diff --git a/packages/extension/src/sidebar_bridge.ts b/packages/extension/src/sidebar_bridge.ts
index e45a0067..310dcaee 100644
--- a/packages/extension/src/sidebar_bridge.ts
+++ b/packages/extension/src/sidebar_bridge.ts
@@ -52,10 +52,6 @@ export interface TreeEntry {
   type: "file" | "directory";
   path: string;
   gitStatus?: "modified" | "added" | "deleted" | "untracked" | "ignored" | "conflict";
-  /** Discriminant for the environment root row (#885). */
-  entryKind?: "environment-root";
-  /** Environment slug for coloring the environment root row (#885). */
-  environmentSlug?: string;
 }
 
 // ── File operation types ─────────────────────────────────────────────────────
diff --git a/packages/extension/src/sidebar_tree_service.ts b/packages/extension/src/sidebar_tree_service.ts
index 7cb15818..d6bca217 100644
--- a/packages/extension/src/sidebar_tree_service.ts
+++ b/packages/extension/src/sidebar_tree_service.ts
@@ -40,8 +40,6 @@ export interface TreeServiceDeps {
  */
 export class SidebarTreeService {
   private deps: TreeServiceDeps;
-  /** Map root path → resolved environment info from the last getRoots() call (#885). */
-  private rootEnvironments = new Map<string, { name: string; slug: string; path: string }>();
 
   constructor(deps: TreeServiceDeps) {
     this.deps = deps;
@@ -64,7 +62,6 @@ export class SidebarTreeService {
     const envBySlug = new Map<string, TreeRoot>();
     /** Track which slugs each research project resolves to, for boundProjectCount. */
     const projectEnvSlugs: string[] = [];
-    this.rootEnvironments.clear();
 
     // ── Pass 1: workspace folders ──────────────────────────────────────────
     for (const folder of workspaceFolders) {
@@ -119,7 +116,6 @@ export class SidebarTreeService {
                 path: env.path,
                 colorIndex: envColorIndex(env.slug),
               };
-              this.rootEnvironments.set(dir, { name: env.name, slug: env.slug, path: env.path });
               projectEnvSlugs.push(env.slug);
 
               // Auto-surface resolved environments that aren't already in the map (#895)
@@ -198,19 +194,6 @@ export class SidebarTreeService {
       path: `${dirPath}/${entry.name}`,
     }));
 
-    // If this is a project root with a bound environment, append the
-    // environment as the last child (#885)
-    const envInfo = this.rootEnvironments.get(dirPath);
-    if (envInfo) {
-      entries.push({
-        name: envInfo.name,
-        type: "directory",
-        path: envInfo.path,
-        entryKind: "environment-root",
-        environmentSlug: envInfo.slug,
-      });
-    }
-
     return entries;
   }
 }
diff --git a/packages/extension/src/sidebar_webview.ts b/packages/extension/src/sidebar_webview.ts
index 2377e8de..3df76f2e 100644
--- a/packages/extension/src/sidebar_webview.ts
+++ b/packages/extension/src/sidebar_webview.ts
@@ -31,8 +31,6 @@ interface TreeEntry {
   type: "file" | "directory";
   path: string;
   gitStatus?: string;
-  entryKind?: "environment-root";
-  environmentSlug?: string;
 }
 
 // ── Icon theme data (embedded by the host in window.__iconTheme) ─────────────
diff --git a/packages/extension/test/sidebar_env_tree.test.ts b/packages/extension/test/sidebar_env_tree.test.ts
index 8cfc7912..99aa09f7 100644
--- a/packages/extension/test/sidebar_env_tree.test.ts
+++ b/packages/extension/test/sidebar_env_tree.test.ts
@@ -1,11 +1,12 @@
-// Sidebar environment tree — TreeService getChildren appends env row + getRoots environment discovery.
-// Part of #885 (sub-issue of #880 Research Environments) and #895 (environment accordion section).
+// Sidebar environment tree — getRoots environment discovery.
+// Part of #895 (environment accordion section). The nested environment virtual
+// child (#885) has been removed — environments have their own section now.
 import { describe, it, expect } from "vitest";
 import { SidebarTreeService } from "../src/sidebar_tree_service";
 import type { RawDirEntry } from "../src/sidebar_tree_service";
 import { envColorIndex } from "../src/sidebar_bridge";
 
-describe("SidebarTreeService nested environment tree (#885)", () => {
+describe("SidebarTreeService getChildren — no virtual environment child (#895)", () => {
   function makeService(env: { name: string; slug: string; path: string } | null = {
     path: "/env/transmon-oc",
     slug: "transmon-oc",
@@ -32,43 +33,23 @@ describe("SidebarTreeService nested environment tree (#885)", () => {
     });
   }
 
-  it("appends environment as last child of a bound project root (AC-11)", async () => {
+  it("getChildren returns only filesystem entries — no virtual environment child", async () => {
     const service = makeService();
-    // Must call getRoots first to populate the environment map
     service.getRoots();
 
     const children = await service.getChildren("/proj");
-    expect(children.length).toBe(4); // 3 regular + 1 environment
-    const envEntry = children[children.length - 1];
-    expect(envEntry.entryKind).toBe("environment-root");
-    expect(envEntry.name).toBe("Transmon OC");
-    expect(envEntry.path).toBe("/env/transmon-oc");
-    expect(envEntry.environmentSlug).toBe("transmon-oc");
-    expect(envEntry.type).toBe("directory");
+    expect(children.length).toBe(3); // only the 3 real filesystem entries
+    expect(children.every((c) => !c.entryKind)).toBe(true);
   });
 
-  it("no environment → no extra child", async () => {
-    const service = makeService(null);
-    service.getRoots();
-
-    const children = await service.getChildren("/proj");
-    expect(children.length).toBe(3); // just the regular children
-    expect(children.find((c) => c.entryKind === "environment-root")).toBeUndefined();
-  });
-
-  it("environment row is always last (after sorted files)", async () => {
+  it("children are sorted dirs-first then alphabetical", async () => {
     const service = makeService();
     service.getRoots();
 
     const children = await service.getChildren("/proj");
-    // Regular entries should be sorted (dirs first, then files)
-    const regular = children.filter((c) => !c.entryKind);
-    expect(regular[0].name).toBe("data");      // dir
-    expect(regular[1].name).toBe("scripts");    // dir
-    expect(regular[2].name).toBe("README.md");  // file
-
-    // Environment is last
-    expect(children[children.length - 1].entryKind).toBe("environment-root");
+    expect(children[0].name).toBe("data");      // dir
+    expect(children[1].name).toBe("scripts");    // dir
+    expect(children[2].name).toBe("README.md");  // file
   });
 });