diff --git a/Cargo.lock b/Cargo.lock
index 0949947..782a89a 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2422,7 +2422,7 @@ checksum = "dc897dd8d9e8bd1ed8cdad82b5966c3e0ecae09fb1907d58efaa013543185d0a"
 
 [[package]]
 name = "rooz"
-version = "0.150.3"
+version = "0.150.4"
 dependencies = [
  "age",
  "async-trait",
diff --git a/Cargo.toml b/Cargo.toml
index 4d44815..d48db2c 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "rooz"
-version = "0.150.3"
+version = "0.150.4"
 edition = "2024"
 
 [dependencies]
diff --git a/src/cmd/update.rs b/src/cmd/update.rs
index 1dfe010..cc6189e 100644
--- a/src/cmd/update.rs
+++ b/src/cmd/update.rs
@@ -42,6 +42,7 @@ impl<'a> WorkspaceApi<'a> {
                 let format = FileFormat::from_path(config_source);
                 let config_path = ConfigPath::from_str(&config_source)?;
                 let mut original_body = self.config.read(workspace_key, &ConfigType::Body).await?;
+                let mut pre_merged: Option<RoozCfg> = None;
 
                 if !interactive {
                     match &config_path {
@@ -62,13 +63,16 @@ impl<'a> WorkspaceApi<'a> {
                                 .await?;
                             if let Some(cb) = result {
                                 original_body = cb.body;
+                                pre_merged = cb.merged;
                             };
                         }
                     };
                 }
 
-                let mut original_config =
-                    RoozCfg::deserialize_config(&original_body, format)?.unwrap();
+                let mut original_config = match pre_merged {
+                    Some(merged) => merged,
+                    None => RoozCfg::deserialize_config(&original_body, format)?.unwrap(),
+                };
 
                 let config_to_apply = if interactive {
                     let identity = self.api.get_system_config().await?.age_identity()?;