chore: bump version to 2.0.7 [skip ci]

On first launch, the cloud sidecar now:
1. Detects it's the cloud variant (DeviceManager import fails)
2. Auto-switches config from "local" to "byok" mode
3. Shows "Setup needed: Open Settings > Remote Transcription >
   enter your Deepgram API key" as a friendly status message
4. Stays in READY state so the UI is fully accessible

The user can then open Settings, enter their Deepgram API key,
save, and start transcribing without needing to know about modes.

Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>

.gitea/workflows/build-app-linux.yml

@@ -13,10 +13,11 @@ jobs:
     runs-on: ubuntu-latest
     env:
       NODE_VERSION: "20"
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
-        run: echo "Building for tag: ${RELEASE_TAG}"
+        run: |
+          echo "Building for tag: ${RELEASE_TAG}"
 
       - uses: actions/checkout@v4
         with:

.gitea/workflows/build-app-macos.yml

@@ -13,10 +13,11 @@ jobs:
     runs-on: macos-latest
     env:
       NODE_VERSION: "20"
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
-        run: echo "Building for tag: ${RELEASE_TAG}"
+        run: |
+          echo "Building for tag: ${RELEASE_TAG}"
 
       - uses: actions/checkout@v4
         with:

.gitea/workflows/build-app-windows.yml

@@ -15,7 +15,7 @@ jobs:
     name: Build App (Windows)
     runs-on: windows-latest
     env:
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
         shell: powershell

.gitea/workflows/build-sidecar-cloud.yml

@@ -0,0 +1,229 @@
+name: Build Sidecar (Cloud)
+
+on:
+  workflow_dispatch:
+    inputs:
+      tag:
+        description: 'Sidecar release tag to build (e.g. sidecar-v1.0.5)'
+        required: true
+
+jobs:
+  build-cloud-linux:
+    name: Build Cloud Sidecar (Linux)
+    runs-on: ubuntu-latest
+    env:
+      PYTHON_VERSION: "3.11"
+      RELEASE_TAG: "${{ inputs.tag }}"
+    steps:
+      - name: Show tag
+        run: |
+          echo "Building cloud sidecar for tag ${RELEASE_TAG}"
+
+      - uses: actions/checkout@v4
+        with:
+          ref: ${{ inputs.tag }}
+
+      - name: Install uv
+        run: |
+          curl -LsSf https://astral.sh/uv/install.sh | sh
+          echo "$HOME/.local/bin" >> $GITHUB_PATH
+
+      - name: Set up Python
+        run: uv python install ${{ env.PYTHON_VERSION }}
+
+      - name: Install system dependencies
+        run: |
+          sudo apt-get update
+          sudo apt-get install -y portaudio19-dev
+
+      - name: Build cloud sidecar
+        env:
+          UV_NO_SOURCES: "1"
+        run: |
+          uv venv
+          uv pip install pyinstaller numpy sounddevice fastapi uvicorn websockets pydantic requests pyyaml packaging
+          .venv/bin/pyinstaller local-transcription-cloud.spec
+
+      - name: Package
+        run: |
+          cd dist/local-transcription-backend && zip -r ../../sidecar-linux-x86_64-cloud.zip .
+
+      - name: Upload to release
+        env:
+          BUILD_TOKEN: ${{ secrets.BUILD_TOKEN }}
+        run: |
+          sudo apt-get install -y jq
+          REPO_API="${GITHUB_SERVER_URL}/api/v1/repos/${GITHUB_REPOSITORY}"
+          TAG="${RELEASE_TAG}"
+
+          for i in $(seq 1 30); do
+            RELEASE_ID=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
+              "${REPO_API}/releases/tags/${TAG}" | jq -r '.id // empty')
+            if [ -n "${RELEASE_ID}" ] && [ "${RELEASE_ID}" != "null" ]; then
+              echo "Found release ${TAG} (ID: ${RELEASE_ID})"
+              break
+            fi
+            echo "Attempt ${i}/30: waiting for release..."
+            sleep 10
+          done
+
+          if [ -z "${RELEASE_ID}" ] || [ "${RELEASE_ID}" = "null" ]; then
+            echo "ERROR: Release not found"; exit 1
+          fi
+
+          for file in sidecar-*-cloud.zip; do
+            filename=$(basename "$file")
+            ASSET_ID=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
+              "${REPO_API}/releases/${RELEASE_ID}/assets" | jq -r ".[] | select(.name == \"${filename}\") | .id // empty")
+            [ -n "${ASSET_ID}" ] && curl -s -X DELETE -H "Authorization: token ${BUILD_TOKEN}" "${REPO_API}/releases/${RELEASE_ID}/assets/${ASSET_ID}"
+            curl -s -o /dev/null -w "Upload ${filename}: HTTP %{http_code}\n" -X POST \
+              -H "Authorization: token ${BUILD_TOKEN}" -H "Content-Type: application/octet-stream" \
+              -T "$file" "${REPO_API}/releases/${RELEASE_ID}/assets?name=${filename}"
+          done
+
+  build-cloud-windows:
+    name: Build Cloud Sidecar (Windows)
+    runs-on: windows-latest
+    env:
+      PYTHON_VERSION: "3.11"
+      RELEASE_TAG: "${{ inputs.tag }}"
+    steps:
+      - name: Show tag
+        shell: powershell
+        run: Write-Host "Building cloud sidecar for tag $env:RELEASE_TAG"
+
+      - uses: actions/checkout@v4
+        with:
+          ref: ${{ inputs.tag }}
+
+      - name: Install uv
+        shell: powershell
+        run: |
+          if (Get-Command uv -ErrorAction SilentlyContinue) {
+            Write-Host "uv already installed"
+          } else {
+            irm https://astral.sh/uv/install.ps1 | iex
+            $uvPaths = @("$env:USERPROFILE\.local\bin", "$env:USERPROFILE\.cargo\bin", "$env:LOCALAPPDATA\uv\bin")
+            foreach ($p in $uvPaths) { if (Test-Path $p) { echo $p | Out-File -FilePath $env:GITHUB_PATH -Encoding utf8 -Append } }
+          }
+
+      - name: Set up Python
+        shell: powershell
+        run: uv python install ${{ env.PYTHON_VERSION }}
+
+      - name: Build cloud sidecar
+        shell: powershell
+        env:
+          UV_NO_SOURCES: "1"
+        run: |
+          uv venv
+          uv pip install pyinstaller numpy sounddevice fastapi uvicorn websockets pydantic requests pyyaml packaging
+          .venv\Scripts\pyinstaller.exe local-transcription-cloud.spec
+
+      - name: Package
+        shell: powershell
+        run: |
+          if (-not (Get-Command 7z -ErrorAction SilentlyContinue)) { choco install 7zip -y }
+          7z a -tzip -mx=5 sidecar-windows-x86_64-cloud.zip .\dist\local-transcription-backend\*
+
+      - name: Upload to release
+        shell: powershell
+        env:
+          BUILD_TOKEN: ${{ secrets.BUILD_TOKEN }}
+        run: |
+          $REPO_API = "${{ github.server_url }}/api/v1/repos/${{ github.repository }}"
+          $Headers = @{ "Authorization" = "token $env:BUILD_TOKEN" }
+          $TAG = $env:RELEASE_TAG
+
+          $RELEASE_ID = $null
+          for ($i = 1; $i -le 30; $i++) {
+            try {
+              $release = Invoke-RestMethod -Uri "$REPO_API/releases/tags/$TAG" -Headers $Headers -ErrorAction Stop
+              $RELEASE_ID = $release.id
+              if ($RELEASE_ID) { Write-Host "Found release $TAG (ID: $RELEASE_ID)"; break }
+            } catch {}
+            Write-Host "Attempt ${i}/30: waiting..."; Start-Sleep -Seconds 10
+          }
+          if (-not $RELEASE_ID) { Write-Host "ERROR: Release not found"; exit 1 }
+
+          Get-ChildItem -Path . -Filter "sidecar-*-cloud.zip" | ForEach-Object {
+            $fn = $_.Name; $enc = [System.Uri]::EscapeDataString($fn)
+            try {
+              $assets = Invoke-RestMethod -Uri "$REPO_API/releases/$RELEASE_ID/assets" -Headers $Headers
+              $existing = $assets | Where-Object { $_.name -eq $fn }
+              if ($existing) { Invoke-RestMethod -Uri "$REPO_API/releases/$RELEASE_ID/assets/$($existing.id)" -Method Delete -Headers $Headers }
+            } catch {}
+            curl.exe --fail -s -X POST -H "Authorization: token $env:BUILD_TOKEN" -H "Content-Type: application/octet-stream" -T "$($_.FullName)" "$REPO_API/releases/$RELEASE_ID/assets?name=$enc"
+            Write-Host "Uploaded $fn"
+          }
+
+  build-cloud-macos:
+    name: Build Cloud Sidecar (macOS)
+    runs-on: macos-latest
+    env:
+      PYTHON_VERSION: "3.11"
+      RELEASE_TAG: "${{ inputs.tag }}"
+    steps:
+      - name: Show tag
+        run: |
+          echo "Building cloud sidecar for tag ${RELEASE_TAG}"
+
+      - uses: actions/checkout@v4
+        with:
+          ref: ${{ inputs.tag }}
+
+      - name: Install uv
+        run: |
+          curl -LsSf https://astral.sh/uv/install.sh | sh
+          echo "$HOME/.local/bin" >> $GITHUB_PATH
+
+      - name: Set up Python
+        run: uv python install ${{ env.PYTHON_VERSION }}
+
+      - name: Install system dependencies
+        run: brew install portaudio
+
+      - name: Build cloud sidecar
+        env:
+          UV_NO_SOURCES: "1"
+        run: |
+          uv venv
+          uv pip install pyinstaller numpy sounddevice fastapi uvicorn websockets pydantic requests pyyaml packaging
+          .venv/bin/pyinstaller local-transcription-cloud.spec
+
+      - name: Package
+        run: |
+          cd dist/local-transcription-backend && zip -r ../../sidecar-macos-aarch64-cloud.zip .
+
+      - name: Upload to release
+        env:
+          BUILD_TOKEN: ${{ secrets.BUILD_TOKEN }}
+        run: |
+          which jq || brew install jq
+          REPO_API="${GITHUB_SERVER_URL}/api/v1/repos/${GITHUB_REPOSITORY}"
+          TAG="${RELEASE_TAG}"
+
+          for i in $(seq 1 30); do
+            RELEASE_ID=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
+              "${REPO_API}/releases/tags/${TAG}" | jq -r '.id // empty')
+            if [ -n "${RELEASE_ID}" ] && [ "${RELEASE_ID}" != "null" ]; then
+              echo "Found release ${TAG} (ID: ${RELEASE_ID})"
+              break
+            fi
+            echo "Attempt ${i}/30: waiting for release..."
+            sleep 10
+          done
+
+          if [ -z "${RELEASE_ID}" ] || [ "${RELEASE_ID}" = "null" ]; then
+            echo "ERROR: Release not found"; exit 1
+          fi
+
+          for file in sidecar-*-cloud.zip; do
+            filename=$(basename "$file")
+            ASSET_ID=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
+              "${REPO_API}/releases/${RELEASE_ID}/assets" | jq -r ".[] | select(.name == \"${filename}\") | .id // empty")
+            [ -n "${ASSET_ID}" ] && curl -s -X DELETE -H "Authorization: token ${BUILD_TOKEN}" "${REPO_API}/releases/${RELEASE_ID}/assets/${ASSET_ID}"
+            curl -s -o /dev/null -w "Upload ${filename}: HTTP %{http_code}\n" -X POST \
+              -H "Authorization: token ${BUILD_TOKEN}" -H "Content-Type: application/octet-stream" \
+              -T "$file" "${REPO_API}/releases/${RELEASE_ID}/assets?name=${filename}"
+          done

.gitea/workflows/build-sidecar-linux.yml

@@ -13,10 +13,11 @@ jobs:
     runs-on: ubuntu-latest
     env:
       PYTHON_VERSION: "3.11"
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
-        run: echo "Building for tag: ${RELEASE_TAG}"
+        run: |
+          echo "Building for tag: ${RELEASE_TAG}"
 
       - uses: actions/checkout@v4
         with:

.gitea/workflows/build-sidecar-macos.yml

@@ -13,10 +13,11 @@ jobs:
     runs-on: macos-latest
     env:
       PYTHON_VERSION: "3.11"
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
-        run: echo "Building for tag: ${RELEASE_TAG}"
+        run: |
+          echo "Building for tag: ${RELEASE_TAG}"
 
       - uses: actions/checkout@v4
         with:

.gitea/workflows/build-sidecar-windows.yml

@@ -13,7 +13,7 @@ jobs:
     runs-on: windows-latest
     env:
       PYTHON_VERSION: "3.11"
-      RELEASE_TAG: ${{ inputs.tag }}
+      RELEASE_TAG: "${{ inputs.tag }}"
     steps:
       - name: Show tag
         shell: powershell

.gitea/workflows/release.yml

@@ -1,14 +1,7 @@
 name: Release
 
 on:
-  push:
-    branches: [main]
-    paths:
-      - 'src/**'
-      - 'src-tauri/**'
-      - 'package.json'
-      - 'vite.config.ts'
-      - 'index.html'
+  workflow_dispatch:
 
 jobs:
   test:
@@ -116,50 +109,14 @@ jobs:
 
           for workflow in build-app-linux.yml build-app-windows.yml build-app-macos.yml; do
             echo "Dispatching ${workflow} for ${TAG}..."
-            HTTP_CODE=$(curl -s -o /dev/null -w "%{http_code}" -X POST \
+            HTTP_CODE=$(curl -s -w "%{http_code}" -o /tmp/dispatch_resp.txt -X POST \
               -H "Authorization: token ${BUILD_TOKEN}" \
               -H "Content-Type: application/json" \
               -d "{\"ref\": \"main\", \"inputs\": {\"tag\": \"${TAG}\"}}" \
               "${REPO_API}/actions/workflows/${workflow}/dispatches")
             echo "  -> HTTP ${HTTP_CODE}"
+            [ "$HTTP_CODE" != "204" ] && cat /tmp/dispatch_resp.txt && echo ""
           done
 
-      - name: Clean up old app releases
-        env:
-          BUILD_TOKEN: ${{ secrets.BUILD_TOKEN }}
-        run: |
-          REPO_API="${GITHUB_SERVER_URL}/api/v1/repos/${GITHUB_REPOSITORY}"
-          KEEP=3
-          PROTECT_TAG="v1.4.0"
-
-          echo "Cleaning up old app releases (keeping latest ${KEEP} + ${PROTECT_TAG})..."
-
-          # Get all app releases (v* tags, not sidecar-v*)
-          RELEASES=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
-            "${REPO_API}/releases?limit=50" | jq -c '[.[] | select(.tag_name | startswith("v")) | select(.tag_name | startswith("sidecar") | not)]')
-
-          TOTAL=$(echo "$RELEASES" | jq 'length')
-          echo "Found ${TOTAL} app releases"
-
-          if [ "$TOTAL" -le "$KEEP" ]; then
-            echo "Nothing to clean up"
-            exit 0
-          fi
-
-          # Skip the newest KEEP releases, delete the rest (except protected)
-          echo "$RELEASES" | jq -c ".[$KEEP:][]" | while read -r release; do
-            ID=$(echo "$release" | jq -r '.id')
-            TAG=$(echo "$release" | jq -r '.tag_name')
-
-            if [ "$TAG" = "$PROTECT_TAG" ]; then
-              echo "  Protecting ${TAG}"
-              continue
-            fi
-
-            echo "  Deleting release ${TAG} (ID: ${ID})..."
-            curl -s -X DELETE -H "Authorization: token ${BUILD_TOKEN}" \
-              "${REPO_API}/releases/${ID}"
-            # Keep the git tag -- only delete the release (assets).
-            # Deleting tags breaks builds that haven't checked out yet.
-          done
-          echo "Cleanup complete"
+      # NOTE: Automatic cleanup disabled -- it races with async builds.
+      # Clean up old releases manually from the Gitea UI when needed.

.gitea/workflows/sidecar-release.yml

@@ -1,14 +1,6 @@
 name: Sidecar Release
 
 on:
-  push:
-    branches: [main]
-    paths:
-      - 'client/**'
-      - 'server/**'
-      - 'backend/**'
-      - 'pyproject.toml'
-      - 'local-transcription-headless.spec'
   workflow_dispatch:
 
 jobs:
@@ -126,7 +118,7 @@ jobs:
           REPO_API="${GITHUB_SERVER_URL}/api/v1/repos/${GITHUB_REPOSITORY}"
           TAG="${{ steps.bump.outputs.tag }}"
 
-          for workflow in build-sidecar-linux.yml build-sidecar-windows.yml build-sidecar-macos.yml; do
+          for workflow in build-sidecar-linux.yml build-sidecar-windows.yml build-sidecar-macos.yml build-sidecar-cloud.yml; do
             echo "Dispatching ${workflow} for ${TAG}..."
             HTTP_CODE=$(curl -s -o /dev/null -w "%{http_code}" -X POST \
               -H "Authorization: token ${BUILD_TOKEN}" \
@@ -136,37 +128,5 @@ jobs:
             echo "  -> HTTP ${HTTP_CODE}"
           done
 
-      - name: Clean up old sidecar releases
-        if: steps.check_changes.outputs.has_changes == 'true'
-        env:
-          BUILD_TOKEN: ${{ secrets.BUILD_TOKEN }}
-        run: |
-          REPO_API="${GITHUB_SERVER_URL}/api/v1/repos/${GITHUB_REPOSITORY}"
-          KEEP=2
-
-          echo "Cleaning up old sidecar releases (keeping latest ${KEEP})..."
-
-          # Get all sidecar releases (sidecar-v* tags)
-          RELEASES=$(curl -s -H "Authorization: token ${BUILD_TOKEN}" \
-            "${REPO_API}/releases?limit=50" | jq -c '[.[] | select(.tag_name | startswith("sidecar-v"))]')
-
-          TOTAL=$(echo "$RELEASES" | jq 'length')
-          echo "Found ${TOTAL} sidecar releases"
-
-          if [ "$TOTAL" -le "$KEEP" ]; then
-            echo "Nothing to clean up"
-            exit 0
-          fi
-
-          # Skip the newest KEEP releases, delete the rest
-          echo "$RELEASES" | jq -c ".[$KEEP:][]" | while read -r release; do
-            ID=$(echo "$release" | jq -r '.id')
-            TAG=$(echo "$release" | jq -r '.tag_name')
-
-            echo "  Deleting sidecar release ${TAG} (ID: ${ID})..."
-            curl -s -X DELETE -H "Authorization: token ${BUILD_TOKEN}" \
-              "${REPO_API}/releases/${ID}"
-            # Keep the git tag -- only delete the release (assets).
-            # Deleting tags breaks builds that haven't checked out yet.
-          done
-          echo "Cleanup complete"
+      # NOTE: Automatic cleanup disabled -- it races with async builds.
+      # Clean up old releases manually from the Gitea UI when needed.

backend/app_controller.py

@@ -18,13 +18,18 @@ import sys
 sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
 
 from client.config import Config
-from client.device_utils import DeviceManager
-from client.transcription_engine_realtime import RealtimeTranscriptionEngine, TranscriptionResult
+from client.models import TranscriptionResult
 from client.deepgram_transcription import DeepgramTranscriptionEngine
 from client.server_sync import ServerSyncClient
 from server.web_display import TranscriptionWebServer
 from version import __version__
 
+# Heavy imports (torch, RealtimeSTT, faster-whisper) are deferred so
+# the cloud-only sidecar build can exclude them entirely.
+# Imported lazily in _initialize_engine() when remote.mode == "local".
+RealtimeTranscriptionEngine = None
+DeviceManager = None
+
 
 class AppState:
     """Enum-like class for application states."""
@@ -89,7 +94,24 @@ class AppController:
 
     def __init__(self, config: Optional[Config] = None):
         self.config = config or Config()
-        self.device_manager = DeviceManager()
+
+        # DeviceManager is only needed for local Whisper mode.
+        # Lazy-import to keep the cloud-only sidecar lightweight.
+        global DeviceManager
+        if DeviceManager is None:
+            try:
+                from client.device_utils import DeviceManager as _DM
+                DeviceManager = _DM
+            except ImportError:
+                DeviceManager = None
+
+        self.device_manager = DeviceManager() if DeviceManager else None
+        self.is_cloud_only = DeviceManager is None
+
+        # If this is the cloud-only sidecar and mode is still "local",
+        # auto-switch to "byok" so the engine doesn't try to load Whisper.
+        if self.is_cloud_only and self.config.get('remote.mode', 'local') == 'local':
+            self.config.set('remote.mode', 'byok')
 
         # State
         self._state = AppState.INITIALIZING
@@ -243,15 +265,12 @@ class AppController:
 
     def _initialize_engine(self):
         """Initialize the transcription engine in a background thread."""
-        device_config = self.config.get('transcription.device', 'auto')
-        self.device_manager.set_device(device_config)
-
         audio_device_str = self.config.get('audio.input_device', 'default')
         audio_device = None if audio_device_str == 'default' else int(audio_device_str)
 
         model = self.config.get('transcription.model', 'base.en')
         language = self.config.get('transcription.language', 'en')
-        device = self.device_manager.get_device_for_whisper()
+        device_config = self.config.get('transcription.device', 'auto')
         compute_type = self.config.get('transcription.compute_type', 'default')
 
         self.current_model_size = model
@@ -284,6 +303,27 @@ class AppController:
             self.transcription_engine.set_error_callback(self._on_remote_error)
             self.transcription_engine.set_credits_low_callback(self._on_credits_low)
         else:
+            # Lazy-import heavy local transcription dependencies
+            global RealtimeTranscriptionEngine
+            if RealtimeTranscriptionEngine is None:
+                try:
+                    from client.transcription_engine_realtime import RealtimeTranscriptionEngine as _RTE
+                    RealtimeTranscriptionEngine = _RTE
+                except ImportError:
+                    # Cloud-only sidecar -- local engine not available
+                    self._set_state(
+                        AppState.ERROR,
+                        "Local transcription not available in this build. "
+                        "Please switch to Cloud (Deepgram) mode in Settings."
+                    )
+                    return
+
+            if self.device_manager:
+                self.device_manager.set_device(device_config)
+                device = self.device_manager.get_device_for_whisper()
+            else:
+                device = "cpu"
+
             self.transcription_engine = RealtimeTranscriptionEngine(
                 model=model,
                 device=device,
@@ -333,7 +373,15 @@ class AppController:
 
             self._set_state(AppState.READY, f"Ready | Device: {device_display}")
         else:
-            self._set_state(AppState.ERROR, message)
+            # Cloud sidecar with no API key -- show helpful setup message
+            # instead of a scary error. The user needs to enter their key.
+            if self.is_cloud_only:
+                self._set_state(
+                    AppState.READY,
+                    "Setup needed: Open Settings > Remote Transcription > enter your Deepgram API key"
+                )
+            else:
+                self._set_state(AppState.ERROR, message)
 
     # ── Transcription Control ──────────────────────────────────────
 
@@ -577,12 +625,18 @@ class AppController:
             if self.config.get('server_sync.enabled', False):
                 self._start_server_sync()
 
-        # Check if model/device changed
+        # Check if model/device/remote mode changed -- any of these require
+        # a full engine reload since they change which engine class is used
         new_model = self.config.get('transcription.model', 'base.en')
         new_device = self.config.get('transcription.device', 'auto')
+        new_remote_mode = self.config.get('remote.mode', 'local')
+        current_remote_mode = 'local'
+        if self.transcription_engine:
+            current_remote_mode = getattr(self.transcription_engine, 'mode', 'local')
         engine_reload_needed = (
             self.current_model_size != new_model
             or self.current_device_config != new_device
+            or current_remote_mode != new_remote_mode
         )
 
         if engine_reload_needed:
@@ -596,7 +650,7 @@ class AppController:
         host = self.config.get('web_server.host', '127.0.0.1')
         port = self.actual_web_port or self.config.get('web_server.port', 8080)
 
-        device_info = self.device_manager.get_device_info()
+        device_info = self.device_manager.get_device_info() if self.device_manager else []
 
         remote_mode = self.config.get('remote.mode', 'local')
         if remote_mode in ('managed', 'byok') and self.transcription_engine:
@@ -640,10 +694,13 @@ class AppController:
 
     def get_compute_devices(self) -> list[dict]:
         """List available compute devices."""
-        device_info = self.device_manager.get_device_info()
         devices = [{"id": "auto", "name": "Auto-detect"}]
-        for dev_id, dev_name in device_info:
-            devices.append({"id": dev_id, "name": dev_name})
+        if self.device_manager:
+            device_info = self.device_manager.get_device_info()
+            for dev_id, dev_name in device_info:
+                devices.append({"id": dev_id, "name": dev_name})
+        else:
+            devices.append({"id": "cloud", "name": "Cloud (Deepgram)"})
         return devices
 
     # ── Update Checking ────────────────────────────────────────────

backend/tests/test_api_server.py

@@ -79,7 +79,7 @@ async def test_start_when_not_ready(api_client, controller):
 
 @pytest.mark.asyncio
 async def test_clear(api_client, controller):
-    from client.transcription_engine_realtime import TranscriptionResult
+    from client.models import TranscriptionResult
     from datetime import datetime
 
     controller.transcriptions = [

backend/tests/test_app_controller.py

@@ -72,7 +72,7 @@ def test_double_start_rejected(controller):
 
 def test_clear_transcriptions(controller):
     """clear_transcriptions should empty the list and return the count."""
-    from client.transcription_engine_realtime import TranscriptionResult
+    from client.models import TranscriptionResult
 
     controller.transcriptions = [
         TranscriptionResult(text="Hello", is_final=True, timestamp=datetime.now(), user_name="Alice"),
@@ -85,7 +85,7 @@ def test_clear_transcriptions(controller):
 
 def test_get_transcriptions_text_with_timestamps(controller):
     """get_transcriptions_text should include [HH:MM:SS] prefixes when requested."""
-    from client.transcription_engine_realtime import TranscriptionResult
+    from client.models import TranscriptionResult
 
     ts = datetime(2025, 1, 15, 10, 30, 45)
     controller.transcriptions = [
@@ -141,7 +141,7 @@ def test_apply_settings_no_reload_when_same(controller):
 
 def test_on_final_transcription_callback_fires(controller):
     """_on_final_transcription should append and invoke on_transcription callback."""
-    from client.transcription_engine_realtime import TranscriptionResult
+    from client.models import TranscriptionResult
 
     received = []
     controller.on_transcription = lambda data: received.append(data)
@@ -166,7 +166,7 @@ def test_on_final_transcription_callback_fires(controller):
 
 def test_on_final_transcription_ignored_when_not_transcribing(controller):
     """If the controller is not in transcribing state the callback should be a no-op."""
-    from client.transcription_engine_realtime import TranscriptionResult
+    from client.models import TranscriptionResult
 
     controller.is_transcribing = False
 

client/deepgram_transcription.py

@@ -17,7 +17,7 @@ from datetime import datetime
 from queue import Queue, Empty
 from typing import Optional, Callable
 
-from client.transcription_engine_realtime import TranscriptionResult
+from client.models import TranscriptionResult
 
 logger = logging.getLogger(__name__)
 
@@ -67,7 +67,7 @@ class DeepgramTranscriptionEngine:
         # Audio parameters
         self.sample_rate: int = 16000
         self.channels: int = 1
-        self.blocksize: int = 4096
+        self.blocksize: int = 1024  # ~64ms chunks for lower latency streaming
 
         # Callbacks
         self.realtime_callback: Optional[Callable[[TranscriptionResult], None]] = None
@@ -314,6 +314,8 @@ class DeepgramTranscriptionEngine:
             f"model={self.deepgram_model}"
             f"&language={self.language}"
             "&interim_results=true"
+            "&punctuate=true"
+            "&smart_format=true"
             "&encoding=linear16"
             f"&sample_rate={self.sample_rate}"
             f"&channels={self.channels}"
@@ -370,10 +372,16 @@ class DeepgramTranscriptionEngine:
 
     async def _send_loop(self):
         """Drain the audio queue and push raw PCM bytes over the WebSocket."""
+        loop = asyncio.get_event_loop()
         while not self._stop_event.is_set():
             try:
-                pcm_bytes = self._audio_queue.get(timeout=0.1)
-            except Empty:
+                # Use run_in_executor to avoid blocking the async event loop
+                # (which would stall the receive loop and delay transcriptions)
+                pcm_bytes = await asyncio.wait_for(
+                    loop.run_in_executor(None, lambda: self._audio_queue.get(timeout=0.5)),
+                    timeout=1.0,
+                )
+            except (Empty, asyncio.TimeoutError):
                 continue
 
             try:

client/models.py

@@ -0,0 +1,29 @@
+"""Shared data models used across transcription engines."""
+
+from datetime import datetime
+
+
+class TranscriptionResult:
+    """Represents a transcription result."""
+
+    def __init__(self, text: str, is_final: bool, timestamp: datetime, user_name: str = ""):
+        """
+        Initialize transcription result.
+
+        Args:
+            text: Transcribed text
+            is_final: Whether this is a final transcription or realtime preview
+            timestamp: Timestamp of transcription
+            user_name: Name of the user/speaker
+        """
+        self.text = text.strip()
+        self.is_final = is_final
+        self.timestamp = timestamp
+        self.user_name = user_name
+
+    def __repr__(self) -> str:
+        time_str = self.timestamp.strftime("%H:%M:%S")
+        prefix = "[FINAL]" if self.is_final else "[PREVIEW]"
+        if self.user_name and self.user_name.strip():
+            return f"{prefix} [{time_str}] {self.user_name}: {self.text}"
+        return f"{prefix} [{time_str}] {self.text}"

client/transcription_engine_realtime.py

@@ -8,30 +8,8 @@ from threading import Lock
 import logging
 
 
-class TranscriptionResult:
-    """Represents a transcription result."""
-
-    def __init__(self, text: str, is_final: bool, timestamp: datetime, user_name: str = ""):
-        """
-        Initialize transcription result.
-
-        Args:
-            text: Transcribed text
-            is_final: Whether this is a final transcription or realtime preview
-            timestamp: Timestamp of transcription
-            user_name: Name of the user/speaker
-        """
-        self.text = text.strip()
-        self.is_final = is_final
-        self.timestamp = timestamp
-        self.user_name = user_name
-
-    def __repr__(self) -> str:
-        time_str = self.timestamp.strftime("%H:%M:%S")
-        prefix = "[FINAL]" if self.is_final else "[PREVIEW]"
-        if self.user_name and self.user_name.strip():
-            return f"{prefix} [{time_str}] {self.user_name}: {self.text}"
-        return f"{prefix} [{time_str}] {self.text}"
+# Re-export TranscriptionResult from the shared models module for backward compatibility
+from client.models import TranscriptionResult  # noqa: F401
 
     def to_dict(self) -> dict:
         """Convert to dictionary."""

local-transcription-cloud.spec

@@ -0,0 +1,152 @@
+# -*- mode: python ; coding: utf-8 -*-
+"""PyInstaller spec file for cloud-only Local Transcription backend.
+
+This builds a lightweight sidecar (~50MB) that only supports Deepgram
+cloud transcription (managed + BYOK). No local Whisper models, no
+PyTorch, no CUDA -- just audio capture and WebSocket streaming.
+"""
+
+import sys
+import os
+
+block_cipher = None
+is_windows = sys.platform == 'win32'
+
+from PyInstaller.utils.hooks import collect_submodules, collect_data_files
+
+# Data files
+datas = [
+    ('config/default_config.yaml', 'config'),
+]
+
+# Hidden imports -- only lightweight deps needed for Deepgram streaming
+hiddenimports = [
+    'sounddevice',
+    'numpy',
+    # FastAPI and dependencies
+    'fastapi',
+    'fastapi.routing',
+    'fastapi.responses',
+    'starlette',
+    'starlette.applications',
+    'starlette.routing',
+    'starlette.responses',
+    'starlette.websockets',
+    'starlette.middleware',
+    'starlette.middleware.cors',
+    'pydantic',
+    'pydantic.fields',
+    'pydantic.main',
+    'anyio',
+    'anyio._backends',
+    'anyio._backends._asyncio',
+    'sniffio',
+    # Uvicorn
+    'uvicorn',
+    'uvicorn.logging',
+    'uvicorn.loops',
+    'uvicorn.loops.auto',
+    'uvicorn.protocols',
+    'uvicorn.protocols.http',
+    'uvicorn.protocols.http.auto',
+    'uvicorn.protocols.http.h11_impl',
+    'uvicorn.protocols.websockets',
+    'uvicorn.protocols.websockets.auto',
+    'uvicorn.protocols.websockets.wsproto_impl',
+    'uvicorn.lifespan',
+    'uvicorn.lifespan.on',
+    'h11',
+    'websockets',
+    'websockets.legacy',
+    'websockets.legacy.server',
+    # HTTP client
+    'requests',
+    'urllib3',
+    'certifi',
+    'charset_normalizer',
+]
+
+# Collect submodules for key packages
+print("Collecting submodules for cloud backend packages...")
+for package in ['fastapi', 'starlette', 'pydantic', 'pydantic_core', 'anyio', 'uvicorn', 'websockets', 'h11']:
+    try:
+        submodules = collect_submodules(package)
+        hiddenimports += submodules
+        print(f"  + Collected {len(submodules)} submodules from {package}")
+    except Exception as e:
+        print(f"  - Warning: Could not collect {package}: {e}")
+
+# Collect data files
+for package in ['fastapi', 'starlette', 'pydantic', 'uvicorn']:
+    try:
+        data_files = collect_data_files(package)
+        if data_files:
+            datas += data_files
+    except Exception:
+        pass
+
+# Pydantic critical deps
+hiddenimports += [
+    'colorsys', 'decimal', 'json', 'ipaddress', 'pathlib', 'uuid',
+    'email.message', 'typing_extensions',
+]
+
+a = Analysis(
+    ['backend/main_headless.py'],
+    pathex=[],
+    binaries=[],
+    datas=datas,
+    hiddenimports=hiddenimports,
+    hookspath=['hooks'],
+    hooksconfig={},
+    runtime_hooks=[],
+    excludes=[
+        # Exclude all heavy ML/local transcription deps
+        'torch', 'torchaudio', 'torchvision',
+        'faster_whisper', 'ctranslate2',
+        'RealtimeSTT', 'webrtcvad', 'webrtcvad_wheels',
+        'silero_vad', 'onnxruntime',
+        'openwakeword', 'pvporcupine', 'pyaudio',
+        'noisereduce', 'scipy',
+        # Exclude GUI frameworks
+        'PySide6', 'PyQt5', 'PyQt6', 'tkinter',
+        # Exclude other unnecessary heavy packages
+        'matplotlib', 'PIL', 'cv2',
+    ],
+    win_no_prefer_redirects=False,
+    win_private_assemblies=False,
+    cipher=block_cipher,
+    noarchive=False,
+)
+
+pyz = PYZ(a.pure, a.zipped_data, cipher=block_cipher)
+
+exe = EXE(
+    pyz,
+    a.scripts,
+    [],
+    exclude_binaries=True,
+    name='local-transcription-backend',
+    debug=False,
+    bootloader_ignore_signals=False,
+    strip=False,
+    upx=True,
+    console=True,
+    disable_windowed_traceback=False,
+    argv_emulation=False,
+    target_arch=None,
+    codesign_identity=None,
+    entitlements_file=None,
+    icon='LocalTranscription.ico' if is_windows else None,
+)
+
+coll = COLLECT(
+    exe,
+    a.binaries,
+    a.zipfiles,
+    a.datas,
+    strip=False,
+    upx=True,
+    upx_exclude=[],
+    name='local-transcription-backend',
+)

package.json

@@ -1,7 +1,7 @@
 {
   "name": "local-transcription",
   "private": true,
-  "version": "2.0.3",
+  "version": "2.0.7",
   "type": "module",
   "scripts": {
     "dev": "vite dev",

pyproject.toml

@@ -1,6 +1,6 @@
 [project]
 name = "local-transcription"
-version = "1.0.4"
+version = "1.0.5"
 description = "A standalone desktop application for real-time speech-to-text transcription using Whisper models"
 readme = "README.md"
 requires-python = ">=3.9"

src-tauri/Cargo.lock

@@ -1881,7 +1881,7 @@ checksum = "92daf443525c4cce67b150400bc2316076100ce0b3686209eb8cf3c31612e6f0"
 
 [[package]]
 name = "local-transcription"
-version = "1.4.16"
+version = "2.0.3"
 dependencies = [
  "bytes",
  "chrono",

src-tauri/Cargo.toml

@@ -1,6 +1,6 @@
 [package]
 name = "local-transcription"
-version = "2.0.3"
+version = "2.0.7"
 description = "Real-time speech-to-text transcription for streamers"
 authors = ["Local Transcription Contributors"]
 edition = "2021"

src-tauri/gen/schemas/capabilities.json

@@ -1 +1 @@
-{}
+{"default":{"identifier":"default","description":"Default permissions for the main window","local":true,"windows":["main"],"permissions":["core:default","core:event:default","core:event:allow-listen","core:event:allow-emit","shell:default","dialog:default","process:default"]}}

src-tauri/src/lib.rs

@@ -68,6 +68,7 @@ pub fn run() {
             sidecar::get_sidecar_port,
             sidecar::start_sidecar,
             sidecar::stop_sidecar,
+            sidecar::reset_sidecar,
             write_log,
         ])
         .run(tauri::generate_context!())

src-tauri/src/sidecar/mod.rs

@@ -554,18 +554,27 @@ impl SidecarManager {
     // -- private helpers -------------------------------------------------------
 
     fn build_dev_command(&self) -> Result<std::process::Command, String> {
-        let mut cmd = std::process::Command::new("python");
-        cmd.args(["-u", "-m", "backend.main_headless"]); // -u = unbuffered
+        // Use `uv run` to ensure we use the project's venv, not system Python
+        let mut cmd = std::process::Command::new("uv");
+        cmd.args(["run", "python", "-u", "-m", "backend.main_headless"]);
 
-        // Try to find the project root (parent of src-tauri)
-        if let Some(dirs) = DIRS.get() {
-            let project_root = dirs
-                .resource_dir
-                .parent() // src-tauri
-                .and_then(|p| p.parent()); // project root
-            if let Some(root) = project_root {
-                cmd.current_dir(root);
-            }
+        // Find the project root: try CARGO_MANIFEST_DIR first (set at compile time),
+        // then fall back to resource_dir parent chain
+        let manifest_dir = option_env!("CARGO_MANIFEST_DIR").map(std::path::PathBuf::from);
+        let project_root = manifest_dir
+            .as_ref()
+            .and_then(|d| d.parent()) // src-tauri -> project root
+            .or_else(|| {
+                DIRS.get()
+                    .and_then(|d| d.resource_dir.parent())
+                    .and_then(|p| p.parent())
+            });
+
+        if let Some(root) = project_root {
+            eprintln!("[sidecar] Dev mode: working dir = {}", root.display());
+            cmd.current_dir(root);
+        } else {
+            eprintln!("[sidecar] Dev mode: WARNING - could not determine project root");
         }
 
         cmd.env("PYTHONUNBUFFERED", "1");
@@ -676,6 +685,42 @@ pub fn stop_sidecar(state: tauri::State<'_, ManagedSidecar>) -> Result<(), Strin
     Ok(())
 }
 
+/// Stop the running sidecar, delete its files and version marker.
+/// The next app launch will show the sidecar download prompt.
+#[tauri::command]
+pub fn reset_sidecar(state: tauri::State<'_, ManagedSidecar>) -> Result<(), String> {
+    // Stop the running sidecar first
+    {
+        let mut mgr = state
+            .0
+            .lock()
+            .map_err(|e| format!("Lock error: {e}"))?;
+        mgr.stop();
+    }
+
+    let data = data_dir();
+
+    // Delete the version file so check_sidecar returns false
+    let vf = version_file();
+    if vf.exists() {
+        std::fs::remove_file(&vf)
+            .map_err(|e| format!("Failed to delete version file: {e}"))?;
+    }
+
+    // Delete all sidecar directories
+    if let Ok(entries) = std::fs::read_dir(&data) {
+        for entry in entries.flatten() {
+            let name = entry.file_name().to_string_lossy().to_string();
+            if name.starts_with("sidecar-") && entry.path().is_dir() {
+                eprintln!("[sidecar] Removing {}", entry.path().display());
+                let _ = std::fs::remove_dir_all(entry.path());
+            }
+        }
+    }
+
+    Ok(())
+}
+
 // ---------------------------------------------------------------------------
 // Tests
 // ---------------------------------------------------------------------------

src-tauri/tauri.conf.json

@@ -1,6 +1,6 @@
 {
   "productName": "Local Transcription",
-  "version": "2.0.3",
+  "version": "2.0.7",
   "identifier": "net.anhonesthost.local-transcription",
   "build": {
     "frontendDist": "../dist",

src/lib/components/Controls.svelte

@@ -17,6 +17,9 @@
       } else {
         await backendStore.apiPost("/api/start");
       }
+      // Poll status to update UI immediately instead of waiting
+      // for WebSocket broadcast (which can be delayed or missed)
+      await backendStore.pollStatus();
     } catch (err) {
       console.error("Failed to toggle transcription:", err);
     } finally {

src/lib/components/Settings.svelte

@@ -27,6 +27,10 @@
   let showTimestamps = $state(true);
   let fadeSeconds = $state(10);
   let maxLines = $state(100);
+  let fontSource = $state("System Font");
+  let fontFamily = $state("Courier");
+  let websafeFont = $state("Arial");
+  let googleFont = $state("Roboto");
   let fontSize = $state(12);
   let userColor = $state("#4CAF50");
   let textColor = $state("#FFFFFF");
@@ -99,6 +103,10 @@
     showTimestamps = cfg.display.show_timestamps;
     fadeSeconds = cfg.display.fade_after_seconds;
     maxLines = cfg.display.max_lines;
+    fontSource = cfg.display.font_source ?? "System Font";
+    fontFamily = cfg.display.font_family ?? "Courier";
+    websafeFont = cfg.display.websafe_font ?? "Arial";
+    googleFont = cfg.display.google_font ?? "Roboto";
     fontSize = cfg.display.font_size;
     userColor = cfg.display.user_color;
     textColor = cfg.display.text_color;
@@ -174,6 +182,10 @@
         show_timestamps: showTimestamps,
         fade_after_seconds: fadeSeconds,
         max_lines: maxLines,
+        font_source: fontSource,
+        font_family: fontFamily,
+        websafe_font: websafeFont,
+        google_font: googleFont,
         font_size: fontSize,
         user_color: userColor,
         text_color: textColor,
@@ -220,6 +232,18 @@
     }
   }
 
+  async function handleChangeSidecar() {
+    try {
+      const { invoke } = await import("@tauri-apps/api/core");
+      await invoke("reset_sidecar");
+      // Force a page reload which will re-trigger the setup flow
+      window.location.reload();
+    } catch (err) {
+      console.error("Failed to reset sidecar:", err);
+      saveMessage = `Error: ${err}`;
+    }
+  }
+
   async function handleManagedLogin() {
     try {
       await backendStore.apiPost("/api/login", {
@@ -485,6 +509,95 @@
             bind:value={maxLines}
           />
         </div>
+        <div class="field">
+          <label for="font-source">Font Source</label>
+          <select id="font-source" bind:value={fontSource}>
+            <option value="System Font">System Font</option>
+            <option value="Web-Safe">Web-Safe</option>
+            <option value="Google Font">Google Font</option>
+          </select>
+        </div>
+        {#if fontSource === "System Font"}
+          <div class="field">
+            <label for="font-family">System Font Family</label>
+            <input id="font-family" type="text" bind:value={fontFamily} placeholder="Courier" />
+          </div>
+        {/if}
+        {#if fontSource === "Web-Safe"}
+          <div class="field">
+            <label for="websafe-font">Web-Safe Font</label>
+            <select id="websafe-font" bind:value={websafeFont}>
+              <option value="Arial">Arial</option>
+              <option value="Arial Black">Arial Black</option>
+              <option value="Comic Sans MS">Comic Sans MS</option>
+              <option value="Courier New">Courier New</option>
+              <option value="Georgia">Georgia</option>
+              <option value="Impact">Impact</option>
+              <option value="Lucida Console">Lucida Console</option>
+              <option value="Lucida Sans Unicode">Lucida Sans Unicode</option>
+              <option value="Palatino Linotype">Palatino Linotype</option>
+              <option value="Tahoma">Tahoma</option>
+              <option value="Times New Roman">Times New Roman</option>
+              <option value="Trebuchet MS">Trebuchet MS</option>
+              <option value="Verdana">Verdana</option>
+            </select>
+          </div>
+        {/if}
+        {#if fontSource === "Google Font"}
+          <div class="field">
+            <label for="google-font">Google Font</label>
+            <select id="google-font" bind:value={googleFont}>
+              <optgroup label="Sans Serif">
+                <option value="Roboto">Roboto</option>
+                <option value="Open Sans">Open Sans</option>
+                <option value="Lato">Lato</option>
+                <option value="Montserrat">Montserrat</option>
+                <option value="Poppins">Poppins</option>
+                <option value="Nunito">Nunito</option>
+                <option value="Raleway">Raleway</option>
+                <option value="Ubuntu">Ubuntu</option>
+                <option value="Rubik">Rubik</option>
+                <option value="Work Sans">Work Sans</option>
+                <option value="Inter">Inter</option>
+                <option value="Outfit">Outfit</option>
+                <option value="Quicksand">Quicksand</option>
+                <option value="Comfortaa">Comfortaa</option>
+                <option value="Varela Round">Varela Round</option>
+              </optgroup>
+              <optgroup label="Serif">
+                <option value="Playfair Display">Playfair Display</option>
+                <option value="Merriweather">Merriweather</option>
+                <option value="Lora">Lora</option>
+                <option value="PT Serif">PT Serif</option>
+                <option value="Crimson Text">Crimson Text</option>
+              </optgroup>
+              <optgroup label="Monospace">
+                <option value="Roboto Mono">Roboto Mono</option>
+                <option value="Source Code Pro">Source Code Pro</option>
+                <option value="Fira Code">Fira Code</option>
+                <option value="JetBrains Mono">JetBrains Mono</option>
+                <option value="IBM Plex Mono">IBM Plex Mono</option>
+              </optgroup>
+              <optgroup label="Display">
+                <option value="Bebas Neue">Bebas Neue</option>
+                <option value="Oswald">Oswald</option>
+                <option value="Righteous">Righteous</option>
+                <option value="Bangers">Bangers</option>
+                <option value="Permanent Marker">Permanent Marker</option>
+              </optgroup>
+              <optgroup label="Handwriting">
+                <option value="Pacifico">Pacifico</option>
+                <option value="Lobster">Lobster</option>
+                <option value="Dancing Script">Dancing Script</option>
+                <option value="Caveat">Caveat</option>
+                <option value="Satisfy">Satisfy</option>
+              </optgroup>
+            </select>
+            <p style="font-size: 11px; color: var(--text-muted); margin-top: 4px;">
+              Browse more at <a href="https://fonts.google.com" target="_blank" rel="noopener" style="color: var(--accent-blue);">fonts.google.com</a>
+            </p>
+          </div>
+        {/if}
         <div class="field">
           <label for="font-size">Font Size: {fontSize}px</label>
           <input
@@ -648,6 +761,17 @@
         </div>
         <button onclick={handleCheckUpdates}>Check Now</button>
       </section>
+
+      <!-- Transcription Engine -->
+      <section class="settings-section">
+        <h3>Transcription Engine</h3>
+        <p style="font-size: 12px; color: var(--text-secondary); margin-bottom: 12px;">
+          Switch between local (Whisper) and cloud (Deepgram) transcription engines.
+          This will stop the current engine, remove the downloaded files, and restart
+          with the new engine selection.
+        </p>
+        <button class="danger-btn" onclick={handleChangeSidecar}>Change Transcription Engine</button>
+      </section>
     </div>
 
     <div class="settings-footer">
@@ -818,4 +942,18 @@
   .save-message.error {
     color: #f44336;
   }
+
+  .danger-btn {
+    background: transparent;
+    border: 1px solid var(--accent-red, #f44336);
+    color: var(--accent-red, #f44336);
+    padding: 8px 16px;
+    border-radius: 6px;
+    cursor: pointer;
+    font-size: 13px;
+  }
+
+  .danger-btn:hover {
+    background: rgba(244, 67, 54, 0.1);
+  }
 </style>

src/lib/components/SidecarSetup.svelte

@@ -36,11 +36,12 @@
 
     try {
       // Listen for progress events from the Tauri backend
-      unlisten = await listen<{ progress: number; message: string }>(
+      unlisten = await listen<{ downloaded: number; total: number; phase: string; message: string }>(
         "sidecar-download-progress",
         (event) => {
-          progress = event.payload.progress;
-          progressMessage = event.payload.message;
+          const { downloaded, total, message } = event.payload;
+          progress = total > 0 ? (downloaded / total) * 100 : 0;
+          progressMessage = message;
         }
       );
 
@@ -84,11 +85,29 @@
 
     {#if setupState === "choose"}
       <p class="setup-description">
-        The app needs to download its transcription engine before you can start.
-        Choose the version that best fits your hardware.
+        Choose a transcription engine. You can change this later in Settings.
       </p>
 
       <div class="variant-options">
+        <label class="variant-option" class:selected={variant === "cloud"}>
+          <input
+            type="radio"
+            name="variant"
+            value="cloud"
+            bind:group={variant}
+          />
+          <div class="variant-info">
+            <span class="variant-name">Cloud (Deepgram)</span>
+            <span class="variant-desc">~50 MB download</span>
+            <span class="variant-detail">
+              Fast, accurate streaming transcription via Deepgram's servers.
+              Requires internet and a Deepgram API key.
+              Best for most users — low resource usage, works on any hardware.
+            </span>
+            <span class="variant-tag recommended">Recommended</span>
+          </div>
+        </label>
+
         <label class="variant-option" class:selected={variant === "cpu"}>
           <input
             type="radio"
@@ -97,8 +116,13 @@
             bind:group={variant}
           />
           <div class="variant-info">
-            <span class="variant-name">Standard (CPU)</span>
-            <span class="variant-desc">Works on all computers (~500 MB download)</span>
+            <span class="variant-name">Local - CPU</span>
+            <span class="variant-desc">~500 MB download</span>
+            <span class="variant-detail">
+              Runs Whisper AI models locally on your CPU. No internet needed
+              after download. Good for privacy or offline use, but slower and
+              uses more system resources than cloud.
+            </span>
           </div>
         </label>
 
@@ -110,8 +134,13 @@
             bind:group={variant}
           />
           <div class="variant-info">
-            <span class="variant-name">GPU Accelerated (CUDA)</span>
-            <span class="variant-desc">Faster transcription with NVIDIA GPU (~2 GB download)</span>
+            <span class="variant-name">Local - GPU (NVIDIA CUDA)</span>
+            <span class="variant-desc">~2 GB download</span>
+            <span class="variant-detail">
+              Runs Whisper AI models locally using your NVIDIA GPU for fast
+              transcription. No internet needed after download. Requires an
+              NVIDIA GPU with CUDA support.
+            </span>
           </div>
         </label>
       </div>
@@ -260,6 +289,30 @@
     color: #888;
   }
 
+  .variant-detail {
+    font-size: 11px;
+    color: #666;
+    line-height: 1.4;
+    margin-top: 2px;
+  }
+
+  .variant-tag {
+    display: inline-block;
+    font-size: 10px;
+    font-weight: 600;
+    text-transform: uppercase;
+    letter-spacing: 0.5px;
+    padding: 2px 6px;
+    border-radius: 3px;
+    margin-top: 4px;
+    width: fit-content;
+  }
+
+  .variant-tag.recommended {
+    background: rgba(76, 175, 80, 0.15);
+    color: #4CAF50;
+  }
+
   .download-btn {
     display: block;
     width: 100%;

src/lib/stores/backend.svelte.ts

@@ -302,6 +302,7 @@ export const backendStore = {
   setPort,
   connect: connectWebSocket,
   disconnect,
+  pollStatus,
   apiUrl,
   apiFetch,
   apiGet,

version.py

@@ -1,7 +1,7 @@
 """Version information for Local Transcription."""
 
-__version__ = "2.0.3"
-__version_info__ = (2, 0, 3)
+__version__ = "2.0.7"
+__version_info__ = (2, 0, 7)
 
 # Version history:
 # 1.4.0 - Auto-update feature: