diff --git a/packages/api/src/mcp/ConnectionsRepository.ts b/packages/api/src/mcp/ConnectionsRepository.ts
index 5296f4fc82..76a315501f 100644
--- a/packages/api/src/mcp/ConnectionsRepository.ts
+++ b/packages/api/src/mcp/ConnectionsRepository.ts
@@ -78,7 +78,7 @@ export class ConnectionsRepository {
       }
     }
     const registry = MCPServersRegistry.getInstance();
-    const { allowedDomains, allowedAddresses, useSSRFProtection } =
+    const { allowedDomains, allowedAddresses, useSSRFProtection, appsEnabled } =
       await registry.resolveAllowlists({ userId: this.ownerId });
     const connection = await MCPConnectionFactory.create(
       {
@@ -88,7 +88,7 @@ export class ConnectionsRepository {
         useSSRFProtection,
         allowedDomains,
         allowedAddresses,
-        enableApps: registry.getAppsEnabled(),
+        enableApps: appsEnabled,
       },
       this.oauthOpts,
     );
diff --git a/packages/api/src/mcp/MCPManager.ts b/packages/api/src/mcp/MCPManager.ts
index e364f126c3..178b161a4f 100644
--- a/packages/api/src/mcp/MCPManager.ts
+++ b/packages/api/src/mcp/MCPManager.ts
@@ -32,6 +32,7 @@ import {
   requiresUserScopedConnection,
 } from './utils';
 import { mcpOptionsContainGraphTokenPlaceholder, preProcessGraphTokens } from '~/utils/graph';
+import { formatToolContent, resultHasRenderableUiResource } from './parsers';
 import { getToolUiResourceUri, isToolVisibilityModelOnly } from './apps';
 import { MCPServersInitializer } from './registry/MCPServersInitializer';
 import { OboTokenResolutionError, resolveOboToken } from '~/mcp/oauth';
@@ -40,7 +41,6 @@ import { MCPServersRegistry } from './registry/MCPServersRegistry';
 import { UserConnectionManager } from './UserConnectionManager';
 import { ConnectionsRepository } from './ConnectionsRepository';
 import { MCPConnectionFactory } from './MCPConnectionFactory';
-import { formatToolContent } from './parsers';
 import { MCPConnection } from './connection';
 import { processMCPEnv } from '~/utils/env';
 
@@ -726,24 +726,28 @@ Please follow these instructions when using tools from the respective MCP server
             userId,
             requiresEphemeralUserConnection(rawConfig),
           );
-          if (resourceMeta) {
-            // Honor the per-request apps setting so a tenant that disabled apps gets no UI resource
-            // (it would otherwise render as a broken iframe once the gated app endpoints reject the
-            // follow-up calls). Resolved lazily so non-app tools skip the per-request lookup.
-            const { appsEnabled } = await registry.resolveAllowlists({ userId, role: user?.role });
-            if (!appsEnabled) {
-              resourceMeta = undefined;
-            } else {
-              logger.debug(
-                `[MCP][${serverName}][${toolName}] Found resourceUri: ${resourceMeta.uri}`,
-              );
-            }
-          }
         } catch {
           /* empty */
         }
       }
 
+      // The apps toggle must gate both the tool-declared app and any ui:// resource embedded in the
+      // result (either renders an iframe that breaks once the gated app endpoints reject follow-up
+      // calls). Resolved lazily, only when a UI resource is in play, so plain tool calls skip the
+      // per-request lookup.
+      let enableApps = true;
+      if (resourceMeta || resultHasRenderableUiResource(result as t.MCPToolCallResponse)) {
+        ({ appsEnabled: enableApps } = await registry.resolveAllowlists({
+          userId,
+          role: user?.role,
+        }));
+        if (!enableApps) {
+          resourceMeta = undefined;
+        } else if (resourceMeta) {
+          logger.debug(`[MCP][${serverName}][${toolName}] Found resourceUri: ${resourceMeta.uri}`);
+        }
+      }
+
       return formatToolContent(
         result as t.MCPToolCallResponse,
         provider,
@@ -755,8 +759,9 @@ Please follow these instructions when using tools from the respective MCP server
               csp: resourceMeta?.csp,
               permissions: resourceMeta?.permissions,
               toolArgs: toolArguments,
+              enableApps,
             }
-          : undefined,
+          : { enableApps },
       );
     } catch (error) {
       // Log with context and re-throw or handle as needed
@@ -1033,11 +1038,14 @@ Please follow these instructions when using tools from the respective MCP server
 
   /**
    * Fully percent-decodes a URI to the canonical form a server resolves. Returns null when it
-   * cannot be decoded or contains a relative (`.`/`..`) segment, so neither encoded traversal nor
-   * relative segments can satisfy a template guard.
+   * cannot be decoded, does not stabilize within the decode cap, or contains a relative (`.`/`..`)
+   * segment, so neither deeply encoded traversal nor relative segments can satisfy a template
+   * guard. Failing closed on the cap matters because a server that decodes until stable would
+   * otherwise receive a traversal this guard never saw in decoded form.
    */
   private static canonicalizeUri(uri: string): string | null {
     let current = uri;
+    let stabilized = false;
     for (let depth = 0; depth < 5; depth++) {
       let decoded: string;
       try {
@@ -1046,10 +1054,14 @@ Please follow these instructions when using tools from the respective MCP server
         return null;
       }
       if (decoded === current) {
+        stabilized = true;
         break;
       }
       current = decoded;
     }
+    if (!stabilized) {
+      return null;
+    }
     if (current.split(/[/\\]/).some((segment) => segment === '.' || segment === '..')) {
       return null;
     }
diff --git a/packages/api/src/mcp/__tests__/MCPManager.test.ts b/packages/api/src/mcp/__tests__/MCPManager.test.ts
index 20dc87954f..99453d316b 100644
--- a/packages/api/src/mcp/__tests__/MCPManager.test.ts
+++ b/packages/api/src/mcp/__tests__/MCPManager.test.ts
@@ -1481,6 +1481,36 @@ describe('MCPManager', () => {
       const methods = request.mock.calls.map((c) => (c[0] as { method: string }).method);
       expect(methods).not.toContain('resources/read');
     });
+
+    it('rejects traversal encoded more deeply than the decode cap rather than treating it as canonical', async () => {
+      let traversal = '%2e%2e%2f';
+      for (let i = 0; i < 6; i++) {
+        traversal = traversal.replace(/%/g, '%25');
+      }
+      const request = jest.fn().mockImplementation((req: { method: string }) => {
+        if (req.method === 'resources/list') {
+          return Promise.resolve({ resources: [] });
+        }
+        if (req.method === 'resources/templates/list') {
+          return Promise.resolve({ resourceTemplates: [{ uriTemplate: 'file://docs{+path}' }] });
+        }
+        return Promise.resolve({ contents: [] });
+      });
+      const manager = await MCPManager.createInstance(newMCPServersConfig());
+      jest.spyOn(manager, 'getConnection').mockResolvedValue(buildConnection(request));
+
+      await expect(
+        manager.readResource({
+          userId: 'user-123',
+          serverName: 'srv',
+          uri: `file://docs/${traversal}secret`,
+          user: mockUser as IUser,
+        }),
+      ).rejects.toThrow(/not advertised/);
+
+      const methods = request.mock.calls.map((c) => (c[0] as { method: string }).method);
+      expect(methods).not.toContain('resources/read');
+    });
   });
 
   describe('getConnection', () => {
diff --git a/packages/api/src/mcp/__tests__/parsers.test.ts b/packages/api/src/mcp/__tests__/parsers.test.ts
index dec533d4a2..93e788e14e 100644
--- a/packages/api/src/mcp/__tests__/parsers.test.ts
+++ b/packages/api/src/mcp/__tests__/parsers.test.ts
@@ -328,6 +328,27 @@ describe('formatToolContent', () => {
       expect(uiResourceArtifact?.content).toEqual(result.content);
     });
 
+    it('suppresses embedded ui:// resources when apps are disabled for the scope', () => {
+      const result: t.MCPToolCallResponse = {
+        content: [
+          {
+            type: 'resource',
+            resource: { uri: 'ui://app', mimeType: 'text/html', text: '<p>hi</p>' },
+          },
+        ],
+      };
+
+      const [content, artifacts] = formatToolContent(result, 'openai', {
+        serverName: 'srv',
+        toolName: 'do_thing',
+        enableApps: false,
+      });
+
+      expect(artifacts?.ui_resources).toBeUndefined();
+      expect(content).toContain('Resource URI: ui://app');
+      expect(content).not.toContain('UI Resource Marker:');
+    });
+
     it('gives embedded ui:// resources distinct ids per tool result payload', () => {
       const resourceIdFor = (sc: Record<string, unknown>) =>
         formatToolContent(
diff --git a/packages/api/src/mcp/parsers.ts b/packages/api/src/mcp/parsers.ts
index cfdc34767d..850b5eeaae 100644
--- a/packages/api/src/mcp/parsers.ts
+++ b/packages/api/src/mcp/parsers.ts
@@ -155,6 +155,32 @@ function parseAsString(result: t.MCPToolCallResponse): string {
   return text;
 }
 
+/**
+ * MCP Apps renders only `ui://` resources whose mime type is HTML (mime omitted defaults to HTML),
+ * the single renderable resource type the spec defines. Used both when attaching a result resource
+ * and when deciding whether a result carries an app the apps toggle must gate.
+ */
+export function isRenderableUiResource(item: t.ToolContentPart): boolean {
+  if (item.type !== 'resource') {
+    return false;
+  }
+  const uri = item.resource?.uri;
+  if (typeof uri !== 'string' || !uri.startsWith('ui://')) {
+    return false;
+  }
+  const mimeType =
+    typeof item.resource.mimeType === 'string' ? item.resource.mimeType : 'text/html';
+  return mimeType.includes('html');
+}
+
+export function resultHasRenderableUiResource(result: t.MCPToolCallResponse): boolean {
+  const content = result?.content;
+  if (!Array.isArray(content)) {
+    return false;
+  }
+  return content.some((item) => isRenderableUiResource(item as t.ToolContentPart));
+}
+
 /**
  * Converts MCPToolCallResponse content into a plain-text string plus optional artifacts
  * (images, UI resources). All providers receive string content; images are separated into
@@ -174,6 +200,7 @@ export function formatToolContent(
     csp?: UIResource['csp'];
     permissions?: UIResource['permissions'];
     toolArgs?: Record<string, unknown>;
+    enableApps?: boolean;
   },
 ): t.FormattedContentResult {
   if (!RECOGNIZED_PROVIDERS.has(provider)) {
@@ -216,12 +243,10 @@ export function formatToolContent(
     },
 
     resource: (item) => {
-      // MCP Apps defines a single renderable resource type, text/html;profile=mcp-app, and the
-      // host renders HTML only. ui:// resources with other mime types (json, remote-dom) have no
-      // renderer, so they fall through to plain resource text instead of an unrenderable marker.
-      const mimeType =
-        typeof item.resource.mimeType === 'string' ? item.resource.mimeType : 'text/html';
-      const isUiResource = item.resource.uri.startsWith('ui://') && mimeType.includes('html');
+      // ui:// resources that are not renderable apps (other mime types) or that arrive for a
+      // scope with apps disabled fall through to plain resource text rather than an unrenderable
+      // or admin-suppressed app marker.
+      const isUiResource = metadata?.enableApps !== false && isRenderableUiResource(item);
       const resourceText: string[] = [];
 
       if (isUiResource) {