diff --git a/docs/resources/agent.md b/docs/resources/agent.md
index d12146c2..ee474548 100644
--- a/docs/resources/agent.md
+++ b/docs/resources/agent.md
@@ -75,9 +75,7 @@ resource "kubernetes_pod" "dev" {
 - `api_key_scope` (String) Controls what API routes the agent token can access. Options: `all` (full access) or `no_user_data` (blocks `/external-auth`, `/gitsshkey`, and `/gitauth` routes)
 - `auth` (String) The authentication type the agent will use. Must be one of: `"token"`, `"google-instance-identity"`, `"aws-instance-identity"`, `"azure-instance-identity"`.
 - `connection_timeout` (Number) Time in seconds until the agent is marked as timed out when a connection with the server cannot be established. A value of zero never marks the agent as timed out.
-- `dir` (String, Deprecated) The starting directory when a user creates a shell session. Defaults to `"$HOME"`.
-
-~> **Warning:** This attribute is deprecated and will be removed in a future release. Setting `dir` to a value other than `$HOME` will break [Coder Desktop file sync](https://coder.com/docs/user-guides/desktop/desktop-connect-sync).
+- `dir` (String) The starting directory when a user creates a shell session. Defaults to `"$HOME"`. SFTP and scp resolve relative and `~/`-prefixed paths against this directory, so use absolute paths for file transfers.
 - `display_apps` (Block Set, Max: 1) The list of built-in apps to display in the agent bar. (see [below for nested schema](#nestedblock--display_apps))
 - `env` (Map of String) A mapping of environment variables to set inside the workspace.
 - `metadata` (Block List) Each `metadata` block defines a single item consisting of a key/value pair. This feature is in alpha and may break in future releases. (see [below for nested schema](#nestedblock--metadata))
diff --git a/provider/agent.go b/provider/agent.go
index dc662e4a..ff117bb9 100644
--- a/provider/agent.go
+++ b/provider/agent.go
@@ -49,9 +49,9 @@ func agentResource() *schema.Resource {
 					return diag.FromErr(err)
 				}
 			}
-				return updateInitScript(resourceData, i)
-			},
 
+			return updateInitScript(resourceData, i)
+		},
 		ReadWithoutTimeout: func(ctx context.Context, resourceData *schema.ResourceData, i interface{}) diag.Diagnostics {
 			token := agentAuthToken(ctx, "")
 			err := resourceData.Set("token", token)
@@ -74,9 +74,8 @@ func agentResource() *schema.Resource {
 				}
 			}
 
-				return updateInitScript(resourceData, i)
-			},
-
+			return updateInitScript(resourceData, i)
+		},
 		DeleteContext: func(ctx context.Context, resourceData *schema.ResourceData, i interface{}) diag.Diagnostics {
 			return nil
 		},
@@ -112,22 +111,17 @@ func agentResource() *schema.Resource {
 				Description:  "The authentication type the agent will use. Must be one of: `\"token\"`, `\"google-instance-identity\"`, `\"aws-instance-identity\"`, `\"azure-instance-identity\"`.",
 				ValidateFunc: validation.StringInSlice([]string{"token", "google-instance-identity", "aws-instance-identity", "azure-instance-identity"}, false),
 			},
-				"dir": {
-					Type:        schema.TypeString,
-					ForceNew:    true,
-					Optional:    true,
-					Deprecated:  "dir has been deprecated and will be removed in a future release.",
-					Description: "The starting directory when a user creates a shell session. Defaults to `\"$HOME\"`." +
-						"\n\n~> **Warning:** This attribute is deprecated and will be removed in a future release. " +
-						"Setting `dir` to a value other than `$HOME` will break " +
-						"[Coder Desktop file sync](https://coder.com/docs/user-guides/desktop/desktop-connect-sync).",
-					ValidateFunc: helpers.WarnDirNotHome,
-				},
-
+			"dir": {
+				Type:     schema.TypeString,
+				ForceNew: true,
+				Optional: true,
+				Description: "The starting directory when a user creates a shell session. Defaults to `\"$HOME\"`. " +
+					"SFTP and scp resolve relative and `~/`-prefixed paths against this directory, " +
+					"so use absolute paths for file transfers.",
+			},
 			"env": {
 				ForceNew:    true,
 				Description: "A mapping of environment variables to set inside the workspace.",
-
 				Type:        schema.TypeMap,
 				Optional:    true,
 			},
diff --git a/provider/helpers/validation.go b/provider/helpers/validation.go
index 0167877a..8e22ecf5 100644
--- a/provider/helpers/validation.go
+++ b/provider/helpers/validation.go
@@ -21,20 +21,6 @@ func ValidateURL(value any, label string) ([]string, []error) {
 	return nil, nil
 }
 
-// WarnDirNotHome returns a warning if dir is set to a value other
-// than $HOME, because this breaks Coder Desktop file sync. The dir
-// attribute is deprecated and will be removed in a future release.
-func WarnDirNotHome(val interface{}, _ string) ([]string, []error) {
-	d, ok := val.(string)
-	if !ok || d == "" || d == "$HOME" || d == "~" {
-		return nil, nil
-	}
-	return []string{
-		`"dir" is deprecated and will be removed in a future release.`,
-		`Setting "dir" to a value other than $HOME will break Coder Desktop file sync.`,
-	}, nil
-}
-
 // ValidateExternalURL validates that value is a URL the browser's URL can parse.
 // An external app URL must carry a scheme and hostname
 func ValidateExternalURL(value string) error {
diff --git a/provider/helpers/validation_test.go b/provider/helpers/validation_test.go
index 41ac35e1..daee783b 100644
--- a/provider/helpers/validation_test.go
+++ b/provider/helpers/validation_test.go
@@ -150,60 +150,6 @@ func TestValidateURL(t *testing.T) {
 	}
 }
 
-func TestWarnDirNotHome(t *testing.T) {
-	tests := []struct {
-		name      string
-		value     interface{}
-		warnCount int
-	}{
-		// No warnings expected.
-		{
-			name:      "empty string",
-			value:     "",
-			warnCount: 0,
-		},
-		{
-			name:      "$HOME",
-			value:     "$HOME",
-			warnCount: 0,
-		},
-		{
-			name:      "tilde",
-			value:     "~",
-			warnCount: 0,
-		},
-		{
-			name:      "non-string type",
-			value:     123,
-			warnCount: 0,
-		},
-		// Warnings expected.
-		{
-			name:      "absolute path",
-			value:     "/workspace",
-			warnCount: 2,
-		},
-		{
-			name:      "relative path",
-			value:     "projects/foo",
-			warnCount: 2,
-		},
-		{
-			name:      "tilde subdir",
-			value:     "~/projects",
-			warnCount: 2,
-		},
-	}
-
-	for _, tt := range tests {
-		t.Run(tt.name, func(t *testing.T) {
-			warnings, errors := WarnDirNotHome(tt.value, "dir")
-			require.Empty(t, errors, "expected no errors")
-			require.Len(t, warnings, tt.warnCount)
-		})
-	}
-}
-
 func TestValidateExternalURL(t *testing.T) {
 	tests := []struct {
 		name          string