diff --git a/.gitignore b/.gitignore
index 0b5fd7e..98d679f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -68,6 +68,11 @@ logs/
 # shipped sound assets out of the CI tag checkout.
 /data/
 /server/data/
+# Defensive: if the server is launched from server/src/ (uncommon path),
+# its relative `data/` dir resolves to server/src/data/. Templates now
+# live in SQLite, so any *.json that lands here is stale runtime export
+# and must not be committed.
+/server/src/data/
 *.db
 *.sqlite
 *.json.bak
diff --git a/TODO.md b/TODO.md
index a087383..ddd01e9 100644
--- a/TODO.md
+++ b/TODO.md
@@ -1,5 +1,19 @@
 # LedGrab TODO
 
+## Server shutdown action
+
+Let user choose what happens to LED targets on server shutdown.
+
+- [x] Backend storage: `shutdown_action` in `db.settings` (`"stop_targets"` default | `"nothing"`)
+- [x] Backend route: `GET/PUT /api/v1/system/shutdown-action` in `system_settings.py`
+- [x] Backend schema: `ShutdownActionResponse/Request` in `schemas/system.py`
+- [x] Backend wiring: lifespan shutdown in `main.py` reads action, passes `restore_devices` flag to `processor_manager.stop_all()`
+- [x] `processor_manager.stop_all(restore_devices: bool = True)` — when False, calls public `proc.cancel_task()` (defined on `TargetProcessor`) which awaits cancellation without restoring device state; skips `_restore_device_idle_state` loop. No reach into private `_task` attribute.
+- [x] Frontend: hidden `<select>` + IconSelect in `settings.html` General tab (icons via `ICON_SQUARE` / `ICON_CIRCLE` from `core/icons.ts`)
+- [x] Frontend: load/save handlers in `features/settings.ts`, wired into `openSettingsModal()`
+- [x] i18n: en / ru / zh keys for label, hint, item descriptions
+- [ ] Real-hardware test pending — verify that "nothing" actually leaves a WLED + a serial device on the last frame after `Ctrl+C`/SIGTERM.
+
 ## WebUI Redesign — "Lumenworks" Studio-Console Aesthetic
 
 Full-app UI/UX refresh. Design direction committed to by user 2026-04-24.
diff --git a/server/tests/test_preferences_api.py b/server/tests/test_preferences_api.py
index d9181c3..c0a4b7b 100644
--- a/server/tests/test_preferences_api.py
+++ b/server/tests/test_preferences_api.py
@@ -4,18 +4,25 @@ import pytest
 
 from ledgrab.config import get_config
 
-_config = get_config()
-_api_key = next(iter(_config.auth.api_keys.values()), "")
-AUTH_HEADERS = {"Authorization": f"Bearer {_api_key}"} if _api_key else {}
-
 
 @pytest.fixture(scope="module")
 def client():
+    """TestClient with auth header read at fixture-build time.
+
+    The auth API key is resolved here (not at module import) so any
+    config-singleton mutation that happens during pytest collection —
+    notably ``server/tests/e2e/conftest.py`` reassigning the global
+    config to a different test key during collection of e2e tests —
+    cannot leave us holding a stale Bearer header that yields 401.
+    """
     from fastapi.testclient import TestClient
 
     from ledgrab.main import app
 
+    api_key = next(iter(get_config().auth.api_keys.values()), "")
     with TestClient(app, raise_server_exceptions=False) as c:
+        if api_key:
+            c.headers["Authorization"] = f"Bearer {api_key}"
         yield c
 
 
@@ -61,8 +68,8 @@ def _minimal_layout() -> dict:
 def test_get_dashboard_layout_default_empty(client):
     """When no layout has been saved, GET returns an empty object."""
     # Clear first so this test is order-independent.
-    client.delete("/api/v1/preferences/dashboard-layout", headers=AUTH_HEADERS)
-    resp = client.get("/api/v1/preferences/dashboard-layout", headers=AUTH_HEADERS)
+    client.delete("/api/v1/preferences/dashboard-layout")
+    resp = client.get("/api/v1/preferences/dashboard-layout")
     assert resp.status_code == 200
     assert resp.json() == {}
 
@@ -70,15 +77,11 @@ def test_get_dashboard_layout_default_empty(client):
 def test_put_then_get_dashboard_layout(client):
     """PUT a layout, GET it back unchanged."""
     layout = _minimal_layout()
-    put = client.put(
-        "/api/v1/preferences/dashboard-layout",
-        json=layout,
-        headers=AUTH_HEADERS,
-    )
+    put = client.put("/api/v1/preferences/dashboard-layout", json=layout)
     assert put.status_code == 200
     assert put.json() == {"ok": True}
 
-    got = client.get("/api/v1/preferences/dashboard-layout", headers=AUTH_HEADERS)
+    got = client.get("/api/v1/preferences/dashboard-layout")
     assert got.status_code == 200
     body = got.json()
     assert body["version"] == 1
@@ -90,11 +93,7 @@ def test_put_then_get_dashboard_layout(client):
 def test_put_rejects_missing_version(client):
     """Body without numeric version field is rejected with 422."""
     bad = {"sections": []}
-    resp = client.put(
-        "/api/v1/preferences/dashboard-layout",
-        json=bad,
-        headers=AUTH_HEADERS,
-    )
+    resp = client.put("/api/v1/preferences/dashboard-layout", json=bad)
     assert resp.status_code == 422
 
 
@@ -103,24 +102,16 @@ def test_put_rejects_non_object(client):
     resp = client.put(
         "/api/v1/preferences/dashboard-layout",
         json=["not", "an", "object"],
-        headers=AUTH_HEADERS,
     )
     assert resp.status_code in (400, 422)
 
 
 def test_delete_clears_layout(client):
     """DELETE wipes the saved layout so subsequent GET returns empty."""
-    client.put(
-        "/api/v1/preferences/dashboard-layout",
-        json=_minimal_layout(),
-        headers=AUTH_HEADERS,
-    )
-    deleted = client.delete(
-        "/api/v1/preferences/dashboard-layout",
-        headers=AUTH_HEADERS,
-    )
+    client.put("/api/v1/preferences/dashboard-layout", json=_minimal_layout())
+    deleted = client.delete("/api/v1/preferences/dashboard-layout")
     assert deleted.status_code == 200
-    after = client.get("/api/v1/preferences/dashboard-layout", headers=AUTH_HEADERS)
+    after = client.get("/api/v1/preferences/dashboard-layout")
     assert after.status_code == 200
     assert after.json() == {}
 
@@ -139,7 +130,7 @@ def test_layout_round_trip_preserves_unknown_fields(client):
             "options": {"sensitivity": 0.7},
         }
     )
-    client.put("/api/v1/preferences/dashboard-layout", json=layout, headers=AUTH_HEADERS)
-    got = client.get("/api/v1/preferences/dashboard-layout", headers=AUTH_HEADERS).json()
+    client.put("/api/v1/preferences/dashboard-layout", json=layout)
+    got = client.get("/api/v1/preferences/dashboard-layout").json()
     assert got["futureField"] == {"foo": "bar"}
     assert any(s["key"] == "audio-meters" for s in got["sections"])