diff --git a/.nextchanges/bundles/dms-ignore-local-state.md b/.nextchanges/bundles/dms-ignore-local-state.md
new file mode 100644
index 00000000000..e982f010b35
--- /dev/null
+++ b/.nextchanges/bundles/dms-ignore-local-state.md
@@ -0,0 +1 @@
+* Fix stale local state preventing bundles from switching deployment history on or off after destroy. ([#6686](https://github.com/databricks/cli/pull/6686))
diff --git a/acceptance/bin/print_state.py b/acceptance/bin/print_state.py
index 7eb9ea89c79..bd8124cf8e9 100755
--- a/acceptance/bin/print_state.py
+++ b/acceptance/bin/print_state.py
@@ -85,7 +85,8 @@ def get_remote_state_path(target):
     load would need whatever --var and flags the test deployed with, which a helper cannot know.
     A bundle with no files to sync writes no snapshot, so fall back to asking the CLI - those
     bundles are the ones with nothing to parameterize."""
-    target_dir = os.path.dirname(get_state_file(target, False))
+    # DMS has no local state file; its sync snapshots still live beside the direct-engine path.
+    target_dir = os.path.dirname(get_state_files(target, False)[-1])
     snapshots = glob.glob(f"{target_dir}/sync-snapshots/*.json")
     if snapshots:
         # One snapshot per remote path, so a test that moved its root leaves several: the newest
@@ -173,13 +174,12 @@ def get_last_version_id(target):
     return (deployment or {}).get("last_version_id")
 
 
-def print_recorded_state(filename, target):
+def print_recorded_state(data, target):
     """Print the state file with its resources filled in from the deployment metadata service.
 
     While recording, the file itself carries only the header - the service holds the resources - so
     printing it raw would show an empty state and differ from the same test's non-recording run.
     """
-    data = json.loads(open(filename).read())
     # Recording stamps each resource payload with the deployment and version; drop it here so the
     # printed state matches a non-recording run without every caller piping through nostamp.
     data["state"] = scrub(get_recorded_state(target))
@@ -217,16 +217,24 @@ def main():
     )
     args = parser.parse_args()
 
+    recording = os.environ.get("DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY") == "true"
+    terraform = os.environ.get("DATABRICKS_BUNDLE_ENGINE") == "terraform"
+    if recording and not terraform and not args.backup:
+        state_path = get_remote_state_path(args.target)
+        data = run_json(
+            [CLI, "workspace", "export", f"{state_path}/resources.json", "--format", "RAW"], allow_failure=True
+        )
+        if data is not None:
+            if args.no_dms:
+                print(json.dumps(data, indent=1))
+            else:
+                print_recorded_state(data, args.target)
+        return
+
     for filename in get_state_files(args.target, args.backup):
         if not os.path.exists(filename):
             continue
-        # Recording only applies to the direct engine, so a terraform run prints the file as-is.
-        recording = os.environ.get("DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY") == "true"
-        terraform = os.environ.get("DATABRICKS_BUNDLE_ENGINE") == "terraform"
-        if recording and not terraform and not args.no_dms:
-            print_recorded_state(filename, args.target)
-        else:
-            print_file(filename)
+        print_file(filename)
 
 
 if __name__ == "__main__":
diff --git a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/out.test.toml b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/out.test.toml
index 59b56a2037c..27ec2a7fcd6 100644
--- a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/out.test.toml
+++ b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/output.txt b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/output.txt
index 74c75a901b8..47afc7cc9d3 100644
--- a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/output.txt
+++ b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/output.txt
@@ -48,3 +48,27 @@ Available state files:
 - resources.json: remote direct state serial=[SERIAL] lineage="[LINEAGE_B]"
 - [TEST_TMP_DIR]/.databricks/bundle/default/resources.json: local direct state serial=[SERIAL] lineage="[LINEAGE_A]"
 
+
+=== Deployment history can start over despite a stale local marker
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/lineage-mismatch-after-redeploy/default/files...
+Created jobs.test_job
+Files: 4 uploaded, 0 deleted
+Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
+
+>>> [CLI] bundle destroy --auto-approve
+The following resources will be deleted:
+  delete resources.jobs.test_job
+
+All files and directories at the following location will be deleted: /Workspace/Users/[USERNAME]/.bundle/lineage-mismatch-after-redeploy/default
+
+Destroy: 1 deleted
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/lineage-mismatch-after-redeploy/default/files...
+Created jobs.test_job
+Files: 4 uploaded, 0 deleted
+Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
+
+>>> [CLI] bundle plan
+Plan: 0 to add, 0 to change, 0 to delete, 1 unchanged
diff --git a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/script b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/script
index fb89d480852..967b73e252f 100644
--- a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/script
+++ b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/script
@@ -34,3 +34,16 @@ title "Machine A: any command that pulls remote state now fails\n"
 trace musterr $CLI bundle plan
 trace musterr $CLI bundle deploy
 trace musterr $CLI bundle destroy --auto-approve
+
+title "Deployment history can start over despite a stale local marker"
+rm -rf .databricks
+$CLI bundle destroy --auto-approve > /dev/null 2>&1
+export DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true
+trace $CLI bundle deploy
+stale_marker=$(print_state.py --no-dms)
+trace $CLI bundle destroy --auto-approve
+mkdir -p .databricks/bundle/default
+printf '%s' "$stale_marker" > .databricks/bundle/default/resources.json
+trace $CLI bundle deploy
+trace $CLI bundle plan
+test "$(cat .databricks/bundle/default/resources.json)" = "$stale_marker"
diff --git a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/test.toml b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/test.toml
index a075bb4eefc..4f346733a02 100644
--- a/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/test.toml
+++ b/acceptance/bundle/destroy/lineage-mismatch-after-redeploy/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 # Lineage is a direct-engine concept (a UUID minted per deployment history),
 # so this scenario only applies to the direct engine.
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
diff --git a/acceptance/bundle/dms/existing-state/corrupt.json b/acceptance/bundle/dms/existing-state/corrupt.json
new file mode 100644
index 00000000000..d1464176500
--- /dev/null
+++ b/acceptance/bundle/dms/existing-state/corrupt.json
@@ -0,0 +1 @@
+not valid JSON
diff --git a/acceptance/bundle/dms/existing-state/output.txt b/acceptance/bundle/dms/existing-state/output.txt
index a8d2f79a989..9b64a40f097 100644
--- a/acceptance/bundle/dms/existing-state/output.txt
+++ b/acceptance/bundle/dms/existing-state/output.txt
@@ -3,7 +3,7 @@
 >>> [CLI] bundle deploy
 Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default/files...
 Created jobs.one
-Files: 4 uploaded, 0 deleted
+Files: 6 uploaded, 0 deleted
 Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
 
 >>> [CLI] bundle plan -o json
@@ -47,9 +47,14 @@ To record this bundle's history, start it over as a new deployment:
   3. add experimental.deployment_history back and deploy again
 
 
-=== A leftover local WAL is refused: a recorded deployment writes none, so one can only have come from a deploy that did not record
+=== A leftover local WAL does not override the remote deployment's non-recording state
 >>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle deploy
-Error: unexpected WAL file found at [TEST_TMP_DIR]/.databricks/bundle/default/resources.json.wal: this deployment records deployment history, which does not write one
+Error: this deployment already exists and is not recorded with the deployment history feature enabled, so it cannot be recorded without redeploying its resources
+
+To record this bundle's history, start it over as a new deployment:
+  1. remove experimental.deployment_history from your bundle configuration
+  2. run "databricks bundle destroy" to delete the existing resources
+  3. add experimental.deployment_history back and deploy again
 
 
 === Destroy clears the deployment. With nothing recorded remotely the bundle is treated as new, so recording can be enabled once the stale WAL is gone
@@ -61,10 +66,11 @@ All files and directories at the following location will be deleted: /Workspace/
 
 Destroy: 1 deleted
 
+=== Enable recording after destroy even if old local state and WAL survived cleanup
 >>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle deploy
 Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default/files...
 Created jobs.one
-Files: 4 uploaded, 0 deleted
+Files: 6 uploaded, 0 deleted
 Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
 
 >>> print_requests.py --dms //api/2.0/bundle --oneline
@@ -73,12 +79,66 @@ Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
 {"method": "PATCH", "path": "/api/2.0/bundle/deployments/[NUMID]/versions/1/operations/jobs.one", "q": {"update_mask": "state,error_message,resource_id,status"}, "body": {"error_message": "", "resource_id": "[NUMID]", "sequence_id": "0", "state": "{\"state\":{\"deployment\":{\"deployment_id\":\"[NUMID]\",\"kind\":\"BUNDLE\",\"metadata_file_path\":\"/Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default/state/metadata.json\",\"version_id\":\"1\"},\"edit_mode\":\"UI_LOCKED\",\"format\":\"MULTI_TASK\",\"max_concurrent_runs\":1,\"name\":\"one\",\"queue\":{\"enabled\":true}}}", "status": "OPERATION_STATUS_SUCCEEDED"}}
 {"method": "POST", "path": "/api/2.0/bundle/deployments/[NUMID]/versions/1/complete", "body": {"completion_reason": "VERSION_COMPLETE_SUCCESS"}}
 
->>> find.py resources[.]json[.]wal --expect 0
+>>> cmp stale.wal .databricks/bundle/default/resources.json.wal
+
+=== Read-only commands ignore corrupt local state and WAL and use DMS
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+Plan: 0 to add, 0 to change, 0 to delete, 1 unchanged
+
+>>> cmp corrupt.json .databricks/bundle/default/resources.json
+
+=== DMS deploys do not recreate local resources.json, but keep the remote marker
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default/files...
+Files: 0 uploaded, 0 deleted
+Resources: 0 created, 0 changed, 0 deleted, 1 unchanged
+
+>>> find.py resources[.]json([.]wal)?$ --expect 0
+
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true print_state.py --no-dms
+{
+ "state_version": 2,
+ "cli_version": "[CLI_VERSION]",
+ "lineage": "[UUID]",
+ "features": {
+  "deployment_history": {}
+ },
+ "state": {}
+}
+
+=== Disabling history while deployed is refused without creating a local marker
+>>> [CLI] bundle deploy
+Error: unsetting experimental.deployment_history is not supported
+
+This deployment's resources are recorded with the deployment history feature enabled. Set experimental.deployment_history: true to deploy or destroy this bundle
+
+
+>>> find.py resources[.]json([.]wal)?$ --expect 0
+
+=== Switch back to direct after destroy even if an older CLI cached the DMS marker
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle destroy --auto-approve
+The following resources will be deleted:
+  delete resources.jobs.one
+
+All files and directories at the following location will be deleted: /Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default
+
+Destroy: 1 deleted
+
+>>> [CLI] bundle plan
+create jobs.one
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
+
+>>> find.py resources[.]json([.]wal)?$ --expect 0
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/dms-existing-state-[UNIQUE_NAME]/default/files...
+Created jobs.one
+Files: 6 uploaded, 0 deleted
+Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
 
 >>> jq {state_version, features} .databricks/bundle/default/resources.json
 {
   "state_version": 2,
-  "features": {
-    "deployment_history": {}
-  }
+  "features": null
 }
diff --git a/acceptance/bundle/dms/existing-state/script b/acceptance/bundle/dms/existing-state/script
index aca3e87b5bc..59a0c5f3d70 100644
--- a/acceptance/bundle/dms/existing-state/script
+++ b/acceptance/bundle/dms/existing-state/script
@@ -5,6 +5,7 @@ trace $CLI bundle deploy
 dms_plan
 trace print_requests.py --dms //api/2.0/bundle --oneline
 trace jq '{state_version, features}' .databricks/bundle/default/resources.json
+direct_state=$(cat .databricks/bundle/default/resources.json)
 
 title "Enabling recording is refused: this deployment already exists but the service has no record of it, and treating the service as authoritative would create its resources a second time"
 musterr trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle deploy
@@ -14,9 +15,9 @@ title "The check is against the remote state, not the local cache: wiping .datab
 rm -rf .databricks
 musterr trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle deploy
 
-title "A leftover local WAL is refused: a recorded deployment writes none, so one can only have come from a deploy that did not record"
+title "A leftover local WAL does not override the remote deployment's non-recording state"
 mkdir -p .databricks/bundle/default
-printf '{"lineage":"stale","serial":99,"state_version":2,"features":{"deployment_history":{}}}\n' > .databricks/bundle/default/resources.json.wal
+cp stale.wal .databricks/bundle/default/resources.json.wal
 musterr trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle deploy
 
 title "Destroy clears the deployment. With nothing recorded remotely the bundle is treated as new, so recording can be enabled once the stale WAL is gone"
@@ -24,9 +25,40 @@ title "Destroy clears the deployment. With nothing recorded remotely the bundle
 # would otherwise try to replay it and fail on the lineage mismatch.
 rm -f .databricks/bundle/default/resources.json.wal
 trace $CLI bundle destroy --auto-approve
+
+title "Enable recording after destroy even if old local state and WAL survived cleanup"
+mkdir -p .databricks/bundle/default
+printf '%s' "$direct_state" > .databricks/bundle/default/resources.json
+cp stale.wal .databricks/bundle/default/resources.json.wal
 trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle deploy
 trace print_requests.py --dms //api/2.0/bundle --oneline
-trace find.py 'resources[.]json[.]wal' --expect 0
+test "$(cat .databricks/bundle/default/resources.json)" = "$direct_state"
+trace cmp stale.wal .databricks/bundle/default/resources.json.wal
+
+title "Read-only commands ignore corrupt local state and WAL and use DMS"
+cp corrupt.json .databricks/bundle/default/resources.json
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan | contains.py '1 unchanged'
+trace cmp corrupt.json .databricks/bundle/default/resources.json
+
+title "DMS deploys do not recreate local resources.json, but keep the remote marker"
+rm .databricks/bundle/default/resources.json .databricks/bundle/default/resources.json.wal
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle deploy
+trace find.py 'resources[.]json([.]wal)?$' --expect 0
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true print_state.py --no-dms
+
+title "Disabling history while deployed is refused without creating a local marker"
+musterr trace $CLI bundle deploy
+trace find.py 'resources[.]json([.]wal)?$' --expect 0
+
+title "Switch back to direct after destroy even if an older CLI cached the DMS marker"
+legacy_marker=$(DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true print_state.py --no-dms)
+printf '%s' "$legacy_marker" > .databricks/bundle/default/resources.json
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle destroy --auto-approve
+test "$(cat .databricks/bundle/default/resources.json)" = "$legacy_marker"
+trace $CLI bundle plan
+trace find.py 'resources[.]json([.]wal)?$' --expect 0
+printf '%s' "$legacy_marker" > .databricks/bundle/default/resources.json
+trace $CLI bundle deploy
 trace jq '{state_version, features}' .databricks/bundle/default/resources.json
 
 # The recorded requests are asserted above via print_requests.py; drop whatever the run added after
diff --git a/acceptance/bundle/dms/existing-state/stale.wal b/acceptance/bundle/dms/existing-state/stale.wal
new file mode 100644
index 00000000000..df55d0bc321
--- /dev/null
+++ b/acceptance/bundle/dms/existing-state/stale.wal
@@ -0,0 +1 @@
+{"lineage":"stale","serial":99,"state_version":2,"features":{"deployment_history":{}}}
diff --git a/acceptance/bundle/dms/generate-resource-cache/dashboard.lvdash.json b/acceptance/bundle/dms/generate-resource-cache/dashboard.lvdash.json
new file mode 100644
index 00000000000..0967ef424bc
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/dashboard.lvdash.json
@@ -0,0 +1 @@
+{}
diff --git a/acceptance/bundle/dms/generate-resource-cache/databricks.yml b/acceptance/bundle/dms/generate-resource-cache/databricks.yml
new file mode 100644
index 00000000000..f5bc80e3fc1
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/databricks.yml
@@ -0,0 +1,14 @@
+bundle:
+  name: dms-generate-resource-cache
+
+resources:
+  dashboards:
+    dashboard:
+      display_name: current dashboard
+      warehouse_id: my-warehouse-1234
+      file_path: ./dashboard.lvdash.json
+  genie_spaces:
+    space:
+      title: current genie space
+      warehouse_id: my-warehouse-1234
+      file_path: ./space.geniespace.json
diff --git a/acceptance/bundle/dms/generate-resource-cache/out.test.toml b/acceptance/bundle/dms/generate-resource-cache/out.test.toml
new file mode 100644
index 00000000000..9921e91a794
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/out.test.toml
@@ -0,0 +1,3 @@
+Cloud = false
+EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
+EnvMatrix.DMS = ["true"]
diff --git a/acceptance/bundle/dms/generate-resource-cache/out/config/current_dashboard.dashboard.yml b/acceptance/bundle/dms/generate-resource-cache/out/config/current_dashboard.dashboard.yml
new file mode 100644
index 00000000000..8f798dcefe2
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/out/config/current_dashboard.dashboard.yml
@@ -0,0 +1,6 @@
+resources:
+  dashboards:
+    current_dashboard:
+      display_name: "current dashboard"
+      warehouse_id: my-warehouse-1234
+      file_path: ../dashboard/current_dashboard.lvdash.json
diff --git a/acceptance/bundle/dms/generate-resource-cache/out/config/current_genie.genie_space.yml b/acceptance/bundle/dms/generate-resource-cache/out/config/current_genie.genie_space.yml
new file mode 100644
index 00000000000..017dd5675f8
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/out/config/current_genie.genie_space.yml
@@ -0,0 +1,7 @@
+resources:
+  genie_spaces:
+    current_genie:
+      title: "current genie space"
+      warehouse_id: my-warehouse-1234
+      file_path: ../genie/current_genie.geniespace.json
+      parent_path: /Workspace/Users/[USERNAME]/.bundle/dms-generate-resource-cache/default/resources
diff --git a/acceptance/bundle/dms/generate-resource-cache/out/dashboard/current_dashboard.lvdash.json b/acceptance/bundle/dms/generate-resource-cache/out/dashboard/current_dashboard.lvdash.json
new file mode 100644
index 00000000000..0967ef424bc
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/out/dashboard/current_dashboard.lvdash.json
@@ -0,0 +1 @@
+{}
diff --git a/acceptance/bundle/dms/generate-resource-cache/out/genie/current_genie.geniespace.json b/acceptance/bundle/dms/generate-resource-cache/out/genie/current_genie.geniespace.json
new file mode 100644
index 00000000000..0967ef424bc
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/out/genie/current_genie.geniespace.json
@@ -0,0 +1 @@
+{}
diff --git a/acceptance/bundle/dms/generate-resource-cache/output.txt b/acceptance/bundle/dms/generate-resource-cache/output.txt
new file mode 100644
index 00000000000..6cfc7470038
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/output.txt
@@ -0,0 +1,53 @@
+
+=== Deploy the current resources with DMS
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/dms-generate-resource-cache/default/files...
+Created dashboards.dashboard
+Created genie_spaces.space
+Files: 6 uploaded, 0 deleted
+Resources: 2 created, 0 changed, 0 deleted, 0 unchanged
+
+=== Dashboard generation must not fetch the stale local ID or overwrite its asset
+>>> [CLI] bundle generate dashboard --resource dashboard --force
+Error: generating a dashboard with --resource is not supported when deployment history is enabled; use --existing-id instead
+
+
+>>> print_requests.py --get //api/2.0/lakeview/dashboards
+
+>>> cmp LOG.dashboard-before dashboard.lvdash.json
+
+=== Genie generation must not fetch the stale local ID or overwrite its asset
+>>> [CLI] bundle generate genie-space --resource space --force
+Error: generating a Genie space with --resource is not supported when deployment history is enabled; use --existing-id instead
+
+
+>>> print_requests.py --get //api/2.0/genie/spaces
+
+>>> cmp LOG.genie-before space.geniespace.json
+
+>>> cmp stale-resources.json .databricks/bundle/default/resources.json
+
+=== Generation by explicit ID remains available
+>>> [CLI] bundle generate dashboard --existing-id [DASHBOARD_ID] --key current_dashboard --resource-dir out/config --dashboard-dir out/dashboard
+Writing dashboard to out/dashboard/current_dashboard.lvdash.json
+Writing configuration to out/config/current_dashboard.dashboard.yml
+Warning: Generated configuration is not included in the bundle
+
+The file out/config/current_dashboard.dashboard.yml is not matched by any pattern in the 'include' section of databricks.yml,
+so it will not be deployed. Add a matching entry to the 'include' section, for example:
+
+include:
+  - out/config/*.yml
+
+
+>>> [CLI] bundle generate genie-space --existing-id [GENIE_SPACE_ID] --key current_genie --resource-dir out/config --genie-space-dir out/genie
+Writing genie space to out/genie/current_genie.geniespace.json
+Writing configuration to out/config/current_genie.genie_space.yml
+Warning: Generated configuration is not included in the bundle
+
+The file out/config/current_genie.genie_space.yml is not matched by any pattern in the 'include' section of databricks.yml,
+so it will not be deployed. Add a matching entry to the 'include' section, for example:
+
+include:
+  - out/config/*.yml
+
diff --git a/acceptance/bundle/dms/generate-resource-cache/script b/acceptance/bundle/dms/generate-resource-cache/script
new file mode 100644
index 00000000000..a915f1b6304
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/script
@@ -0,0 +1,28 @@
+title "Deploy the current resources with DMS"
+trace $CLI bundle deploy
+cp dashboard.lvdash.json LOG.dashboard-before
+cp space.geniespace.json LOG.genie-before
+cp stale-resources.json .databricks/bundle/default/resources.json
+rm -f "$OUT_REQUESTS"
+
+title "Dashboard generation must not fetch the stale local ID or overwrite its asset"
+musterr trace $CLI bundle generate dashboard --resource dashboard --force
+touch "$OUT_REQUESTS"
+trace print_requests.py --get //api/2.0/lakeview/dashboards
+trace cmp LOG.dashboard-before dashboard.lvdash.json
+
+title "Genie generation must not fetch the stale local ID or overwrite its asset"
+musterr trace $CLI bundle generate genie-space --resource space --force
+touch "$OUT_REQUESTS"
+trace print_requests.py --get //api/2.0/genie/spaces
+trace cmp LOG.genie-before space.geniespace.json
+trace cmp stale-resources.json .databricks/bundle/default/resources.json
+
+title "Generation by explicit ID remains available"
+dashboard_id=$($CLI bundle summary -o json | jq -r '.resources.dashboards.dashboard.id')
+space_id=$($CLI bundle summary -o json | jq -r '.resources.genie_spaces.space.id')
+add_repl "$dashboard_id" DASHBOARD_ID
+add_repl "$space_id" GENIE_SPACE_ID
+trace $CLI bundle generate dashboard --existing-id "$dashboard_id" --key current_dashboard --resource-dir out/config --dashboard-dir out/dashboard
+trace $CLI bundle generate genie-space --existing-id "$space_id" --key current_genie --resource-dir out/config --genie-space-dir out/genie
+rm -f "$OUT_REQUESTS"
diff --git a/acceptance/bundle/dms/generate-resource-cache/space.geniespace.json b/acceptance/bundle/dms/generate-resource-cache/space.geniespace.json
new file mode 100644
index 00000000000..0967ef424bc
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/space.geniespace.json
@@ -0,0 +1 @@
+{}
diff --git a/acceptance/bundle/dms/generate-resource-cache/stale-resources.json b/acceptance/bundle/dms/generate-resource-cache/stale-resources.json
new file mode 100644
index 00000000000..2c69d30f97f
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/stale-resources.json
@@ -0,0 +1,15 @@
+{
+  "state_version": 2,
+  "lineage": "stale-local-lineage",
+  "serial": 99,
+  "state": {
+    "resources.dashboards.dashboard": {
+      "__id__": "stale-dashboard-id",
+      "state": {}
+    },
+    "resources.genie_spaces.space": {
+      "__id__": "stale-genie-id",
+      "state": {}
+    }
+  }
+}
diff --git a/acceptance/bundle/dms/generate-resource-cache/test.toml b/acceptance/bundle/dms/generate-resource-cache/test.toml
new file mode 100644
index 00000000000..18b1a88417e
--- /dev/null
+++ b/acceptance/bundle/dms/generate-resource-cache/test.toml
@@ -0,0 +1 @@
+Cloud = false
diff --git a/acceptance/bundle/dms/stale-plan/output.txt b/acceptance/bundle/dms/stale-plan/output.txt
index 3ccb46a3e11..aade20b60f6 100644
--- a/acceptance/bundle/dms/stale-plan/output.txt
+++ b/acceptance/bundle/dms/stale-plan/output.txt
@@ -71,7 +71,7 @@ Updated jobs.foo
 Files: 2 uploaded, 0 deleted
 Resources: 0 created, 1 changed, 0 deleted, 0 unchanged
 
->>> jq {serial} .databricks/bundle/default/resources.json
+>>> print_state.py --no-dms
 {
   "serial": null
 }
diff --git a/acceptance/bundle/dms/stale-plan/script b/acceptance/bundle/dms/stale-plan/script
index bb6d0b4a598..2d45aa35758 100644
--- a/acceptance/bundle/dms/stale-plan/script
+++ b/acceptance/bundle/dms/stale-plan/script
@@ -30,7 +30,7 @@ $CLI bundle plan -o json > tmp.plan2.json
 trace jq '{serial}' tmp.plan2.json
 trace update_file.py databricks.yml "name: foo" "name: foo_renamed"
 trace $CLI bundle deploy
-trace jq '{serial}' .databricks/bundle/default/resources.json
+trace print_state.py --no-dms | jq '{serial}'
 
 title "Replaying the older plan is rejected: same deployment, outdated version"
 trace musterr $CLI bundle deploy --plan tmp.plan2.json
diff --git a/acceptance/bundle/generate/dashboard-inplace/out.test.toml b/acceptance/bundle/generate/dashboard-inplace/out.test.toml
index ae800809893..e1af1a235ad 100644
--- a/acceptance/bundle/generate/dashboard-inplace/out.test.toml
+++ b/acceptance/bundle/generate/dashboard-inplace/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = [""]
+EnvMatrix.DMS = ["", "true"]
diff --git a/acceptance/bundle/generate/dashboard-inplace/test.toml b/acceptance/bundle/generate/dashboard-inplace/test.toml
index 10eef9f96c4..d8610976ce5 100644
--- a/acceptance/bundle/generate/dashboard-inplace/test.toml
+++ b/acceptance/bundle/generate/dashboard-inplace/test.toml
@@ -1,6 +1,6 @@
-# bundle generate reading recorded state from DMS is a fast followup; until then this
-# deploy-then-generate flow can't run under recording (local state is a tombstone).
-EnvMatrix.DMS = [""]
+# DMS is a no-op for Terraform; direct DMS generation is covered by its rejection test.
+EnvMatrix.DMS = ["", "true"]
+EnvMatrixExclude.dms_needs_direct = ["DMS=true", "DATABRICKS_BUNDLE_ENGINE=direct"]
 
 [[Repls]]
 Old = "[0-9a-f]{32}"
diff --git a/acceptance/bundle/state/bad_json_local/out.test.toml b/acceptance/bundle/state/bad_json_local/out.test.toml
index e1af1a235ad..ae800809893 100644
--- a/acceptance/bundle/state/bad_json_local/out.test.toml
+++ b/acceptance/bundle/state/bad_json_local/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/bad_json_local/output.txt b/acceptance/bundle/state/bad_json_local/output.txt
index cb86fc388d4..3c15a83181c 100644
--- a/acceptance/bundle/state/bad_json_local/output.txt
+++ b/acceptance/bundle/state/bad_json_local/output.txt
@@ -6,3 +6,9 @@ Error: parsing [TEST_TMP_DIR]/.databricks/bundle/default/terraform/terraform.tfs
 >>> musterr [CLI] bundle plan
 Error: parsing [TEST_TMP_DIR]/.databricks/bundle/default/resources.json: unexpected end of JSON input
 
+
+=== Deployment history ignores corrupt local resource state
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+create schemas.foo
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
diff --git a/acceptance/bundle/state/bad_json_local/script b/acceptance/bundle/state/bad_json_local/script
index fac1d1a17d3..7654f501399 100644
--- a/acceptance/bundle/state/bad_json_local/script
+++ b/acceptance/bundle/state/bad_json_local/script
@@ -6,3 +6,6 @@ trace musterr $CLI bundle plan 2>&1 | contains.py 'Error' 'parsing' 'terraform.t
 rm .databricks/bundle/default/terraform/terraform.tfstate
 echo "{" > .databricks/bundle/default/resources.json
 trace musterr $CLI bundle plan 2>&1 | contains.py 'Error' 'parsing' 'resources.json' 'unexpected end'
+
+title "Deployment history ignores corrupt local resource state"
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan
diff --git a/acceptance/bundle/state/bad_json_local/test.toml b/acceptance/bundle/state/bad_json_local/test.toml
new file mode 100644
index 00000000000..05b476415aa
--- /dev/null
+++ b/acceptance/bundle/state/bad_json_local/test.toml
@@ -0,0 +1,2 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/engine_mismatch/out.test.toml b/acceptance/bundle/state/engine_mismatch/out.test.toml
index e1af1a235ad..ae800809893 100644
--- a/acceptance/bundle/state/engine_mismatch/out.test.toml
+++ b/acceptance/bundle/state/engine_mismatch/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/engine_mismatch/test.toml b/acceptance/bundle/state/engine_mismatch/test.toml
index 601384fdf96..aff7d28ca09 100644
--- a/acceptance/bundle/state/engine_mismatch/test.toml
+++ b/acceptance/bundle/state/engine_mismatch/test.toml
@@ -1 +1,4 @@
 Ignore = [".databricks"]
+
+# Local-only debug state inspection does not support deployment history.
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/feature_flags/out.test.toml b/acceptance/bundle/state/feature_flags/out.test.toml
index 59b56a2037c..27ec2a7fcd6 100644
--- a/acceptance/bundle/state/feature_flags/out.test.toml
+++ b/acceptance/bundle/state/feature_flags/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/feature_flags/output.txt b/acceptance/bundle/state/feature_flags/output.txt
index b6385259dd2..209ab334ab2 100644
--- a/acceptance/bundle/state/feature_flags/output.txt
+++ b/acceptance/bundle/state/feature_flags/output.txt
@@ -20,3 +20,15 @@ Resources: 1 created, 0 changed, 0 deleted, 0 unchanged
 
 >>> gron.py .databricks/bundle/default/resources.json
 json.state_version = 2;
+
+=== Deployment history checks the remote deployment rather than unsupported local features
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+Error: this deployment already exists and is not recorded with the deployment history feature enabled, so it cannot be recorded without redeploying its resources
+
+To record this bundle's history, start it over as a new deployment:
+  1. remove experimental.deployment_history from your bundle configuration
+  2. run "databricks bundle destroy" to delete the existing resources
+  3. add experimental.deployment_history back and deploy again
+
+
+>>> cmp resources.with_feature.json .databricks/bundle/default/resources.json
diff --git a/acceptance/bundle/state/feature_flags/script b/acceptance/bundle/state/feature_flags/script
index ef9570e318c..a8cf73464d3 100644
--- a/acceptance/bundle/state/feature_flags/script
+++ b/acceptance/bundle/state/feature_flags/script
@@ -9,3 +9,8 @@ cp resources.empty_features.json .databricks/bundle/default/resources.json
 trace $CLI bundle plan | contains.py "Plan:"
 trace $CLI bundle deploy
 trace gron.py .databricks/bundle/default/resources.json | grep state_version
+
+title "Deployment history checks the remote deployment rather than unsupported local features"
+cp resources.with_feature.json .databricks/bundle/default/resources.json
+musterr trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan 2>&1 | contains.py 'already exists and is not recorded'
+trace cmp resources.with_feature.json .databricks/bundle/default/resources.json
diff --git a/acceptance/bundle/state/feature_flags/test.toml b/acceptance/bundle/state/feature_flags/test.toml
index 5640bffa4dc..5ba3d2b8fea 100644
--- a/acceptance/bundle/state/feature_flags/test.toml
+++ b/acceptance/bundle/state/feature_flags/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 Ignore = [".databricks"]
 
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
diff --git a/acceptance/bundle/state/force_pull_commands/out.test.toml b/acceptance/bundle/state/force_pull_commands/out.test.toml
index e1af1a235ad..ae800809893 100644
--- a/acceptance/bundle/state/force_pull_commands/out.test.toml
+++ b/acceptance/bundle/state/force_pull_commands/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/force_pull_commands/output.txt b/acceptance/bundle/state/force_pull_commands/output.txt
index 0ef6ccf69fb..af2b07fc5a9 100644
--- a/acceptance/bundle/state/force_pull_commands/output.txt
+++ b/acceptance/bundle/state/force_pull_commands/output.txt
@@ -39,3 +39,46 @@ Opening browser at [DATABRICKS_URL]/jobs/[NUMID]?w=[NUMID]
     "path": "/Workspace/Users/[USERNAME]/.bundle/force-pull-commands/default/state/STATE_FILENAME"
   }
 }
+
+=== Deployment history always reads remote state, with or without --force-pull
+>>> [CLI] bundle summary
+{
+  "method": "GET",
+  "path": "/api/2.0/workspace/export",
+  "q": {
+    "direct_download": "true",
+    "path": "/Workspace/Users/[USERNAME]/.bundle/force-pull-commands/default/state/STATE_FILENAME"
+  }
+}
+
+>>> [CLI] bundle summary --force-pull
+{
+  "method": "GET",
+  "path": "/api/2.0/workspace/export",
+  "q": {
+    "direct_download": "true",
+    "path": "/Workspace/Users/[USERNAME]/.bundle/force-pull-commands/default/state/STATE_FILENAME"
+  }
+}
+
+>>> [CLI] bundle open foo
+Opening browser at [DATABRICKS_URL]/jobs/[NUMID]?w=[NUMID]
+{
+  "method": "GET",
+  "path": "/api/2.0/workspace/export",
+  "q": {
+    "direct_download": "true",
+    "path": "/Workspace/Users/[USERNAME]/.bundle/force-pull-commands/default/state/STATE_FILENAME"
+  }
+}
+
+>>> [CLI] bundle open foo --force-pull
+Opening browser at [DATABRICKS_URL]/jobs/[NUMID]?w=[NUMID]
+{
+  "method": "GET",
+  "path": "/api/2.0/workspace/export",
+  "q": {
+    "direct_download": "true",
+    "path": "/Workspace/Users/[USERNAME]/.bundle/force-pull-commands/default/state/STATE_FILENAME"
+  }
+}
diff --git a/acceptance/bundle/state/force_pull_commands/script b/acceptance/bundle/state/force_pull_commands/script
index fc287979037..6c0216aa680 100644
--- a/acceptance/bundle/state/force_pull_commands/script
+++ b/acceptance/bundle/state/force_pull_commands/script
@@ -27,3 +27,20 @@ title "bundle open --force-pull: remote state read\n"
 trace $CLI bundle open foo --force-pull > /dev/null
 touch "$OUT_REQUESTS"
 print_requests.py --get //workspace/export
+
+title "Deployment history always reads remote state, with or without --force-pull"
+$CLI bundle destroy --auto-approve > /dev/null 2>&1
+rm -rf .databricks
+export DATABRICKS_BUNDLE_ENGINE=direct
+export DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true
+$CLI bundle deploy > /dev/null 2>&1
+rm -f "$OUT_REQUESTS"
+
+trace $CLI bundle summary > /dev/null
+print_requests.py --get //workspace/export
+trace $CLI bundle summary --force-pull > /dev/null
+print_requests.py --get //workspace/export
+trace $CLI bundle open foo > /dev/null
+print_requests.py --get //workspace/export
+trace $CLI bundle open foo --force-pull > /dev/null
+print_requests.py --get //workspace/export
diff --git a/acceptance/bundle/state/force_pull_commands/test.toml b/acceptance/bundle/state/force_pull_commands/test.toml
index fdfa3ab33c0..1fea515ee9b 100644
--- a/acceptance/bundle/state/force_pull_commands/test.toml
+++ b/acceptance/bundle/state/force_pull_commands/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 Cloud = false
 RecordRequests = true
 
diff --git a/acceptance/bundle/state/future_version/out.test.toml b/acceptance/bundle/state/future_version/out.test.toml
index 59b56a2037c..27ec2a7fcd6 100644
--- a/acceptance/bundle/state/future_version/out.test.toml
+++ b/acceptance/bundle/state/future_version/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/future_version/output.txt b/acceptance/bundle/state/future_version/output.txt
index 0a16971f472..2b55bab4bca 100644
--- a/acceptance/bundle/state/future_version/output.txt
+++ b/acceptance/bundle/state/future_version/output.txt
@@ -1,3 +1,7 @@
 state version 999 is newer than supported version 3; upgrade the CLI
 
-Exit code: 1
+=== Deployment history ignores the local state version
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+create jobs.my_job
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
diff --git a/acceptance/bundle/state/future_version/script b/acceptance/bundle/state/future_version/script
index 85fdf969f72..480832cd869 100644
--- a/acceptance/bundle/state/future_version/script
+++ b/acceptance/bundle/state/future_version/script
@@ -1,4 +1,7 @@
 mkdir -p .databricks/bundle/default
 cp resources.future.json .databricks/bundle/default/resources.json
 
-trace $CLI bundle plan 2>&1 | grep -o 'state version.*'
+musterr trace $CLI bundle plan 2>&1 | grep -o 'state version.*'
+
+title "Deployment history ignores the local state version"
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan
diff --git a/acceptance/bundle/state/future_version/test.toml b/acceptance/bundle/state/future_version/test.toml
index 5640bffa4dc..5ba3d2b8fea 100644
--- a/acceptance/bundle/state/future_version/test.toml
+++ b/acceptance/bundle/state/future_version/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 Ignore = [".databricks"]
 
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
diff --git a/acceptance/bundle/state/lineage_different/out.test.toml b/acceptance/bundle/state/lineage_different/out.test.toml
index e1af1a235ad..ae800809893 100644
--- a/acceptance/bundle/state/lineage_different/out.test.toml
+++ b/acceptance/bundle/state/lineage_different/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/lineage_different/output.txt b/acceptance/bundle/state/lineage_different/output.txt
index bea441cf1fa..8fddfac47b4 100644
--- a/acceptance/bundle/state/lineage_different/output.txt
+++ b/acceptance/bundle/state/lineage_different/output.txt
@@ -41,3 +41,9 @@ Workspace:
 Validation OK!
 
 >>> [CLI] bundle
+
+=== Deployment history ignores the local resource lineage
+>>> DATABRICKS_BUNDLE_ENGINE=direct DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+create schemas.foo
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
diff --git a/acceptance/bundle/state/lineage_different/script b/acceptance/bundle/state/lineage_different/script
index df898290049..6f99bac473a 100644
--- a/acceptance/bundle/state/lineage_different/script
+++ b/acceptance/bundle/state/lineage_different/script
@@ -9,3 +9,7 @@ trace musterr $CLI bundle destroy --auto-approve
 # These commands don't care:
 trace $CLI bundle validate
 trace $CLI bundle > /dev/null
+
+title "Deployment history ignores the local resource lineage"
+rm .databricks/bundle/default/terraform/terraform.tfstate
+trace DATABRICKS_BUNDLE_ENGINE=direct DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan
diff --git a/acceptance/bundle/state/lineage_different/test.toml b/acceptance/bundle/state/lineage_different/test.toml
index 0f5f0266936..3774b6e54a2 100644
--- a/acceptance/bundle/state/lineage_different/test.toml
+++ b/acceptance/bundle/state/lineage_different/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 RecordRequests = false
 IncludeRequestHeaders = ["User-Agent"]
 Ignore = [".databricks"]
diff --git a/acceptance/bundle/state/newer_cli_version/out.test.toml b/acceptance/bundle/state/newer_cli_version/out.test.toml
index 59b56a2037c..27ec2a7fcd6 100644
--- a/acceptance/bundle/state/newer_cli_version/out.test.toml
+++ b/acceptance/bundle/state/newer_cli_version/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/newer_cli_version/output.txt b/acceptance/bundle/state/newer_cli_version/output.txt
index cfe256b2c2c..50a4adeac3a 100644
--- a/acceptance/bundle/state/newer_cli_version/output.txt
+++ b/acceptance/bundle/state/newer_cli_version/output.txt
@@ -13,3 +13,10 @@ Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
 create jobs.my_job
 
 Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
+
+=== Deployment history ignores the local writer version
+
+>>> DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+create jobs.my_job
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
diff --git a/acceptance/bundle/state/newer_cli_version/script b/acceptance/bundle/state/newer_cli_version/script
index 172dc126cb3..6298e59676e 100644
--- a/acceptance/bundle/state/newer_cli_version/script
+++ b/acceptance/bundle/state/newer_cli_version/script
@@ -9,3 +9,7 @@ title "State written by this CLI: no warning\n"
 version=$($CLI version | sed 's/^Databricks CLI v//')
 jq --arg v "$version" '.cli_version = $v' resources.newer.json > .databricks/bundle/default/resources.json
 trace $CLI bundle plan
+
+title "Deployment history ignores the local writer version\n"
+cp resources.newer.json .databricks/bundle/default/resources.json
+trace DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan | contains.py '!Warn:'
diff --git a/acceptance/bundle/state/newer_cli_version/test.toml b/acceptance/bundle/state/newer_cli_version/test.toml
index c1e21fbbd8b..8b8469cf210 100644
--- a/acceptance/bundle/state/newer_cli_version/test.toml
+++ b/acceptance/bundle/state/newer_cli_version/test.toml
@@ -1,3 +1,6 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 Ignore = [".databricks"]
 
 # The warning is emitted when reading the direct engine's resources.json.
diff --git a/acceptance/bundle/state/same_serial/out.test.toml b/acceptance/bundle/state/same_serial/out.test.toml
index e1af1a235ad..ae800809893 100644
--- a/acceptance/bundle/state/same_serial/out.test.toml
+++ b/acceptance/bundle/state/same_serial/out.test.toml
@@ -1,3 +1,3 @@
 Cloud = false
 EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["terraform", "direct"]
-EnvMatrix.DMS = ["", "true"]
+EnvMatrix.DMS = [""]
diff --git a/acceptance/bundle/state/same_serial/output.txt b/acceptance/bundle/state/same_serial/output.txt
index 93a58414de8..ecd10c266a2 100644
--- a/acceptance/bundle/state/same_serial/output.txt
+++ b/acceptance/bundle/state/same_serial/output.txt
@@ -7,3 +7,9 @@ Available state files:
 - [TEST_TMP_DIR]/.databricks/bundle/default/terraform/terraform.tfstate: local terraform state serial=20 lineage=""
 - [TEST_TMP_DIR]/.databricks/bundle/default/resources.json: local direct state serial=20 lineage=""
 
+
+=== Deployment history ignores the local resource serial
+>>> DATABRICKS_BUNDLE_ENGINE=direct DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true [CLI] bundle plan
+create schemas.foo
+
+Plan: 1 to add, 0 to change, 0 to delete, 0 unchanged
diff --git a/acceptance/bundle/state/same_serial/script b/acceptance/bundle/state/same_serial/script
index 66c4e3285c8..807279ded26 100644
--- a/acceptance/bundle/state/same_serial/script
+++ b/acceptance/bundle/state/same_serial/script
@@ -4,3 +4,7 @@ echo '{"version": 4, "serial": 20}' > .databricks/bundle/default/terraform/terra
 echo '{"serial": 20}' > .databricks/bundle/default/resources.json
 #trace musterr $CLI bundle plan
 trace musterr $CLI bundle deploy
+
+title "Deployment history ignores the local resource serial"
+rm .databricks/bundle/default/terraform/terraform.tfstate
+trace DATABRICKS_BUNDLE_ENGINE=direct DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY=true $CLI bundle plan
diff --git a/acceptance/bundle/state/same_serial/test.toml b/acceptance/bundle/state/same_serial/test.toml
index 601384fdf96..65dac016474 100644
--- a/acceptance/bundle/state/same_serial/test.toml
+++ b/acceptance/bundle/state/same_serial/test.toml
@@ -1 +1,4 @@
+# The script exercises both modes explicitly because local state has different semantics.
+EnvMatrix.DMS = [""]
+
 Ignore = [".databricks"]
diff --git a/bundle/direct/dstate/state.go b/bundle/direct/dstate/state.go
index f4fb00c6b9e..7b34f21c710 100644
--- a/bundle/direct/dstate/state.go
+++ b/bundle/direct/dstate/state.go
@@ -142,11 +142,17 @@ type DeploymentState struct {
 	// VersionID is the DMS counterpart of Data.Serial - same meaning, but owned by the service
 	// rather than the file, so it lives outside Data and is never written to resources.json.
 	VersionID int
+
+	// StateForUpload holds the finalized DMS marker until it is uploaded. DMS never caches it on disk.
+	StateForUpload []byte
 }
 
 // OpenDmsArgs identifies the recorded deployment Open reads from. The zero value means the
 // bundle does not record deployment history, or no deployment exists for it yet.
 type OpenDmsArgs struct {
+	// State is the remote resources.json marker; the local file belongs to non-DMS deployments.
+	State []byte
+
 	// DeploymentID is the deployment's server-minted id.
 	DeploymentID string
 
@@ -484,19 +490,13 @@ type (
 	// but disables GetResourceEntry (since writes go strictly into WAL and not in memory).
 	WithWrite bool
 
-	// If true, the deployment records history with the metadata service: Open builds a DMS
-	// client from the workspace client, reads resources from the service, and refuses a state
-	// that tracks resources without the recording marker. It forces WithRecovery off, since the
-	// service is the source of truth and a leftover WAL is discarded rather than replayed.
+	// If true, Open reads the remote marker and resources from DMS, ignoring local state and WAL.
 	WithDeploymentHistory bool
 )
 
 // Open reads the deployment state from disk, recovering the WAL when withRecovery is set.
-// When withDeploymentHistory is set it builds a DMS client from wsClient and reads resources from
-// the service instead, with dmsDeploymentID the id the service holds (empty before the first
-// recorded deploy); lineage and serial still come from the file, since that is what the write path
-// increments. Open only reads through the client - InitializeOperationBuffer installs the write path once a
-// version exists.
+// With deployment history, it reads the remote marker from dmsDeployment.State and resources and
+// version from the service instead. InitializeOperationBuffer installs the write path once a version exists.
 func (db *DeploymentState) Open(ctx context.Context, path string, withRecovery WithRecovery, withWrite WithWrite, withDeploymentHistory WithDeploymentHistory, dmsDeployment OpenDmsArgs) error {
 	db.mu.Lock()
 	defer db.mu.Unlock()
@@ -533,16 +533,19 @@ func (db *DeploymentState) unlockedOpen(ctx context.Context, path string, withRe
 	// Cleared here rather than in reset, which CompleteVersion needs it to survive: the same state
 	// is reopened (see bind.go), and a stale value would misroute a non-recording open.
 	db.recordsHistory = false
+	db.StateForUpload = nil
 
-	// The state file is the source of truth for whether this deployment records history: read it
-	// first.
-	data, err := os.ReadFile(db.Path)
-	if err != nil {
-		if errors.Is(err, fs.ErrNotExist) {
-			db.Data = NewDatabase("", 0)
-		} else {
+	// DMS uses only the remote marker, even if a previous deployment left local state behind.
+	data := dmsDeployment.State
+	if !withDeploymentHistory {
+		var err error
+		data, err = os.ReadFile(db.Path)
+		if err != nil && !errors.Is(err, fs.ErrNotExist) {
 			return err
 		}
+	}
+	if data == nil {
+		db.Data = NewDatabase("", 0)
 	} else {
 		if err := json.Unmarshal(data, &db.Data); err != nil {
 			return err
@@ -567,25 +570,21 @@ func (db *DeploymentState) unlockedOpen(ctx context.Context, path string, withRe
 	recording := bool(withDeploymentHistory)
 
 	walPath := db.Path + walSuffix
-	_, err = os.Stat(walPath)
-	switch {
-	case errors.Is(err, fs.ErrNotExist):
-		// no WAL, nothing to do
-	case err != nil:
-		return fmt.Errorf("failed to stat WAL file %s: %w", walPath, err)
-	default: // WAL exists
+	if !recording {
+		_, err := os.Stat(walPath)
 		switch {
-		case recording:
-			// A recorded deployment writes no WAL, so finding one means this state was written by a
-			// deployment that did not record history. Refuse rather than discard it: the file is the
-			// only record of that deploy's writes, and recording is refused below anyway.
-			return fmt.Errorf("unexpected WAL file found at %s: this deployment records deployment history, which does not write one", walPath)
-		case bool(withRecovery):
-			if err := db.replayWAL(ctx); err != nil {
-				return fmt.Errorf("reading state from %s: %w", path, err)
+		case errors.Is(err, fs.ErrNotExist):
+			// no WAL, nothing to do
+		case err != nil:
+			return fmt.Errorf("failed to stat WAL file %s: %w", walPath, err)
+		default: // WAL exists
+			if withRecovery {
+				if err := db.replayWAL(ctx); err != nil {
+					return fmt.Errorf("reading state from %s: %w", path, err)
+				}
+			} else {
+				return fmt.Errorf("unexpected WAL file found at %s", walPath)
 			}
-		default:
-			return fmt.Errorf("unexpected WAL file found at %s", walPath)
 		}
 	}
 
@@ -834,11 +833,8 @@ func (db *DeploymentState) Finalize(ctx context.Context) (resourcestate.Exported
 		db.walFile = nil
 		err = db.replayWAL(ctx)
 	} else if db.openedForWrite && db.isDeploymentMetadataService() {
-		// replayWAL is what normally persists the file. Without one, write the tombstone here so
-		// the header (lineage, state version, CLI version) still lands on disk - even when no
-		// operations were recorded, since the deployment and any version this run created exist
-		// either way.
-		err = db.unlockedSave()
+		// Preserve the remote marker across reset without leaving a local DMS state file.
+		db.StateForUpload, err = json.MarshalIndent(db.dataForFile(), "", " ")
 	}
 
 	// Wait until all operations are recorded in the service.
diff --git a/bundle/direct/dstate/state_test.go b/bundle/direct/dstate/state_test.go
index 24af630b069..e9f0a1fd757 100644
--- a/bundle/direct/dstate/state_test.go
+++ b/bundle/direct/dstate/state_test.go
@@ -2,11 +2,14 @@ package dstate
 
 import (
 	"encoding/json"
+	"fmt"
 	"os"
 	"path/filepath"
 	"testing"
 
 	"github.com/databricks/cli/internal/build"
+	"github.com/databricks/cli/libs/cmdctx"
+	"github.com/databricks/databricks-sdk-go"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
@@ -45,6 +48,74 @@ func TestFinalizeWithNoEntriesDoesNotWriteStateFile(t *testing.T) {
 	assert.ErrorIs(t, err, os.ErrNotExist)
 }
 
+func TestDeploymentHistoryIgnoresLocalState(t *testing.T) {
+	const remoteState = `{"state_version":2,"lineage":"remote-lineage","features":{"deployment_history":{}},"state":{}}`
+	for _, tt := range []struct {
+		name  string
+		local string
+		wal   string
+	}{
+		{name: "no local files"},
+		{name: "corrupt local files", local: "not json", wal: "not a WAL"},
+		{
+			name:  "previous direct deployment",
+			local: `{"state_version":2,"lineage":"old-lineage","serial":99,"state":{"resources.jobs.old":{"__id__":"old-job"}}}`,
+			wal:   `{"state_version":2,"lineage":"old-lineage","serial":100}`,
+		},
+	} {
+		for _, remote := range []string{"", remoteState} {
+			for _, write := range []bool{false, true} {
+				t.Run(fmt.Sprintf("%s/remote=%t/write=%t", tt.name, remote != "", write), func(t *testing.T) {
+					path := filepath.Join(t.TempDir(), "resources.json")
+					for name, content := range map[string]string{path: tt.local, path + walSuffix: tt.wal} {
+						if content != "" {
+							require.NoError(t, os.WriteFile(name, []byte(content), 0o600))
+						}
+					}
+					w := databricks.Must(databricks.NewWorkspaceClient(&databricks.Config{Host: "https://workspace.test", Token: "token"}))
+					ctx := cmdctx.SetWorkspaceClient(t.Context(), w)
+					var state []byte
+					if remote != "" {
+						state = []byte(remote)
+					}
+					var db DeploymentState
+					require.NoError(t, db.Open(ctx, path, WithRecovery(true), WithWrite(write), WithDeploymentHistory(true), OpenDmsArgs{State: state}))
+					assert.Empty(t, db.Data.State)
+					assert.Empty(t, db.GetResourceID("resources.jobs.old"))
+					if remote != "" {
+						assert.Equal(t, "remote-lineage", db.Data.Lineage)
+					}
+					const resourceKey = "resources.jobs.current"
+					if write {
+						require.NoError(t, db.SaveState(ctx, resourceKey, "123", map[string]string{"name": "current"}, nil))
+					}
+					exported, err := db.Finalize(ctx)
+					require.NoError(t, err)
+					if write {
+						assert.Equal(t, "123", exported[resourceKey].ID)
+						var uploaded Database
+						require.NoError(t, json.Unmarshal(db.StateForUpload, &uploaded))
+						assert.Contains(t, uploaded.Features, FeatureDeploymentHistory)
+						assert.NotEmpty(t, uploaded.Lineage)
+						assert.Empty(t, uploaded.State)
+					} else {
+						assert.Nil(t, db.StateForUpload)
+					}
+					for name, content := range map[string]string{path: tt.local, path + walSuffix: tt.wal} {
+						if content == "" {
+							assert.NoFileExists(t, name)
+						} else {
+							actual, err := os.ReadFile(name)
+							require.NoError(t, err)
+							assert.Equal(t, content, string(actual))
+						}
+					}
+				})
+			}
+		}
+	}
+}
+
 func TestExportStateFromDataJobRunJobID(t *testing.T) {
 	data := Database{
 		State: map[string]ResourceEntry{
diff --git a/bundle/phases/bind.go b/bundle/phases/bind.go
index 8fb5967196c..b70fee05e96 100644
--- a/bundle/phases/bind.go
+++ b/bundle/phases/bind.go
@@ -135,6 +135,11 @@ func Unbind(ctx context.Context, b *bundle.Bundle, bundleType, tfResourceType, r
 	}()
 
 	if engine.IsDirect() {
+		if b.ConfiguresDeploymentHistory(ctx) {
+			logdiag.LogError(ctx, errors.New("unbind is not supported for a bundle target that records deployment history"))
+			return
+		}
+
 		groupName, ok := terraform.TerraformToGroupName[tfResourceType]
 		if !ok {
 			groupName = tfResourceType
diff --git a/bundle/statemgmt/state_pull.go b/bundle/statemgmt/state_pull.go
index b382e82dd1c..2173a6aacaa 100644
--- a/bundle/statemgmt/state_pull.go
+++ b/bundle/statemgmt/state_pull.go
@@ -16,6 +16,7 @@ import (
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config/engine"
 	"github.com/databricks/cli/bundle/deploy"
+	"github.com/databricks/cli/bundle/direct/dstate"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/filer"
 	"github.com/databricks/cli/libs/log"
@@ -25,9 +26,12 @@ import (
 
 type AlwaysPull bool
 
+const resourcesWALSuffix = ".wal"
+
 type StateDesc struct {
-	Serial  int    `json:"serial"`
-	Lineage string `json:"lineage"`
+	Serial   int                 `json:"serial"`
+	Lineage  string              `json:"lineage"`
+	Features map[string]struct{} `json:"features,omitempty"`
 
 	// additional fields describing state:
 	SourcePath string
@@ -39,6 +43,12 @@ type StateDesc struct {
 	AllStates []*StateDesc
 }
 
+// hasDeploymentHistory reports whether the state belongs to a recorded deployment.
+func (s *StateDesc) hasDeploymentHistory() bool {
+	_, ok := s.Features[dstate.FeatureDeploymentHistory]
+	return ok
+}
+
 func (s *StateDesc) String() string {
 	source := "remote"
 	if s.IsLocal {
@@ -127,7 +137,7 @@ func PullResourcesState(ctx context.Context, b *bundle.Bundle, alwaysPull Always
 	_, localPathDirect := b.StateFilenameDirect(ctx)
 	_, localPathTerraform := b.StateFilenameTerraform(ctx)
 
-	states := readStates(ctx, b, alwaysPull)
+	states, localDMS := readStates(ctx, b, alwaysPull)
 
 	if logdiag.HasError(ctx) {
 		return ctx, nil
@@ -154,6 +164,12 @@ func PullResourcesState(ctx context.Context, b *bundle.Bundle, alwaysPull Always
 		logStatesError(ctx, err.Error(), states)
 		return ctx, winner
 	}
+	if localDMS {
+		if err := removeLocalDMSState(localPathDirect); err != nil {
+			logdiag.LogError(ctx, err)
+			return ctx, winner
+		}
+	}
 
 	if requiredEngine.Type != engine.EngineNotSet && requiredEngine.Type != winner.Engine {
 		// Direct (whether selected explicitly or by default) against a terraform
@@ -185,6 +201,10 @@ func PullResourcesState(ctx context.Context, b *bundle.Bundle, alwaysPull Always
 		// local state is fresh, nothing to do
 		return ctx, winner
 	}
+	if winner.Engine.IsDirect() && b.ConfiguresDeploymentHistory(ctx) {
+		// DMS reads the remote marker in memory; a local copy can outlive the deployment.
+		return ctx, winner
+	}
 
 	if !winner.IsLocal {
 		log.Info(ctx, "Remote state is newer than local state. Using remote resources state.")
@@ -213,24 +233,33 @@ func PullResourcesState(ctx context.Context, b *bundle.Bundle, alwaysPull Always
 	return ctx, winner
 }
 
-func readStates(ctx context.Context, b *bundle.Bundle, alwaysPull AlwaysPull) []*StateDesc {
+func readStates(ctx context.Context, b *bundle.Bundle, alwaysPull AlwaysPull) ([]*StateDesc, bool) {
 	var states []*StateDesc
 
 	remotePathDirect, localPathDirect := b.StateFilenameDirect(ctx)
 	remotePathTerraform, localPathTerraform := b.StateFilenameTerraform(ctx)
 
 	if logdiag.HasError(ctx) {
-		return nil
+		return nil, false
 	}
 
-	directLocalState := localRead(ctx, localPathDirect, engine.EngineDirect)
+	var directLocalState *StateDesc
+	recording := b.ConfiguresDeploymentHistory(ctx)
+	if !recording {
+		directLocalState = localRead(ctx, localPathDirect, engine.EngineDirect)
+	}
+	localDMS := directLocalState != nil && directLocalState.hasDeploymentHistory()
+	if localDMS {
+		// A cached DMS marker is never authoritative, including after recording is disabled.
+		directLocalState = nil
+	}
 	terraformLocalState := localRead(ctx, localPathTerraform, engine.EngineTerraform)
 
-	if (directLocalState == nil && terraformLocalState == nil) || alwaysPull {
+	if recording || localDMS || (directLocalState == nil && terraformLocalState == nil) || bool(alwaysPull) {
 		f, err := deploy.StateFiler(ctx, b)
 		if err != nil {
 			logdiag.LogError(ctx, err)
-			return nil
+			return nil, false
 		}
 
 		var wg sync.WaitGroup
@@ -245,6 +274,13 @@ func readStates(ctx context.Context, b *bundle.Bundle, alwaysPull AlwaysPull) []
 		})
 
 		wg.Wait()
+		if logdiag.HasError(ctx) {
+			return nil, false
+		}
+		if !recording && directRemoteState != nil && directRemoteState.hasDeploymentHistory() {
+			logdiag.LogError(ctx, dstate.ErrUnsettingRecording)
+			return nil, false
+		}
 
 		// find highest serial across all state files
 		// sorting is stable, so initial setting represents preference (later is preferred):
@@ -257,7 +293,23 @@ func readStates(ctx context.Context, b *bundle.Bundle, alwaysPull AlwaysPull) []
 		return a.Serial - b.Serial
 	})
 
-	return states
+	return states, localDMS
+}
+
+// removeLocalDMSState discards a legacy marker only after remote state has been checked.
+func removeLocalDMSState(localPath string) error {
+	// Removing the marker before replaying an unrelated WAL could resurrect old resource IDs.
+	_, err := os.Stat(localPath + resourcesWALSuffix)
+	if err == nil {
+		return fmt.Errorf("cannot discard local deployment-history state %s while its WAL exists; reconcile or move both local files before retrying", filepath.ToSlash(localPath))
+	}
+	if !errors.Is(err, fs.ErrNotExist) {
+		return fmt.Errorf("checking WAL for %s: %w", filepath.ToSlash(localPath), err)
+	}
+	if err := os.Remove(localPath); err != nil && !errors.Is(err, fs.ErrNotExist) {
+		return fmt.Errorf("removing obsolete deployment-history state %s: %w", filepath.ToSlash(localPath), err)
+	}
+	return nil
 }
 
 func validateStates(states []*StateDesc) error {
diff --git a/bundle/statemgmt/state_pull_test.go b/bundle/statemgmt/state_pull_test.go
new file mode 100644
index 00000000000..d59efbd9cb0
--- /dev/null
+++ b/bundle/statemgmt/state_pull_test.go
@@ -0,0 +1,123 @@
+package statemgmt_test
+
+import (
+	"io"
+	"net/http"
+	"os"
+	"path/filepath"
+	"strings"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config/engine"
+	"github.com/databricks/cli/bundle/statemgmt"
+	"github.com/databricks/cli/libs/logdiag"
+	"github.com/databricks/databricks-sdk-go"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+const (
+	legacyDMSState = `{"state_version":2,"lineage":"old-dms","features":{"deployment_history":{}},"state":{}}`
+	ordinaryState  = `{"state_version":2,"lineage":"ordinary","serial":9,"state":{}}`
+	stateWALSuffix = ".wal"
+)
+
+type statePullTransport struct {
+	state  string
+	status int
+	reads  int
+}
+
+func (s *statePullTransport) RoundTrip(r *http.Request) (*http.Response, error) {
+	status := http.StatusNotFound
+	body := `{"error_code":"RESOURCE_DOES_NOT_EXIST","message":"not found"}`
+	if strings.HasSuffix(r.URL.Query().Get("path"), "/resources.json") {
+		if s.status != 0 {
+			status = s.status
+			body = `{"error_code":"PERMISSION_DENIED","message":"remote state denied"}`
+		} else if s.state != "" {
+			status = http.StatusOK
+			body = `{"object_type":"FILE","path":"/Workspace/test/state/resources.json"}`
+			if r.URL.Path == "/api/2.0/workspace/export" {
+				body = s.state
+				s.reads++
+			}
+		}
+	}
+	return &http.Response{
+		StatusCode: status,
+		Header:     http.Header{"Content-Type": {"application/json"}},
+		Body:       io.NopCloser(strings.NewReader(body)),
+		Request:    r,
+	}, nil
+}
+
+func TestPullResourcesStateAfterDeploymentHistory(t *testing.T) {
+	for _, tt := range []struct {
+		name       string
+		local      string
+		remote     string
+		status     int
+		wal        bool
+		wantErr    string
+		wantAbsent bool
+	}{
+		{name: "destroyed deployment discards legacy cache", local: legacyDMSState, wantAbsent: true},
+		{name: "ordinary remote state replaces legacy cache", local: legacyDMSState, remote: ordinaryState},
+		{name: "live DMS deployment remains protected", local: legacyDMSState, remote: legacyDMSState, wantErr: "unsetting experimental.deployment_history"},
+		{name: "higher serial local state cannot override live DMS", local: ordinaryState, remote: legacyDMSState, wantErr: "unsetting experimental.deployment_history"},
+		{name: "remote access error preserves cache", local: legacyDMSState, status: http.StatusForbidden, wantErr: "remote state denied"},
+		{name: "invalid remote state preserves cache", local: legacyDMSState, remote: "{", wantErr: "parsing state"},
+		{name: "invalid local state preserves cache", local: `{"serial":"invalid","features":{"deployment_history":{}}}`, wantErr: "parsing"},
+		{name: "legacy marker and WAL require reconciliation", local: legacyDMSState, wal: true, wantErr: "while its WAL exists"},
+	} {
+		t.Run(tt.name, func(t *testing.T) {
+			ctx := logdiag.InitContext(t.Context())
+			logdiag.SetCollect(ctx, true)
+			b := &bundle.Bundle{BundleRootPath: t.TempDir()}
+			b.Config.Bundle.Target = "default"
+			b.Config.Workspace.StatePath = "/Workspace/test/state"
+			transport := &statePullTransport{state: tt.remote, status: tt.status}
+			w := databricks.Must(databricks.NewWorkspaceClient(&databricks.Config{
+				Host: "https://workspace.test", Token: "token", HTTPTransport: transport,
+			}))
+			b.SetWorkpaceClient(w)
+			_, localPath := b.StateFilenameDirect(ctx)
+			require.NoError(t, os.MkdirAll(filepath.Dir(localPath), 0o700))
+			require.NoError(t, os.WriteFile(localPath, []byte(tt.local), 0o600))
+			const wal = "{\"state_version\":2,\"lineage\":\"stale\",\"serial\":1}\n{\"k\":\"resources.jobs.old\",\"v\":{\"__id__\":\"stale-id\"}}\n"
+			if tt.wal {
+				require.NoError(t, os.WriteFile(localPath+stateWALSuffix, []byte(wal), 0o600))
+			}
+
+			// A high-serial ordinary cache is valid for read-only commands; deploy always pulls.
+			alwaysPull := statemgmt.AlwaysPull(tt.local == ordinaryState)
+			_, winner := statemgmt.PullResourcesState(ctx, b, alwaysPull, engine.EngineSetting{Type: engine.EngineDirect})
+			if tt.wantErr != "" {
+				assert.True(t, logdiag.HasError(ctx))
+				assert.Contains(t, logdiag.GetFirstErrorSummary(ctx), tt.wantErr)
+				local, err := os.ReadFile(localPath)
+				require.NoError(t, err)
+				assert.Equal(t, tt.local, string(local))
+			} else {
+				require.False(t, logdiag.HasError(ctx), logdiag.GetFirstErrorSummary(ctx))
+				require.NotNil(t, winner)
+				if tt.wantAbsent {
+					assert.NoFileExists(t, localPath)
+				} else {
+					assert.Positive(t, transport.reads)
+					assert.False(t, winner.IsLocal)
+					local, err := os.ReadFile(localPath)
+					require.NoError(t, err)
+					assert.Equal(t, tt.remote, string(local))
+				}
+			}
+			if tt.wal {
+				contents, err := os.ReadFile(localPath + stateWALSuffix)
+				require.NoError(t, err)
+				assert.Equal(t, wal, string(contents))
+			}
+		})
+	}
+}
diff --git a/bundle/statemgmt/state_push.go b/bundle/statemgmt/state_push.go
index c7e43d277e0..96fd7e9197b 100644
--- a/bundle/statemgmt/state_push.go
+++ b/bundle/statemgmt/state_push.go
@@ -1,8 +1,10 @@
 package statemgmt
 
 import (
+	"bytes"
 	"context"
 	"errors"
+	"io"
 	"io/fs"
 	"os"
 
@@ -14,7 +16,7 @@ import (
 	"github.com/databricks/cli/libs/logdiag"
 )
 
-// PushResourcesState uploads the local state file to the remote location.
+// PushResourcesState uploads finalized resource state to the remote location.
 func PushResourcesState(ctx context.Context, b *bundle.Bundle, engine engine.EngineType) {
 	f, err := deploy.StateFiler(ctx, b)
 	if err != nil {
@@ -30,21 +32,30 @@ func PushResourcesState(ctx context.Context, b *bundle.Bundle, engine engine.Eng
 		remotePath, localPath = b.StateFilenameTerraform(ctx)
 	}
 
-	local, err := os.Open(localPath)
-	if errors.Is(err, fs.ErrNotExist) {
-		// The state file can be absent if terraform apply is skipped because
-		// there are no changes to apply in the plan.
-		log.Debugf(ctx, "Local state file does not exist: %s", localPath)
-		return
-	}
-	if err != nil {
-		logdiag.LogError(ctx, err)
-		return
+	var state io.Reader
+	if engine.IsDirect() && b.DeploymentBundle.StateDB.IsDeploymentMetadataService() {
+		data := b.DeploymentBundle.StateDB.StateForUpload
+		if data == nil {
+			return
+		}
+		state = bytes.NewReader(data)
+	} else {
+		local, err := os.Open(localPath)
+		if errors.Is(err, fs.ErrNotExist) {
+			// The state file can be absent if terraform apply is skipped because
+			// there are no changes to apply in the plan.
+			log.Debugf(ctx, "Local state file does not exist: %s", localPath)
+			return
+		}
+		if err != nil {
+			logdiag.LogError(ctx, err)
+			return
+		}
+		defer local.Close()
+		state = local
 	}
-	defer local.Close()
 
-	// Upload state file from local cache directory to filer.
-	err = f.Write(ctx, remotePath, local, filer.CreateParentDirectories, filer.OverwriteIfExists)
+	err = f.Write(ctx, remotePath, state, filer.CreateParentDirectories, filer.OverwriteIfExists)
 	if err != nil {
 		logdiag.LogError(ctx, err)
 	}
diff --git a/cmd/bundle/generate/dashboard.go b/cmd/bundle/generate/dashboard.go
index 0c62196739f..34f658c16fa 100644
--- a/cmd/bundle/generate/dashboard.go
+++ b/cmd/bundle/generate/dashboard.go
@@ -403,6 +403,10 @@ func (d *dashboard) runForResource(ctx context.Context, b *bundle.Bundle) {
 
 	var state statemgmt.ExportedResourcesMap
 	if stateDesc.Engine.IsDirect() {
+		if b.ConfiguresDeploymentHistory(ctx) {
+			logdiag.LogError(ctx, errors.New("generating a dashboard with --resource is not supported when deployment history is enabled; use --existing-id instead"))
+			return
+		}
 		_, localPath := b.StateFilenameDirect(ctx)
 		if err := b.DeploymentBundle.StateDB.Open(ctx, localPath, dstate.WithRecovery(true), dstate.WithWrite(false), dstate.WithDeploymentHistory(false), dstate.OpenDmsArgs{}); err != nil {
 			logdiag.LogError(ctx, err)
diff --git a/cmd/bundle/generate/genie_space.go b/cmd/bundle/generate/genie_space.go
index e171df7388a..9cc324b9745 100644
--- a/cmd/bundle/generate/genie_space.go
+++ b/cmd/bundle/generate/genie_space.go
@@ -321,6 +321,10 @@ func (g *genieSpace) runForResource(ctx context.Context, b *bundle.Bundle) {
 
 	var state statemgmt.ExportedResourcesMap
 	if stateDesc.Engine.IsDirect() {
+		if b.ConfiguresDeploymentHistory(ctx) {
+			logdiag.LogError(ctx, errors.New("generating a Genie space with --resource is not supported when deployment history is enabled; use --existing-id instead"))
+			return
+		}
 		_, localPath := b.StateFilenameDirect(ctx)
 		if err := b.DeploymentBundle.StateDB.Open(ctx, localPath, dstate.WithRecovery(true), dstate.WithWrite(false), dstate.WithDeploymentHistory(false), dstate.OpenDmsArgs{}); err != nil {
 			logdiag.LogError(ctx, err)
diff --git a/cmd/bundle/utils/process.go b/cmd/bundle/utils/process.go
index 2dcd549eba2..8c4261ef6fb 100644
--- a/cmd/bundle/utils/process.go
+++ b/cmd/bundle/utils/process.go
@@ -297,7 +297,7 @@ func ProcessBundleRet(cmd *cobra.Command, opts ProcessOptions) (b *bundle.Bundle
 				if !cmdctx.HasWorkspaceClient(ctx) {
 					ctx = cmdctx.SetWorkspaceClient(ctx, b.WorkspaceClient(ctx))
 				}
-				if err := b.DeploymentBundle.StateDB.Open(ctx, localPath, dstate.WithRecovery(false), dstate.WithWrite(false), dstate.WithDeploymentHistory(true), dstate.OpenDmsArgs{DeploymentID: dmsDeploymentID, LastVersionID: lastVersionID}); err != nil {
+				if err := b.DeploymentBundle.StateDB.Open(ctx, localPath, dstate.WithRecovery(false), dstate.WithWrite(false), dstate.WithDeploymentHistory(true), dstate.OpenDmsArgs{State: stateDesc.Content, DeploymentID: dmsDeploymentID, LastVersionID: lastVersionID}); err != nil {
 					logdiag.LogError(ctx, err)
 					return b, stateDesc, root.ErrAlreadyPrinted
 				}