diff --git a/.github/upstream-projects.yaml b/.github/upstream-projects.yaml
index 11468899..9a6a94a7 100644
--- a/.github/upstream-projects.yaml
+++ b/.github/upstream-projects.yaml
@@ -113,7 +113,7 @@ projects:
 
   - id: toolhive-studio
     repo: stacklok/toolhive-studio
-    version: v0.36.3
+    version: v0.36.4
     docs_paths:
       - docs/toolhive/guides-ui
 
diff --git a/docs/toolhive/guides-ui/playground.mdx b/docs/toolhive/guides-ui/playground.mdx
index 7de215f3..5de2f871 100644
--- a/docs/toolhive/guides-ui/playground.mdx
+++ b/docs/toolhive/guides-ui/playground.mdx
@@ -12,8 +12,8 @@ The ToolHive playground is a chat workspace for built-in or custom AI agents
 that runs inside the desktop app. Each thread runs against an agent that sets
 the system prompt and a default toolset. You can then give that agent specific
 MCP tools and skills, and chat with it directly. Testing MCP servers is one
-workflow the playground supports, alongside building skills and managing your
-ToolHive setup through chat.
+workflow the playground supports, alongside building skills and chatting with
+custom agents you build.
 
 ## Key capabilities
 
@@ -24,10 +24,6 @@ ToolHive setup through chat.
 - **Per-thread settings**: each thread keeps its own agent, model, MCP tool
   selection, and skill selection, so switching threads doesn't reshuffle your
   setup.
-- **Conversational ToolHive management**: the default agent uses a built-in MCP
-  server (`toolhive mcp`) to list, start, stop, and inspect your other MCP
-  servers from the chat. See
-  [Manage MCP servers through conversation](#manage-mcp-servers-through-conversation).
 - **Inline tool calls**: see tool calls, parameters, status, response data, and
   timing in the chat so you can verify exactly what an agent is doing.
 - **Message actions**: copy any message, edit and rewind a previous user
@@ -82,8 +78,8 @@ To start using the playground:
 Each thread runs against an agent that sets the system prompt and a default
 toolset. Two agents are built in:
 
-- **ToolHive Assistant** is the default. It's tuned to manage your MCP servers,
-  run tools through them, and answer questions about ToolHive itself.
+- **ToolHive Assistant** is the default general-purpose chat agent. It runs
+  tools from your enabled MCP servers and formats the results in markdown.
 - **Skill Engineer** is tuned to design, build, and audit
   [skills](./skills.mdx).
 
@@ -118,8 +114,6 @@ are available in the active thread:
 - View all your running MCP servers
 - Enable or disable specific tools from each server
 - Search and filter tools by name or functionality
-- The `toolhive mcp` server is included by default, providing management
-  capabilities
 
 <ThemedImage
   alt='ToolHive playground tools management showing available MCP tools'
@@ -267,47 +261,6 @@ it and shows a notification explaining why.
 The playground supports any chat-driven task you want an agent for. A few common
 starting points:
 
-### Manage MCP servers through conversation
-
-The desktop app starts a dedicated MCP server (`toolhive mcp`) that orchestrates
-ToolHive operations through natural language. With the default **ToolHive
-Assistant** agent, you can list, start, stop, and inspect servers without
-leaving the chat:
-
-```text
-Can you list all my MCP servers and show their current status?
-```
-
-```text
-Start the fetch MCP server for me
-```
-
-```text
-Stop all unhealthy MCP servers
-```
-
-```text
-Show me the logs for the fetch MCP server
-```
-
-The agent calls the matching `toolhive mcp` tools and shows the results inline,
-giving you a unified interface and an audit trail in the same place as any other
-tool execution.
-
-<ThemedImage
-  alt='ToolHive playground showing AI response with MCP tool execution results'
-  width='900px'
-  sources={{
-    light: useBaseUrl(
-      '/img/toolhive/toolhive-ui-playground-chat-response-light.webp'
-    ),
-    dark: useBaseUrl(
-      '/img/toolhive/toolhive-ui-playground-chat-response-dark.webp'
-    ),
-  }}
-  title='Chat response showing tool execution and results'
-/>
-
 ### Test MCP server functionality
 
 Use the playground to validate that an MCP server works as expected before you
diff --git a/static/img/toolhive/toolhive-ui-playground-chat-response-dark.webp b/static/img/toolhive/toolhive-ui-playground-chat-response-dark.webp
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diff --git a/static/img/toolhive/toolhive-ui-playground-chat-response-light.webp b/static/img/toolhive/toolhive-ui-playground-chat-response-light.webp
deleted file mode 100644
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