diff --git a/src/utils/model/providers.ts b/src/utils/model/providers.ts
index 723155b0f..22f900aa6 100644
--- a/src/utils/model/providers.ts
+++ b/src/utils/model/providers.ts
@@ -11,28 +11,18 @@ export type APIProvider =
   | 'gemini'
 
 export function getAPIProvider(): APIProvider {
-  // Cloud provider env vars have highest priority (they are explicit switches)
-  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_BEDROCK)) return 'bedrock'
-  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_VERTEX)) return 'vertex'
-  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_FOUNDRY)) return 'foundry'
-
-  // Check settings.json modelType field
   const modelType = getInitialSettings().modelType
   if (modelType === 'openai') return 'openai'
   if (modelType === 'gemini') return 'gemini'
 
-  // 2. Check environment variables (backward compatibility)
-  return isEnvTruthy(process.env.CLAUDE_CODE_USE_BEDROCK)
-    ? 'bedrock'
-    : isEnvTruthy(process.env.CLAUDE_CODE_USE_VERTEX)
-      ? 'vertex'
-      : isEnvTruthy(process.env.CLAUDE_CODE_USE_FOUNDRY)
-        ? 'foundry'
-        : isEnvTruthy(process.env.CLAUDE_CODE_USE_OPENAI)
-          ? 'openai'
-          : isEnvTruthy(process.env.CLAUDE_CODE_USE_GEMINI)
-            ? 'gemini'
-            : 'firstParty'
+  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_BEDROCK)) return 'bedrock'
+  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_VERTEX)) return 'vertex'
+  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_FOUNDRY)) return 'foundry'
+
+  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_OPENAI)) return 'openai'
+  if (isEnvTruthy(process.env.CLAUDE_CODE_USE_GEMINI)) return 'gemini'
+
+  return 'firstParty'
 }
 
 export function getAPIProviderForStatsig(): AnalyticsMetadata_I_VERIFIED_THIS_IS_NOT_CODE_OR_FILEPATHS {