diff --git a/e2e/tests/up/git_lfs_test.go b/e2e/tests/up/git_lfs_test.go
new file mode 100644
index 000000000..eabe42e18
--- /dev/null
+++ b/e2e/tests/up/git_lfs_test.go
@@ -0,0 +1,117 @@
+package up
+
+import (
+	"context"
+	"os"
+	"os/exec"
+	"path/filepath"
+	"testing"
+
+	"github.com/devsy-org/devsy/pkg/command"
+	"github.com/devsy-org/devsy/pkg/git"
+)
+
+const lfsPointer = "version https://git-lfs.github.com/spec/v1\n" +
+	"oid sha256:0000000000000000000000000000000000000000000000000000000000000\n" +
+	"size 4\n"
+
+func TestCloneLFSRepoSucceedsWithoutGitLFSBinary(t *testing.T) {
+	hideGitLFSFromPath(t)
+	simulateStaleGlobalLFSConfig(t)
+
+	sourceDir := newLFSFixtureRepo(t)
+
+	targetDir := filepath.Join(t.TempDir(), "clone")
+	if err := git.At(targetDir).Clone(context.Background(), sourceDir); err != nil {
+		t.Fatalf("clone: %v", err)
+	}
+
+	dataPath := filepath.Join(targetDir, "data.bin")
+	got, err := os.ReadFile(dataPath) // #nosec G304 -- path is under a test-owned t.TempDir()
+	if err != nil {
+		t.Fatal(err)
+	}
+	if string(got) != lfsPointer {
+		t.Errorf("data.bin content = %q, want pointer stub %q", got, lfsPointer)
+	}
+}
+
+// hideGitLFSFromPath restricts PATH to a directory containing only "git" and
+// "cat", simulating a host without the git-lfs binary installed. "cat" stays
+// available so the clone's filter.lfs.smudge=cat override actually runs,
+// rather than relying on git's fallback for an unresolvable filter command.
+func hideGitLFSFromPath(t *testing.T) {
+	t.Helper()
+
+	if !command.Exists("git") {
+		t.Skip("git not installed")
+	}
+
+	binDir := t.TempDir()
+	for _, name := range []string{"git", "cat"} {
+		path, err := exec.LookPath(name)
+		if err != nil {
+			t.Skipf("%s not found on PATH", name)
+		}
+		if err := os.Symlink(path, filepath.Join(binDir, name)); err != nil {
+			t.Fatal(err)
+		}
+	}
+	t.Setenv("PATH", binDir)
+}
+
+// simulateStaleGlobalLFSConfig sets a fresh, isolated global gitconfig that
+// registers the LFS filter driver, as if `git lfs install --global` had been
+// run in the past even though the git-lfs binary is no longer present.
+func simulateStaleGlobalLFSConfig(t *testing.T) {
+	t.Helper()
+
+	home := t.TempDir()
+	t.Setenv("HOME", home)
+	t.Setenv("GIT_CONFIG_NOSYSTEM", "1")
+	runGit(t, home, "config", "--global", "user.email", "test@example.com")
+	runGit(t, home, "config", "--global", "user.name", "Test")
+	runGit(t, home, "config", "--global", "filter.lfs.process", "git-lfs filter-process")
+	runGit(t, home, "config", "--global", "filter.lfs.smudge", "git-lfs smudge -- %f")
+	runGit(t, home, "config", "--global", "filter.lfs.clean", "git-lfs clean -- %f")
+}
+
+// newLFSFixtureRepo creates a repo declaring an LFS-tracked file, using local
+// filter overrides so fixture setup doesn't need the (absent) git-lfs binary.
+func newLFSFixtureRepo(t *testing.T) string {
+	t.Helper()
+
+	dir := t.TempDir()
+	runGit(t, dir, "init", "--quiet")
+	runGit(t, dir, "config", "filter.lfs.clean", "cat")
+	runGit(t, dir, "config", "filter.lfs.smudge", "cat")
+	runGit(t, dir, "config", "filter.lfs.process", "")
+
+	writeFile(
+		t,
+		filepath.Join(dir, ".gitattributes"),
+		"*.bin filter=lfs diff=lfs merge=lfs -text\n",
+	)
+	writeFile(t, filepath.Join(dir, "data.bin"), lfsPointer)
+
+	runGit(t, dir, "add", ".")
+	runGit(t, dir, "commit", "--quiet", "-m", "add lfs-tracked file")
+	return dir
+}
+
+func writeFile(t *testing.T, path, content string) {
+	t.Helper()
+	if err := os.WriteFile(path, []byte(content), 0o600); err != nil {
+		t.Fatal(err)
+	}
+}
+
+func runGit(t *testing.T, dir string, args ...string) {
+	t.Helper()
+	cmd := exec.Command("git", args...) // #nosec G204 -- fixed binary name, test-only
+	cmd.Dir = dir
+	out, err := cmd.CombinedOutput()
+	if err != nil {
+		t.Fatalf("git %v: %v\n%s", args, err, out)
+	}
+}
diff --git a/pkg/agent/workspace.go b/pkg/agent/workspace.go
index b3e91ecb5..c535868ee 100644
--- a/pkg/agent/workspace.go
+++ b/pkg/agent/workspace.go
@@ -297,10 +297,14 @@ func removeGitCredentialHelper(ctx context.Context, helper, workspaceDir string)
 	if helper == "" {
 		return
 	}
-	if err := gitcredentials.RemoveHelperFromPath(
-		ctx,
-		gitcredentials.GetLocalGitConfigPath(workspaceDir),
-	); err != nil {
+	gitConfigPath := gitcredentials.GetLocalGitConfigPath(workspaceDir)
+	if _, err := os.Stat(gitConfigPath); err != nil {
+		if !errors.Is(err, os.ErrNotExist) {
+			log.Errorf("stat git config: %v", err)
+		}
+		return
+	}
+	if err := gitcredentials.RemoveHelperFromPath(ctx, gitConfigPath); err != nil {
 		log.Errorf("remove git credential helper: %v", err)
 	}
 }
diff --git a/pkg/git/lfs.go b/pkg/git/lfs.go
index 8c9a8f64b..0904e7912 100644
--- a/pkg/git/lfs.go
+++ b/pkg/git/lfs.go
@@ -13,15 +13,31 @@ import (
 	"github.com/devsy-org/devsy/pkg/log"
 )
 
-// lfsFilterMarker is the .gitattributes token that marks a path as LFS-tracked.
 var lfsFilterMarker = []byte("filter=lfs")
 
-// smudgeSkippedForClone reports whether the clone should set GIT_LFS_SKIP_SMUDGE.
-func smudgeSkippedForClone(mode LFSMode) bool {
-	if mode == LFSFull && !command.Exists(binGitLFS) {
-		log.Info("git-lfs not found, skipping LFS smudge; LFS files will be pointer stubs")
+// GIT_LFS_SKIP_SMUDGE is read by the git-lfs binary itself, so it's no help
+// when that binary is missing; disable the filter driver instead.
+var lfsDisableFilterArgs = []string{
+	flagConfig, "filter.lfs.process=",
+	flagConfig, "filter.lfs.smudge=cat",
+	flagConfig, "filter.lfs.clean=cat",
+}
+
+func cloneArgsForLFS() []string {
+	if !command.Exists(binGitLFS) {
+		log.Info(
+			"git-lfs not found, disabling LFS filters for clone; LFS files will be pointer stubs",
+		)
+		return lfsDisableFilterArgs
+	}
+	return nil
+}
+
+func cloneEnvForLFS() []string {
+	if command.Exists(binGitLFS) {
+		return []string{"GIT_LFS_SKIP_SMUDGE=1"}
 	}
-	return true
+	return nil
 }
 
 // SetupLFS configures Git LFS in the repository.
diff --git a/pkg/git/lfs_test.go b/pkg/git/lfs_test.go
index 14f4bfde8..c2b8116c9 100644
--- a/pkg/git/lfs_test.go
+++ b/pkg/git/lfs_test.go
@@ -32,14 +32,20 @@ func TestLFSModeResolution(t *testing.T) {
 	}
 }
 
-func TestSmudgeAlwaysSkippedForClone(t *testing.T) {
-	// The smudge filter is skipped at clone time for every mode; hydration is
-	// done explicitly afterward (or not at all).
-	for _, mode := range []LFSMode{LFSFull, LFSSetupOnly, LFSSkip} {
-		if !smudgeSkippedForClone(mode) {
-			t.Errorf("smudgeSkippedForClone(%v) = false, want true", mode)
-		}
+func TestCloneEnvForLFS(t *testing.T) {
+	want := []string(nil)
+	if command.Exists(binGitLFS) {
+		want = []string{"GIT_LFS_SKIP_SMUDGE=1"}
+	}
+	assert.DeepEqual(t, want, cloneEnvForLFS())
+}
+
+func TestCloneArgsForLFS(t *testing.T) {
+	var want []string
+	if !command.Exists(binGitLFS) {
+		want = lfsDisableFilterArgs
 	}
+	assert.DeepEqual(t, want, cloneArgsForLFS())
 }
 
 // lfsSubcommands returns the `lfs ...` invocations a fakeRunner recorded.
diff --git a/pkg/git/repo.go b/pkg/git/repo.go
index d55ae65fa..656a90bb4 100644
--- a/pkg/git/repo.go
+++ b/pkg/git/repo.go
@@ -265,13 +265,14 @@ func (r *Repo) cloneWith(ctx context.Context, repository string, c cloneConfig)
 	pw := newProgressWriter(w)
 
 	env := append([]string{}, r.env...)
-	if smudgeSkippedForClone(c.lfsMode) {
-		env = append(env, "GIT_LFS_SKIP_SMUDGE=1")
-	}
+	env = append(env, cloneEnvForLFS()...)
+
+	args := c.args(repository, r.path)
+	args = append(args, cloneArgsForLFS()...)
 
 	_, err := r.runner.Run(ctx, RunOptions{
 		Env:    env,
-		Args:   c.args(repository, r.path),
+		Args:   args,
 		Stdout: pw,
 		Stderr: pw,
 	})