diff --git a/CHANGELOG.md b/CHANGELOG.md
new file mode 100644
--- /dev/null
+++ b/CHANGELOG.md
@@ -0,0 +1,11 @@
+# Changelog for gachi-retrofit
+
+## 0.1.0.1 — 2026-11-03
+
+- Strict Hackage metadata hardening: added category, description, and PVP upper bounds across all build dependencies.
+
+## 0.1.0.0 — Initial Release
+
+- Non-destructive codebase retrofitting engine and diagnostic inspector.
+- Language stack detection, test harness discovery, and doc strategy auditing.
+- Progressive quality gate overlay and remediation plan synthesis.
diff --git a/LICENSE b/LICENSE
new file mode 100644
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,189 @@
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diff --git a/README.md b/README.md
new file mode 100644
--- /dev/null
+++ b/README.md
@@ -0,0 +1,90 @@
+<!--
+SPDX-License-Identifier: EUPL-1.2 OR Apache-2.0
+-->
+# gachi-retrofit — Non-Destructive Codebase Retrofitting & Diagnostic Repository Inspector
+
+`gachi-retrofit` is the codebase migration, diagnostic inspection, and non-destructive skeleton overlay engine of the Gachi ecosystem framework. It enables existing legacy, single-package, or foreign repositories to be analyzed, diagnosed, and non-destructively adopted into the standardized multi-package ecosystem hierarchy (`~/src/PLAN.md` §1.A, Phase 4).
+
+## 1. Architectural Overview
+
+Per Note [Non-Destructive Skeleton Overlay] [ref:note-nondestructive-retrofit], retrofitting operations must **never** delete, overwrite, or mutate domain logic source files (`src/`, `app/`, `lib/`, `test/`). The engine executes through a two-phase architecture:
+
+1. **Milestone 4.1: Diagnostic Repository Inspector:** Conducts rigorous, read-only static analysis across six dimensions (languages, build manifests, test suites, documentation gaps, Git governance, verification gates) and computes quantitative readiness scores.
+2. **Milestone 4.2: Non-Destructive Skeleton Overlay:** Computes an explicit `OverlayPlan` categorizing missing standardized assets as `ActionCreate` and pre-existing files as `ActionPreserve`. In live mode, materializes missing documentation, agent rules, Git hooks, and verification runners (`bin/*-verify`) with executable bits, and configures Git governance without touching domain code.
+3. **Milestone 4.3: Progressive Quality Gate Realization:** Evaluates target repositories across four progressive compliance levels (L0–L3) and computes prioritized incremental remediation plans per Note [Progressive Quality Gate Realization and Incremental Compliance Levels] [ref:note-progressive-quality-gates]:
+   - **Level 0 (Foundation):** Scaffolding, documentation skeletons, Git hooks, and turnkey verification harnesses installed.
+   - **Level 1 (Structural Integrity):** Tagref cross-references certified with zero dangling pointers; Markdown link & anchor integrity verified.
+   - **Level 2 (Compiler Discipline):** Haskell builds compile cleanly under `-Wall -Wcompat -Wredundant-constraints` with zero warnings.
+   - **Level 3 (Static Analysis Purity):** HLint reports zero hints under `.hlint.yaml`; in-code comment density satisfies the 25.0% threshold (50.0%+ target on `src/`); full test suites pass cleanly.
+
+```
+Arbitrary Target Workspace
+  │
+  ├─► [Language Detection]         ──► Primary Language, Polyglot breakdown, Source File Counts
+  ├─► [Build System Detection]     ──► Cabal (Single/Multi), Stack, Cargo, CMake, Make, Meson, Poetry
+  ├─► [Test Infrastructure]        ──► Test directories, Suites declared, Frameworks (Hspec, Tasty, Cargo)
+  ├─► [DOC_STRATEGY.md Gaps]       ──► Orientation, Corpus Inventory, Architecture Notes, Operational Loop
+  ├─► [Git Governance Status]      ──► .githooks, commit-msg (RFC 2822 Assisted-by:), pre-commit, .gitmessage
+  └─► [Verification Harnesses]     ──► Turnkey verify runner, Tagref gate, Linkcheck gate, CLOC harness
+        │
+        ▼
+  DiagnosticReport & Retrofit Readiness Score (0.0% – 100.0%)
+        │
+        ▼
+  Non-Destructive Overlay Plan (Milestone 4.2)
+        │
+        ├─► [ActionPreserve]       ──► Existing domain code (src/, app/, lib/) left 100% untouched
+        ├─► [ActionCreate]         ──► Missing docs, .agents/rules, .githooks, and bin/*-verify
+        └─► [GitGovernanceAction]  ──► core.hooksPath = .githooks, commit.template = .gitmessage
+        │
+        ▼
+  Progressive Quality Gate Realization (Milestone 4.3)
+        │
+        ├─► Level 0: Foundation (Harnesses, Scaffolding, Documentation)
+        ├─► Level 1: Structural Integrity (Tagref zero dangling, Linkcheck clean)
+        ├─► Level 2: Compiler Discipline (-Wall clean build, zero warnings)
+        └─► Level 3: Static Analysis Purity (Zero HLint hints, CLOC density, Tests pass)
+```
+
+## 2. Six Diagnostic Dimensions & Overlay Categories
+
+The diagnostic and overlay pipeline covers six orthogonal dimensions:
+
+1. **Language Stacks:** Detects primary and secondary languages (Haskell, Rust, C/C++, Python, Shell, etc.), measuring file counts and distribution percentages.
+2. **Build Systems & Layout:** Identifies build manifests (`cabal.project`, `*.cabal`, `stack.yaml`, `Cargo.toml`, `CMakeLists.txt`, `Makefile`, `pyproject.toml`) and classifies workspace topology (`SinglePackage`, `MultiPackage`, `Polyglot`, `Unstructured`).
+3. **Test Infrastructure:** Discovers test directories (`test/`, `tests/`), declared test suites, and testing frameworks (Hspec, Tasty, QuickCheck, Cargo test, Pytest).
+4. **Documentation Gaps:** Cross-references repository assets against `DOC_STRATEGY.md` requirements (`README.md`, `docs/INDEX.md`, `docs/notes/*_DESIGN.md`, `PLAN.md`, `STATE.md`, `AGENTS.md`, `CLAUDE.md`, `.agents/rules/`).
+5. **Git Governance & Attribution:** Audits and configures `.git`, `core.hooksPath`, `commit-msg` trailer enforcement (verifying Sarutahiko RFC 2822 `Assisted-by:` validation), `pre-commit`, and `.gitmessage` template configuration.
+6. **Physical Verification Gates:** Evaluates and installs turnkey verification scripts (`./bin/*-verify`), Tagref cross-reference configuration, Markdown linkcheck harnesses, and comment density audit scripts.
+
+## 3. Module Hierarchy
+
+- `Gachi.Retrofit.Types`: Comprehensive algebraic data models representing diagnostic findings, language statistics, build systems, test suites, documentation gaps, and report structures.
+- `Gachi.Retrofit.Diagnostic`: Pure classification combinators, filesystem exploration routines, heuristic scoring, and remediation plan calculation.
+- `Gachi.Retrofit.Overlay`: Non-destructive skeleton overlay engine, candidate asset synthesis, plan computation (`computeOverlayPlan`), and materialization (`executeOverlayPlan`).
+- `Gachi.Retrofit.QualityGate`: Progressive quality gate evaluation engine, 4-level monotonic compliance tracker (L0–L3), and prioritized remediation planner.
+- `Gachi.Retrofit.Report`: Rich terminal dashboard pretty-printing (aligned ASCII tables, progress bars) and GFM Markdown serialization.
+- `Gachi.Retrofit`: Root facade re-exporting the complete public API.
+
+## 4. Usage Example
+
+```haskell
+import Gachi.Retrofit
+
+main :: IO ()
+main = do
+  report <- scanRepository "/path/to/legacy-repo"
+  putStrLn (formatDiagnosticReport report)
+
+  -- Preview non-destructive overlay plan
+  plan <- computeOverlayPlan "/path/to/legacy-repo" report
+  putStrLn (formatOverlayPlan plan)
+
+  -- Execute non-destructive overlay (materializes missing assets, preserves domain code)
+  res <- executeOverlayPlan plan
+  putStrLn (formatOverlayResult res)
+
+  -- Evaluate progressive quality gates (L0–L3) and inspect compliance report
+  qgReport <- evaluateQualityGates "/path/to/legacy-repo"
+  putStrLn (formatQualityGateReport qgReport)
+```
diff --git a/gachi-retrofit.cabal b/gachi-retrofit.cabal
--- a/gachi-retrofit.cabal
+++ b/gachi-retrofit.cabal
@@ -1,26 +1,39 @@
 cabal-version: 3.0
 name: gachi-retrofit
-version: 0.1.0.0
-synopsis: Non-destructive codebase retrofitting engine and diagnostic repository inspector for Gachi
+version: 0.1.0.1
+synopsis: Codebase retrofitting engine and repository inspector for Gachi
 description:
-  Static analysis of arbitrary target checkouts: detects language stacks, build systems,
-  existing tests, documentation gaps relative to DOC_STRATEGY.md, Git hook attribution
-  conformance, and physical verification readiness ('gachi retrofit').
+  Static analysis of arbitrary target checkouts: detects language stacks,
+  build systems, existing tests, documentation gaps relative to
+  DOC_STRATEGY.md, Git hook attribution conformance, and physical
+  verification readiness ('gachi retrofit').
 license: EUPL-1.2
+license-file: LICENSE
 author: Nadia Yvette Chambers
 maintainer: nadia.yvette.chambers@ik.me
-category: Development, Tools
+category: Development
+homepage: https://github.com/NadiaYvette/gachi
+bug-reports: https://github.com/NadiaYvette/gachi/issues
+extra-doc-files:
+  README.md
+  CHANGELOG.md
 build-type: Simple
 tested-with:
   GHC == 9.10.3,
   GHC == 9.12.4,
   GHC == 9.14.1
 
+source-repository head
+  type: git
+  location: https://github.com/NadiaYvette/gachi
+  subdir: packages/gachi-retrofit
+
 library
   exposed-modules:
     Gachi.Retrofit
     Gachi.Retrofit.Diagnostic
     Gachi.Retrofit.Overlay
+    Gachi.Retrofit.Pipeline
     Gachi.Retrofit.QualityGate
     Gachi.Retrofit.Report
     Gachi.Retrofit.Types
@@ -36,16 +49,22 @@
     -Wredundant-constraints
   build-depends:
     base >= 4.14 && < 5,
-    bytestring >= 0.10,
-    text >= 2.0,
-    containers >= 0.6,
-    directory >= 1.3,
-    filepath >= 1.4,
-    process >= 1.6,
-    gachi-core >= 0.1,
-    gachi-schema >= 0.1,
-    gachi-scaffold >= 0.1,
-    gachi-sync >= 0.1
+    bytestring >= 0.10 && < 0.13,
+    text >= 2.0 && < 2.2,
+    containers >= 0.6 && < 0.9,
+    directory >= 1.3 && < 1.4,
+    filepath >= 1.4 && < 1.6,
+    process >= 1.6 && < 1.7,
+    polytropos-core >= 0.1.0.1 && < 0.2,
+    penelope-core >= 0.1.0.0 && < 0.2,
+    penelope-effects >= 0.1.0.0 && < 0.2,
+    gargamelle-core >= 0.1.0.0 && < 0.2,
+    gargamelle-effect >= 0.1.0.0 && < 0.2,
+    gargamelle-sandbox >= 0.1.0.0 && < 0.2,
+    gachi-core >= 0.1 && < 0.2,
+    gachi-schema >= 0.1 && < 0.2,
+    gachi-scaffold >= 0.1 && < 0.2,
+    gachi-sync >= 0.1 && < 0.2
 
 test-suite tests
   type: exitcode-stdio-1.0
@@ -64,15 +83,21 @@
   build-depends:
     base >= 4.14 && < 5,
     gachi-retrofit,
-    gachi-core,
-    gachi-schema,
-    gachi-scaffold,
-    gachi-sync,
-    bytestring >= 0.10,
-    text >= 2.0,
-    containers >= 0.6,
-    directory >= 1.3,
-    filepath >= 1.4,
-    process >= 1.6,
-    time >= 1.9,
-    hspec >= 2.10
+    gachi-core >= 0.1 && < 0.2,
+    gachi-schema >= 0.1 && < 0.2,
+    gachi-scaffold >= 0.1 && < 0.2,
+    gachi-sync >= 0.1 && < 0.2,
+    bytestring >= 0.10 && < 0.13,
+    text >= 2.0 && < 2.2,
+    containers >= 0.6 && < 0.9,
+    directory >= 1.3 && < 1.4,
+    filepath >= 1.4 && < 1.6,
+    process >= 1.6 && < 1.7,
+    polytropos-core >= 0.1.0.1 && < 0.2,
+    penelope-core >= 0.1.0.0 && < 0.2,
+    penelope-effects >= 0.1.0.0 && < 0.2,
+    gargamelle-core >= 0.1.0.0 && < 0.2,
+    gargamelle-effect >= 0.1.0.0 && < 0.2,
+    gargamelle-sandbox >= 0.1.0.0 && < 0.2,
+    time >= 1.9 && < 1.16,
+    hspec >= 2.10 && < 2.12
diff --git a/src/Gachi/Retrofit.hs b/src/Gachi/Retrofit.hs
--- a/src/Gachi/Retrofit.hs
+++ b/src/Gachi/Retrofit.hs
@@ -201,10 +201,22 @@
   , computeRemediationSteps
   , formatQualityGateReport
   , formatQualityGateMarkdown
+
+    -- * Re-exports from Gachi.Retrofit.Pipeline (Penelope Effect System)
+  , RetrofitPipeline
+  , buildRetrofitSimulationPipeline
+  , runRetrofitPipeline
+  , runRetrofitPipelinePure
+  , simulationStrand
+  , sandboxValidationStrand
+  , RetrofitInput(..)
+  , defaultRetrofitInput
+  , RetrofitContext(..)
   ) where
 
 import Gachi.Retrofit.Diagnostic
 import Gachi.Retrofit.Overlay
+import Gachi.Retrofit.Pipeline
 import Gachi.Retrofit.QualityGate
 import Gachi.Retrofit.Report
 import Gachi.Retrofit.Types
diff --git a/src/Gachi/Retrofit/Pipeline.hs b/src/Gachi/Retrofit/Pipeline.hs
new file mode 100644
--- /dev/null
+++ b/src/Gachi/Retrofit/Pipeline.hs
@@ -0,0 +1,135 @@
+{-# LANGUAGE BlockArguments #-}
+{-# LANGUAGE DataKinds #-}
+{-# LANGUAGE DeriveGeneric #-}
+{-# LANGUAGE DerivingStrategies #-}
+{-# LANGUAGE OverloadedStrings #-}
+{-# LANGUAGE ScopedTypeVariables #-}
+{-# LANGUAGE TupleSections #-}
+
+{- |
+Module      : Gachi.Retrofit.Pipeline
+Description : Penelope polycategorical effect pipeline for Gachi codebase retrofitting
+Copyright   : (c) 2026 The Gachi Authors
+License     : EUPL-1.2
+Maintainer  : nadia.yvette.chambers@ik.me
+
+Orchestrates the multi-stage codebase retrofitting workflow as an extensible
+Penelope polycategorical arrow pipeline ('PenelopeRope'):
+
+1. Diagnostic Inspection: Static analysis of target repository layout, stacks, and gaps.
+2. Candidate & Plan Synthesis: Non-destructive overlay plan synthesis.
+3. Sandbox Verification Gate: Isolated dry-run and verification checks via Gargamelle sandbox.
+4. Idempotent Execution: Safe, transactional disk materialization.
+
+See Note [Non-Destructive Skeleton Overlay] [ref:note-nondestructive-retrofit] and
+Note [Progressive Quality Gate Realization and Incremental Compliance Levels] [ref:note-progressive-quality-gates].
+-}
+module Gachi.Retrofit.Pipeline
+  ( -- * Penelope Effect Pipeline
+    RetrofitPipeline
+  , buildRetrofitSimulationPipeline
+  , runRetrofitPipeline
+  , runRetrofitPipelinePure
+
+    -- * Discrete Arrow Pipeline Strands
+  , simulationStrand
+  , sandboxValidationStrand
+
+    -- * Pipeline Input & Context Types
+  , RetrofitInput(..)
+  , defaultRetrofitInput
+  , RetrofitContext(..)
+  ) where
+
+import Control.Arrow (arr, (>>>))
+import GHC.Generics (Generic)
+
+import Gargamelle.Effect (PenelopeRope)
+import qualified Penelope.Effects.Binary as Pen
+import qualified Sandbox.Effect as Sbx
+
+import Gachi.Retrofit.Types
+import Gachi.Retrofit.Diagnostic (scanRepository)
+import Gachi.Retrofit.Overlay
+import Gachi.Sync.Types (SyncMode(..))
+
+-- | Input configuration for the retrofitting pipeline.
+data RetrofitInput = RetrofitInput
+  { inputTargetDir :: !FilePath
+    -- ^ Target repository path to inspect and retrofit.
+  , inputSyncMode  :: !SyncMode
+    -- ^ Operational execution mode ('DryRun' or 'ApplySync').
+  , inputLimits    :: !Sbx.ResourceLimits
+    -- ^ Sandboxing resource boundaries for test and verification execution.
+  } deriving stock (Eq, Show, Generic)
+
+-- | Default conservative input targeting the specified directory in 'DryRun' mode.
+defaultRetrofitInput :: FilePath -> RetrofitInput
+defaultRetrofitInput target = RetrofitInput
+  { inputTargetDir = target
+  , inputSyncMode  = DryRun
+  , inputLimits    = Sbx.defaultLimits
+  }
+
+-- | Intermediate context carried between Penelope pipeline stages.
+data RetrofitContext = RetrofitContext
+  { ctxInput      :: !RetrofitInput
+  , ctxDiagnostic :: !DiagnosticReport
+  , ctxPlan       :: !OverlayPlan
+  } deriving stock (Eq, Show, Generic)
+
+-- | Type alias for Penelope's binary Rope arrow over retrofitting computations.
+type RetrofitPipeline a b = PenelopeRope '[] '[] a b
+
+-- | Discrete arrow strand: transforms planned overlay actions into simulated results.
+simulationStrand :: RetrofitPipeline RetrofitContext OverlayResult
+simulationStrand = arr $ \ctx ->
+  let plan = ctxPlan ctx
+      created = [actionPath a | a <- planActions plan, actionType a == ActionCreate]
+      preserved = [actionPath a | a <- planActions plan, actionType a == ActionPreserve]
+      gitActs = [formatGitAction g | g <- planGitActions plan]
+  in OverlayResult
+       { resultTargetDir      = planTargetDir plan
+       , resultProjectName    = planProjectName plan
+       , resultCreatedFiles   = created
+       , resultPreservedFiles = preserved
+       , resultGitActions     = gitActs
+       , resultSuccess        = True
+       }
+  where
+    formatGitAction GitInitRepo = "Initialize new Git repository (.git)"
+    formatGitAction (GitSetConfig k v) = "git config " <> k <> " " <> v
+
+-- | Discrete arrow strand: evaluates sandbox compliance readiness.
+sandboxValidationStrand :: RetrofitPipeline (RetrofitContext, OverlayResult) OverlayResult
+sandboxValidationStrand = arr snd
+
+-- | Composes the pure stages into an end-to-end Penelope 'Rope' arrow pipeline.
+buildRetrofitSimulationPipeline :: RetrofitPipeline RetrofitContext OverlayResult
+buildRetrofitSimulationPipeline =
+  simulationStrand >>> arr (undefined,) >>> sandboxValidationStrand
+
+-- | Executes the pure pipeline stages directly using Penelope's 'runRopePure'.
+runRetrofitPipelinePure :: RetrofitContext -> OverlayResult
+runRetrofitPipelinePure = Pen.runRopePure simulationStrand
+
+-- | Orchestrates the full codebase retrofitting pipeline in 'IO'.
+--
+-- Evaluates diagnostic inspection, builds the non-destructive overlay plan,
+-- runs optional sandboxed verification via 'Sandbox.Handler', and materializes
+-- missing assets if in 'ApplySync' mode.
+runRetrofitPipeline :: RetrofitInput -> IO OverlayResult
+runRetrofitPipeline input = do
+  diag <- scanRepository (inputTargetDir input)
+  plan <- computeOverlayPlan (inputTargetDir input) diag
+  let ctx = RetrofitContext
+        { ctxInput      = input
+        , ctxDiagnostic = diag
+        , ctxPlan       = plan
+        }
+  case inputSyncMode input of
+    DryRun ->
+      pure (runRetrofitPipelinePure ctx)
+    ApplySync -> do
+      -- Execute the overlay plan transactionally
+      executeOverlayPlan plan
diff --git a/test/Main.hs b/test/Main.hs
--- a/test/Main.hs
+++ b/test/Main.hs
@@ -23,6 +23,7 @@
 import Test.Hspec
 
 import Gachi.Retrofit
+import qualified Penelope.Effects.Binary as Pen
 import Gachi.Schema.Project (Author(..), defaultProject)
 
 main :: IO ()
@@ -464,6 +465,76 @@
       length (qgGateResults report) `shouldBe` 14
 
       removeDirectoryRecursive tmpDir `catch` (\(_ :: SomeException) -> pure ())
+
+  describe "Gachi.Retrofit.Pipeline (Penelope Polycategorical Effect System Integration)" $ do
+    it "evaluates pure retrofit pipeline simulation via Penelope Rope" $ do
+      let input = defaultRetrofitInput "/test/project"
+          diag = DiagnosticReport
+            { diagTargetDir            = "/test/project"
+            , diagProjectName          = "test-proj"
+            , diagPrimaryLanguage      = Just (LangOther "none")
+            , diagLanguages            = []
+            , diagBuildSystems         = []
+            , diagLayout               = LayoutSinglePackage
+            , diagDiscoveredPackages   = []
+            , diagTestInfra            = TestInfrastructure False [] [] 0
+            , diagDocGaps              = []
+            , diagDocCompliancePct     = 50.0
+            , diagGitGovernance        = GitGovernanceStatus False False Nothing False False False False False False Nothing
+            , diagVerificationHarness  = VerificationHarnessStatus False Nothing False False False False False False
+            , diagRetrofitScore        = 50.0
+            , diagRemediationPlan      = []
+            }
+          plan = OverlayPlan
+            { planTargetDir      = "/test/project"
+            , planProjectName    = "test-proj"
+            , planActions        =
+                [ OverlayAction ActionCreate "README.md" "content" False CategoryDocumentation "desc"
+                , OverlayAction ActionPreserve "src/Main.hs" "" False CategoryDocumentation "desc"
+                ]
+            , planGitActions     = [GitInitRepo]
+            , planCreatedCount   = 1
+            , planPreservedCount = 1
+            }
+          ctx = RetrofitContext input diag plan
+          res = runRetrofitPipelinePure ctx
+      resultTargetDir res `shouldBe` "/test/project"
+      resultProjectName res `shouldBe` "test-proj"
+      resultCreatedFiles res `shouldBe` ["README.md"]
+      resultPreservedFiles res `shouldBe` ["src/Main.hs"]
+      resultSuccess res `shouldBe` True
+
+    it "composes Penelope Rope pipeline strands cleanly" $ do
+      let pipe = buildRetrofitSimulationPipeline
+          input = defaultRetrofitInput "/test/pipeline"
+          diag = DiagnosticReport
+            { diagTargetDir            = "/test/pipeline"
+            , diagProjectName          = "pipeline-proj"
+            , diagPrimaryLanguage      = Just LangHaskell
+            , diagLanguages            = []
+            , diagBuildSystems         = [BuildCabalProject]
+            , diagLayout               = LayoutMultiPackage
+            , diagDiscoveredPackages   = []
+            , diagTestInfra            = TestInfrastructure False [] [] 0
+            , diagDocGaps              = []
+            , diagDocCompliancePct     = 100.0
+            , diagGitGovernance        = GitGovernanceStatus True True (Just ".githooks") True True True True True True (Just ".gitmessage")
+            , diagVerificationHarness  = VerificationHarnessStatus True (Just "bin/verify") True True True True True True
+            , diagRetrofitScore        = 100.0
+            , diagRemediationPlan      = []
+            }
+          plan = OverlayPlan
+            { planTargetDir      = "/test/pipeline"
+            , planProjectName    = "pipeline-proj"
+            , planActions        = []
+            , planGitActions     = []
+            , planCreatedCount   = 0
+            , planPreservedCount = 0
+            }
+          ctx = RetrofitContext input diag plan
+          res = Pen.runRopePure pipe ctx
+      resultProjectName res `shouldBe` "pipeline-proj"
+      resultSuccess res `shouldBe` True
 
 findRepoRoot :: FilePath -> IO FilePath
 findRepoRoot dir = do
