diff --git a/hermes_cli/web_server.py b/hermes_cli/web_server.py
index eb24b9f50eb..997803b8f0a 100644
--- a/hermes_cli/web_server.py
+++ b/hermes_cli/web_server.py
@@ -1322,13 +1322,35 @@ def _dashboard_local_update_managed_externally() -> bool:
     in-browser local update action. Keep this dashboard capability separate
     from install-method detection: manual git/pip installs inside containers can
     still behave like their actual install method in the CLI.
+
+    However, when the install method is ``git`` (a bind-mounted checkout inside
+    a container — e.g. the hermes-webui image sharing the Hermes source tree),
+    the dashboard's ``hermes update`` button is the correct update path and
+    should not be suppressed. Other containerized install methods remain
+    externally managed unless their apply path is proven safe inside the
+    running container filesystem.
     """
+    if _default_hermes_root_is_opt_data():
+        return True
     try:
         from hermes_constants import is_container
 
-        return is_container()
+        if not is_container():
+            return False
     except Exception:
         return False
+    # We are inside a container, but the install may still be self-managed.
+    # If the install method is git, the dashboard update button works against
+    # the mounted checkout and should be offered. Keep pip blocked inside
+    # containers: its apply path mutates the running container filesystem and
+    # is not the bind-mounted checkout case this gate is meant to recover.
+    try:
+        method = detect_install_method(PROJECT_ROOT)
+        if method == "git":
+            return False
+    except Exception:
+        pass
+    return True
 
 
 def _managed_files_policy(request: Request, *, create_root: bool = True) -> ManagedFilesPolicy:
diff --git a/scripts/release.py b/scripts/release.py
index 7cea21ce9b6..2c781838fc8 100755
--- a/scripts/release.py
+++ b/scripts/release.py
@@ -107,6 +107,7 @@ AUTHOR_MAP = {
     "804436395@qq.com": "LaPhilosophie",
     "maxmitcham@mac.home": "maxtrigify",
     "ccook@nvms.com": "ccook1963",
+    "libre-7@users.noreply.github.com": "libre-7",
     "kristian@agrointel.no": "kristianvast",
     "thomas.paquette@gmail.com": "RyTsYdUp",
     "techxacm@gmail.com": "ProgramCaiCai",
diff --git a/tests/hermes_cli/test_web_server.py b/tests/hermes_cli/test_web_server.py
index 0618221a301..76ba0e5f488 100644
--- a/tests/hermes_cli/test_web_server.py
+++ b/tests/hermes_cli/test_web_server.py
@@ -263,6 +263,29 @@ class TestWebServerEndpoints:
         import hermes_cli.web_server as web_server
 
         monkeypatch.setattr(hermes_constants, "is_container", lambda: True)
+        # A docker install inside a container should be managed externally.
+        monkeypatch.setattr(web_server, "detect_install_method", lambda _root: "docker")
+
+        assert web_server._dashboard_local_update_managed_externally() is True
+
+    def test_dashboard_update_capability_allows_git_in_container(self, monkeypatch):
+        """A git checkout inside a container (e.g. bind-mounted in hermes-webui)
+        should still offer dashboard updates — the checkout is self-managed."""
+        import hermes_constants
+        import hermes_cli.web_server as web_server
+
+        monkeypatch.setattr(hermes_constants, "is_container", lambda: True)
+        monkeypatch.setattr(web_server, "detect_install_method", lambda _root: "git")
+
+        assert web_server._dashboard_local_update_managed_externally() is False
+
+    def test_dashboard_update_capability_blocks_pip_in_container(self, monkeypatch):
+        """A pip install inside a container is still managed externally."""
+        import hermes_constants
+        import hermes_cli.web_server as web_server
+
+        monkeypatch.setattr(hermes_constants, "is_container", lambda: True)
+        monkeypatch.setattr(web_server, "detect_install_method", lambda _root: "pip")
 
         assert web_server._dashboard_local_update_managed_externally() is True
 
@@ -1011,6 +1034,8 @@ class TestWebServerEndpoints:
             spawned = True
             raise AssertionError("docker update guard should not spawn hermes update")
 
+        # Bypass the managed-externally gate so we reach the docker install check.
+        monkeypatch.setattr(web_server, "_dashboard_local_update_managed_externally", lambda: False)
         monkeypatch.setattr(web_server, "detect_install_method", lambda _root: "docker")
         monkeypatch.setattr(web_server, "_spawn_hermes_action", fail_spawn)
         web_server._ACTION_PROCS.pop("hermes-update", None)