#3ce74a16565be0e3f7e7617174bd0323e866597f" }
+source = { git = "https://github.com/All-Hands-AI/agent-sdk.git?subdirectory=openhands%2Ftools&rev=189979a5013751aa86852ab41afe9a79555e62ac#189979a5013751aa86852ab41afe9a79555e62ac" }
 dependencies = [
     { name = "bashlex" },
     { name = "binaryornot" },