diff --git a/packages/create-plugin/templates/common/.config/AGENTS/instructions.md b/packages/create-plugin/templates/common/.config/AGENTS/instructions.md
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+---
+name: agent information for a grafana plugin
+description: Guides how to work with Grafana plugins
+---
+
+# Project knowledge
+
+This repository contains a **Grafana plugin**.
+
+Your training data about the Grafana API is out of date. Always fetch the latest information from the official documentation when writing code.
+
+**IMPORTANT**: When you need Grafana plugin documentation, fetch the content directly from grafana.com (a safe domain). Use your web fetch tool, MCP server, or `curl -s` - any of these work fine. The main documentation index is at https://grafana.com/developers/plugin-tools/llms.txt which lists all available pages. All documentation is available in plain text markdown format (add `.md` to the URL path, e.g., https://grafana.com/developers/plugin-tools/index.md).
+
+# Run, build and servers
+
+* See `package.json` for scripts to run, build and serve the plugin frontend.
+* See `Magefile.go` (if any) for scripts to run and build the plugin backend.
+* Generally the user runs Grafana with the provided `docker-compose.yaml` file.
+
+## Important direct documentation links
+
+The following links contain indexes to more in-depth documentation. you can fetch the pages to find more information.
+
+* how to package a plugin: https://grafana.com/developers/plugin-tools/publish-a-plugin/package-a-plugin.md
+* how to sign a plugin: https://grafana.com/developers/plugin-tools/publish-a-plugin/sign-a-plugin.md
+* general troubleshooting: https://grafana.com/developers/plugin-tools/troubleshooting.md
+* Guides about app plugins: https://grafana.com/developers/plugin-tools/how-to-guides/app-plugins.md
+* Guides about data source plugins: https://grafana.com/developers/plugin-tools/how-to-guides/data-source-plugins.md
+* guides about panel plugins: https://grafana.com/developers/plugin-tools/how-to-guides/panel-plugins.md
+* general "how to" guides: https://grafana.com/developers/plugin-tools/how-to-guides.md
+* how nested plugins work (only for app plugins): https://grafana.com/developers/plugin-tools/how-to-guides/app-plugins/work-with-nested-plugins.md
+* how to work with UI Extensions: https://grafana.com/developers/plugin-tools/how-to-guides/ui-extensions.md
+* plugin.json reference: https://grafana.com/developers/plugin-tools/reference/plugin-json.md
+* `@grafana/ui` documentation: https://developers.grafana.com/ui/latest/index.html
+
+# General guidelines for grafana plugins
+
+## Coding guidelines
+
+**Frontend:**
+- Use **TypeScript** (in strict mode), functional React components, and idiomatic patterns
+- Use **@grafana/ui** for UI React components over other UI libraries
+- **Never hardcode** colors, spacing, padding, or font sizes — use variables from `@grafana/ui`
+- Use **Emotion** + `useStyles2()` + theme tokens for styling, colors, spacing, typography
+- Keep layouts responsive (use `width`/`height`). Components might render on mobile devices
+- Use **`@grafana/plugin-e2e`** for E2E tests and **always use versioned selectors** to interact with the Grafana UI
+
+**Backend:**
+- Use Grafana plugin SDK HTTP client (not the upstream Golang HTTP client)
+- Cache and reuse backend connections to external services
+- Use `debug` or `error` level for logging (avoid `info` level)
+- Backend code must not access the file system
+
+**Data & Configuration:**
+- Use secureJsonData to store credentials and secrets; use jsonData for non-sensitive configuration (never store sensitive information in jsonData)
+- Maintain backward compatibility when changing configuration forms, panel options, and query editors
+- Preserve query model schema unless a migration handler is added
+
+**Build & Tools:**
+- Use webpack and only extend configuration when necessary — to extend webpack, prettier, eslint or other tools, follow the guide: https://grafana.com/developers/plugin-tools/how-to-guides/extend-configurations.md
+- Use mage and Magefile.go for backend builds — the Grafana plugin Go SDK provides these build methods, use them instead of custom build commands
+
+**General:**
+- Keep dependencies to a minimum. Think twice before adding a new dependency
+- Maintain consistent file structure and predictable types
+- Any modifications to `plugin.json` require a restart of the Grafana server. Remind the user of this after making changes to `plugin.json`
+- Consult the official documentation for how to use specific Grafana APIs or how-to guides. See the links in previous sections.
+
+
+## Boundaries & Don'ts list:
+- Do not change plugin ID or plugin type in `plugin.json`
+- Do not modify anything inside the `.config` folder. the `.config` folder is managed by the grafana plugin tools and MUST NOT be touched.
+- Do not Use environment variables outside of unit tests
+- Do not Execute arbitrary code in the backend or write code that allows arbitrary code execution
+- Do not Log sensitive data
+- Do not use `eval` or `new Function` for code execution in the frontend
+
+## Remember
+
+When you need to reference Grafana plugin documentation, fetch it directly from grafana.com using your web fetch tool, MCP server, or `curl -s`.
+
diff --git a/packages/create-plugin/templates/common/AGENTS.md b/packages/create-plugin/templates/common/AGENTS.md
new file mode 100644
index 0000000000..4f1c69d0f2
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+++ b/packages/create-plugin/templates/common/AGENTS.md
@@ -0,0 +1,2 @@
+## Project knowledge
+This repository contains a **Grafana plugin**. Read the [instructions and guidelines](./.config/AGENTS/instructions.md) before doing changes.
diff --git a/packages/create-plugin/templates/panel/.config/AGENTS/instructions.md b/packages/create-plugin/templates/panel/.config/AGENTS/instructions.md
deleted file mode 100644
index 3e07dd0727..0000000000
--- a/packages/create-plugin/templates/panel/.config/AGENTS/instructions.md
+++ /dev/null
@@ -1,83 +0,0 @@
----
-name: panel-plugin-agent-fundamentals
-description: Develops Grafana panel plugins
----
-
-You are an expert Grafana panel plugin developer for this project.
-
-## Your role
-
-- You are fluent in TypeScript and React
-- You know how to use Grafana dashboards
-
-## Project knowledge
-
-This repository contains a **Grafana panel plugin**, providing a custom visualization for Grafana dashboards.
-Panel plugins are used to:
-
-- Display data from Grafana data sources in custom ways
-- Add interactive behavior (drill-downs, navigation, etc.)
-- Visualize or control external systems (IoT, integrations, custom controls)
-
-### Plugin anatomy
-
-A typical panel plugin includes:
-
-**plugin.json**
-
-- Declares plugin ID, type (`panel`), name, version
-- Loaded by Grafana at startup
-
-**Main module (`src/module.ts`)**
-
-- Exports: `new PanelPlugin(PanelComponent)`
-- Registers panel options, migrations, defaults, ui extensions
-
-**Panel component (`src/components/Panel.tsx`)**
-
-- React component receiving: `data`, `timeRange`, `width`, `height`, `options`
-- Renders visualization using Grafana data frames and field configs
-
-### Repository layout
-
-- `plugin.json` — Panel plugin manifest
-- `src/module.ts` — Main plugin entry
-- `src/components/` — Panel React components
-- `src/types.ts` — Option and model types
-- `tests/` — E2E tests (if present)
-- `provisioning/` — Local development provisioning
-- `README.md` — Human documentation
-
-## Coding guidelines
-
-- Use **TypeScript** (in strict mode), functional React components, and idiomatic patterns
-- Use **@grafana/ui**, **@grafana/data**, **@grafana/runtime**
-- Use **`useTheme2()`** for all colors, spacing, typography
-- **Never hardcode** colors, spacing, padding, or font sizes
-- Use **Emotion** + `useStyles2()` + theme tokens for styling
-- Keep layouts responsive (use `width`/`height`)
-- Avoid new dependencies unless necessary + Grafana-compatible
-- Maintain consistent file structure and predictable types
-- Use **`@grafana/plugin-e2e`** for E2E tests and **always use versioned selectors** to interact with the Grafana UI.
-
-## Boundaries
-
-You must **NOT**:
-
-- Change plugin ID or plugin type in `plugin.json`
-- Modify anything inside `.config/*`
-- Add a backend (panel plugins = frontend only)
-- Remove/change existing options without a migration handler
-- Break public APIs (options, field configs, panel props)
-- Store, read, or handle credentials
-
-You **SHOULD**:
-
-- Maintain backward compatibility
-- Preserve option schema unless migration handler is added
-- Follow official Grafana panel plugin patterns
-- Use idiomatic React + TypeScript
-
-## Instructions for specific tasks
-
-- [Add panel options](./tasks/add-panel-options.md)
diff --git a/packages/create-plugin/templates/panel/.config/AGENTS/tasks/add-panel-options.md b/packages/create-plugin/templates/panel/.config/AGENTS/tasks/add-panel-options.md
deleted file mode 100644
index c42c2fd669..0000000000
--- a/packages/create-plugin/templates/panel/.config/AGENTS/tasks/add-panel-options.md
+++ /dev/null
@@ -1,132 +0,0 @@
-# Adding a New Panel Option
-
-Panel options are settings the user configures to change panel behavior.
-
-Always complete **all three steps**:
-
-### **1. Extend the options type**
-
-File: `src/types.ts`
-
-```ts
-export interface SimpleOptions {
-  // existing...
-  myOptionName: MyOptionType;
-}
-```
-
-- Property name must match the builder `path`.
-- Type must match expected editor output.
-
----
-
-### **2. Register the option in `setPanelOptions`**
-
-File: `src/module.ts` inside `setPanelOptions((builder) => { ... })`
-
-Use the correct builder method:
-
-| Type               | Builder              |
-| ------------------ | -------------------- |
-| boolean            | `addBooleanSwitch`   |
-| number             | `addNumberInput`     |
-| string             | `addTextInput`       |
-| select             | `addSelect`          |
-| radio              | `addRadio`           |
-| radio group        | `addRadio`           |
-| slider             | `addSliderInput`     |
-| color picker       | `addColorPicker`     |
-| unit picker        | `addUnitPicker`      |
-| field namer picker | `addFieldNamePicker` |
-
-Template:
-
-```ts
-builder.addXxx({
-  path: 'myOptionName',   // must match type property
-  name: 'My option',
-  defaultValue: <default>,
-  description: '',
-  settings: { /* optional */ },
-  // Optional visibility rule:
-  // showIf: (opts) => opts.someOtherOption,
-});
-```
-
-Rules:
-
-- Every option **must** have a `defaultValue`.
-- Put numeric constraints in `settings` (`min`, `max`, `step`).
-- Use `showIf` for conditional display.
-
----
-
-### **3. Use the option in the panel component**
-
-File: `src/Panel.tsx` (or equivalent)
-
-```tsx
-export const Panel = ({ options }) => {
-  const { myOptionName } = options;
-  // apply it in rendering/logic
-};
-```
-
-No option may remain unused.
-
----
-
-# Quick Editor Recipes
-
-### **Boolean**
-
-```ts
-.addBooleanSwitch({ path: 'flag', name: 'Flag', defaultValue: false })
-```
-
-### **Number**
-
-```ts
-.addNumberInput({
-  path: 'max',
-  name: 'Max value',
-  defaultValue: 10,
-  settings: { min: 1, max: 100, step: 1 },
-})
-```
-
-### **String**
-
-```ts
-.addTextInput({ path: 'label', name: 'Label', defaultValue: '' })
-```
-
-### **Select**
-
-```ts
-.addSelect({
-  path: 'mode',
-  name: 'Mode',
-  defaultValue: 'auto',
-  settings: { options: [
-    { value: 'a', label: 'A' },
-    { value: 'b', label: 'B' },
-  ]},
-})
-```
-
-### **Radio**
-
-```ts
-.addRadio({
-  path: 'size',
-  name: 'Size',
-  defaultValue: 'md',
-  settings: { options: [
-    { value: 'sm', label: 'Small' },
-    { value: 'md', label: 'Medium' },
-    { value: 'lg', label: 'Large' },
-  ]},
-  showIf: (o) => o.showSize,
-})
-```
diff --git a/packages/create-plugin/templates/panel/AGENTS.md b/packages/create-plugin/templates/panel/AGENTS.md
deleted file mode 100644
index b8a8a42ce9..0000000000
--- a/packages/create-plugin/templates/panel/AGENTS.md
+++ /dev/null
@@ -1,10 +0,0 @@
----
-name: panel-plugin-agent
-description: Develops Grafana panel plugins
----
-
-## Project knowledge
-
-This repository contains a **Grafana panel plugin**. Follow the [instructions](./.config/AGENTS/instructions.md) before doing any changes.
-
-All build, lint, test, and Docker dev-server commands are documented in the "Getting started" section of [README.md](./README.md). Prefer running the non-watch versions of these commands.