diff --git a/src/renderer/src/components/settings/RepositoryHostSetupsSection.test.tsx b/src/renderer/src/components/settings/RepositoryHostSetupsSection.test.tsx
index 3ee1e0baedf..8953b6a9bf1 100644
--- a/src/renderer/src/components/settings/RepositoryHostSetupsSection.test.tsx
+++ b/src/renderer/src/components/settings/RepositoryHostSetupsSection.test.tsx
@@ -4,6 +4,7 @@ import React, { act } from 'react'
 import { createRoot, type Root } from 'react-dom/client'
 import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
 import { toSshExecutionHostId } from '../../../../shared/execution-host'
+import { RUNTIME_PROTOCOL_VERSION } from '../../../../shared/protocol-version'
 import type { Project, ProjectHostSetup, Repo } from '../../../../shared/types'
 import { useAppStore } from '../../store'
 import { RepositoryHostSetupsSection } from './RepositoryHostSetupsSection'
@@ -395,6 +396,70 @@ describe('RepositoryHostSetupsSection', () => {
     })
   })
 
+  it('shows unsupported runtime hosts without enabling setup actions', async () => {
+    const createProjectHostSetup = vi.fn()
+    const setupProjectClone = vi.fn()
+    const setupProjectExistingFolder = vi.fn()
+    const localRepo = makeRepo({
+      id: 'local-repo',
+      displayName: 'Orca',
+      path: '/Users/alice/orca'
+    })
+    useAppStore.setState({
+      repos: [localRepo],
+      projects: [makeProject({ id: 'github:stablyai/orca' })],
+      projectHostSetups: [
+        makeSetup({
+          id: 'local-repo',
+          projectId: 'github:stablyai/orca',
+          repoId: 'local-repo',
+          hostId: 'local',
+          path: '/Users/alice/orca'
+        })
+      ],
+      settings: { activeRuntimeEnvironmentId: null } as never,
+      runtimeStatusByEnvironmentId: new Map([
+        [
+          'gpu',
+          {
+            checkedAt: 1,
+            appVersion: '1.7.0',
+            status: {
+              runtimeId: 'runtime-gpu',
+              rendererGraphEpoch: 1,
+              graphStatus: 'ready',
+              authoritativeWindowId: 1,
+              liveTabCount: 0,
+              liveLeafCount: 0,
+              runtimeProtocolVersion: RUNTIME_PROTOCOL_VERSION,
+              minCompatibleRuntimeClientVersion: 1,
+              capabilities: []
+            }
+          }
+        ]
+      ]),
+      createProjectHostSetup,
+      setupProjectClone,
+      setupProjectExistingFolder
+    })
+
+    renderSection(localRepo)
+
+    expect(container.textContent).toContain('Update Orca on this host to set up projects')
+    const trackButton = Array.from(container.querySelectorAll('button')).find(
+      (button) => button.textContent === 'Track setup'
+    )
+    expect(trackButton?.disabled).toBe(true)
+
+    await act(async () => {
+      trackButton?.dispatchEvent(new MouseEvent('click', { bubbles: true }))
+    })
+
+    expect(createProjectHostSetup).not.toHaveBeenCalled()
+    expect(setupProjectClone).not.toHaveBeenCalled()
+    expect(setupProjectExistingFolder).not.toHaveBeenCalled()
+  })
+
   it('offers inactive runtime hosts discovered from hydrated runtime status', async () => {
     const createProjectHostSetup = vi.fn().mockResolvedValue({
       project: makeProject({ id: 'github:stablyai/orca' }),
@@ -439,7 +504,7 @@ describe('RepositoryHostSetupsSection', () => {
               authoritativeWindowId: 1,
               liveTabCount: 0,
               liveLeafCount: 0,
-              runtimeProtocolVersion: 1,
+              runtimeProtocolVersion: RUNTIME_PROTOCOL_VERSION,
               minCompatibleRuntimeClientVersion: 1,
               capabilities: ['project-host-setup.v1']
             }
diff --git a/src/renderer/src/components/settings/RepositoryHostSetupsSection.tsx b/src/renderer/src/components/settings/RepositoryHostSetupsSection.tsx
index c2cfb6e6f0c..e7b122cf150 100644
--- a/src/renderer/src/components/settings/RepositoryHostSetupsSection.tsx
+++ b/src/renderer/src/components/settings/RepositoryHostSetupsSection.tsx
@@ -86,7 +86,12 @@ export function RepositoryHostSetupsSection({
   const [isCloning, setIsCloning] = useState(false)
   const [isCreatingPendingSetup, setIsCreatingPendingSetup] = useState(false)
   const [deletingSetupId, setDeletingSetupId] = useState<string | null>(null)
-  const setupTargetHostId = selectedSetupHostId ?? setupHostOptions[0]?.id ?? null
+  const defaultSetupHostOption =
+    setupHostOptions.find((option) => option.isAvailable) ?? setupHostOptions[0] ?? null
+  const setupTargetHostId = selectedSetupHostId ?? defaultSetupHostOption?.id ?? null
+  const setupTargetHostOption =
+    setupHostOptions.find((option) => option.id === setupTargetHostId) ?? null
+  const canUseSetupTargetHost = setupTargetHostOption?.isAvailable ?? false
 
   if (
     (projectHostSetups.length <= 1 && setupHostOptions.length === 0) ||
@@ -209,8 +214,15 @@ export function RepositoryHostSetupsSection({
               </SelectTrigger>
               <SelectContent>
                 {setupHostOptions.map((option) => (
-                  <SelectItem key={option.id} value={option.id}>
-                    {option.label}
+                  <SelectItem key={option.id} value={option.id} disabled={!option.isAvailable}>
+                    <span className="min-w-0">
+                      <span className="block truncate">{option.label}</span>
+                      {!option.isAvailable ? (
+                        <span className="block truncate text-[11px] text-muted-foreground">
+                          {option.detail}
+                        </span>
+                      ) : null}
+                    </span>
                   </SelectItem>
                 ))}
               </SelectContent>
@@ -245,9 +257,14 @@ export function RepositoryHostSetupsSection({
             <Button
               type="button"
               size="sm"
-              disabled={!setupTargetHostId || !setupPath.trim() || isSettingUp}
+              disabled={!canUseSetupTargetHost || !setupPath.trim() || isSettingUp}
               onClick={async () => {
-                if (!setupTargetHostId || !selectedProjectHostSetup || !setupPath.trim()) {
+                if (
+                  !setupTargetHostId ||
+                  !canUseSetupTargetHost ||
+                  !selectedProjectHostSetup ||
+                  !setupPath.trim()
+                ) {
                   return
                 }
                 setIsSettingUp(true)
@@ -295,11 +312,12 @@ export function RepositoryHostSetupsSection({
               type="button"
               size="sm"
               disabled={
-                !setupTargetHostId || !cloneUrl.trim() || !cloneDestination.trim() || isCloning
+                !canUseSetupTargetHost || !cloneUrl.trim() || !cloneDestination.trim() || isCloning
               }
               onClick={async () => {
                 if (
                   !setupTargetHostId ||
+                  !canUseSetupTargetHost ||
                   !selectedProjectHostSetup ||
                   !cloneUrl.trim() ||
                   !cloneDestination.trim()
@@ -334,9 +352,9 @@ export function RepositoryHostSetupsSection({
               type="button"
               variant="outline"
               size="sm"
-              disabled={!setupTargetHostId || isCreatingPendingSetup}
+              disabled={!canUseSetupTargetHost || isCreatingPendingSetup}
               onClick={async () => {
-                if (!setupTargetHostId || !selectedProjectHostSetup) {
+                if (!setupTargetHostId || !canUseSetupTargetHost || !selectedProjectHostSetup) {
                   return
                 }
                 setIsCreatingPendingSetup(true)
diff --git a/src/renderer/src/components/settings/repository-host-setup-options.ts b/src/renderer/src/components/settings/repository-host-setup-options.ts
index e8f24ce9a5f..481637f1a1b 100644
--- a/src/renderer/src/components/settings/repository-host-setup-options.ts
+++ b/src/renderer/src/components/settings/repository-host-setup-options.ts
@@ -1,11 +1,14 @@
 import { getExecutionHostLabel, type ExecutionHostId } from '../../../../shared/execution-host'
 import type { ExecutionHostRegistryEntry } from '../../../../shared/execution-host-registry'
+import { PROJECT_HOST_SETUP_RUNTIME_CAPABILITY } from '../../../../shared/protocol-version'
 import type { ProjectHostSetup, ProjectHostSetupState } from '../../../../shared/types'
 import { translate } from '@/i18n/i18n'
 
 export type SetupHostOption = {
   id: ExecutionHostId
   label: string
+  detail: string
+  isAvailable: boolean
 }
 
 export function getSetupStateLabel(setupState: ProjectHostSetupState): string {
@@ -42,8 +45,45 @@ export function buildSetupHostOptions({
   const setupHostIds = new Set(projectHostSetups.map((setup) => setup.hostId))
   return hostOptions
     .filter((host) => !setupHostIds.has(host.id))
-    .map((host) => ({
-      id: host.id,
-      label: host.label || getExecutionHostLabel(host.id)
-    }))
+    .map((host) => {
+      const availability = getHostSetupAvailability(host)
+      return {
+        id: host.id,
+        label: host.label || getExecutionHostLabel(host.id),
+        detail: availability.detail,
+        isAvailable: availability.isAvailable
+      }
+    })
+}
+
+function getHostSetupAvailability(host: ExecutionHostRegistryEntry): {
+  isAvailable: boolean
+  detail: string
+} {
+  if (host.health === 'blocked') {
+    return {
+      isAvailable: false,
+      detail: translate(
+        'auto.components.settings.RepositoryPane.hostSetupBlockedVersion',
+        'Orca server version is incompatible'
+      )
+    }
+  }
+  if (
+    host.kind === 'runtime' &&
+    host.capabilities &&
+    !host.capabilities?.includes(PROJECT_HOST_SETUP_RUNTIME_CAPABILITY)
+  ) {
+    return {
+      isAvailable: false,
+      detail: translate(
+        'auto.components.settings.RepositoryPane.hostSetupMissingCapability',
+        'Update Orca on this host to set up projects'
+      )
+    }
+  }
+  return {
+    isAvailable: true,
+    detail: host.detail
+  }
 }
diff --git a/src/renderer/src/i18n/locales/en.json b/src/renderer/src/i18n/locales/en.json
index 3f90364b821..d643233df30 100644
--- a/src/renderer/src/i18n/locales/en.json
+++ b/src/renderer/src/i18n/locales/en.json
@@ -5058,6 +5058,8 @@
           "setupPathPending": "Path pending",
           "openSetup": "Open",
           "removeSetup": "Remove",
+          "hostSetupBlockedVersion": "Orca server version is incompatible",
+          "hostSetupMissingCapability": "Update Orca on this host to set up projects",
           "setupProjectOnHost": "Set up on another host",
           "setupProjectOnHostHelp": "Choose a host, then import an existing checkout, clone the repository there, or track a setup that will be provisioned later.",
           "setupExistingFolder": "Import existing folder",
diff --git a/src/renderer/src/i18n/locales/ja.json b/src/renderer/src/i18n/locales/ja.json
index 0ddf61bde60..32b08cf7c43 100644
--- a/src/renderer/src/i18n/locales/ja.json
+++ b/src/renderer/src/i18n/locales/ja.json
@@ -5038,6 +5038,8 @@
           "setupPathPending": "パス保留中",
           "openSetup": "開く",
           "removeSetup": "削除",
+          "hostSetupBlockedVersion": "Orca サーバーのバージョンに互換性がありません",
+          "hostSetupMissingCapability": "プロジェクトをセットアップするには、このホストの Orca を更新してください",
           "setupProjectOnHost": "別のホストにセットアップ",
           "setupProjectOnHostHelp": "ホストを選択し、既存のチェックアウトをインポートするか、そこでリポジトリをクローンするか、後でプロビジョニングされるセットアップを追跡します。",
           "setupExistingFolder": "既存フォルダーをインポート",
diff --git a/src/renderer/src/i18n/locales/ko.json b/src/renderer/src/i18n/locales/ko.json
index a93bad4ed4b..6183fb1deb0 100644
--- a/src/renderer/src/i18n/locales/ko.json
+++ b/src/renderer/src/i18n/locales/ko.json
@@ -5038,6 +5038,8 @@
           "setupPathPending": "경로 대기 중",
           "openSetup": "열기",
           "removeSetup": "제거",
+          "hostSetupBlockedVersion": "Orca 서버 버전이 호환되지 않습니다",
+          "hostSetupMissingCapability": "프로젝트를 설정하려면 이 호스트의 Orca를 업데이트하세요",
           "setupProjectOnHost": "다른 호스트에 설정",
           "setupProjectOnHostHelp": "호스트를 선택한 다음 기존 체크아웃을 가져오거나, 그곳에 저장소를 클론하거나, 나중에 프로비저닝될 설정을 추적합니다.",
           "setupExistingFolder": "기존 폴더 가져오기",
diff --git a/src/renderer/src/i18n/locales/zh.json b/src/renderer/src/i18n/locales/zh.json
index edfa593abe3..e06e46e75a2 100644
--- a/src/renderer/src/i18n/locales/zh.json
+++ b/src/renderer/src/i18n/locales/zh.json
@@ -5038,6 +5038,8 @@
           "setupPathPending": "路径待定",
           "openSetup": "打开",
           "removeSetup": "移除",
+          "hostSetupBlockedVersion": "Orca 服务器版本不兼容",
+          "hostSetupMissingCapability": "请更新此主机上的 Orca 以设置项目",
           "setupProjectOnHost": "在另一台主机上设置",
           "setupProjectOnHostHelp": "选择一台主机，然后导入现有检出目录、在该主机上克隆仓库，或跟踪稍后要预配的设置。",
           "setupExistingFolder": "导入现有文件夹",
diff --git a/src/renderer/src/lib/project-host-setup-options.ts b/src/renderer/src/lib/project-host-setup-options.ts
index 6fca5840bf9..8e49071a92f 100644
--- a/src/renderer/src/lib/project-host-setup-options.ts
+++ b/src/renderer/src/lib/project-host-setup-options.ts
@@ -155,6 +155,7 @@ function getHostSetupAvailability(host: ExecutionHostRegistryEntry): {
   }
   if (
     host.kind === 'runtime' &&
+    host.capabilities &&
     !host.capabilities?.includes(PROJECT_HOST_SETUP_RUNTIME_CAPABILITY)
   ) {
     return {