diff --git a/arcade/arcade/cli/authn.py b/arcade/arcade/cli/authn.py
index 90ea5fa5..d2615b1b 100644
--- a/arcade/arcade/cli/authn.py
+++ b/arcade/arcade/cli/authn.py
@@ -7,8 +7,12 @@ from urllib.parse import parse_qs
 import yaml
 from rich.console import Console
 
-from arcade.cli.constants import LOGIN_FAILED_HTML, LOGIN_SUCCESS_HTML
-from arcade.cli.utils import create_new_env_file
+from arcade.cli.constants import (
+    ARCADE_CONFIG_PATH,
+    CREDENTIALS_FILE_PATH,
+    LOGIN_FAILED_HTML,
+    LOGIN_SUCCESS_HTML,
+)
 
 console = Console()
 
@@ -56,16 +60,13 @@ class LoginCallbackHandler(BaseHTTPRequestHandler):
             )
             return False
 
-        # ensure the ~/.arcade directory exists
-        # TODO: this should use WORK_DIR from env if set
-        arcade_dir = os.path.join(os.path.expanduser("~"), ".arcade")
-        if not os.path.exists(arcade_dir):
-            os.makedirs(arcade_dir, exist_ok=True)
+        # ensure the ARCADE_CONFIG_PATH directory exists
+        if not os.path.exists(ARCADE_CONFIG_PATH):
+            os.makedirs(ARCADE_CONFIG_PATH, exist_ok=True)
 
         # TODO don't overwrite existing config
-        config_file_path = os.path.join(arcade_dir, "credentials.yaml")
         new_config = {"cloud": {"api": {"key": api_key}, "user": {"email": email}}}
-        with open(config_file_path, "w") as f:
+        with open(CREDENTIALS_FILE_PATH, "w") as f:
             yaml.dump(new_config, f)
 
         # Send a success response to the browser
@@ -73,7 +74,7 @@ class LoginCallbackHandler(BaseHTTPRequestHandler):
             f"""✅ Hi there, {email}!
 
 Your Arcade API key is: {api_key}
-Stored in: {config_file_path}""",
+Stored in: {CREDENTIALS_FILE_PATH}""",
             style="bold green",
         )
         return True
@@ -112,35 +113,34 @@ class LocalAuthCallbackServer:
             self.httpd.shutdown()
 
 
-def check_existing_login() -> bool:
+def check_existing_login(suppress_message: bool = False) -> bool:
     """
     Check if the user is already logged in by verifying the config file.
 
+    Args:
+        suppress_message (bool): If True, suppress the logged in message.
+
     Returns:
         bool: True if the user is already logged in, False otherwise.
     """
-    # Create a new env file if one doesn't already exist
-    create_new_env_file()
-
-    config_file_path = os.path.expanduser("~/.arcade/credentials.yaml")
-
-    if not os.path.exists(config_file_path):
+    if not os.path.exists(CREDENTIALS_FILE_PATH):
         return False
 
-    if os.path.exists(config_file_path):
+    if os.path.exists(CREDENTIALS_FILE_PATH):
         try:
-            with open(config_file_path) as f:
+            with open(CREDENTIALS_FILE_PATH) as f:
                 config: dict[str, Any] = yaml.safe_load(f)
             cloud_config = config.get("cloud", {})
             api_key = cloud_config.get("api", {}).get("key")
             email = cloud_config.get("user", {}).get("email")
 
             if api_key and email:
-                console.print(f"You're already logged in as {email}. ", style="bold green")
+                if not suppress_message:
+                    console.print(f"You're already logged in as {email}. ", style="bold green")
                 return True
         except yaml.YAMLError:
             console.print(
-                f"Error: Invalid configuration file at {config_file_path}", style="bold red"
+                f"Error: Invalid configuration file at {CREDENTIALS_FILE_PATH}", style="bold red"
             )
         except Exception as e:
             console.print(f"Error: Unable to read configuration file: {e!s}", style="bold red")
diff --git a/arcade/arcade/cli/constants.py b/arcade/arcade/cli/constants.py
index 811cf8d8..56783609 100644
--- a/arcade/arcade/cli/constants.py
+++ b/arcade/arcade/cli/constants.py
@@ -1,7 +1,15 @@
-DEFAULT_CLOUD_HOST = "cloud.arcade.dev"
-DEFAULT_ENGINE_HOST = "api.arcade.dev"
+import os
+
+PROD_CLOUD_HOST = "cloud.arcade.dev"
+PROD_ENGINE_HOST = "api.arcade.dev"
 LOCALHOST = "localhost"
 
+# The path to the directory containing the Arcade configuration files. Typically ~/.arcade
+ARCADE_CONFIG_PATH = os.path.join(os.path.expanduser(os.getenv("ARCADE_WORK_DIR", "~")), ".arcade")
+
+# The path to the file containing the user's Arcade-related credentials (e.g., ARCADE_API_KEY).
+CREDENTIALS_FILE_PATH = os.path.join(ARCADE_CONFIG_PATH, "credentials.yaml")
+
 _style_block = b"""
 <link rel="icon" href="https://cdn.arcade.dev/favicons/favicon.ico" sizes="any">
 <link rel="apple-touch-icon" href="https://cdn.arcade.dev/favicons/apple-touch-icon.png">
diff --git a/arcade/arcade/cli/launcher.py b/arcade/arcade/cli/launcher.py
index 74d5d827..bae9f952 100644
--- a/arcade/arcade/cli/launcher.py
+++ b/arcade/arcade/cli/launcher.py
@@ -26,7 +26,8 @@ known_engine_config_locations = [
 
 if os.environ.get("HOMEBREW_REPOSITORY") is not None:
     homebrew_home = os.path.join(os.environ["HOMEBREW_REPOSITORY"], "etc", "arcade-engine")
-    known_engine_config_locations.append(homebrew_home)
+    if homebrew_home not in known_engine_config_locations:
+        known_engine_config_locations.append(homebrew_home)
 
 
 def start_servers(
@@ -54,7 +55,7 @@ def start_servers(
     engine_config = _get_config_file(engine_config, default_filename="engine.yaml")
 
     # Ensure engine_env is provided or found and either way, validated
-    env_file = _get_config_file(engine_env, default_filename="arcade.env", optional=True)
+    env_file = _get_config_file(engine_env, default_filename="engine.env", optional=True)
 
     # Prepare command-line arguments for the worker server and engine
     worker_cmd = _build_worker_command(worker_host, worker_port, debug)
@@ -113,7 +114,13 @@ def _get_config_file(
     file_path: str | None, default_filename: str = "engine.yaml", optional: bool = False
 ) -> str | None:
     """
-    Determines and validates the config file path.
+    Resolves and validates the config file path from a set of candidate locations.
+
+    If a file_path is provided, it is checked directly.
+    Otherwise, the following candidate locations are checked in order:
+      1. Current working directory.
+      2. User's home directory under .arcade.
+      3. Known engine config locations.
 
     Args:
         file_path: Optional path provided by the user.
@@ -127,52 +134,47 @@ def _get_config_file(
         RuntimeError: If the config file is not found and is not optional.
     """
     if file_path:
-        config_path = Path(os.path.expanduser(file_path)).resolve()
-        if not config_path.is_file():
-            console.print(f"❌ Config file not found at {config_path}", style="bold red")
-            raise RuntimeError(f"Config file not found at {config_path}")
-        return str(config_path)
+        candidate = Path(os.path.expanduser(file_path)).resolve()
+        if not candidate.is_file():
+            console.print(f"❌ Config file not found at {candidate}", style="bold red")
+            raise RuntimeError(f"Config file not found at {candidate}")
+        return str(candidate)
 
-    # Look for the file in the current working directory
-    config_path = Path(os.getcwd()) / default_filename
-    if config_path.is_file():
-        console.print(f"Using config file at {config_path}", style="bold green")
-        return str(config_path)
+    # List of all config file path locations to check.
+    candidates = [
+        Path(os.getcwd()) / default_filename,
+        Path.home() / ".arcade" / default_filename,
+    ]
+    candidates.extend(Path(path) / default_filename for path in known_engine_config_locations)
 
-    # Look for the file in the user's home directory under .arcade/
-    home_config_path = Path.home() / ".arcade" / default_filename
-    if home_config_path.is_file():
-        console.print(f"Using config file at {home_config_path}", style="bold green")
-        return str(home_config_path)
-
-    # Look for known installation directories
-    for path in known_engine_config_locations:
-        etc_path = Path(path) / default_filename
-        if etc_path.is_file():
-            console.print(f"Using config file at {etc_path}", style="bold green")
-            return str(etc_path)
+    # Find the first candidate that exists.
+    for candidate in candidates:
+        if candidate.is_file():
+            console.print(f"Using config file at {candidate}", style="bold green")
+            return str(candidate)
 
+    # No config file was found. Handle according to the optional flag.
     if optional:
         console.print(
-            f"⚠️  Optional config file '{default_filename}' not found in either of the default locations: "
-            f"   1) Current working directory: {Path.cwd() / default_filename}, or "
-            f"   2) User's home directory: {Path.home() / '.arcade' / default_filename}.",
+            f"⚠️  Optional config file '{default_filename}' not found in any of the following locations:",
             style="bold yellow",
         )
+        for i, candidate in enumerate(candidates, start=1):
+            console.print(f"   {i}) {candidate}", style="bold yellow")
         return None
 
     console.print(
-        f"❌ Error: Required config file '{default_filename}' not found in any of the default locations:\n"
-        f"   1) Current working directory: {Path.cwd() / default_filename}, or\n"
-        f"   2) User's home directory: {Path.home() / '.arcade' / default_filename}\n",
+        f"❌ Error: Required config file '{default_filename}' not found in any of the following locations:",
         style="bold red",
     )
+    for i, candidate in enumerate(candidates, start=1):
+        console.print(f"   {i}) {candidate}", style="bold red")
+
     console.print(
-        "TIP: Please install the Arcade Engine by following the instructions at:\n"
+        "\nTIP: Please install the Arcade Engine by following the instructions at:\n"
         "     https://docs.arcade.dev/home/install/local#install-the-engine\n",
         style="bold green",
     )
-
     raise RuntimeError(f"Config file '{default_filename}' not found.")
 
 
diff --git a/arcade/arcade/cli/main.py b/arcade/arcade/cli/main.py
index 3a0ce8be..680eafe9 100644
--- a/arcade/arcade/cli/main.py
+++ b/arcade/arcade/cli/main.py
@@ -15,7 +15,12 @@ from rich.text import Text
 from tqdm import tqdm
 
 from arcade.cli.authn import LocalAuthCallbackServer, check_existing_login
-from arcade.cli.constants import DEFAULT_CLOUD_HOST, DEFAULT_ENGINE_HOST, LOCALHOST
+from arcade.cli.constants import (
+    CREDENTIALS_FILE_PATH,
+    LOCALHOST,
+    PROD_CLOUD_HOST,
+    PROD_ENGINE_HOST,
+)
 from arcade.cli.display import (
     display_arcade_chat_header,
     display_eval_results,
@@ -53,7 +58,7 @@ console = Console()
 @cli.command(help="Log in to Arcade Cloud", rich_help_panel="User")
 def login(
     host: str = typer.Option(
-        DEFAULT_CLOUD_HOST,
+        PROD_CLOUD_HOST,
         "-h",
         "--host",
         help="The Arcade Cloud host to log in to.",
@@ -70,7 +75,9 @@ def login(
     """
 
     if check_existing_login():
-        console.print("Delete ~/.arcade/credentials.yaml to log in as a different user.\n")
+        console.print("\nTo log out and delete your locally-stored credentials, use ", end="")
+        console.print("arcade logout", style="bold green", end="")
+        console.print(".\n")
         return
 
     # Start the HTTP server in a new thread
@@ -104,10 +111,9 @@ def logout() -> None:
     """
     Logs the user out of Arcade Cloud.
     """
-    # If ~/.arcade/credentials.yaml exists, delete it
-    config_file_path = os.path.expanduser("~/.arcade/credentials.yaml")
-    if os.path.exists(config_file_path):
-        os.remove(config_file_path)
+    # If the credentials file exists, delete it
+    if os.path.exists(CREDENTIALS_FILE_PATH):
+        os.remove(CREDENTIALS_FILE_PATH)
         console.print("You're now logged out.", style="bold")
     else:
         console.print("You're not logged in.", style="bold red")
@@ -141,7 +147,7 @@ def show(
         None, "-t", "--tool", help="The specific tool to show details for"
     ),
     host: str = typer.Option(
-        DEFAULT_ENGINE_HOST,
+        PROD_ENGINE_HOST,
         "-h",
         "--host",
         help="The Arcade Engine address to show the tools/toolkits of.",
@@ -185,7 +191,7 @@ def chat(
     prompt: str = typer.Option(None, "--prompt", help="The system prompt to use for the chat."),
     debug: bool = typer.Option(False, "--debug", "-d", help="Show debug information"),
     host: str = typer.Option(
-        DEFAULT_ENGINE_HOST,
+        PROD_ENGINE_HOST,
         "-h",
         "--host",
         help="The Arcade Engine address to send chat requests to.",
@@ -345,7 +351,7 @@ def evals(
     """
     config = validate_and_get_config()
 
-    host = DEFAULT_ENGINE_HOST if cloud else host
+    host = PROD_ENGINE_HOST if cloud else host
     base_url = compute_engine_base_url(force_tls, force_no_tls, host, port)
 
     models_list = models.split(",")  # Use 'models_list' to avoid shadowing
@@ -479,8 +485,9 @@ def workerup(
 
 
 @cli.callback()
-def version(
-    _: bool = typer.Option(
+def main_callback(
+    ctx: typer.Context,
+    _: Optional[bool] = typer.Option(
         None,
         "-v",
         "--version",
@@ -489,4 +496,11 @@ def version(
         help="Print version and exit.",
     ),
 ) -> None:
-    pass
+    excluded_commands = {login.__name__, logout.__name__}
+    if ctx.invoked_subcommand in excluded_commands:
+        return
+
+    if not check_existing_login(suppress_message=True):
+        console.print("Not logged in to Arcade CLI. Use ", style="bold red", end="")
+        console.print("arcade login", style="bold green")
+        raise typer.Exit()
diff --git a/arcade/arcade/cli/utils.py b/arcade/arcade/cli/utils.py
index 595600fb..388dad76 100644
--- a/arcade/arcade/cli/utils.py
+++ b/arcade/arcade/cli/utils.py
@@ -1,6 +1,5 @@
 import importlib.util
 import ipaddress
-import os
 import webbrowser
 from dataclasses import dataclass
 from enum import Enum
@@ -560,24 +559,6 @@ def load_eval_suites(eval_files: list[Path]) -> list[Callable]:
     return eval_suites
 
 
-def create_new_env_file() -> None:
-    """
-    Create a new env file if one doesn't already exist.
-    """
-    env_file = os.path.expanduser("~/.arcade/arcade.env")
-    if not os.path.exists(env_file):
-        template_path = os.path.join(
-            os.path.dirname(__file__), "..", "templates", "arcade.template.env"
-        )
-        os.makedirs(os.path.dirname(env_file), exist_ok=True)
-
-        with open(template_path) as template_file, open(env_file, "w") as new_env_file:
-            template_contents = template_file.read()
-            new_env_file.write(template_contents)
-
-        console.print(f"Created new environment file at {env_file}", style="bold green")
-
-
 def get_user_input() -> str:
     """
     Get input from the user, handling multi-line input.
diff --git a/arcade/arcade/templates/arcade.template.env b/arcade/arcade/templates/arcade.template.env
deleted file mode 100644
index 88b01f3e..00000000
--- a/arcade/arcade/templates/arcade.template.env
+++ /dev/null
@@ -1,50 +0,0 @@
-### Engine Configuration ###
-
-TELEMETRY_ENVIRONMENT=local
-TELEMETRY_LOGGING_LEVEL=debug
-TELEMETRY_LOGGING_ENCODING=console
-API_DEVELOPMENT=true
-ARCADE_API_HOST=localhost
-ARCADE_API_PORT=9099
-
-
-### LLM API KEY ###
-
-# OPENAI_API_KEY=
-# ANTHROPIC_API_KEY=
-# GROQ_API_KEY=
-
-### Worker Configuration ###
-
-ARCADE_WORKER_URI=http://localhost:8002
-# ARCADE_WORKER_SECRET=
-
-### Token Storage ###
-# REDIS_HOST=
-# REDIS_PORT=
-
-### Integrations ###
-
-# GITHUB_CLIENT_ID=
-# GITHUB_CLIENT_SECRET=
-
-# GOOGLE_CLIENT_ID=
-# GOOGLE_CLIENT_SECRET=
-
-# LINKEDIN_CLIENT_ID=
-# LINKEDIN_CLIENT_SECRET=
-
-# MICROSOFT_CLIENT_ID=
-# MICROSOFT_CLIENT_SECRET=
-
-# SLACK_CLIENT_ID=
-# SLACK_CLIENT_SECRET=
-
-# SPOTIFY_CLIENT_ID=
-# SPOTIFY_CLIENT_SECRET=
-
-# X_CLIENT_ID=
-# X_CLIENT_SECRET=
-
-# ZOOM_CLIENT_ID=
-# ZOOM_CLIENT_SECRET=