diff --git a/README.md b/README.md
index 4248abd..61cba2a 100644
--- a/README.md
+++ b/README.md
@@ -16,6 +16,7 @@ uv run nexus-claude-api start --port 4141 --claude-code
 If the `nexus-claude-api` command is not on your `PATH`, run the module entrypoint instead:
 
 ```powershell
+py -m nexus_claude_api config set --api-key "your-nexus-api-key"
 py -m nexus_claude_api start --port 4141 --claude-code
 ```
 
diff --git a/docs/PRD.md b/docs/PRD.md
index 44810b7..c9166e6 100644
--- a/docs/PRD.md
+++ b/docs/PRD.md
@@ -68,8 +68,8 @@ The proxy defaults to Opus because this deployment is intended for users whose N
 - The server binds to `127.0.0.1` by default.
 - Default startup reads credentials from user config before environment variables.
 - `--dev` startup reads current-directory `nexus-claude-api.local.json` instead of user config.
-- Default logs are written to `~/.config/nexus-claude-api/logs/nexus-claude-api.log`.
-- `--dev` logs are written to current-directory `logs/nexus-claude-api.log`.
+- Default logs are written to `~/.config/nexus-claude-api/logs/nexus-claude-api-YYYY-MM-DD.log`.
+- `--dev` logs are written to current-directory `logs/nexus-claude-api-YYYY-MM-DD.log`.
 - Missing Nexus credentials fail fast with a clear error.
 - `GET /health` returns healthy status.
 - `GET /v1/models` returns the supported Claude models.
diff --git a/docs/REQUIREMENTS_DESIGN.md b/docs/REQUIREMENTS_DESIGN.md
index 727940f..c60987b 100644
--- a/docs/REQUIREMENTS_DESIGN.md
+++ b/docs/REQUIREMENTS_DESIGN.md
@@ -87,8 +87,8 @@ Config file paths:
 
 Log file paths:
 
-- Default mode: `~/.config/nexus-claude-api/logs/nexus-claude-api.log`
-- Development mode with `--dev`: current-directory `logs/nexus-claude-api.log`
+- Default mode: `~/.config/nexus-claude-api/logs/nexus-claude-api-YYYY-MM-DD.log`
+- Development mode with `--dev`: current-directory `logs/nexus-claude-api-YYYY-MM-DD.log`
 
 When `--claude-code` is used, print a PowerShell command that sets:
 
@@ -248,6 +248,6 @@ CLI tests:
 
 Logging tests:
 
-- Default-mode log path resolves to `~/.config/nexus-claude-api/logs/nexus-claude-api.log`.
-- Development-mode log path resolves to current-directory `logs/nexus-claude-api.log`.
+- Default-mode log path resolves to `~/.config/nexus-claude-api/logs/nexus-claude-api-YYYY-MM-DD.log`.
+- Development-mode log path resolves to current-directory `logs/nexus-claude-api-YYYY-MM-DD.log`.
 - Verbose logging enables debug details without logging secrets.
diff --git a/pyproject.toml b/pyproject.toml
index d0128ea..cb5ad8b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "nexus-claude-api"
-version = "0.1.1"
+version = "0.1.2"
 description = "Local Anthropic-compatible Claude Code proxy for AI Nexus Bedrock Converse."
 readme = "README.md"
 requires-python = ">=3.11"
@@ -30,4 +30,3 @@ packages = ["src/nexus_claude_api"]
 [tool.pytest.ini_options]
 testpaths = ["tests"]
 pythonpath = ["src"]
-
diff --git a/src/nexus_claude_api/__init__.py b/src/nexus_claude_api/__init__.py
index d9ae45e..8096691 100644
--- a/src/nexus_claude_api/__init__.py
+++ b/src/nexus_claude_api/__init__.py
@@ -1,4 +1,3 @@
 """Local Anthropic-compatible proxy for AI Nexus Claude models."""
 
-__version__ = "0.1.0"
-
+__version__ = "0.1.2"
diff --git a/src/nexus_claude_api/cli.py b/src/nexus_claude_api/cli.py
index 58120cb..bec74fa 100644
--- a/src/nexus_claude_api/cli.py
+++ b/src/nexus_claude_api/cli.py
@@ -5,6 +5,7 @@ import sys
 
 import uvicorn
 
+from nexus_claude_api import __version__
 import nexus_claude_api.config as config
 from nexus_claude_api.config import (
     DEFAULT_ENDPOINT_URL,
@@ -21,6 +22,7 @@ from nexus_claude_api.shell import generate_claude_code_powershell
 
 def build_parser() -> argparse.ArgumentParser:
     parser = argparse.ArgumentParser(prog="nexus-claude-api")
+    parser.add_argument("--version", action="version", version=f"%(prog)s {__version__}")
     subparsers = parser.add_subparsers(dest="command")
 
     start = subparsers.add_parser("start", help="Start the local API server")
@@ -71,16 +73,20 @@ def run_config(args: argparse.Namespace, parser: argparse.ArgumentParser) -> int
 
 
 def run_start(args: argparse.Namespace) -> int:
-    settings = Settings.from_values(
-        host=args.host,
-        port=args.port,
-        endpoint_url=args.endpoint_url,
-        api_key=args.api_key,
-        model=args.model,
-        small_model=args.small_model,
-        verbose=args.verbose,
-        dev=args.dev,
-    )
+    try:
+        settings = Settings.from_values(
+            host=args.host,
+            port=args.port,
+            endpoint_url=args.endpoint_url,
+            api_key=args.api_key,
+            model=args.model,
+            small_model=args.small_model,
+            verbose=args.verbose,
+            dev=args.dev,
+        )
+    except ValueError as exc:
+        print(f"Invalid configuration: {exc}", file=sys.stderr)
+        return 2
 
     if not settings.api_key:
         print(
diff --git a/src/nexus_claude_api/routes/messages.py b/src/nexus_claude_api/routes/messages.py
index e09fd63..6e9ecc7 100644
--- a/src/nexus_claude_api/routes/messages.py
+++ b/src/nexus_claude_api/routes/messages.py
@@ -2,7 +2,8 @@ from __future__ import annotations
 
 import logging
 import uuid
-from typing import Annotated
+from collections.abc import Iterable, Iterator
+from typing import Annotated, Any
 
 from fastapi import APIRouter, Depends, Request
 from fastapi.responses import JSONResponse, Response, StreamingResponse
@@ -60,6 +61,46 @@ def normalize_legacy_system_messages(raw: object) -> object:
     return normalized
 
 
+def anthropic_sse_stream(
+    stream: Iterable[dict[str, Any]],
+    *,
+    model: str,
+    correlation_id: str,
+) -> Iterator[str]:
+    try:
+        for event in bedrock_stream_to_anthropic_events(stream, model=model):
+            yield sse_frame(event)
+    except NexusClaudeError as exc:
+        yield sse_frame(
+            {
+                "type": "error",
+                "error": {
+                    "type": exc.error_type,
+                    "message": f"{exc.message} [correlation_id={correlation_id}]",
+                    "correlation_id": correlation_id,
+                },
+            }
+        )
+    except Exception:
+        logger.exception(
+            "anthropic_messages_stream_error correlation_id=%s",
+            correlation_id,
+        )
+        yield sse_frame(
+            {
+                "type": "error",
+                "error": {
+                    "type": "api_error",
+                    "message": (
+                        "Unexpected error while streaming response "
+                        f"[correlation_id={correlation_id}]"
+                    ),
+                    "correlation_id": correlation_id,
+                },
+            }
+        )
+
+
 @router.post("/v1/messages", response_model=None)
 async def create_message(
     request: Request,
@@ -85,12 +126,10 @@ async def create_message(
                 correlation_id=correlation_id,
             )
             return StreamingResponse(
-                (
-                    sse_frame(event)
-                    for event in bedrock_stream_to_anthropic_events(
-                        stream,
-                        model=payload.model,
-                    )
+                anthropic_sse_stream(
+                    stream,
+                    model=payload.model,
+                    correlation_id=correlation_id,
                 ),
                 media_type="text/event-stream",
             )
diff --git a/src/nexus_claude_api/server.py b/src/nexus_claude_api/server.py
index 796bf64..819e4e9 100644
--- a/src/nexus_claude_api/server.py
+++ b/src/nexus_claude_api/server.py
@@ -5,6 +5,7 @@ from fastapi.middleware.cors import CORSMiddleware
 from fastapi.requests import Request
 from fastapi.responses import JSONResponse
 
+from nexus_claude_api import __version__
 from nexus_claude_api.config import Settings
 from nexus_claude_api.errors import NexusClaudeError, anthropic_error_response
 from nexus_claude_api.nexus_client import NexusClient
@@ -18,7 +19,7 @@ def create_app(
     nexus_client: NexusClient | None = None,
 ) -> FastAPI:
     resolved_settings = settings or Settings.from_values(require_api_key=False)
-    app = FastAPI(title="nexus-claude-api", version="0.1.0")
+    app = FastAPI(title="nexus-claude-api", version=__version__)
     app.state.settings = resolved_settings
     app.state.nexus_client = nexus_client or NexusClient(resolved_settings)
 
diff --git a/src/nexus_claude_api/translators/anthropic_to_bedrock.py b/src/nexus_claude_api/translators/anthropic_to_bedrock.py
index 7f4cfd1..468a199 100644
--- a/src/nexus_claude_api/translators/anthropic_to_bedrock.py
+++ b/src/nexus_claude_api/translators/anthropic_to_bedrock.py
@@ -34,12 +34,11 @@ def anthropic_to_bedrock_request(payload: AnthropicMessagesRequest) -> dict[str,
         inference_config["temperature"] = payload.temperature
     if payload.top_p is not None:
         inference_config["topP"] = payload.top_p
+    if payload.stop_sequences:
+        inference_config["stopSequences"] = payload.stop_sequences
     if inference_config:
         request["inferenceConfig"] = inference_config
 
-    if payload.stop_sequences:
-        request["stopSequences"] = payload.stop_sequences
-
     tool_config = _tools_to_bedrock(payload)
     if tool_config:
         request["toolConfig"] = tool_config
@@ -161,4 +160,3 @@ def _tools_to_bedrock(payload: AnthropicMessagesRequest) -> dict[str, Any] | Non
             tool_config["toolChoice"] = {"tool": {"name": choice.name}}
 
     return tool_config
-
diff --git a/tests/test_cli.py b/tests/test_cli.py
index 5dd980e..f5eee3c 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -4,6 +4,7 @@ import json
 import shutil
 from pathlib import Path
 
+from nexus_claude_api import __version__
 from nexus_claude_api.cli import main
 from nexus_claude_api.config import (
     Settings,
@@ -62,6 +63,38 @@ def test_missing_api_key_fails(monkeypatch) -> None:
     assert exit_code == 2
 
 
+def test_version_prints_package_version(capsys) -> None:
+    try:
+        main(["--version"])
+    except SystemExit as exc:
+        assert exc.code == 0
+
+    output = capsys.readouterr()
+    assert output.out.strip() == f"nexus-claude-api {__version__}"
+
+
+def test_invalid_user_config_returns_clean_error(monkeypatch, capsys) -> None:
+    tmp_path = _workspace_tmp("invalid-user-config")
+    user_config = tmp_path / ".config" / "nexus-claude-api" / "config.json"
+    user_config.parent.mkdir(parents=True, exist_ok=True)
+    user_config.write_text("{not json", encoding="utf-8")
+    monkeypatch.setattr("nexus_claude_api.config.USER_CONFIG_FILE", user_config)
+    monkeypatch.delenv("NEXUS_API_KEY", raising=False)
+    monkeypatch.delenv("AWS_BEARER_TOKEN_BEDROCK", raising=False)
+    monkeypatch.chdir(tmp_path)
+
+    try:
+        exit_code = main(["start", "--dry-run"])
+    finally:
+        monkeypatch.chdir(Path(__file__).parents[1])
+        shutil.rmtree(tmp_path, ignore_errors=True)
+
+    output = capsys.readouterr()
+    assert exit_code == 2
+    assert "Invalid configuration: Invalid JSON" in output.err
+    assert "Traceback" not in output.err
+
+
 def test_user_config_api_key(monkeypatch) -> None:
     tmp_path = _workspace_tmp("user-config")
     user_config = tmp_path / ".config" / "nexus-claude-api" / "config.json"
diff --git a/tests/test_routes.py b/tests/test_routes.py
index 2ea1d9b..0312921 100644
--- a/tests/test_routes.py
+++ b/tests/test_routes.py
@@ -5,6 +5,7 @@ import logging
 from botocore.exceptions import ClientError
 from fastapi.testclient import TestClient
 
+from nexus_claude_api.errors import NexusClaudeError
 from nexus_claude_api.config import Settings
 from nexus_claude_api.nexus_client import _map_client_error
 from nexus_claude_api.server import create_app
@@ -52,6 +53,21 @@ class AccessDeniedNexusClient:
         )
 
 
+class StreamErrorNexusClient:
+    def converse_stream(self, request: dict, *, correlation_id: str | None = None):
+        assert correlation_id
+
+        def events():
+            yield {"contentBlockDelta": {"contentBlockIndex": 0, "delta": {"text": "Hi"}}}
+            raise NexusClaudeError(
+                "stream failed",
+                status_code=502,
+                error_type="api_error",
+            )
+
+        return events()
+
+
 def client(nexus_client: object | None = None) -> TestClient:
     settings = Settings.from_values(api_key="test", require_api_key=False)
     return TestClient(
@@ -183,6 +199,26 @@ def test_messages_stream() -> None:
     assert "event: message_stop" in body
 
 
+def test_messages_stream_returns_sse_error_when_stream_iteration_fails() -> None:
+    with client(StreamErrorNexusClient()).stream(
+        "POST",
+        "/v1/messages",
+        json={
+            "model": "claude-opus-4.6",
+            "messages": [{"role": "user", "content": "Hello"}],
+            "max_tokens": 32,
+            "stream": True,
+        },
+    ) as response:
+        body = response.read().decode("utf-8")
+
+    assert response.status_code == 200
+    assert "event: content_block_delta" in body
+    assert "event: error" in body
+    assert "stream failed" in body
+    assert "correlation_id" in body
+
+
 def test_count_tokens() -> None:
     response = client().post(
         "/v1/messages/count_tokens",
diff --git a/tests/test_translators.py b/tests/test_translators.py
index dae8684..7fdc4ca 100644
--- a/tests/test_translators.py
+++ b/tests/test_translators.py
@@ -28,6 +28,22 @@ def test_text_request_translation() -> None:
     assert request["inferenceConfig"]["temperature"] == 0.2
 
 
+def test_stop_sequences_are_translated_into_inference_config() -> None:
+    payload = AnthropicMessagesRequest.model_validate(
+        {
+            "model": "claude-opus-4.6",
+            "messages": [{"role": "user", "content": "Hello"}],
+            "max_tokens": 100,
+            "stop_sequences": ["STOP"],
+        }
+    )
+
+    request = anthropic_to_bedrock_request(payload)
+
+    assert request["inferenceConfig"]["stopSequences"] == ["STOP"]
+    assert "stopSequences" not in request
+
+
 def test_image_request_translation() -> None:
     image_data = base64.b64encode(b"image-bytes").decode("ascii")
     payload = AnthropicMessagesRequest.model_validate(
diff --git a/uv.lock b/uv.lock
index 894fa27..9ebe087 100644
--- a/uv.lock
+++ b/uv.lock
@@ -173,7 +173,7 @@ wheels = [
 
 [[package]]
 name = "nexus-claude-api"
-version = "0.1.1"
+version = "0.1.2"
 source = { editable = "." }
 dependencies = [
     { name = "boto3" },