diff --git a/modules/docker/codezero/vendor/.env b/modules/docker/codezero/vendor/.env
index 550cc2a..e93bfa4 100644
--- a/modules/docker/codezero/vendor/.env
+++ b/modules/docker/codezero/vendor/.env
@@ -70,6 +70,18 @@ VELORUM_JWT_SECRET=088cfc7a7fc2b07696d8ee5e1ea9d642
 # token cost multiplier for this model
 # VELORUM_MODEL_GPT5_TOKEN_COST=1
 
+# OpenTelemetry
+OPENTELEMETRY_ENABLED=false
+OPENTELEMETRY_GRPC_HOST=http://localhost:4317
+OPENTELEMETRY_LOGS_HTTP_ENDPOINT=http://localhost:4318/v1/logs
+OPENTELEMETRY_METRICS_HTTP_ENDPOINT=http://localhost:4318/v1/metrics
+OPENTELEMETRY_TRACES_HTTP_ENDPOINT=http://localhost:4318/v1/traces
+
+# OPENTELEMETRY_SERVICE_NAME_SAGITTARIUS_WEB=sagittarius-web
+# OPENTELEMETRY_SERVICE_NAME_SAGITTARIUS_CABLE=sagittarius-cable
+# OPENTELEMETRY_SERVICE_NAME_SAGITTARIUS_GRPC=sagittarius-grpc
+# OPENTELEMETRY_SERVICE_NAME_SAGITTARIUS_BACKGROUND=sagittarius-background
+
 # Internal config options
 SAGITTARIUS_RAILS_HOST=sagittarius-rails-web
 SAGITTARIUS_RAILS_PORT=3000
diff --git a/modules/docker/codezero/vendor/docker-compose.yml b/modules/docker/codezero/vendor/docker-compose.yml
index 34f6349..2a0c9ea 100644
--- a/modules/docker/codezero/vendor/docker-compose.yml
+++ b/modules/docker/codezero/vendor/docker-compose.yml
@@ -40,13 +40,9 @@ services:
       INITIAL_ROOT_PASSWORD: ${INITIAL_ROOT_PASSWORD}
       INITIAL_ROOT_MAIL: ${INITIAL_ROOT_MAIL}
       INITIAL_RUNTIME_TOKEN: ${INITIAL_RUNTIME_TOKEN}
+      SAGITTARIUS_CONFIG_FILES: /tmp/generated-configs/sagittarius.sagittarius.yml,/tmp/generated-configs/sagittarius.sagittarius-web.yml
     volumes:
       - generated-configs:/tmp/generated-configs:ro
-    entrypoint: |
-      sh -c "
-        cp /tmp/generated-configs/sagittarius.sagittarius.yml config/sagittarius.yml
-        exec bin/docker-entrypoint ./bin/rails server
-      "
     restart: unless-stopped
     healthcheck:
       test: ["CMD-SHELL", "curl --fail http://localhost:3000/health/liveness"]
@@ -63,11 +59,12 @@ services:
         condition: service_healthy
     volumes:
       - generated-configs:/tmp/generated-configs:ro
-    entrypoint: |
-      sh -c "
-        cp /tmp/generated-configs/sagittarius.sagittarius.yml config/sagittarius.yml
-        exec bin/docker-entrypoint bundle exec good_job
-      "
+    environment:
+      SAGITTARIUS_CONFIG_FILES: /tmp/generated-configs/sagittarius.sagittarius.yml,/tmp/generated-configs/sagittarius.sagittarius-background.yml
+    command:
+      - bundle
+      - exec
+      - good_job
     restart: unless-stopped
     profiles:
       - ide
@@ -79,11 +76,10 @@ services:
         condition: service_healthy
     volumes:
       - generated-configs:/tmp/generated-configs:ro
-    entrypoint: |
-      sh -c "
-        cp /tmp/generated-configs/sagittarius.sagittarius.yml config/sagittarius.yml
-        exec bin/docker-entrypoint ./bin/grpc_server
-      "
+    environment:
+      SAGITTARIUS_CONFIG_FILES: /tmp/generated-configs/sagittarius.sagittarius.yml,/tmp/generated-configs/sagittarius.sagittarius-grpc.yml
+    command:
+      - bin/grpc_server
     restart: unless-stopped
     profiles:
       - ide
@@ -95,11 +91,13 @@ services:
         condition: service_healthy
     volumes:
       - generated-configs:/tmp/generated-configs:ro
-    entrypoint: |
-      sh -c "
-        cp /tmp/generated-configs/sagittarius.sagittarius.yml config/sagittarius.yml
-        exec bin/docker-entrypoint bundle exec puma config.cable.ru
-      "
+    environment:
+      SAGITTARIUS_CONFIG_FILES: /tmp/generated-configs/sagittarius.sagittarius.yml,/tmp/generated-configs/sagittarius.sagittarius-cable.yml
+    command:
+      - bundle
+      - exec
+      - puma
+      - config.cable.ru
     restart: unless-stopped
     profiles:
       - ide
@@ -130,7 +128,7 @@ services:
       - ide_velorum
 
   nginx:
-    image: nginx:1.31.1-alpine-slim
+    image: nginx:1.31.1-alpine-otel
     depends_on:
       config-generator:
         condition: service_completed_successfully
@@ -148,6 +146,10 @@ services:
     entrypoint: |
       sh -c "
         cp /tmp/generated-configs/nginx.default.conf /etc/nginx/conf.d/default.conf
+        if [ -s /tmp/generated-configs/nginx.otel.conf ]; then
+          sed -i '1i load_module modules/ngx_otel_module.so;' /etc/nginx/nginx.conf
+          cp /tmp/generated-configs/nginx.otel.conf /etc/nginx/conf.d/otel.conf
+        fi
         nginx -t
         exec nginx -g 'daemon off;'
       "
diff --git a/vendir.lock.yml b/vendir.lock.yml
index 531fe5c..f5f612a 100644
--- a/vendir.lock.yml
+++ b/vendir.lock.yml
@@ -2,8 +2,8 @@ apiVersion: vendir.k14s.io/v1alpha1
 directories:
 - contents:
   - git:
-      commitTitle: 'fix: correct file path for aquila config'
-      sha: 31806fcb5b983282045c3ff32e9b2c1d732b90cd
+      commitTitle: 'Merge pull request #963 from code0-tech/pyxis/update/aquila...'
+      sha: f460d440939b0524a9e4803a257452fb436b5df9
     path: .
   path: modules/docker/codezero/vendor
 kind: LockConfig