diff --git a/custom_model_runner/CHANGELOG.md b/custom_model_runner/CHANGELOG.md
index 4132fbd98..d07a9dffd 100644
--- a/custom_model_runner/CHANGELOG.md
+++ b/custom_model_runner/CHANGELOG.md
@@ -4,6 +4,15 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+#### [1.16.23] - 2025-08-18
+##### Changed
+- Add OTEL metrics and logs configuration.
+
+#### [1.16.22] - 2025-08-12
+##### Changed
+- Add support for kwargs and headers to generative ai chat models
+- Fix support for drum inline execution
+
 #### [1.16.21] - 2025-07-16
 ##### Removed
 - Removed PMML support
diff --git a/custom_model_runner/datarobot_drum/drum/common.py b/custom_model_runner/datarobot_drum/drum/common.py
index 24a2a040a..a549217f2 100644
--- a/custom_model_runner/datarobot_drum/drum/common.py
+++ b/custom_model_runner/datarobot_drum/drum/common.py
@@ -22,17 +22,24 @@
     PayloadFormat,
 )
 from datarobot_drum.drum.exceptions import DrumCommonException
-from datarobot_drum.drum.lazy_loading.lazy_loading_handler import LazyLoadingHandler
-from datarobot_drum.runtime_parameters.runtime_parameters import RuntimeParametersLoader
-from opentelemetry import trace, context
+from opentelemetry import trace, context, metrics
+from opentelemetry.exporter.otlp.proto.http.metric_exporter import OTLPMetricExporter
 from opentelemetry.exporter.otlp.proto.http.trace_exporter import OTLPSpanExporter
+from opentelemetry.exporter.otlp.proto.http._log_exporter import OTLPLogExporter
+
+from opentelemetry._logs import set_logger_provider
+from opentelemetry.sdk._logs import LoggerProvider, LoggingHandler
+from opentelemetry.sdk._logs.export import BatchLogRecordProcessor
+from opentelemetry.sdk._logs.export import SimpleLogRecordProcessor
+
+from opentelemetry.sdk.metrics import MeterProvider
+from opentelemetry.sdk.metrics.export import PeriodicExportingMetricReader
 from opentelemetry.sdk.resources import Resource
 from opentelemetry.sdk.trace import TracerProvider
 from opentelemetry.sdk.trace.export import BatchSpanProcessor
 from opentelemetry.sdk.trace.export import SimpleSpanProcessor
 from opentelemetry.trace.propagation.tracecontext import TraceContextTextMapPropagator
 
-
 ctx_request_id = ContextVar("request_id")
 
 
@@ -139,7 +146,39 @@ def make_otel_endpoint(datarobot_endpoint):
     return result
 
 
-def setup_tracer(runtime_parameters, options):
+def _setup_otel_logging(resource, multiprocessing=False):
+    logger_provider = LoggerProvider(resource=resource)
+    set_logger_provider(logger_provider)
+    exporter = OTLPLogExporter()
+    if multiprocessing:
+        logger_provider.add_log_record_processor(SimpleLogRecordProcessor(exporter))
+    else:
+        logger_provider.add_log_record_processor(BatchLogRecordProcessor(exporter))
+    handler = LoggingHandler(level=logging.DEBUG, logger_provider=logger_provider)
+    logging.getLogger().addHandler(handler)
+    return logger_provider
+
+
+def _setup_otel_metrics(resource):
+    metric_exporter = OTLPMetricExporter()
+    metric_reader = PeriodicExportingMetricReader(metric_exporter)
+    metric_provider = MeterProvider(metric_readers=[metric_reader], resource=resource)
+    metrics.set_meter_provider(metric_provider)
+    return metric_provider
+
+
+def _setup_otel_tracing(resource, multiprocessing=False):
+    otlp_exporter = OTLPSpanExporter()
+    trace_provider = TracerProvider(resource=resource)
+    if multiprocessing:
+        trace_provider.add_span_processor(SimpleSpanProcessor(otlp_exporter))
+    else:
+        trace_provider.add_span_processor(BatchSpanProcessor(otlp_exporter))
+    trace.set_tracer_provider(trace_provider)
+    return trace_provider
+
+
+def setup_otel(runtime_parameters, options):
     """Setups OTEL tracer.
 
     OTEL is configured by OTEL_EXPORTER_OTLP_ENDPOINT and
@@ -153,25 +192,20 @@ def setup_tracer(runtime_parameters, options):
         command argumetns
     Returns
     -------
-    TracerProvider
+    (TracerProvider, MetricProvider)
     """
-    log = get_drum_logger("setup_tracer")
+    log = get_drum_logger("setup_otel")
 
     # Can be used to disable OTEL reporting from env var parameters
     # https://opentelemetry.io/docs/specs/otel/configuration/sdk-environment-variables/
     if runtime_parameters.has("OTEL_SDK_DISABLED") and os.environ.get("OTEL_SDK_DISABLED"):
-        log.info("Tracing explictly disabled")
-        return
-
-    main_endpoint = os.environ.get("OTEL_EXPORTER_OTLP_ENDPOINT")
-    trace_endpoint = os.environ.get("OTEL_EXPORTER_OTLP_TRACES_ENDPOINT")
-    if not main_endpoint and not trace_endpoint:
-        log.info("Tracing is not configured")
-        return
+        log.info("OTEL explictly disabled")
+        return (None, None, None)
 
-    resource = Resource.create()
-    otlp_exporter = OTLPSpanExporter()
-    provider = TracerProvider(resource=resource)
+    endpoint = os.environ.get("OTEL_EXPORTER_OTLP_ENDPOINT")
+    if not endpoint:
+        log.info("OTEL is not configured")
+        return (None, None, None)
 
     # In case of NIM flask server is configured to run in multiprocessing
     # mode that uses fork. Since BatchSpanProcessor start background thread
@@ -180,16 +214,15 @@ def setup_tracer(runtime_parameters, options):
     # missing due to process exits before all data offloaded. In forking
     # case we use SimpleSpanProcessor (mostly NIMs) otherwise BatchSpanProcessor
     # (most frequent case)
-    if options.max_workers > 1:
-        provider.add_span_processor(SimpleSpanProcessor(otlp_exporter))
-    else:
-        provider.add_span_processor(BatchSpanProcessor(otlp_exporter))
+    multiprocessing = options.max_workers > 1
 
-    trace.set_tracer_provider(provider)
+    resource = Resource.create()
+    trace_provider = _setup_otel_tracing(resource=resource, multiprocessing=multiprocessing)
+    logger_provider = _setup_otel_logging(resource=resource, multiprocessing=multiprocessing)
+    metric_provider = _setup_otel_metrics(resource=resource)
 
-    endpoint = main_endpoint or trace_endpoint
-    log.info(f"Tracing is configured with endpoint: {endpoint}")
-    return provider
+    log.info(f"OTEL is configured with endpoint: {endpoint}")
+    return trace_provider, metric_provider, logger_provider
 
 
 @contextmanager
@@ -232,12 +265,3 @@ def extract_chat_response_attributes(response):
         # last completion wins
         attributes["gen_ai.completion"] = m.get("content")
     return attributes
-
-
-def setup_required_environment_variables(options):
-    if "runtime_params_file" in options and options.runtime_params_file:
-        loader = RuntimeParametersLoader(options.runtime_params_file, options.code_dir)
-        loader.setup_environment_variables()
-
-    if "lazy_loading_file" in options and options.lazy_loading_file:
-        LazyLoadingHandler.setup_environment_variables_from_values_file(options.lazy_loading_file)
diff --git a/custom_model_runner/datarobot_drum/drum/description.py b/custom_model_runner/datarobot_drum/drum/description.py
index 606c506a1..f3dfee031 100644
--- a/custom_model_runner/datarobot_drum/drum/description.py
+++ b/custom_model_runner/datarobot_drum/drum/description.py
@@ -4,6 +4,6 @@
 This is proprietary source code of DataRobot, Inc. and its affiliates.
 Released under the terms of DataRobot Tool and Utility Agreement.
 """
-version = "1.16.20"
+version = "1.16.23"
 __version__ = version
 project_name = "datarobot-drum"
diff --git a/custom_model_runner/datarobot_drum/drum/main.py b/custom_model_runner/datarobot_drum/drum/main.py
index d6384ec2f..94aa0e5b5 100644
--- a/custom_model_runner/datarobot_drum/drum/main.py
+++ b/custom_model_runner/datarobot_drum/drum/main.py
@@ -43,18 +43,13 @@
 import signal
 import sys
 
-from datarobot_drum.drum.args_parser import CMRunnerArgsRegistry
-from datarobot_drum.drum.common import (
-    config_logging,
-    setup_tracer,
-    setup_required_environment_variables,
-)
+from datarobot_drum.drum.common import config_logging, setup_otel
+from datarobot_drum.drum.utils.setup import setup_options
 from datarobot_drum.drum.enum import RunMode
 from datarobot_drum.drum.enum import ExitCodes
 from datarobot_drum.drum.exceptions import DrumSchemaValidationException
 from datarobot_drum.drum.runtime import DrumRuntime
 from datarobot_drum.runtime_parameters.runtime_parameters import (
-    RuntimeParametersLoader,
     RuntimeParameters,
 )
 
@@ -75,39 +70,24 @@ def signal_handler(sig, frame):
             # Let traceer offload accumulated spans before shutdown.
             if runtime.trace_provider is not None:
                 runtime.trace_provider.shutdown()
+            if runtime.metric_provider is not None:
+                runtime.metric_provider.shutdown()
+            if runtime.log_provider is not None:
+                runtime.log_provider.shutdown()
 
             os._exit(130)
 
-        arg_parser = CMRunnerArgsRegistry.get_arg_parser()
-
         try:
-            import argcomplete
-        except ImportError:
-            print(
-                "WARNING: autocompletion of arguments is not supported "
-                "as 'argcomplete' package is not found",
-                file=sys.stderr,
-            )
-        else:
-            # argcomplete call should be as close to the beginning as possible
-            argcomplete.autocomplete(arg_parser)
-
-        CMRunnerArgsRegistry.extend_sys_argv_with_env_vars()
-
-        options = arg_parser.parse_args()
-        CMRunnerArgsRegistry.verify_options(options)
-
-        try:
-            setup_required_environment_variables(options)
+            options = setup_options()
+            runtime.options = options
         except Exception as exc:
             print(str(exc))
             exit(255)
 
-        if RuntimeParameters.has("CUSTOM_MODEL_WORKERS"):
-            options.max_workers = RuntimeParameters.get("CUSTOM_MODEL_WORKERS")
-        runtime.options = options
-
-        runtime.trace_provider = setup_tracer(RuntimeParameters, options)
+        trace_provider, metric_provider, log_provider = setup_otel(RuntimeParameters, options)
+        runtime.trace_provider = trace_provider
+        runtime.metric_provider = metric_provider
+        runtime.log_provider = log_provider
 
         signal.signal(signal.SIGINT, signal_handler)
         signal.signal(signal.SIGTERM, signal_handler)
diff --git a/custom_model_runner/datarobot_drum/drum/root_predictors/drum_inline_utils.py b/custom_model_runner/datarobot_drum/drum/root_predictors/drum_inline_utils.py
index 2d94fce9c..19e9ed005 100644
--- a/custom_model_runner/datarobot_drum/drum/root_predictors/drum_inline_utils.py
+++ b/custom_model_runner/datarobot_drum/drum/root_predictors/drum_inline_utils.py
@@ -26,7 +26,8 @@
 from typing import Generator, List
 
 from datarobot_drum.drum.args_parser import CMRunnerArgsRegistry
-from datarobot_drum.drum.common import setup_required_environment_variables, setup_tracer
+from datarobot_drum.drum.common import setup_otel
+from datarobot_drum.drum.utils.setup import setup_options
 from datarobot_drum.drum.drum import CMRunner
 from datarobot_drum.drum.language_predictors.base_language_predictor import BaseLanguagePredictor
 from datarobot_drum.drum.runtime import DrumRuntime
@@ -68,14 +69,23 @@ def drum_inline_predictor(
             target_type,
             *cmd_args,
         ]
-        options = arg_parser.parse_args(args)
-        CMRunnerArgsRegistry.verify_options(options)
-        setup_required_environment_variables(options)
 
-        runtime.options = options
-        setup_tracer(RuntimeParameters, options)
+        try:
+            options = setup_options(args)
+            runtime.options = options
+        except Exception as exc:
+            print(str(exc))
+            exit(255)
+
+        trace_provider, metric_provider, log_provider = setup_otel(RuntimeParameters, options)
         runtime.cm_runner = CMRunner(runtime)
         params = runtime.cm_runner.get_predictor_params()
         predictor = GenericPredictorComponent(params)
 
         yield predictor.predictor
+        if trace_provider is not None:
+            trace_provider.shutdown()
+        if metric_provider is not None:
+            metric_provider.shutdown()
+        if log_provider is not None:
+            log_provider.shutdown()
diff --git a/custom_model_runner/datarobot_drum/drum/root_predictors/prediction_server.py b/custom_model_runner/datarobot_drum/drum/root_predictors/prediction_server.py
index d2a6b3d5e..a6333fcb7 100644
--- a/custom_model_runner/datarobot_drum/drum/root_predictors/prediction_server.py
+++ b/custom_model_runner/datarobot_drum/drum/root_predictors/prediction_server.py
@@ -5,8 +5,11 @@
 Released under the terms of DataRobot Tool and Utility Agreement.
 """
 import logging
+import os
 import sys
+import time
 from pathlib import Path
+from threading import Thread
 
 import requests
 from flask import Response, jsonify, request
@@ -22,6 +25,7 @@
     ModelInfoKeys,
     RunLanguage,
     TargetType,
+    URL_PREFIX_ENV_VAR_NAME,
 )
 from datarobot_drum.drum.exceptions import DrumCommonException
 from datarobot_drum.drum.model_metadata import read_model_metadata_yaml
@@ -71,6 +75,7 @@ def __init__(self, params: dict):
             "run_predictor_total", "finish", StatsOperation.SUB, "start"
         )
         self._predictor = self._setup_predictor()
+        self._server_watchdog = None
 
     def _setup_predictor(self):
         if self._run_language == RunLanguage.PYTHON:
@@ -301,10 +306,95 @@ def _run_flask_app(self, app):
             processes = self._params.get("processes")
             logger.info("Number of webserver processes: %s", processes)
         try:
+            if str(os.environ.get("USE_NIM_WATCHDOG", "false")).lower() in ["true", "1", "yes"]:
+                # Start the watchdog thread before running the app
+                self._server_watchdog = Thread(
+                    target=self.watchdog,
+                    args=(port,),  # Pass host and port as arguments
+                    daemon=True,
+                    name="OpenAI Watchdog",
+                )
+                self._server_watchdog.start()
+
             app.run(host, port, threaded=False, processes=processes)
         except OSError as e:
             raise DrumCommonException("{}: host: {}; port: {}".format(e, host, port))
 
+    def watchdog(self, port):
+        """
+        Watchdog thread that periodically checks if the server is alive by making
+        GET requests to the /ping/ endpoint. Makes 3 attempts with quadratic backoff
+        before terminating the Flask app.
+        """
+
+        logger.info("Starting watchdog to monitor server health...")
+
+        import os
+
+        url_host = os.environ.get("TEST_URL_HOST", "localhost")
+        url_prefix = os.environ.get(URL_PREFIX_ENV_VAR_NAME, "")
+        health_url = f"http://{url_host}:{port}/{url_prefix}/info/"
+
+        request_timeout = 120
+        check_interval = 10  # seconds
+        max_attempts = 5
+
+        attempt = 0
+        base_sleep_time = 2
+
+        while True:
+            try:
+                # Check if server is responding to health checks
+                logger.debug(f"Server health check")
+                response = requests.get(health_url, timeout=request_timeout)
+                logger.debug(f"Server health check status: {response.status_code}")
+                # Connection succeeded, reset attempts and wait for next check
+                attempt = 0
+                time.sleep(check_interval)  # Regular check interval
+                continue
+
+            except Exception as e:
+                attempt += 1
+                logger.error(f"health_url {health_url}")
+                logger.error(
+                    f"Server health check failed (attempt {attempt}/{max_attempts}): {str(e)}"
+                )
+
+                if attempt >= max_attempts:
+                    logger.error(
+                        "All health check attempts failed. Forcefully killing all processes."
+                    )
+
+                    # First try clean termination
+                    try:
+                        self._terminate()
+                    except Exception as e:
+                        logger.error(f"Error during clean termination: {str(e)}")
+
+                    # Force kill all processes
+                    import subprocess
+
+                    # Use more direct system commands to kill processes
+                    try:
+                        # Kill packedge jobs first (more aggressive approach)
+                        logger.info("Killing Python package jobs")
+                        # Run `busybox ps` and capture output
+                        result = subprocess.run(["busybox", "ps"], capture_output=True, text=True)
+                        # Parse lines, skip the header
+                        lines = result.stdout.strip().split("\n")[1:]
+                        # Extract the PID (first column)
+                        pids = [int(line.split()[0]) for line in lines]
+                        for pid in pids:
+                            print("Killing pid:", pid)
+                            subprocess.run(f"kill {pid}", shell=True)
+                    except Exception as kill_error:
+                        logger.error(f"Error during process killing: {str(kill_error)}")
+
+                # Quadratic backoff
+                sleep_time = base_sleep_time * (attempt**2)
+                logger.info(f"Retrying in {sleep_time} seconds...")
+                time.sleep(sleep_time)
+
     def terminate(self):
         terminate_op = getattr(self._predictor, "terminate", None)
         if callable(terminate_op):
diff --git a/custom_model_runner/datarobot_drum/drum/runtime.py b/custom_model_runner/datarobot_drum/drum/runtime.py
index ade7545ac..ea3f197b1 100644
--- a/custom_model_runner/datarobot_drum/drum/runtime.py
+++ b/custom_model_runner/datarobot_drum/drum/runtime.py
@@ -5,7 +5,6 @@
 Released under the terms of DataRobot Tool and Utility Agreement.
 """
 import logging
-import traceback
 
 from datarobot_drum.drum.server import (
     empty_api_blueprint,
@@ -16,9 +15,7 @@
 from datarobot_drum.drum.enum import LOGGER_NAME_PREFIX, RunMode
 
 from datarobot_drum.drum.exceptions import DrumCommonException
-from datarobot_drum.drum.args_parser import ArgumentsOptions
 
-from termcolor import colored
 
 logger = get_drum_logger(__name__)
 logger.setLevel(logging.ERROR)
@@ -30,7 +27,10 @@ def __init__(self):
         self.initialization_succeeded = False
         self.options = None
         self.cm_runner = None
+        # OTEL services
         self.trace_provider = None
+        self.metric_provider = None
+        self.log_provider = None
 
     def __enter__(self):
         return self
diff --git a/custom_model_runner/datarobot_drum/drum/utils/setup.py b/custom_model_runner/datarobot_drum/drum/utils/setup.py
new file mode 100644
index 000000000..6bd80ba88
--- /dev/null
+++ b/custom_model_runner/datarobot_drum/drum/utils/setup.py
@@ -0,0 +1,68 @@
+"""
+Copyright 2025 DataRobot, Inc. and its affiliates.
+All rights reserved.
+This is proprietary source code of DataRobot, Inc. and its affiliates.
+Released under the terms of DataRobot Tool and Utility Agreement.
+"""
+
+import sys
+
+from datarobot_drum import RuntimeParameters
+from datarobot_drum.drum.args_parser import CMRunnerArgsRegistry
+from datarobot_drum.drum.lazy_loading.lazy_loading_handler import LazyLoadingHandler
+from datarobot_drum.runtime_parameters.runtime_parameters import RuntimeParametersLoader
+
+
+def setup_options(args=None):
+    """
+    Setup options for the Drum runtime.
+    This function is used to set up the command line arguments and options
+    for the Drum runtime, including environment variables and maximum workers.
+
+    Parameters
+    ----------
+    args : list, optional
+        List of command line arguments to parse. If None, uses sys.argv[1:].
+        Defaults to None, which means it will use sys.argv[1:].
+
+    Returns
+    -------
+    options : argparse.Namespace
+        Parsed command line options as an argparse.Namespace object.
+    """
+    arg_parser = CMRunnerArgsRegistry.get_arg_parser()
+
+    try:
+        import argcomplete
+    except ImportError:
+        print(
+            "WARNING: autocompletion of arguments is not supported "
+            "as 'argcomplete' package is not found",
+            file=sys.stderr,
+        )
+    else:
+        # argcomplete call should be as close to the beginning as possible
+        argcomplete.autocomplete(arg_parser)
+
+    CMRunnerArgsRegistry.extend_sys_argv_with_env_vars()
+
+    options = arg_parser.parse_args(args)
+
+    """Set max workers from runtime parameters if available."""
+    if RuntimeParameters.has("CUSTOM_MODEL_WORKERS"):
+        options.max_workers = RuntimeParameters.get("CUSTOM_MODEL_WORKERS")
+    elif "max_workers" not in options or options.max_workers is None:
+        options.max_workers = 1  # Default to 1 worker if not specified
+    else:
+        options.max_workers = int(options.max_workers)
+
+    CMRunnerArgsRegistry.verify_options(options)
+
+    if "runtime_params_file" in options and options.runtime_params_file:
+        loader = RuntimeParametersLoader(options.runtime_params_file, options.code_dir)
+        loader.setup_environment_variables()
+
+    if "lazy_loading_file" in options and options.lazy_loading_file:
+        LazyLoadingHandler.setup_environment_variables_from_values_file(options.lazy_loading_file)
+
+    return options
diff --git a/public_dropin_environments/java_codegen/env_info.json b/public_dropin_environments/java_codegen/env_info.json
index add23d929..cbac232db 100644
--- a/public_dropin_environments/java_codegen/env_info.json
+++ b/public_dropin_environments/java_codegen/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template can be used as an environment for DataRobot generated scoring code or models that implement the either the IClassificationPredictor or IRegressionPredictor interface from the datarobot-prediction package and for H2O models exported as POJO or MOJO.",
   "programmingLanguage": "java",
   "label": "",
-  "environmentVersionId": "688c1c850012682da8000374",
+  "environmentVersionId": "689b9c1b0056193d330033b3",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/java_codegen",
   "imageRepository": "env-java-codegen",
   "tags": [
-    "v11.2.0-688c1c850012682da8000374",
-    "688c1c850012682da8000374",
+    "v11.2.0-689b9c1b0056193d330033b3",
+    "689b9c1b0056193d330033b3",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python311/env_info.json b/public_dropin_environments/python311/env_info.json
index 5171546f8..ebfa292a9 100644
--- a/public_dropin_environments/python311/env_info.json
+++ b/public_dropin_environments/python311/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create Python based custom models. User is responsible to provide requirements.txt with the model, to install all the required dependencies.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c860072b67f71005108",
+  "environmentVersionId": "689b9c1c005f8052300021cc",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python311",
   "imageRepository": "env-python",
   "tags": [
-    "v11.2.0-688c1c860072b67f71005108",
-    "688c1c860072b67f71005108",
+    "v11.2.0-689b9c1c005f8052300021cc",
+    "689b9c1c005f8052300021cc",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python311_genai_agents/env_info.json b/public_dropin_environments/python311_genai_agents/env_info.json
index 90d5d9233..7acc25582 100644
--- a/public_dropin_environments/python311_genai_agents/env_info.json
+++ b/public_dropin_environments/python311_genai_agents/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create GenAI-powered agents using CrewAI, LangGraph, or Llama-Index. Similar to other drop-in environments, you can either include a .pth artifact or any other code needed to deserialize your model, and optionally a custom.py file. You can also use this environment in codespaces.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "6894fd315a5c1b1204e81aff",
+  "environmentVersionId": "689e166376dbcf1206bb5ce4",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -15,8 +15,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python311_genai_agents",
   "imageRepository": "env-python-genai-agents",
   "tags": [
-    "v11.2.0-6894fd315a5c1b1204e81aff",
-    "6894fd315a5c1b1204e81aff",
+    "v11.2.0-689e166376dbcf1206bb5ce4",
+    "689e166376dbcf1206bb5ce4",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python311_genai_agents/requirements.in b/public_dropin_environments/python311_genai_agents/requirements.in
index 56951a1df..6b840b484 100644
--- a/public_dropin_environments/python311_genai_agents/requirements.in
+++ b/public_dropin_environments/python311_genai_agents/requirements.in
@@ -23,36 +23,40 @@ urllib3>=2.5.0
 click~=8.1.8
 crewai>=0.140.0
 crewai-tools>=0.48.0
-datarobot-drum>=1.16.19
-datarobot-moderations>=11.1.23
+datarobot-drum>=1.16.22
+datarobot-moderations>=11.2.2
 datarobot-mlops>=11.1.0
-datarobot>=3.7.0
+datarobot[auth]>=3.8.2
 dotenv~=0.9.9
 langchain-community~=0.3.23
+langchain-mcp-adapters~=0.1.9
 langchain~=0.3.23
 langgraph~=0.4.10
 langgraph-prebuilt~=0.2.3
 legacy-cgi~=2.6.3
 litellm>=1.72.1
 llama-index-core>=0.12.49
-llama-index-llms-langchain~=0.6.1
-llama-index-llms-litellm~=0.4.1
-llama-index-llms-openai~=0.3.38
+llama-index-llms-langchain>=0.6.1
+llama-index-llms-litellm>=0.4.1
+llama-index-llms-openai>=0.3.38
 llama-index~=0.12.33
+mcp>=1.11.0
 multidict~=6.5.0
 onnxruntime~=1.22.0
-openai~=1.76.2
-opentelemetry-api~=1.33.0
-opentelemetry-instrumentation-aiohttp-client~=0.54b0
-opentelemetry-instrumentation-crewai~=0.40.5
-opentelemetry-instrumentation-httpx~=0.54b0
-opentelemetry-instrumentation-langchain~=0.40.5
-opentelemetry-instrumentation-llamaindex~=0.40.5
-opentelemetry-instrumentation-openai~=0.40.5
-opentelemetry-instrumentation-requests~=0.54b0
-opentelemetry-sdk~=1.33.0
+openai>=1.76.2
+opentelemetry-api>=1.33.0,<2.0.0
+opentelemetry-instrumentation-aiohttp-client>=0.54b0
+opentelemetry-instrumentation-crewai>=0.40.5
+opentelemetry-instrumentation-httpx>=0.54b0
+opentelemetry-instrumentation-langchain>=0.40.5
+opentelemetry-instrumentation-llamaindex>=0.40.5
+opentelemetry-instrumentation-openai>=0.40.5
+opentelemetry-instrumentation-requests>=0.54b0
+opentelemetry-sdk>=1.33.0
 python-dotenv~=1.1.0
 ragas @ git+https://github.com/explodinggradients/ragas@5d59549ad5ef511f621502c563bc55ac5aeb9188#subdirectory=ragas
+# pyarrow==21.0.0 breaks the current ragas version https://github.com/apache/arrow/issues/47155
+pyarrow<21.0.0
 requests~=2.32.4
 traceloop-sdk~=0.40.2
 uvicorn~=0.35.0
diff --git a/public_dropin_environments/python311_genai_agents/requirements.txt b/public_dropin_environments/python311_genai_agents/requirements.txt
index 4468725aa..2db3a56ba 100644
--- a/public_dropin_environments/python311_genai_agents/requirements.txt
+++ b/public_dropin_environments/python311_genai_agents/requirements.txt
@@ -31,11 +31,9 @@ azure-core==1.34.0
 azure-identity==1.22.0
 azure-storage-blob==12.19.0
 backoff==2.2.1
-backports-tarfile==1.2.0
 banks==2.1.2
 bcrypt==4.3.0
 beautifulsoup4==4.13.4
-black==25.1.0
 bleach[css]==6.2.0
 blinker==1.9.0
 boto3==1.37.3
@@ -52,21 +50,20 @@ cohere==5.15.0
 colorama==0.4.6
 coloredlogs==15.0.1
 comm==0.2.2
-coverage==7.8.2
 crewai==0.140.0
 crewai-tools==0.48.0
 cryptography==44.0.3
 dataclasses-json==0.6.7
-datarobot==3.7.1
-datarobot-drum==1.16.19
+datarobot[auth]==3.8.2
+datarobot-drum==1.16.22
 datarobot-mlops==11.1.0
-datarobot-moderations==11.2.0
+datarobot-moderations==11.2.2
 datarobot-predict==1.13.2
 datarobot-storage==2.2.0
 datasets==3.6.0
 debugpy==1.8.14
 decorator==5.2.1
-deepeval==2.7.9
+deepeval==3.3.9
 defusedxml==0.7.1
 deprecated==1.2.18
 deprecation==2.1.0
@@ -76,7 +73,6 @@ diskcache==5.6.3
 distro==1.9.0
 docker==7.1.0
 docstring-parser==0.16
-docutils==0.21.2
 dotenv==0.9.9
 durationpy==0.9
 ecs-logging==2.2.0
@@ -136,11 +132,7 @@ ipython==8.37.0
 isodate==0.7.2
 isoduration==20.11.0
 itsdangerous==2.2.0
-jaraco-classes==3.4.0
-jaraco-context==6.0.1
-jaraco-functools==4.1.0
 jedi==0.19.2
-jeepney==0.9.0
 jinja2==3.1.6
 jiter==0.8.2
 jmespath==1.0.1
@@ -161,7 +153,6 @@ jupyter-kernel-gateway==3.0.1
 jupyter-server==2.15.0
 jupyter-server-terminals==0.5.3
 jupyterlab-pygments==0.3.0
-keyring==25.6.0
 kubernetes==32.0.1
 lancedb==0.22.0
 langchain==0.3.25
@@ -169,6 +160,7 @@ langchain-cohere==0.3.5
 langchain-community==0.3.23
 langchain-core==0.3.59
 langchain-experimental==0.3.4
+langchain-mcp-adapters==0.1.9
 langchain-nvidia-ai-endpoints==0.3.10
 langchain-openai==0.2.14
 langchain-text-splitters==0.3.8
@@ -182,24 +174,23 @@ legacy-cgi==2.6.3
 litellm==1.72.6
 llama-cloud==0.1.21
 llama-cloud-services==0.6.15
-llama-index==0.12.35
-llama-index-agent-openai==0.4.7
-llama-index-cli==0.4.1
+llama-index==0.12.51
+llama-index-agent-openai==0.4.12
+llama-index-cli==0.4.4
 llama-index-core==0.12.51
 llama-index-embeddings-azure-openai==0.3.7
 llama-index-embeddings-openai==0.3.1
 llama-index-indices-managed-llama-cloud==0.6.11
 llama-index-instrumentation==0.3.0
-llama-index-llms-azure-openai==0.3.2
+llama-index-llms-azure-openai==0.3.4
 llama-index-llms-bedrock-converse==0.7.1
-llama-index-llms-fireworks==0.3.2
 llama-index-llms-langchain==0.6.1
 llama-index-llms-litellm==0.4.2
-llama-index-llms-openai==0.3.38
+llama-index-llms-openai==0.4.7
 llama-index-llms-vertex==0.5.0
-llama-index-multi-modal-llms-openai==0.4.3
-llama-index-program-openai==0.3.1
-llama-index-question-gen-openai==0.3.0
+llama-index-multi-modal-llms-openai==0.5.3
+llama-index-program-openai==0.3.2
+llama-index-question-gen-openai==0.3.1
 llama-index-readers-file==0.4.7
 llama-index-readers-llama-parse==0.4.0
 llama-index-workflows==1.1.0
@@ -210,13 +201,13 @@ markdown-it-py==3.0.0
 markupsafe==3.0.2
 marshmallow==3.26.1
 matplotlib-inline==0.1.7
+mcp==1.11.0
 mdurl==0.1.2
 mem0ai==0.1.98
 memory-profiler==0.61.0
 mistune==3.1.3
 mmh3==5.1.0
 monotonic==1.6
-more-itertools==10.7.0
 mpmath==1.3.0
 msal==1.32.3
 msal-extensions==1.3.1
@@ -229,14 +220,13 @@ nbformat==5.10.4
 nemoguardrails==0.14.0
 nest-asyncio==1.6.0
 networkx==3.4.2
-nh3==0.2.21
 nltk==3.9.1
 nodeenv==1.9.1
 numpy==2.2.5
 oauthlib==3.2.2
 ollama==0.5.1
 onnxruntime==1.22.0
-openai==1.76.2
+openai==1.99.9
 openpyxl==3.1.5
 opentelemetry-api==1.33.0
 opentelemetry-exporter-otlp-proto-common==1.33.0
@@ -292,12 +282,10 @@ packaging==24.2
 pandas==2.2.3
 pandocfilters==1.5.1
 parso==0.8.4
-pathspec==0.12.1
 pdfminer-six==20250327
 pdfplumber==0.11.6
 pexpect==4.9.0
 pillow==11.3.0
-pkginfo==1.10.0
 platformdirs==4.3.8
 pluggy==1.6.0
 portalocker==2.10.1
@@ -320,6 +308,7 @@ pycparser==2.22
 pydantic==2.11.7
 pydantic-core==2.33.2
 pydantic-settings==2.9.1
+pyfiglet==1.0.3
 pygments==2.19.1
 pyjwt[crypto]==2.10.1
 pypdf==5.4.0
@@ -336,6 +325,7 @@ pytest-xdist==3.7.0
 python-dateutil==2.9.0.post0
 python-dotenv==1.1.0
 python-json-logger==3.3.0
+python-multipart==0.0.20
 pytube==15.0.0
 pytz==2024.2
 pyvis==0.3.2
@@ -343,14 +333,12 @@ pyyaml==6.0.2
 pyzmq==26.4.0
 qdrant-client==1.14.2
 ragas @ git+https://github.com/explodinggradients/ragas@5d59549ad5ef511f621502c563bc55ac5aeb9188#subdirectory=ragas
-readme-renderer==44.0
 referencing==0.36.2
 regex==2024.11.6
 requests==2.32.4
 requests-oauthlib==2.0.0
 requests-toolbelt==1.0.0
 rfc3339-validator==0.1.4
-rfc3986==2.0.0
 rfc3986-validator==0.1.1
 rich==13.9.4
 rouge-score==0.1.2
@@ -360,7 +348,6 @@ ruamel-yaml==0.17.4
 s3transfer==0.11.3
 schema==0.7.7
 scipy==1.15.3
-secretstorage==3.3.3
 send2trash==1.8.3
 sentry-sdk==2.29.1
 shapely==2.1.1
@@ -370,6 +357,7 @@ six==1.17.0
 sniffio==1.3.1
 soupsieve==2.7
 sqlalchemy[asyncio]==2.0.40
+sse-starlette==3.0.2
 stack-data==0.6.3
 starlette==0.46.2
 strenum==0.4.15
@@ -391,11 +379,10 @@ tqdm==4.67.1
 traceloop-sdk==0.40.14
 trafaret==2.1.1
 traitlets==5.14.3
-twine==5.1.1
 typer==0.15.3
 types-python-dateutil==2.9.0.20241206
 types-requests==2.32.0.20250328
-typing-extensions==4.13.2
+typing-extensions==4.14.1
 typing-inspect==0.9.0
 typing-inspection==0.4.0
 tzdata==2025.2
diff --git a/public_dropin_environments/python3_keras/env_info.json b/public_dropin_environments/python3_keras/env_info.json
index f4d93148f..f08ae463b 100644
--- a/public_dropin_environments/python3_keras/env_info.json
+++ b/public_dropin_environments/python3_keras/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only keras custom models. This environment contains keras backed by tensorflow and only requires your model artifact as a .h5 file and optionally a custom.py file.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c86002072530100056c",
+  "environmentVersionId": "689cb69b9c627511efb5b741",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python3_keras",
   "imageRepository": "env-python-keras",
   "tags": [
-    "v11.2.0-688c1c86002072530100056c",
-    "688c1c86002072530100056c",
+    "v11.2.0-689cb69b9c627511efb5b741",
+    "689cb69b9c627511efb5b741",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python3_keras/requirements.txt b/public_dropin_environments/python3_keras/requirements.txt
index 72350ad75..f8a04dc25 100644
--- a/public_dropin_environments/python3_keras/requirements.txt
+++ b/public_dropin_environments/python3_keras/requirements.txt
@@ -4,80 +4,79 @@
 #
 #    pip-compile --index-url=https://pypi.org/simple --no-annotate --no-emit-index-url --no-emit-trusted-host --output-file=requirements.txt requirements.in
 #
-absl-py==2.3.0
+absl-py==2.3.1
 annotated-types==0.7.0
 argcomplete==3.6.2
 astunparse==1.6.3
-azure-core==1.34.0
-azure-identity==1.23.0
+azure-core==1.35.0
+azure-identity==1.24.0
 azure-storage-blob==12.19.0
 blinker==1.9.0
-boto3==1.38.23
-botocore==1.38.23
+boto3==1.40.8
+botocore==1.40.8
 cachetools==5.5.2
-certifi==2025.4.26
+certifi==2025.8.3
 cffi==1.17.1
-charset-normalizer==3.4.2
+charset-normalizer==3.4.3
 click==8.2.1
-cryptography==45.0.3
-datarobot==3.7.1
-datarobot-drum==1.16.19
+cryptography==45.0.6
+datarobot==3.8.2
+datarobot-drum==1.16.20
 datarobot-mlops==11.1.0
 datarobot-storage==2.2.0
-deprecated==1.2.18
 docker==7.1.0
 filechunkio==1.8
 flask==3.1.1
 flatbuffers==25.2.10
 gast==0.6.0
-google-api-core==2.25.0rc1
-google-auth==2.40.2
+google-api-core==2.25.1
+google-auth==2.40.3
 google-cloud-core==2.4.3
 google-cloud-storage==2.19.0
 google-crc32c==1.7.1
 google-pasta==0.2.0
 google-resumable-media==2.7.2
 googleapis-common-protos==1.70.0
-grpcio==1.71.0
-h5py==3.13.0
+grpcio==1.74.0
+h5py==3.14.0
 idna==3.10
-importlib-metadata==8.6.1
+importlib-metadata==8.7.0
 isodate==0.7.2
 itsdangerous==2.2.0
 jinja2==3.1.6
 jmespath==1.0.1
 joblib==1.5.1
 julia==0.5.7
-keras==3.10.0
+keras==3.11.2
 libclang==18.1.1
-markdown==3.8
-markdown-it-py==3.0.0
+markdown==3.8.2
+markdown-it-py==4.0.0
 markupsafe==3.0.2
 mdurl==0.1.2
 memory-profiler==0.61.0
-ml-dtypes==0.5.1
-msal==1.32.3
+ml-dtypes==0.5.3
+msal==1.33.0
 msal-extensions==1.3.1
 mypy-extensions==1.1.0
 namex==0.1.0
 numpy==2.1.3
-opentelemetry-api==1.33.1
-opentelemetry-exporter-otlp-proto-common==1.33.1
-opentelemetry-exporter-otlp-proto-http==1.33.1
-opentelemetry-instrumentation==0.54b1
-opentelemetry-instrumentation-aiohttp-client==0.54b1
-opentelemetry-instrumentation-requests==0.54b1
-opentelemetry-proto==1.33.1
-opentelemetry-sdk==1.33.1
-opentelemetry-semantic-conventions==0.54b1
-opentelemetry-util-http==0.54b1
+opentelemetry-api==1.36.0
+opentelemetry-exporter-otlp-proto-common==1.36.0
+opentelemetry-exporter-otlp-proto-http==1.36.0
+opentelemetry-instrumentation==0.57b0
+opentelemetry-instrumentation-aiohttp-client==0.57b0
+opentelemetry-instrumentation-requests==0.57b0
+opentelemetry-proto==1.36.0
+opentelemetry-sdk==1.36.0
+opentelemetry-semantic-conventions==0.57b0
+opentelemetry-util-http==0.57b0
 opt-einsum==3.4.0
-optree==0.15.0
-orjson==3.10.18
+optree==0.17.0
+orjson==3.11.2
 packaging==25.0
-pandas==2.2.3
+pandas==2.3.1
 pillow==11.3.0
-progress==1.6
+progress==1.6.1
 proto-plus==1.26.1
 protobuf==5.29.5
 psutil==7.0.0
@@ -85,21 +84,21 @@ py4j==0.10.9.9
 pyasn1==0.6.1
 pyasn1-modules==0.4.2
 pycparser==2.22
-pydantic==2.11.5
+pydantic==2.11.7
 pydantic-core==2.33.2
-pygments==2.19.1
+pygments==2.19.2
 pyjwt[crypto]==2.10.1
 python-dateutil==2.9.0.post0
 pytz==2025.2
 pyyaml==6.0.2
 requests==2.32.4
 requests-toolbelt==1.0.0
-rich==14.0.0
+rich==14.1.0
 rsa==4.9.1
 ruamel-yaml==0.17.4
-s3transfer==0.13.0
+s3transfer==0.13.1
 scikeras==0.13.0
-scikit-learn==1.6.1
+scikit-learn==1.7.1
 scipy==1.15.3
 six==1.17.0
 strenum==0.4.15
@@ -112,14 +111,14 @@ termcolor==3.1.0
 texttable==1.7.0
 threadpoolctl==3.6.0
 trafaret==2.1.1
-typing-extensions==4.13.2
+typing-extensions==4.14.1
 typing-inspection==0.4.1
 tzdata==2025.2
 urllib3==2.5.0
 werkzeug==3.1.3
 wheel==0.45.1
-wrapt==1.17.2
-zipp==3.22.0
+wrapt==1.17.3
+zipp==3.23.0
 
 # The following packages are considered to be unsafe in a requirements file:
 # setuptools
diff --git a/public_dropin_environments/python3_onnx/env_info.json b/public_dropin_environments/python3_onnx/env_info.json
index d7ed253c2..f55343d40 100644
--- a/public_dropin_environments/python3_onnx/env_info.json
+++ b/public_dropin_environments/python3_onnx/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only ONNX custom models. This environment contains ONNX runtime and only requires your model artifact as an .onnx file and optionally a custom.py file.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c860026bb4aaf007fc9",
+  "environmentVersionId": "689b9c1c003a007bac004734",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python3_onnx",
   "imageRepository": "env-python-onnx",
   "tags": [
-    "v11.2.0-688c1c860026bb4aaf007fc9",
-    "688c1c860026bb4aaf007fc9",
+    "v11.2.0-689b9c1c003a007bac004734",
+    "689b9c1c003a007bac004734",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python3_pytorch/env_info.json b/public_dropin_environments/python3_pytorch/env_info.json
index 7b15c168b..12f121211 100644
--- a/public_dropin_environments/python3_pytorch/env_info.json
+++ b/public_dropin_environments/python3_pytorch/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only PyTorch custom models. This environment contains PyTorch and requires only your model artifact as a .pth file, any other code needed to deserialize your model, and optionally a custom.py file.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c860071401a3a006f93",
+  "environmentVersionId": "689b9c1c00358f486400449a",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python3_pytorch",
   "imageRepository": "env-python-pytorch",
   "tags": [
-    "v11.2.0-688c1c860071401a3a006f93",
-    "688c1c860071401a3a006f93",
+    "v11.2.0-689b9c1c00358f486400449a",
+    "689b9c1c00358f486400449a",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python3_sklearn/env_info.json b/public_dropin_environments/python3_sklearn/env_info.json
index 08a06cce7..9d3dfe678 100644
--- a/public_dropin_environments/python3_sklearn/env_info.json
+++ b/public_dropin_environments/python3_sklearn/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only scikit-learn custom models. This environment contains scikit-learn and only requires your model artifact as a .pkl file and optionally a custom.py file.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c860052032c27001851",
+  "environmentVersionId": "689b9c1c00391a04300027af",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python3_sklearn",
   "imageRepository": "env-python-sklearn",
   "tags": [
-    "v11.2.0-688c1c860052032c27001851",
-    "688c1c860052032c27001851",
+    "v11.2.0-689b9c1c00391a04300027af",
+    "689b9c1c00391a04300027af",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/python3_xgboost/env_info.json b/public_dropin_environments/python3_xgboost/env_info.json
index 3431e045a..91b2468b4 100644
--- a/public_dropin_environments/python3_xgboost/env_info.json
+++ b/public_dropin_environments/python3_xgboost/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only xgboost custom models. This environment contains xgboost and only requires your model artifact as a .pkl file and optionally a custom.py file.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "688c1c86005f9d5205004325",
+  "environmentVersionId": "689b9c1c003e816f3c004d3d",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/python3_xgboost",
   "imageRepository": "env-python-xgboost",
   "tags": [
-    "v11.2.0-688c1c86005f9d5205004325",
-    "688c1c86005f9d5205004325",
+    "v11.2.0-689b9c1c003e816f3c004d3d",
+    "689b9c1c003e816f3c004d3d",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_environments/r_lang/env_info.json b/public_dropin_environments/r_lang/env_info.json
index 5b1d123a0..4da033388 100644
--- a/public_dropin_environments/r_lang/env_info.json
+++ b/public_dropin_environments/r_lang/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create artifact-only R custom models that use the caret library. Your custom model archive need only contain your model artifacts if you use the environment correctly.",
   "programmingLanguage": "r",
   "label": "",
-  "environmentVersionId": "688c1c860078575bb2000c15",
+  "environmentVersionId": "689b9c1c00395609d2005e42",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -14,8 +14,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_environments/r_lang",
   "imageRepository": "env-r-lang",
   "tags": [
-    "v11.2.0-688c1c860078575bb2000c15",
-    "688c1c860078575bb2000c15",
+    "v11.2.0-689b9c1c00395609d2005e42",
+    "689b9c1c00395609d2005e42",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_nim_environments/nim_sidecar/Dockerfile b/public_dropin_nim_environments/nim_sidecar/Dockerfile
index 75a314df3..11ab1bb33 100644
--- a/public_dropin_nim_environments/nim_sidecar/Dockerfile
+++ b/public_dropin_nim_environments/nim_sidecar/Dockerfile
@@ -1,6 +1,6 @@
 # This is a private chain-guard development image that is stored in DataRobot's private registry.
 # Replace it with your own development chain-gaurd image if you build your own.
-FROM datarobotdev/mirror_chainguard_datarobot.com_python-fips:3.11-dev as build
+FROM datarobotdev/mirror_chainguard_datarobot.com_python-fips:3.11-dev AS build
 ENV VIRTUAL_ENV=/opt/venv
 
 USER root
@@ -42,9 +42,13 @@ ENV PATH=${VIRTUAL_ENV}/bin:${PATH}
 ENV OPENAI_HOST=localhost
 ENV OPENAI_PORT=8000
 ENV CODE_DIR=/opt/code
+ENV USE_NIM_WATCHDOG=true
 ENV ADDRESS=0.0.0.0:8080
 ENV WITH_ERROR_SERVER=1
 
+RUN mkdir -p ${CODE_DIR} \
+    && chmod a+rwX ${CODE_DIR}
+
 # This makes print statements show up in the logs API
 ENV PYTHONUNBUFFERED=1
 
diff --git a/public_dropin_nim_environments/nim_sidecar/env_info.json b/public_dropin_nim_environments/nim_sidecar/env_info.json
index 5b7319fd1..a2a0d2ba5 100644
--- a/public_dropin_nim_environments/nim_sidecar/env_info.json
+++ b/public_dropin_nim_environments/nim_sidecar/env_info.json
@@ -4,17 +4,18 @@
   "description": "",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "6848a84e0c7c49131250fdd4",
+  "environmentVersionId": "68a50ccae61f42cbb6297e9e",
   "environmentVersionDescription": "Run with 10 HTTP workers by default",
   "isPublic": true,
+  "isDownloadable": true,
   "useCases": [
     "customModel"
   ],
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_nim_environments/nim_sidecar",
   "imageRepository": "env-nim-sidecar",
   "tags": [
-    "v11.1.0-6848b6572081a81ac56c7a0b",
-    "6848b6572081a81ac56c7a0b",
-    "v11.1.0-latest"
+    "v11.2.0-68a50ccae61f42cbb6297e9e",
+    "68a50ccae61f42cbb6297e9e",
+    "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_nim_environments/nim_sidecar/requirements.txt b/public_dropin_nim_environments/nim_sidecar/requirements.txt
index 71133d457..073c51ff6 100644
--- a/public_dropin_nim_environments/nim_sidecar/requirements.txt
+++ b/public_dropin_nim_environments/nim_sidecar/requirements.txt
@@ -4,113 +4,113 @@
 #
 #    pip-compile --index-url=https://pypi.org/simple --no-annotate --no-emit-index-url --no-emit-trusted-host --output-file=requirements.txt requirements.in
 #
-aiohappyeyeballs==2.4.6
-aiohttp==3.11.13
-aiosignal==1.3.2
+aiohappyeyeballs==2.6.1
+aiohttp==3.12.15
+aiosignal==1.4.0
 annotated-types==0.7.0
-anyio==4.8.0
-argcomplete==3.5.3
+anyio==4.10.0
+argcomplete==3.6.2
 async-timeout==5.0.1
-attrs==25.1.0
-azure-core==1.32.0
-azure-identity==1.20.0
+attrs==25.3.0
+azure-core==1.35.0
+azure-identity==1.24.0
 azure-storage-blob==12.19.0
-backoff==2.2.1
 blinker==1.9.0
-boto3==1.37.1
-botocore==1.37.1
-cachetools==4.2.4
-certifi==2025.1.31
+boto3==1.40.13
+botocore==1.40.13
+cachetools==5.5.2
+certifi==2025.8.3
 cffi==1.17.1
-charset-normalizer==3.4.1
-click==8.1.8
-cryptography==44.0.1
-datarobot==3.6.3
-datarobot-drum==1.16.17
-datarobot-mlops==11.1.0a3
-datarobot-mlops-connected-client==11.1.0a3
-datarobot-storage==0.0.0
-deprecated==1.2.18
+charset-normalizer==3.4.3
+click==8.2.1
+cryptography==45.0.6
+datarobot==3.8.2
+datarobot-drum==1.16.23
+datarobot-mlops==11.1.0
+datarobot-mlops-connected-client==11.1.0
+datarobot-storage==2.2.0
 distro==1.9.0
 docker==7.1.0
-exceptiongroup==1.2.2
+exceptiongroup==1.3.0
 filechunkio==1.8
-flask==3.1.0
-frozenlist==1.5.0
-google-api-core==1.34.0
-google-auth==1.28.1
-google-cloud-core==2.4.2
-google-cloud-storage==1.43.0
-google-crc32c==1.6.0
+flask==3.1.2
+frozenlist==1.7.0
+google-api-core==2.25.1
+google-auth==2.40.3
+google-cloud-core==2.4.3
+google-cloud-storage==2.19.0
+google-crc32c==1.7.1
 google-resumable-media==2.7.2
-googleapis-common-protos==1.68.0
-h11==0.14.0
-httpcore==1.0.7
+googleapis-common-protos==1.70.0
+h11==0.16.0
+httpcore==1.0.9
 httpx==0.28.1
 idna==3.10
+importlib-metadata==8.7.0
 isodate==0.7.2
 itsdangerous==2.2.0
-jinja2==3.1.5
-jiter==0.8.2
+jinja2==3.1.6
+jiter==0.10.0
 jmespath==1.0.1
 julia==0.5.7
 markupsafe==3.0.2
 memory-profiler==0.61.0
-msal==1.31.1
-msal-extensions==1.2.0
-multidict==6.1.0
-mypy-extensions==1.0.0
-numpy==2.0.2
-openai==1.64.0
-opentelemetry-api==1.16.0
-opentelemetry-exporter-otlp-proto-http==1.16.0
-opentelemetry-instrumentation-aiohttp-client==0.37b0
-opentelemetry-instrumentation-openai==0.37b0
-opentelemetry-instrumentation-requests==0.37b0
-opentelemetry-instrumentation==0.37b0
-opentelemetry-proto==1.16.0
-opentelemetry-sdk==1.16.0
-opentelemetry-semantic-conventions==0.37b0
-opentelemetry-util-http==0.37b0
-orjson==3.10.15
-packaging==24.2
-pandas==2.2.3
-pillow==11.1.0
-portalocker==2.10.1
-progress==1.6
-propcache==0.3.0
-protobuf==3.20.3
+msal==1.33.0
+msal-extensions==1.3.1
+multidict==6.6.4
+mypy-extensions==1.1.0
+numpy==2.2.6
+openai==1.100.2
+opentelemetry-api==1.36.0
+opentelemetry-exporter-otlp-proto-common==1.36.0
+opentelemetry-exporter-otlp-proto-http==1.36.0
+opentelemetry-instrumentation==0.57b0
+opentelemetry-instrumentation-aiohttp-client==0.57b0
+opentelemetry-instrumentation-openai==0.45.6
+opentelemetry-instrumentation-requests==0.57b0
+opentelemetry-proto==1.36.0
+opentelemetry-sdk==1.36.0
+opentelemetry-semantic-conventions==0.57b0
+opentelemetry-semantic-conventions-ai==0.4.12
+opentelemetry-util-http==0.57b0
+orjson==3.11.2
+packaging==25.0
+pandas==2.3.1
+pillow==11.3.0
+progress==1.6.1
+propcache==0.3.2
+proto-plus==1.26.1
+protobuf==6.32.0
 psutil==7.0.0
 py4j==0.10.9.9
 pyasn1==0.6.1
-pyasn1-modules==0.4.1
+pyasn1-modules==0.4.2
 pycparser==2.22
-pydantic==2.10.6
-pydantic-core==2.27.2
+pydantic==2.11.7
+pydantic-core==2.33.2
 pyjwt[crypto]==2.10.1
 python-dateutil==2.9.0.post0
-pytz==2025.1
+pytz==2025.2
 pyyaml==6.0.2
-requests==2.32.3
+requests==2.32.5
 requests-toolbelt==1.0.0
-rsa==4.9
+rsa==4.9.1
 ruamel-yaml==0.17.4
-s3transfer==0.11.2
-scipy==1.13.1
+s3transfer==0.13.1
+scipy==1.15.3
 six==1.17.0
 sniffio==1.3.1
 strenum==0.4.15
 strictyaml==1.4.2
-termcolor==2.5.0
+termcolor==3.1.0
 texttable==1.7.0
 tqdm==4.67.1
 trafaret==2.1.1
-typing-extensions==4.12.2
-tzdata==2025.1
-urllib3==1.26.20
+typing-extensions==4.14.1
+typing-inspection==0.4.1
+tzdata==2025.2
+urllib3==2.5.0
 werkzeug==3.1.3
-wrapt==1.17.2
-yarl==1.18.3
-
-# The following packages are considered to be unsafe in a requirements file:
-# setuptools
+wrapt==1.17.3
+yarl==1.20.1
+zipp==3.23.0
diff --git a/public_dropin_notebook_environments/py311_notebook_dropin.tar.gz b/public_dropin_notebook_environments/py311_notebook_dropin.tar.gz
index 80d65fcdd..5481eed2f 100644
Binary files a/public_dropin_notebook_environments/py311_notebook_dropin.tar.gz and b/public_dropin_notebook_environments/py311_notebook_dropin.tar.gz differ
diff --git a/public_dropin_notebook_environments/python311_notebook_base/Dockerfile b/public_dropin_notebook_environments/python311_notebook_base/Dockerfile
index 0e7211fc7..d43388b02 100644
--- a/public_dropin_notebook_environments/python311_notebook_base/Dockerfile
+++ b/public_dropin_notebook_environments/python311_notebook_base/Dockerfile
@@ -74,7 +74,7 @@ RUN python3.11 -m venv ${VENV_PATH} && pip3 install -U pip setuptools
 WORKDIR ${WORKDIR}
 
 # Install git helper binary used for private git authentication in Notebooks/Codepaces
-RUN curl -L -o drgithelper https://github.com/datarobot-oss/drgithelper/releases/download/v0.0.13/drgithelper && chmod +x drgithelper
+RUN curl -L -o drgithelper https://github.com/datarobot-oss/drgithelper/releases/download/v0.0.16/drgithelper && chmod +x drgithelper
 
 COPY ./agent/agent.py ./agent/cgroup_watchers.py ${AGENTDIR}/
 COPY ./jupyter_kernel_gateway_config.py ./start_server.sh ${WORKDIR}/
diff --git a/public_dropin_notebook_environments/python311_notebook_base/env_info.json b/public_dropin_notebook_environments/python311_notebook_base/env_info.json
index d6930ce78..d9dd0c4f9 100644
--- a/public_dropin_notebook_environments/python311_notebook_base/env_info.json
+++ b/public_dropin_notebook_environments/python311_notebook_base/env_info.json
@@ -4,7 +4,7 @@
   "description": "This template environment can be used to create Python 3.11 notebook environments.",
   "programmingLanguage": "python",
   "label": "",
-  "environmentVersionId": "68827e0dfccc7df6685c1899",
+  "environmentVersionId": "689f735077c7c911fc10b5c1",
   "environmentVersionDescription": "",
   "isPublic": true,
   "isDownloadable": true,
@@ -15,8 +15,8 @@
   "contextUrl": "https://github.com/datarobot/datarobot-user-models/tree/master/public_dropin_notebook_environments/python311_notebook_base",
   "imageRepository": "env-notebook-python311-notebook-base",
   "tags": [
-    "v11.2.0-68827e0dfccc7df6685c1899",
-    "68827e0dfccc7df6685c1899",
+    "v11.2.0-689f735077c7c911fc10b5c1",
+    "689f735077c7c911fc10b5c1",
     "v11.2.0-latest"
   ]
 }
diff --git a/public_dropin_notebook_environments/python311_notebook_base/start_server.sh b/public_dropin_notebook_environments/python311_notebook_base/start_server.sh
index 738f1ba41..569dc8775 100644
--- a/public_dropin_notebook_environments/python311_notebook_base/start_server.sh
+++ b/public_dropin_notebook_environments/python311_notebook_base/start_server.sh
@@ -29,7 +29,9 @@ cp -L /var/run/notebooks/ssh/authorized_keys/notebooks /etc/authorized_keys/ &&
 mkdir /etc/ssh/keys && cp -L /var/run/notebooks/ssh/keys/ssh_host_* /etc/ssh/keys/ && chmod 600 /etc/ssh/keys/ssh_host_*
 nohup /usr/sbin/sshd -D &
 
-# Initialize the git helper. Turn on/off features dependent on `GITHELPER_*` env vars
+# Ensure proper permissions on the directory used by cache daemon to ensure it starts (create dir. if needed)
+mkdir -p /home/notebooks/storage/.cache/git/credential && chmod 700 /home/notebooks/storage/.cache/git/credential
+# Initialize the git helper. Features are turned on/off dependent on `GITHELPER_*` env vars
 /etc/system/kernel/drgithelper configs set
 
 # no trailing slash in the working dir path
diff --git a/tests/unit/datarobot_drum/drum/test_main.py b/tests/unit/datarobot_drum/drum/test_main.py
index b84320681..fd5c05058 100644
--- a/tests/unit/datarobot_drum/drum/test_main.py
+++ b/tests/unit/datarobot_drum/drum/test_main.py
@@ -13,12 +13,12 @@
 
 
 @pytest.mark.parametrize("workers_param, expected_workers", [(None, 0), (1, 1), (10, 10)])
-@patch("datarobot_drum.drum.main.RuntimeParameters", autospec=True)
-@patch("datarobot_drum.drum.main.RuntimeParametersLoader", autospec=True)
 @patch("datarobot_drum.drum.drum.CMRunner", autospec=True)
-@patch("datarobot_drum.drum.main.CMRunnerArgsRegistry", autospec=True)
+@patch("datarobot_drum.drum.utils.setup.RuntimeParameters", autospec=True)
+@patch("datarobot_drum.drum.utils.setup.RuntimeParametersLoader", autospec=True)
+@patch("datarobot_drum.drum.utils.setup.CMRunnerArgsRegistry", autospec=True)
 def test_custom_model_workers(
-    args_registry, cm_runner, runtime_params_loader, runtime_params, workers_param, expected_workers
+    args_registry, runtime_params_loader, runtime_params, cm_runner, workers_param, expected_workers
 ):
     options = argparse.Namespace()
     options.max_workers = 0
@@ -34,7 +34,10 @@ def test_custom_model_workers(
     else:
         runtime_params.has.return_value = False
 
-    main()
+    with patch("datarobot_drum.drum.main.setup_otel") as setup_otel_mock:
+        setup_otel_mock.return_value = (None, None, None)
+        main()
+
     runtime_params.has.assert_any_call("CUSTOM_MODEL_WORKERS")
     if workers_param:
         runtime_params.get.assert_any_call("CUSTOM_MODEL_WORKERS")
diff --git a/tests/unit/datarobot_drum/drum/utils/test_setup.py b/tests/unit/datarobot_drum/drum/utils/test_setup.py
new file mode 100644
index 000000000..cb37cb9de
--- /dev/null
+++ b/tests/unit/datarobot_drum/drum/utils/test_setup.py
@@ -0,0 +1,133 @@
+#
+#  Copyright 2025 DataRobot, Inc. and its affiliates.
+#
+#  All rights reserved.
+#  This is proprietary source code of DataRobot, Inc. and its affiliates.
+#  Released under the terms of DataRobot Tool and Utility Agreement.
+#
+from argparse import Namespace
+from unittest import mock
+
+# Import the function under test
+from datarobot_drum.drum.utils.setup import setup_options
+
+
+def test_setup_options_default(monkeypatch):
+    # Mock CMRunnerArgsRegistry and dependencies
+    mock_parser = mock.Mock()
+    mock_options = Namespace(max_workers=None, runtime_params_file=None, lazy_loading_file=None)
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ):
+        opts = setup_options([])
+        assert hasattr(opts, "max_workers")
+        assert opts.max_workers == 1  # Default to 1
+
+
+def test_setup_options_with_max_workers(monkeypatch):
+    mock_parser = mock.Mock()
+    mock_options = Namespace(max_workers="3", runtime_params_file=None, lazy_loading_file=None)
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ):
+        opts = setup_options([])
+        assert opts.max_workers == 3 or opts.max_workers == "3" or int(opts.max_workers) == 3
+
+
+def test_setup_options_runtime_parameters(monkeypatch):
+    mock_parser = mock.Mock()
+    mock_options = Namespace(max_workers=None, runtime_params_file=None, lazy_loading_file=None)
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ), mock.patch(
+        "datarobot_drum.RuntimeParameters.has", return_value=True
+    ), mock.patch(
+        "datarobot_drum.RuntimeParameters.get", return_value=5
+    ):
+        opts = setup_options([])
+        assert opts.max_workers == 5
+
+
+def test_setup_options_runtime_params_file(monkeypatch):
+    mock_parser = mock.Mock()
+    mock_options = Namespace(
+        max_workers=None, runtime_params_file="params.yaml", code_dir=".", lazy_loading_file=None
+    )
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ), mock.patch(
+        "datarobot_drum.drum.utils.setup.RuntimeParametersLoader"
+    ) as mock_loader:
+        instance = mock_loader.return_value
+        instance.setup_environment_variables = mock.Mock()
+        opts = setup_options([])
+        instance.setup_environment_variables.assert_called_once()
+
+
+def test_setup_options_lazy_loading_file(monkeypatch):
+    mock_parser = mock.Mock()
+    mock_options = Namespace(
+        max_workers=None, runtime_params_file=None, lazy_loading_file="lazy.yaml"
+    )
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ), mock.patch(
+        "datarobot_drum.drum.lazy_loading.lazy_loading_handler.LazyLoadingHandler.setup_environment_variables_from_values_file"
+    ) as mock_lazy:
+        opts = setup_options([])
+        mock_lazy.assert_called_once_with("lazy.yaml")
+
+
+def test_setup_options_argcomplete_missing(monkeypatch, capsys):
+    mock_parser = mock.Mock()
+    mock_options = Namespace(max_workers=None, runtime_params_file=None, lazy_loading_file=None)
+    mock_parser.parse_args.return_value = mock_options
+
+    with mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.get_arg_parser",
+        return_value=mock_parser,
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.extend_sys_argv_with_env_vars"
+    ), mock.patch(
+        "datarobot_drum.drum.args_parser.CMRunnerArgsRegistry.verify_options"
+    ), mock.patch.dict(
+        "sys.modules", {"argcomplete": None}
+    ):
+        opts = setup_options([])
+        captured = capsys.readouterr()
+        assert "autocompletion of arguments is not supported" in captured.err