diff --git a/frontend/src/lib/components/workspaceSettings/SimpleCreateWorkspace.svelte b/frontend/src/lib/components/workspaceSettings/SimpleCreateWorkspace.svelte
index 68465190aa..35bbaf4903 100644
--- a/frontend/src/lib/components/workspaceSettings/SimpleCreateWorkspace.svelte
+++ b/frontend/src/lib/components/workspaceSettings/SimpleCreateWorkspace.svelte
@@ -43,30 +43,34 @@
 	/**
 	 * Whether the policy is settled, which is what this form may not submit without:
 	 * `automateUsername` starts at the common case, and posting that guess to an instance
-	 * that derives no usernames sends none where one is required. A load that fails settles
-	 * it by handing over to the full form, which asks for a username outright instead of
-	 * inferring one — so this is never true while the answer is still a guess.
+	 * that derives no usernames sends none where one is required. `loadUsernamePolicy`
+	 * always answers — "ask for one" when it cannot read the setting — so this turns true
+	 * on a known answer rather than on the attempt finishing.
 	 */
 	let policyLoaded = $state(false)
 	/** Someone typed while the prefill was in flight; their name wins over the suggestion. */
 	let nameEdited = false
 
 	async function load() {
-		try {
-			const [me, policy] = await Promise.all([UserService.globalWhoami(), loadUsernamePolicy()])
-			if (!nameEdited) name = defaultWorkspaceName(me.name, me.email)
-			automateUsername = policy.automate
-			suggestedUsername = policy.suggested
-			if (!policy.automate && !policy.suggested) advanced = true
-			policyLoaded = true
-		} catch (error) {
-			console.error('Could not prefill the workspace name:', error)
-			if (!nameEdited) name = 'My workspace'
-			// The policy is what failed, so there is nothing to submit against. The full form
-			// carries its own username field, which is the version that needs no policy.
-			advanced = true
-			policyLoaded = true
+		// Settled apart: the policy decides whether this form may submit at all, the suggested
+		// name is cosmetic, and neither failure should decide the other.
+		const [me, policy] = await Promise.allSettled([
+			UserService.globalWhoami(),
+			loadUsernamePolicy()
+		])
+		if (!nameEdited) {
+			name =
+				me.status === 'fulfilled'
+					? defaultWorkspaceName(me.value.name, me.value.email)
+					: 'My workspace'
 		}
+		// `loadUsernamePolicy` answers "ask for one" rather than rejecting when the setting
+		// cannot be read, so the fallback here is the same answer by another route.
+		const answer = policy.status === 'fulfilled' ? policy.value : { automate: false }
+		automateUsername = answer.automate
+		suggestedUsername = answer.suggested
+		if (!answer.automate && !answer.suggested) advanced = true
+		policyLoaded = true
 	}
 	void load()
 
diff --git a/frontend/src/lib/workspaceCreation.test.ts b/frontend/src/lib/workspaceCreation.test.ts
index 13d63d1fd1..a79e0d0ee5 100644
--- a/frontend/src/lib/workspaceCreation.test.ts
+++ b/frontend/src/lib/workspaceCreation.test.ts
@@ -1,13 +1,22 @@
 import { describe, expect, it, vi } from 'vitest'
 
 // The module reaches the API for the username policy and the workspace list; the name
-// helper touches neither.
-vi.mock('./gen', () => ({ SettingService: {}, UserService: {}, WorkspaceService: {} }))
+// helper touches neither. `getGlobal` is a spy so the policy's failure path can be driven.
+const getGlobal = vi.fn()
+vi.mock('./gen', () => ({
+	SettingService: {
+		get getGlobal() {
+			return getGlobal
+		}
+	},
+	UserService: {},
+	WorkspaceService: {}
+}))
 vi.mock('./stores', () => ({ usersWorkspaceStore: { set: () => {} } }))
 vi.mock('./storeUtils', () => ({ switchWorkspace: () => {} }))
 vi.mock('./cloud', () => ({ isCloudHosted: () => false }))
 
-import { defaultWorkspaceName, usernameFromName } from './workspaceCreation'
+import { defaultWorkspaceName, loadUsernamePolicy, usernameFromName } from './workspaceCreation'
 
 describe('defaultWorkspaceName', () => {
 	it('names the workspace after the person, not the address', () => {
@@ -60,3 +69,19 @@ describe('usernameFromName', () => {
 		expect(usernameFromName('a'.repeat(51))).toBeUndefined()
 	})
 })
+
+describe('loadUsernamePolicy', () => {
+	// Fail-closed matters because a caller told "automated" hides its username field and
+	// posts none: an instance that derives none refuses that, with nowhere to supply one.
+	it('asks for a username when the setting cannot be read', async () => {
+		getGlobal.mockRejectedValueOnce(new Error('502'))
+		expect(await loadUsernamePolicy()).toEqual({ automate: false })
+	})
+
+	it('automates when the setting says so, and when it is unset', async () => {
+		getGlobal.mockResolvedValueOnce(true)
+		expect(await loadUsernamePolicy()).toEqual({ automate: true })
+		getGlobal.mockResolvedValueOnce(null)
+		expect(await loadUsernamePolicy()).toEqual({ automate: true })
+	})
+})
diff --git a/frontend/src/lib/workspaceCreation.ts b/frontend/src/lib/workspaceCreation.ts
index da67afba6f..b10955135d 100644
--- a/frontend/src/lib/workspaceCreation.ts
+++ b/frontend/src/lib/workspaceCreation.ts
@@ -68,10 +68,20 @@ export function usernameFromName(name: string): string | undefined {
  * requires one when it does not, so the field only exists in the second case.
  */
 export async function loadUsernamePolicy(): Promise<UsernamePolicy> {
-	const automate =
-		((await SettingService.getGlobal({
-			key: 'automate_username_creation'
-		})) as boolean | null) ?? true
+	let automate: boolean
+	try {
+		automate =
+			((await SettingService.getGlobal({
+				key: 'automate_username_creation'
+			})) as boolean | null) ?? true
+	} catch (error) {
+		// Unreadable is not "automated". A caller told yes hides its username field and posts
+		// none, which an instance that derives none then refuses — with nowhere on screen to
+		// supply what it wanted. Answering no asks for one, which is right either way: an
+		// instance that does automate ignores a username it was sent.
+		console.error('Could not read the username policy; asking for one instead:', error)
+		return { automate: false }
+	}
 	if (automate) return { automate: true }
 	try {
 		const me = await UserService.globalWhoami()