diff --git a/src/commands/onboard.test.ts b/src/commands/onboard.test.ts
index 07adc2505a23..5ee8ec3def69 100644
--- a/src/commands/onboard.test.ts
+++ b/src/commands/onboard.test.ts
@@ -5,6 +5,7 @@ import { formatCliCommand } from "../cli/command-format.js";
 import type { OpenClawConfig } from "../config/types.openclaw.js";
 import type { ProviderAuthMethod, ProviderPlugin } from "../plugins/types.js";
 import type { RuntimeEnv } from "../runtime.js";
+import { resolveUserPath } from "../utils.js";
 import { setupWizardCommand } from "./onboard.js";
 
 type ConfigSnapshotStub = {
@@ -12,6 +13,7 @@ type ConfigSnapshotStub = {
   valid: boolean;
   config: OpenClawConfig;
   sourceConfig?: OpenClawConfig;
+  readError?: { code: string | null };
 };
 
 type ProviderAuthMethodNonInteractiveValidationContext = Parameters<
@@ -364,10 +366,14 @@ describe("setupWizardCommand", () => {
 
   it("requires an explicit workspace for a full reset when config is unreadable", async () => {
     const runtime = makeRuntime();
+    // readConfigFileSnapshot always returns a sourceConfig object, so an
+    // unreadable config is only recognizable through readError.
     mocks.readConfigFileSnapshot.mockResolvedValue({
       exists: true,
       valid: false,
       config: {},
+      sourceConfig: {},
+      readError: { code: "EACCES" },
     });
 
     await setupWizardCommand(
@@ -384,6 +390,30 @@ describe("setupWizardCommand", () => {
     expect(mocks.handleReset).not.toHaveBeenCalled();
   });
 
+  it("uses the default workspace for a full reset when a readable config configures none", async () => {
+    const runtime = makeRuntime();
+    mocks.readConfigFileSnapshot.mockResolvedValue({
+      exists: true,
+      valid: false,
+      config: {},
+      sourceConfig: { gateway: { port: 1 } },
+    });
+
+    await setupWizardCommand(
+      {
+        reset: true,
+        resetScope: "full",
+      },
+      runtime,
+    );
+
+    expect(mocks.handleReset).toHaveBeenCalledWith(
+      "full",
+      resolveUserPath("~/.openclaw/workspace"),
+      runtime,
+    );
+  });
+
   it("accepts explicit --reset-scope full", async () => {
     const runtime = makeRuntime();
 
diff --git a/src/commands/onboard.ts b/src/commands/onboard.ts
index 0c2755a00266..2e34e49d6ab2 100644
--- a/src/commands/onboard.ts
+++ b/src/commands/onboard.ts
@@ -578,7 +578,10 @@ export async function setupWizardCommand(
       normalizedOpts.workspace === undefined &&
       snapshot.exists &&
       !snapshot.valid &&
-      !snapshot.sourceConfig
+      // A snapshot always carries a sourceConfig object (empty on failure), so
+      // only readError distinguishes "config could not be read" from "config
+      // parsed but configures no workspace", where the default is correct.
+      snapshot.readError !== undefined
     ) {
       rejectOption(
         runtime,