diff --git a/libs/python/mcp-server/mcp_server/server.py b/libs/python/mcp-server/mcp_server/server.py
index 66aaceba..489cf684 100644
--- a/libs/python/mcp-server/mcp_server/server.py
+++ b/libs/python/mcp-server/mcp_server/server.py
@@ -20,7 +20,9 @@ logger = logging.getLogger("mcp-server")
 logger.debug("MCP Server module loading...")
 
 try:
-    from mcp.server.fastmcp import Context, FastMCP, Image
+    from mcp.server.fastmcp import Context, FastMCP
+    # Use the canonical Image type
+    from mcp.server.fastmcp.utilities.types import Image
 
     logger.debug("Successfully imported FastMCP")
 except ImportError as e:
@@ -47,34 +49,25 @@ def get_env_bool(key: str, default: bool = False) -> bool:
 
 async def _maybe_call_ctx_method(ctx: Context, method_name: str, *args, **kwargs) -> None:
     """Call a context helper if it exists, awaiting the result when necessary."""
-
     method = getattr(ctx, method_name, None)
     if not callable(method):
         return
-
     result = method(*args, **kwargs)
     if inspect.isawaitable(result):
         await result
 
-
 def _normalise_message_content(content: Union[str, List[Dict[str, Any]]]) -> List[Dict[str, Any]]:
     """Normalise message content to a list of structured parts."""
-
     if isinstance(content, list):
         return content
-
     if content is None:
         return []
-
     return [{"type": "output_text", "text": str(content)}]
 
-
 def _extract_text_from_content(content: Union[str, List[Dict[str, Any]]]) -> str:
     """Extract textual content for inclusion in the aggregated result string."""
-
     if isinstance(content, str):
         return content
-
     texts: List[str] = []
     for part in content or []:
         if not isinstance(part, dict):
@@ -83,10 +76,8 @@ def _extract_text_from_content(content: Union[str, List[Dict[str, Any]]]) -> str
             texts.append(str(part["text"]))
     return "\n".join(texts)
 
-
 def _serialise_tool_content(content: Any) -> str:
     """Convert tool outputs into a string for aggregation."""
-
     if isinstance(content, str):
         return content
     if isinstance(content, list):
@@ -100,47 +91,30 @@ def _serialise_tool_content(content: Any) -> str:
         return ""
     return str(content)
 
-
-
 def serve() -> FastMCP:
     """Create and configure the MCP server."""
-    server = FastMCP("cua-agent")
+    # NOTE: Do not pass model_config here; FastMCP 2.12.x doesn't support it.
+    server = FastMCP(name="cua-agent")
 
-    @server.tool()
-    async def screenshot_cua(ctx: Context) -> Image:
+    @server.tool(structured_output=False)
+    async def screenshot_cua(ctx: Context) -> Any:
         """
-        Take a screenshot of the current MacOS VM screen and return the image. Use this before running a CUA task to get a snapshot of the current state.
-
-        Args:
-            ctx: The MCP context
-
-        Returns:
-            An image resource containing the screenshot
+        Take a screenshot of the current MacOS VM screen and return the image.
         """
         global global_computer
         if global_computer is None:
             global_computer = Computer(verbosity=logging.INFO)
             await global_computer.run()
         screenshot = await global_computer.interface.screenshot()
-        return Image(
-            format="png",
-            data=screenshot
-        )
+        # Returning Image object is fine when structured_output=False
+        return Image(format="png", data=screenshot)
 
-    @server.tool()
-    async def run_cua_task(ctx: Context, task: str) -> Tuple[str, Image]:
+    @server.tool(structured_output=False)
+    async def run_cua_task(ctx: Context, task: str) -> Any:
         """
-        Run a Computer-Use Agent (CUA) task in a MacOS VM and return the results.
-
-        Args:
-            ctx: The MCP context
-            task: The instruction or task for the agent to perform
-
-        Returns:
-            A tuple containing the agent's response and the final screenshot
+        Run a Computer-Use Agent (CUA) task in a MacOS VM and return (combined text, final screenshot).
         """
         global global_computer
-
         try:
             logger.info(f"Starting CUA task: {task}")
 
@@ -149,9 +123,8 @@ def serve() -> FastMCP:
                 global_computer = Computer(verbosity=logging.INFO)
                 await global_computer.run()
 
-            # Get model name - this now determines the loop and provider
+            # Get model name
             model_name = os.getenv("CUA_MODEL_NAME", "anthropic/claude-3-5-sonnet-20241022")
-            
             logger.info(f"Using model: {model_name}")
 
             # Create agent with the new v0.4.x API
@@ -159,23 +132,21 @@ def serve() -> FastMCP:
                 model=model_name,
                 only_n_most_recent_images=int(os.getenv("CUA_MAX_IMAGES", "3")),
                 verbosity=logging.INFO,
-                tools=[global_computer]
+                tools=[global_computer],
             )
 
-            # Create messages in the new v0.4.x format
             messages = [{"role": "user", "content": task}]
-            
+
             # Collect all results
             aggregated_messages: List[str] = []
             async for result in agent.run(messages):
-                logger.info(f"Agent processing step")
-                ctx.info(f"Agent processing step")
+                logger.info("Agent processing step")
+                ctx.info("Agent processing step")
 
-                # Process output if available
                 outputs = result.get("output", [])
                 for output in outputs:
                     output_type = output.get("type")
-                    
+
                     if output_type == "message":
                         logger.debug("Streaming assistant message: %s", output)
                         content = _normalise_message_content(output.get("content"))
@@ -224,7 +195,7 @@ def serve() -> FastMCP:
 
             screenshot_image = Image(
                 format="png",
-                data=await global_computer.interface.screenshot()
+                data=await global_computer.interface.screenshot(),
             )
 
             return (
@@ -242,27 +213,20 @@ def serve() -> FastMCP:
                     screenshot = await global_computer.interface.screenshot()
                     return (
                         f"Error during task execution: {str(e)}",
-                        Image(format="png", data=screenshot)
+                        Image(format="png", data=screenshot),
                     )
-            except:
+            except Exception:
                 pass
             # If we can't get a screenshot, return a placeholder
             return (
                 f"Error during task execution: {str(e)}",
-                Image(format="png", data=b"")
+                Image(format="png", data=b""),
             )
 
-    @server.tool()
-    async def run_multi_cua_tasks(ctx: Context, tasks: List[str]) -> List[Tuple[str, Image]]:
+    @server.tool(structured_output=False)
+    async def run_multi_cua_tasks(ctx: Context, tasks: List[str]) -> Any:
         """
-        Run multiple CUA tasks in a MacOS VM in sequence and return the combined results.
-
-        Args:
-            ctx: The MCP context
-            tasks: List of tasks to run in sequence
-
-        Returns:
-            Combined results from all tasks
+        Run multiple CUA tasks in sequence and return a list of (combined text, screenshot).
         """
         total_tasks = len(tasks)
         if total_tasks == 0:
@@ -278,7 +242,7 @@ def serve() -> FastMCP:
             task_result = await run_cua_task(ctx, task)
             results.append(task_result)
             ctx.report_progress((i + 1) / total_tasks)
-            
+
         return results
 
     return server
@@ -286,7 +250,6 @@ def serve() -> FastMCP:
 
 server = serve()
 
-
 def main():
     """Run the MCP server."""
     try:
@@ -297,6 +260,5 @@ def main():
         traceback.print_exc(file=sys.stderr)
         sys.exit(1)
 
-
 if __name__ == "__main__":
     main()
diff --git a/libs/python/mcp-server/scripts/start_mcp_server.sh b/libs/python/mcp-server/scripts/start_mcp_server.sh
index 13257351..95343ac9 100755
--- a/libs/python/mcp-server/scripts/start_mcp_server.sh
+++ b/libs/python/mcp-server/scripts/start_mcp_server.sh
@@ -1,14 +1,43 @@
-#!/bin/bash
+#!/usr/bin/env bash
+set -Eeuo pipefail
 
-set -e
-
-# Set the CUA repository path based on script location
+# --- Resolve repo root from this script's location ---
 SCRIPT_DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" &> /dev/null && pwd )"
-CUA_REPO_DIR="$( cd "$SCRIPT_DIR/../../.." &> /dev/null && pwd )"
-PYTHON_PATH="${CUA_REPO_DIR}/.venv/bin/python"
+CUA_REPO_DIR="$( cd "$SCRIPT_DIR/../../../.." &> /dev/null && pwd )"
 
-# Set Python path to include all necessary libraries
-export PYTHONPATH="${CUA_REPO_DIR}/libs/python/mcp-server:${CUA_REPO_DIR}/libs/python/agent:${CUA_REPO_DIR}/libs/python/computer:${CUA_REPO_DIR}/libs/python/core:${CUA_REPO_DIR}/libs/python/pylume"
+# --- Choose a Python interpreter (prefer repo-root venv) ---
+CANDIDATES=(
+  "$CUA_REPO_DIR/.venv/bin/python"
+  "$CUA_REPO_DIR/libs/.venv/bin/python"
+  "$(command -v python3 || true)"
+  "$(command -v python || true)"
+)
 
-# Run the MCP server directly as a module
-$PYTHON_PATH -m mcp_server.server
\ No newline at end of file
+PYTHON_PATH=""
+for p in "${CANDIDATES[@]}"; do
+  if [[ -n "$p" && -x "$p" ]]; then
+    PYTHON_PATH="$p"
+    break
+  fi
+done
+
+if [[ -z "${PYTHON_PATH}" ]]; then
+  >&2 echo "[cua-mcp] ERROR: No suitable Python found. Tried:"
+  for p in "${CANDIDATES[@]}"; do >&2 echo "  - $p"; done
+  >&2 echo "[cua-mcp] Tip: create venv:  python3 -m venv $CUA_REPO_DIR/.venv && \"$CUA_REPO_DIR/.venv/bin/pip\" install -e \"$CUA_REPO_DIR/libs/python/mcp-server\""
+  exit 127
+fi
+
+# --- Export PYTHONPATH so module imports work during dev ---
+export PYTHONPATH="$CUA_REPO_DIR/libs/python/mcp-server:$CUA_REPO_DIR/libs/python/agent:$CUA_REPO_DIR/libs/python/computer:$CUA_REPO_DIR/libs/python/core:$CUA_REPO_DIR/libs/python/pylume"
+
+# --- Helpful startup log for Claude's mcp.log ---
+>&2 echo "[cua-mcp] using python: $PYTHON_PATH"
+>&2 echo "[cua-mcp] repo dir    : $CUA_REPO_DIR"
+>&2 echo "[cua-mcp] PYTHONPATH  : $PYTHONPATH"
+if [[ -n "${CUA_MODEL_NAME:-}" ]]; then
+  >&2 echo "[cua-mcp] CUA_MODEL_NAME=$CUA_MODEL_NAME"
+fi
+
+# --- Run the MCP server module ---
+exec "$PYTHON_PATH" -m mcp_server.server