fix: ensure instrumentation flags

docs/en/concepts/cli.mdx

@@ -402,6 +402,77 @@ crewai config reset
 After resetting configuration, re-run `crewai login` to authenticate again.
 </Tip>
 
+### 14. Trace Management
+
+Manage trace collection preferences for your Crew and Flow executions.
+
+```shell Terminal
+crewai traces [COMMAND]
+```
+
+#### Commands:
+
+- `enable`: Enable trace collection for crew/flow executions
+```shell Terminal
+crewai traces enable
+```
+
+- `disable`: Disable trace collection for crew/flow executions
+```shell Terminal
+crewai traces disable
+```
+
+- `status`: Show current trace collection status
+```shell Terminal
+crewai traces status
+```
+
+#### How Tracing Works
+
+Trace collection is controlled by checking three settings in priority order:
+
+1. **Explicit flag in code** (highest priority - can enable OR disable):
+   ```python
+   crew = Crew(agents=[...], tasks=[...], tracing=True)   # Always enable
+   crew = Crew(agents=[...], tasks=[...], tracing=False)  # Always disable
+   crew = Crew(agents=[...], tasks=[...])                 # Check lower priorities (default)
+   ```
+   - `tracing=True` will **always enable** tracing (overrides everything)
+   - `tracing=False` will **always disable** tracing (overrides everything)
+   - `tracing=None` or omitted will check lower priority settings
+
+2. **Environment variable** (second priority):
+   ```env
+   CREWAI_TRACING_ENABLED=true
+   ```
+   - Checked only if `tracing` is not explicitly set to `True` or `False` in code
+   - Set to `true` or `1` to enable tracing
+
+3. **User preference** (lowest priority):
+   ```shell Terminal
+   crewai traces enable
+   ```
+   - Checked only if `tracing` is not set in code and `CREWAI_TRACING_ENABLED` is not set to `true`
+   - Running `crewai traces enable` is sufficient to enable tracing by itself
+
+<Note>
+**To enable tracing**, use any one of these methods:
+- Set `tracing=True` in your Crew/Flow code, OR
+- Add `CREWAI_TRACING_ENABLED=true` to your `.env` file, OR
+- Run `crewai traces enable`
+
+**To disable tracing**, use any ONE of these methods:
+- Set `tracing=False` in your Crew/Flow code (overrides everything), OR
+- Remove or set to `false` the `CREWAI_TRACING_ENABLED` env var, OR
+- Run `crewai traces disable`
+
+Higher priority settings override lower ones.
+</Note>
+
+<Tip>
+For more information about tracing, see the [Tracing documentation](/observability/tracing).
+</Tip>
+
 <Tip>
 CrewAI CLI handles authentication to the Tool Repository automatically when adding packages to your project. Just append `crewai` before any `uv` command to use it. E.g. `crewai uv add requests`. For more information, see [Tool Repository](https://docs.crewai.com/enterprise/features/tool-repository) docs.
 </Tip>

lib/crewai/src/crewai/cli/cli.py

@@ -493,5 +493,206 @@ def config_reset():
     config_command.reset_all_settings()
 
 
+@crewai.group()
+def env():
+    """Environment variable commands."""
+
+
+@env.command("view")
+def env_view():
+    """View tracing-related environment variables."""
+    import os
+    from pathlib import Path
+
+    from rich.console import Console
+    from rich.panel import Panel
+    from rich.table import Table
+
+    console = Console()
+
+    # Check for .env file
+    env_file = Path(".env")
+    env_file_exists = env_file.exists()
+
+    # Create table for environment variables
+    table = Table(show_header=True, header_style="bold cyan", expand=True)
+    table.add_column("Environment Variable", style="cyan", width=30)
+    table.add_column("Value", style="white", width=20)
+    table.add_column("Source", style="yellow", width=20)
+
+    # Check CREWAI_TRACING_ENABLED
+    crewai_tracing = os.getenv("CREWAI_TRACING_ENABLED", "")
+    if crewai_tracing:
+        table.add_row(
+            "CREWAI_TRACING_ENABLED",
+            crewai_tracing,
+            "Environment/Shell",
+        )
+    else:
+        table.add_row(
+            "CREWAI_TRACING_ENABLED",
+            "[dim]Not set[/dim]",
+            "[dim]—[/dim]",
+        )
+
+    # Check other related env vars
+    crewai_testing = os.getenv("CREWAI_TESTING", "")
+    if crewai_testing:
+        table.add_row("CREWAI_TESTING", crewai_testing, "Environment/Shell")
+
+    crewai_user_id = os.getenv("CREWAI_USER_ID", "")
+    if crewai_user_id:
+        table.add_row("CREWAI_USER_ID", crewai_user_id, "Environment/Shell")
+
+    crewai_org_id = os.getenv("CREWAI_ORG_ID", "")
+    if crewai_org_id:
+        table.add_row("CREWAI_ORG_ID", crewai_org_id, "Environment/Shell")
+
+    # Check if .env file exists
+    table.add_row(
+        ".env file",
+        "✅ Found" if env_file_exists else "❌ Not found",
+        str(env_file.resolve()) if env_file_exists else "N/A",
+    )
+
+    panel = Panel(
+        table,
+        title="Tracing Environment Variables",
+        border_style="blue",
+        padding=(1, 2),
+    )
+    console.print("\n")
+    console.print(panel)
+
+    # Show helpful message
+    if env_file_exists:
+        console.print(
+            "\n[dim]💡 Tip: To enable tracing via .env, add: CREWAI_TRACING_ENABLED=true[/dim]"
+        )
+    else:
+        console.print(
+            "\n[dim]💡 Tip: Create a .env file in your project root and add: CREWAI_TRACING_ENABLED=true[/dim]"
+        )
+    console.print()
+
+
+@crewai.group()
+def traces():
+    """Trace collection management commands."""
+
+
+@traces.command("enable")
+def traces_enable():
+    """Enable trace collection for crew/flow executions."""
+    from rich.console import Console
+    from rich.panel import Panel
+
+    from crewai.events.listeners.tracing.utils import (
+        _load_user_data,
+        _save_user_data,
+    )
+
+    console = Console()
+
+    # Update user data to enable traces
+    user_data = _load_user_data()
+    user_data["trace_consent"] = True
+    user_data["first_execution_done"] = True
+    _save_user_data(user_data)
+
+    panel = Panel(
+        "✅ Trace collection has been enabled!\n\n"
+        "Your crew/flow executions will now send traces to CrewAI+.\n"
+        "Use 'crewai traces disable' to turn off trace collection.",
+        title="Traces Enabled",
+        border_style="green",
+        padding=(1, 2),
+    )
+    console.print(panel)
+
+
+@traces.command("disable")
+def traces_disable():
+    """Disable trace collection for crew/flow executions."""
+    from rich.console import Console
+    from rich.panel import Panel
+
+    from crewai.events.listeners.tracing.utils import (
+        _load_user_data,
+        _save_user_data,
+    )
+
+    console = Console()
+
+    # Update user data to disable traces
+    user_data = _load_user_data()
+    user_data["trace_consent"] = False
+    user_data["first_execution_done"] = True
+    _save_user_data(user_data)
+
+    panel = Panel(
+        "❌ Trace collection has been disabled!\n\n"
+        "Your crew/flow executions will no longer send traces.\n"
+        "Use 'crewai traces enable' to turn trace collection back on.",
+        title="Traces Disabled",
+        border_style="red",
+        padding=(1, 2),
+    )
+    console.print(panel)
+
+
+@traces.command("status")
+def traces_status():
+    """Show current trace collection status."""
+    import os
+
+    from rich.console import Console
+    from rich.panel import Panel
+    from rich.table import Table
+
+    from crewai.events.listeners.tracing.utils import (
+        _load_user_data,
+        is_tracing_enabled,
+    )
+
+    console = Console()
+    user_data = _load_user_data()
+
+    table = Table(show_header=False, box=None)
+    table.add_column("Setting", style="cyan")
+    table.add_column("Value", style="white")
+
+    # Check environment variable
+    env_enabled = os.getenv("CREWAI_TRACING_ENABLED", "false")
+    table.add_row("CREWAI_TRACING_ENABLED", env_enabled)
+
+    # Check user consent
+    trace_consent = user_data.get("trace_consent")
+    if trace_consent is True:
+        consent_status = "✅ Enabled (user consented)"
+    elif trace_consent is False:
+        consent_status = "❌ Disabled (user declined)"
+    else:
+        consent_status = "⚪ Not set (first-time user)"
+    table.add_row("User Consent", consent_status)
+
+    # Check overall status
+    if is_tracing_enabled():
+        overall_status = "✅ ENABLED"
+        border_style = "green"
+    else:
+        overall_status = "❌ DISABLED"
+        border_style = "red"
+    table.add_row("Overall Status", overall_status)
+
+    panel = Panel(
+        table,
+        title="Trace Collection Status",
+        border_style=border_style,
+        padding=(1, 2),
+    )
+    console.print(panel)
+
+
 if __name__ == "__main__":
     crewai()

lib/crewai/src/crewai/cli/settings/main.py

@@ -1,3 +1,5 @@
+from datetime import datetime
+import os
 from typing import Any
 
 from rich.console import Console
@@ -5,6 +7,7 @@ from rich.table import Table
 
 from crewai.cli.command import BaseCommand
 from crewai.cli.config import HIDDEN_SETTINGS_KEYS, READONLY_SETTINGS_KEYS, Settings
+from crewai.events.listeners.tracing.utils import _load_user_data
 
 
 console = Console()
@@ -39,6 +42,42 @@ class SettingsCommand(BaseCommand):
 
             table.add_row(field_name, display_value, description)
 
+        # Add trace-related settings from user data
+        user_data = _load_user_data()
+
+        # CREWAI_TRACING_ENABLED environment variable
+        env_tracing = os.getenv("CREWAI_TRACING_ENABLED", "")
+        env_tracing_display = env_tracing if env_tracing else "Not set"
+        table.add_row(
+            "CREWAI_TRACING_ENABLED",
+            env_tracing_display,
+            "Environment variable to enable/disable tracing",
+        )
+
+        # Trace consent status
+        trace_consent = user_data.get("trace_consent")
+        if trace_consent is True:
+            consent_display = "✅ Enabled"
+        elif trace_consent is False:
+            consent_display = "❌ Disabled"
+        else:
+            consent_display = "Not set"
+        table.add_row(
+            "trace_consent", consent_display, "Whether trace collection is enabled"
+        )
+
+        # First execution timestamp
+        if user_data.get("first_execution_at"):
+            timestamp = datetime.fromtimestamp(user_data["first_execution_at"])
+            first_exec_display = timestamp.strftime("%Y-%m-%d %H:%M:%S")
+        else:
+            first_exec_display = "Not set"
+        table.add_row(
+            "first_execution_at",
+            first_exec_display,
+            "Timestamp of first crew/flow execution",
+        )
+
         console.print(table)
 
     def set(self, key: str, value: str) -> None:

lib/crewai/src/crewai/crew.py

@@ -27,6 +27,8 @@ from pydantic import (
     model_validator,
 )
 from pydantic_core import PydanticCustomError
+from rich.console import Console
+from rich.panel import Panel
 from typing_extensions import Self
 
 from crewai.agent import Agent
@@ -39,8 +41,8 @@ from crewai.events.listeners.tracing.trace_listener import (
     TraceCollectionListener,
 )
 from crewai.events.listeners.tracing.utils import (
-    is_tracing_enabled,
+    set_tracing_enabled,
-    should_auto_collect_first_time_traces,
+    should_enable_tracing,
 )
 from crewai.events.types.crew_events import (
     CrewKickoffCompletedEvent,
@@ -280,8 +282,8 @@ class Crew(FlowTrackable, BaseModel):
         description="Metrics for the LLM usage during all tasks execution.",
     )
     tracing: bool | None = Field(
-        default=False,
+        default=None,
-        description="Whether to enable tracing for the crew.",
+        description="Whether to enable tracing for the crew. True=always enable, False=always disable, None=check environment/user settings.",
     )
 
     @field_validator("id", mode="before")
@@ -311,17 +313,16 @@ class Crew(FlowTrackable, BaseModel):
     @model_validator(mode="after")
     def set_private_attrs(self) -> Crew:
         """set private attributes."""
-
         self._cache_handler = CacheHandler()
         event_listener = EventListener()  # type: ignore[no-untyped-call]
 
-        if (
+        # Determine and set tracing state once for this execution
-            is_tracing_enabled()
+        tracing_enabled = should_enable_tracing(override=self.tracing)
-            or self.tracing
+        set_tracing_enabled(tracing_enabled)
-            or should_auto_collect_first_time_traces()
+
-        ):
+        # Always setup trace listener - actual execution control is via contextvar
-            trace_listener = TraceCollectionListener()
+        trace_listener = TraceCollectionListener()
-            trace_listener.setup_listeners(crewai_event_bus)
+        trace_listener.setup_listeners(crewai_event_bus)
         event_listener.verbose = self.verbose
         event_listener.formatter.verbose = self.verbose
         self._logger = Logger(verbose=self.verbose)
@@ -1171,6 +1172,10 @@ class Crew(FlowTrackable, BaseModel):
                 total_tokens=self.token_usage.total_tokens,
             ),
         )
+
+        # Finalization is handled by trace listener (always initialized)
+        # The batch manager checks contextvar to determine if tracing is enabled
+
         return CrewOutput(
             raw=final_task_output.raw,
             pydantic=final_task_output.pydantic,
@@ -1651,3 +1656,32 @@ class Crew(FlowTrackable, BaseModel):
             and able_to_inject
         ):
             self.tasks[0].allow_crewai_trigger_context = True
+
+    def _show_tracing_disabled_message(self) -> None:
+        """Show a message when tracing is disabled."""
+        from crewai.events.listeners.tracing.utils import has_user_declined_tracing
+
+        console = Console()
+
+        if has_user_declined_tracing():
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+        else:
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+
+        panel = Panel(
+            message,
+            title="Tracing Status",
+            border_style="blue",
+            padding=(1, 2),
+        )
+        console.print(panel)

lib/crewai/src/crewai/events/event_bus.py

@@ -10,6 +10,7 @@ import atexit
 from collections.abc import Callable, Generator
 from concurrent.futures import Future, ThreadPoolExecutor
 from contextlib import contextmanager
+import contextvars
 import threading
 from typing import Any, Final, ParamSpec, TypeVar
 
@@ -288,8 +289,9 @@ class CrewAIEventsBus:
                 if event_type is LLMStreamChunkEvent:
                     self._call_handlers(source, event, level_sync)
                 else:
+                    ctx = contextvars.copy_context()
                     future = self._sync_executor.submit(
-                        self._call_handlers, source, event, level_sync
+                        ctx.run, self._call_handlers, source, event, level_sync
                     )
                     await asyncio.get_running_loop().run_in_executor(
                         None, future.result
@@ -346,8 +348,9 @@ class CrewAIEventsBus:
             if event_type is LLMStreamChunkEvent:
                 self._call_handlers(source, event, sync_handlers)
             else:
+                ctx = contextvars.copy_context()
                 sync_future = self._sync_executor.submit(
-                    self._call_handlers, source, event, sync_handlers
+                    ctx.run, self._call_handlers, source, event, sync_handlers
                 )
                 if not async_handlers:
                     return sync_future

lib/crewai/src/crewai/events/listeners/tracing/first_time_trace_handler.py

@@ -1,5 +1,4 @@
 import logging
-from pathlib import Path
 import uuid
 import webbrowser
 
@@ -17,47 +16,6 @@ from crewai.events.listeners.tracing.utils import (
 logger = logging.getLogger(__name__)
 
 
-def _update_or_create_env_file():
-    """Update or create .env file with CREWAI_TRACING_ENABLED=true."""
-    env_path = Path(".env")
-    env_content = ""
-    variable_name = "CREWAI_TRACING_ENABLED"
-    variable_value = "true"
-
-    # Read existing content if file exists
-    if env_path.exists():
-        with open(env_path, "r") as f:
-            env_content = f.read()
-
-    # Check if CREWAI_TRACING_ENABLED is already set
-    lines = env_content.splitlines()
-    variable_exists = False
-    updated_lines = []
-
-    for line in lines:
-        if line.strip().startswith(f"{variable_name}="):
-            # Update existing variable
-            updated_lines.append(f"{variable_name}={variable_value}")
-            variable_exists = True
-        else:
-            updated_lines.append(line)
-
-    # Add variable if it doesn't exist
-    if not variable_exists:
-        if updated_lines and not updated_lines[-1].strip():
-            # If last line is empty, replace it
-            updated_lines[-1] = f"{variable_name}={variable_value}"
-        else:
-            # Add new line and then the variable
-            updated_lines.append(f"{variable_name}={variable_value}")
-
-    # Write updated content
-    with open(env_path, "w") as f:
-        f.write("\n".join(updated_lines))
-        if updated_lines:  # Add final newline if there's content
-            f.write("\n")
-
-
 class FirstTimeTraceHandler:
     """Handles the first-time user trace collection and display flow."""
 
@@ -96,20 +54,16 @@ class FirstTimeTraceHandler:
             if user_wants_traces:
                 self._initialize_backend_and_send_events()
 
-                # Enable tracing for future runs by updating .env file
-                try:
-                    _update_or_create_env_file()
-                except Exception:  # noqa: S110
-                    pass
-
                 if self.ephemeral_url:
                     self._display_ephemeral_trace_link()
+            else:
+                self._show_tracing_declined_message()
 
-            mark_first_execution_completed()
+            mark_first_execution_completed(user_consented=user_wants_traces)
 
         except Exception as e:
             self._gracefully_fail(f"Error in trace handling: {e}")
-            mark_first_execution_completed()
+            mark_first_execution_completed(user_consented=False)
 
     def _initialize_backend_and_send_events(self):
         """Initialize backend batch and send collected events."""
@@ -182,8 +136,13 @@ This trace shows:
 • Tool usage and results
 • LLM calls and responses
 
-✅ Tracing has been enabled for future runs! (CREWAI_TRACING_ENABLED=true added to .env)
+✅ Tracing has been enabled for future runs!
-You can also add tracing=True to your Crew(tracing=True) / Flow(tracing=True) for more control.
+Your preference has been saved. Future Crew/Flow executions will automatically collect traces.
+
+To disable tracing later, do any one of these:
+• Set tracing=False in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=false in your project's .env file
+• Run: crewai traces disable
 
 📝 Note: This link will expire in 24 hours.
         """.strip()
@@ -199,6 +158,32 @@ You can also add tracing=True to your Crew(tracing=True) / Flow(tracing=True) fo
         console.print(panel)
         console.print()
 
+    def _show_tracing_declined_message(self):
+        """Show message when user declines tracing."""
+        console = Console()
+
+        panel_content = """
+Info: Tracing has been disabled.
+
+Your preference has been saved. Future Crew/Flow executions will not collect traces.
+
+To enable tracing later, do any one of these:
+• Set tracing=True in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable
+        """.strip()
+
+        panel = Panel(
+            panel_content,
+            title="Tracing Preference Saved",
+            border_style="blue",
+            padding=(1, 2),
+        )
+
+        console.print("\n")
+        console.print(panel)
+        console.print()
+
     def _gracefully_fail(self, error_message: str):
         """Handle errors gracefully without disrupting user experience."""
         console = Console()
@@ -218,8 +203,14 @@ Unfortunately, we couldn't upload them to the server right now, but here's what
 • Execution duration: {self.batch_manager.calculate_duration("execution")}ms
 • Batch ID: {self.batch_manager.trace_batch_id}
 
-Tracing has been enabled for future runs! (CREWAI_TRACING_ENABLED=true added to .env)
+✅ Tracing has been enabled for future runs!
+Your preference has been saved. Future Crew/Flow executions will automatically collect traces.
 The traces include agent decisions, task execution, and tool usage.
+
+To disable tracing later, do any one of these:
+• Set tracing=False in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=false in your project's .env file
+• Run: crewai traces disable
     """.strip()
 
         panel = Panel(

lib/crewai/src/crewai/events/listeners/tracing/trace_batch_manager.py

@@ -12,7 +12,10 @@ from crewai.cli.authentication.token import AuthError, get_auth_token
 from crewai.cli.plus_api import PlusAPI
 from crewai.cli.version import get_crewai_version
 from crewai.events.listeners.tracing.types import TraceEvent
-from crewai.events.listeners.tracing.utils import should_auto_collect_first_time_traces
+from crewai.events.listeners.tracing.utils import (
+    is_tracing_enabled_in_context,
+    should_auto_collect_first_time_traces,
+)
 from crewai.utilities.constants import CREWAI_BASE_URL
 
 
@@ -107,6 +110,9 @@ class TraceBatchManager:
     ):
         """Send batch initialization to backend"""
 
+        if not is_tracing_enabled_in_context():
+            return
+
         if not self.plus_api or not self.current_batch:
             return
 
@@ -243,7 +249,8 @@ class TraceBatchManager:
 
     def finalize_batch(self) -> TraceBatch | None:
         """Finalize batch and return it for sending"""
-        if not self.current_batch:
+
+        if not self.current_batch or not is_tracing_enabled_in_context():
             return None
 
         all_handlers_completed = self.wait_for_pending_events()

lib/crewai/src/crewai/events/listeners/tracing/trace_listener.py

@@ -10,13 +10,14 @@ from crewai.cli.authentication.token import AuthError, get_auth_token
 from crewai.cli.version import get_crewai_version
 from crewai.events.base_event_listener import BaseEventListener
 from crewai.events.event_bus import CrewAIEventsBus
-from crewai.events.utils.console_formatter import ConsoleFormatter
 from crewai.events.listeners.tracing.first_time_trace_handler import (
     FirstTimeTraceHandler,
 )
 from crewai.events.listeners.tracing.trace_batch_manager import TraceBatchManager
 from crewai.events.listeners.tracing.types import TraceEvent
-from crewai.events.listeners.tracing.utils import safe_serialize_to_dict
+from crewai.events.listeners.tracing.utils import (
+    safe_serialize_to_dict,
+)
 from crewai.events.types.agent_events import (
     AgentExecutionCompletedEvent,
     AgentExecutionErrorEvent,
@@ -80,6 +81,7 @@ from crewai.events.types.tool_usage_events import (
     ToolUsageFinishedEvent,
     ToolUsageStartedEvent,
 )
+from crewai.events.utils.console_formatter import ConsoleFormatter
 
 
 class TraceCollectionListener(BaseEventListener):
@@ -627,3 +629,35 @@ class TraceCollectionListener(BaseEventListener):
             "event": safe_serialize_to_dict(event),
             "source": source,
         }
+
+    def _show_tracing_disabled_message(self) -> None:
+        """Show a message when tracing is disabled."""
+        from rich.console import Console
+        from rich.panel import Panel
+
+        from crewai.events.listeners.tracing.utils import has_user_declined_tracing
+
+        console = Console()
+
+        if has_user_declined_tracing():
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+        else:
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+
+        panel = Panel(
+            message,
+            title="Tracing Status",
+            border_style="blue",
+            padding=(1, 2),
+        )
+        console.print(panel)

lib/crewai/src/crewai/events/listeners/tracing/utils.py

@@ -1,3 +1,4 @@
+from contextvars import ContextVar, Token
 from datetime import datetime
 import getpass
 import hashlib
@@ -8,7 +9,7 @@ from pathlib import Path
 import platform
 import re
 import subprocess
-from typing import Any
+from typing import Any, cast
 import uuid
 
 import click
@@ -23,7 +24,120 @@ from crewai.utilities.serialization import to_serializable
 logger = logging.getLogger(__name__)
 
 
+_tracing_enabled: ContextVar[bool | None] = ContextVar("_tracing_enabled", default=None)
+
+
+def should_enable_tracing(*, override: bool | None = None) -> bool:
+    """Determine if tracing should be enabled.
+
+    This is the single source of truth for tracing enablement.
+    Priority order:
+    1. Explicit override (e.g., Crew.tracing=True/False)
+    2. Environment variable CREWAI_TRACING_ENABLED
+    3. User consent from user_data
+
+    Args:
+        override: Explicit override for tracing (True=always enable, False=always disable, None=check other settings)
+
+    Returns:
+        True if tracing should be enabled, False otherwise.
+    """
+    if override is True:
+        return True
+    if override is False:
+        return False
+
+    env_value = os.getenv("CREWAI_TRACING_ENABLED", "").lower()
+    if env_value in ("true", "1"):
+        return True
+
+    data = _load_user_data()
+
+    if data.get("trace_consent", False) is not False:
+        return True
+
+    return False
+
+
+def set_tracing_enabled(enabled: bool) -> object:
+    """Set tracing enabled state for current execution context.
+
+    Args:
+        enabled: Whether tracing should be enabled
+
+    Returns:
+        A token that can be used with reset_tracing_enabled to restore previous value.
+    """
+    return _tracing_enabled.set(enabled)
+
+
+def reset_tracing_enabled(token: Token[bool | None]) -> None:
+    """Reset tracing enabled state to previous value.
+
+    Args:
+        token: Token returned from set_tracing_enabled
+    """
+    _tracing_enabled.reset(token)
+
+
+def is_tracing_enabled_in_context() -> bool:
+    """Check if tracing is enabled in current execution context.
+
+    Returns:
+        True if tracing is enabled in context, False otherwise.
+        Returns False if context has not been set.
+    """
+    enabled = _tracing_enabled.get()
+    return enabled if enabled is not None else False
+
+
+def _user_data_file() -> Path:
+    base = Path(db_storage_path())
+    base.mkdir(parents=True, exist_ok=True)
+    return base / ".crewai_user.json"
+
+
+def _load_user_data() -> dict[str, Any]:
+    p = _user_data_file()
+    if p.exists():
+        try:
+            return cast(dict[str, Any], json.loads(p.read_text()))
+        except (json.JSONDecodeError, OSError, PermissionError) as e:
+            logger.warning(f"Failed to load user data: {e}")
+    return {}
+
+
+def _save_user_data(data: dict[str, Any]) -> None:
+    try:
+        p = _user_data_file()
+        p.write_text(json.dumps(data, indent=2))
+    except (OSError, PermissionError) as e:
+        logger.warning(f"Failed to save user data: {e}")
+
+
+def has_user_declined_tracing() -> bool:
+    """Check if user has explicitly declined trace collection.
+
+    Returns:
+        True if user previously declined tracing, False otherwise.
+    """
+    data = _load_user_data()
+    if data.get("first_execution_done", False):
+        return data.get("trace_consent", False) is False
+    return False
+
+
 def is_tracing_enabled() -> bool:
+    """Check if tracing should be enabled.
+
+
+    Returns:
+        True if tracing is enabled and not disabled, False otherwise.
+    """
+    # If user has explicitly declined tracing, never enable it
+    if has_user_declined_tracing():
+        return False
+
     return os.getenv("CREWAI_TRACING_ENABLED", "false").lower() == "true"
 
 
@@ -213,36 +327,12 @@ def _get_generic_system_id() -> str | None:
     return None
 
 
-def _user_data_file() -> Path:
-    base = Path(db_storage_path())
-    base.mkdir(parents=True, exist_ok=True)
-    return base / ".crewai_user.json"
-
-
-def _load_user_data() -> dict:
-    p = _user_data_file()
-    if p.exists():
-        try:
-            return json.loads(p.read_text())
-        except (json.JSONDecodeError, OSError, PermissionError) as e:
-            logger.warning(f"Failed to load user data: {e}")
-    return {}
-
-
-def _save_user_data(data: dict) -> None:
-    try:
-        p = _user_data_file()
-        p.write_text(json.dumps(data, indent=2))
-    except (OSError, PermissionError) as e:
-        logger.warning(f"Failed to save user data: {e}")
-
-
 def get_user_id() -> str:
     """Stable, anonymized user identifier with caching."""
     data = _load_user_data()
 
     if "user_id" in data:
-        return data["user_id"]
+        return cast(str, data["user_id"])
 
     try:
         username = getpass.getuser()
@@ -263,8 +353,12 @@ def is_first_execution() -> bool:
     return not data.get("first_execution_done", False)
 
 
-def mark_first_execution_done() -> None:
+def mark_first_execution_done(user_consented: bool = False) -> None:
-    """Mark that the first execution has been completed."""
+    """Mark that the first execution has been completed.
+
+    Args:
+        user_consented: Whether the user consented to trace collection.
+    """
     data = _load_user_data()
     if data.get("first_execution_done", False):
         return
@@ -275,12 +369,13 @@ def mark_first_execution_done() -> None:
             "first_execution_at": datetime.now().timestamp(),
             "user_id": get_user_id(),
             "machine_id": _get_machine_id(),
+            "trace_consent": user_consented,
         }
     )
     _save_user_data(data)
 
 
-def safe_serialize_to_dict(obj, exclude: set[str] | None = None) -> dict[str, Any]:
+def safe_serialize_to_dict(obj: Any, exclude: set[str] | None = None) -> dict[str, Any]:
     """Safely serialize an object to a dictionary for event data."""
     try:
         serialized = to_serializable(obj, exclude)
@@ -291,7 +386,9 @@ def safe_serialize_to_dict(obj, exclude: set[str] | None = None) -> dict[str, An
         return {"serialization_error": str(e), "object_type": type(obj).__name__}
 
 
-def truncate_messages(messages, max_content_length=500, max_messages=5):
+def truncate_messages(
+    messages: list[dict[str, Any]], max_content_length: int = 500, max_messages: int = 5
+) -> list[dict[str, Any]]:
     """Truncate message content and limit number of messages"""
     if not messages or not isinstance(messages, list):
         return messages
@@ -308,9 +405,22 @@ def truncate_messages(messages, max_content_length=500, max_messages=5):
 
 
 def should_auto_collect_first_time_traces() -> bool:
-    """True if we should auto-collect traces for first-time user."""
+    """True if we should auto-collect traces for first-time user.
+
+
+    Returns:
+        True if first-time user AND telemetry not disabled AND tracing not explicitly enabled, False otherwise.
+    """
     if _is_test_environment():
         return False
+
+    # If user has previously declined, never auto-collect
+    if has_user_declined_tracing():
+        return False
+
+    if is_tracing_enabled_in_context():
+        return False
+
     return is_first_execution()
 
 
@@ -355,7 +465,7 @@ def prompt_user_for_trace_viewing(timeout_seconds: int = 20) -> bool:
 
         result = [False]
 
-        def get_input():
+        def get_input() -> None:
             try:
                 response = input().strip().lower()
                 result[0] = response in ["y", "yes"]
@@ -377,6 +487,10 @@ def prompt_user_for_trace_viewing(timeout_seconds: int = 20) -> bool:
         return False
 
 
-def mark_first_execution_completed() -> None:
+def mark_first_execution_completed(user_consented: bool = False) -> None:
-    """Mark first execution as completed (called after trace prompt)."""
+    """Mark first execution as completed (called after trace prompt).
-    mark_first_execution_done()
+
+    Args:
+        user_consented: Whether the user consented to trace collection.
+    """
+    mark_first_execution_done(user_consented=user_consented)

lib/crewai/src/crewai/events/utils/console_formatter.py

@@ -1,3 +1,4 @@
+import threading
 from typing import Any, ClassVar
 
 from rich.console import Console
@@ -27,6 +28,7 @@ class ConsoleFormatter:
     _pending_a2a_turn_number: int | None = None
     _a2a_turn_branches: ClassVar[dict[int, Tree]] = {}
     _current_a2a_agent_name: str | None = None
+    crew_completion_printed: ClassVar[threading.Event] = threading.Event()
 
     def __init__(self, verbose: bool = False):
         self.console = Console(width=None)
@@ -47,13 +49,44 @@ class ConsoleFormatter:
             padding=(1, 2),
         )
 
+    def _show_tracing_disabled_message_if_needed(self) -> None:
+        """Show tracing disabled message if tracing is not enabled."""
+        from crewai.events.listeners.tracing.utils import (
+            has_user_declined_tracing,
+            is_tracing_enabled_in_context,
+        )
+
+        if not is_tracing_enabled_in_context():
+            if has_user_declined_tracing():
+                message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+            else:
+                message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Crew/Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+
+            panel = Panel(
+                message,
+                title="Tracing Status",
+                border_style="blue",
+                padding=(1, 2),
+            )
+            self.console.print(panel)
+
     def create_status_content(
         self,
         title: str,
         name: str,
         status_style: str = "blue",
         tool_args: dict[str, Any] | str = "",
-        **fields,
+        **fields: Any,
     ) -> Text:
         """Create standardized status content with consistent formatting."""
         content = Text()
@@ -92,7 +125,7 @@ class ConsoleFormatter:
         """Add a node to the tree with consistent styling."""
         return parent.add(Text(text, style=style))
 
-    def print(self, *args, **kwargs) -> None:
+    def print(self, *args: Any, **kwargs: Any) -> None:
         """Custom print that replaces consecutive Tree renders.
 
         * If the argument is a single ``Tree`` instance, we either start a
@@ -208,11 +241,20 @@ class ConsoleFormatter:
 
         self.print_panel(content, title, style)
 
+        if status in ["completed", "failed"]:
+            self.crew_completion_printed.set()
+
+            # Show tracing disabled message after crew completion
+            self._show_tracing_disabled_message_if_needed()
+
     def create_crew_tree(self, crew_name: str, source_id: str) -> Tree | None:
         """Create and initialize a new crew tree with initial status."""
         if not self.verbose:
             return None
 
+        # Reset the crew completion event for this new crew execution
+        ConsoleFormatter.crew_completion_printed.clear()
+
         tree = Tree(
             Text("🚀 Crew: ", style="cyan bold") + Text(crew_name, style="cyan")
         )
@@ -497,7 +539,7 @@ class ConsoleFormatter:
 
         return method_branch
 
-    def get_llm_tree(self, tool_name: str):
+    def get_llm_tree(self, tool_name: str) -> Tree:
         text = Text()
         text.append(f"🔧 Using {tool_name} from LLM available_function", style="yellow")
 
@@ -512,7 +554,7 @@ class ConsoleFormatter:
         self,
         tool_name: str,
         tool_args: dict[str, Any] | str,
-    ):
+    ) -> None:
         # Create status content for the tool usage
         content = self.create_status_content(
             "Tool Usage Started", tool_name, Status="In Progress", tool_args=tool_args
@@ -528,7 +570,7 @@ class ConsoleFormatter:
     def handle_llm_tool_usage_finished(
         self,
         tool_name: str,
-    ):
+    ) -> None:
         tree = self.get_llm_tree(tool_name)
         self.add_tree_node(tree, "✅ Tool Usage Completed", "green")
         self.print(tree)
@@ -538,7 +580,7 @@ class ConsoleFormatter:
         self,
         tool_name: str,
         error: str,
-    ):
+    ) -> None:
         tree = self.get_llm_tree(tool_name)
         self.add_tree_node(tree, "❌ Tool Usage Failed", "red")
         self.print(tree)
@@ -1558,7 +1600,7 @@ class ConsoleFormatter:
         if branch_to_use is None and tree_to_use is not None:
             branch_to_use = tree_to_use
 
-        def add_panel():
+        def add_panel() -> None:
             memory_text = str(memory_content)
             if len(memory_text) > 500:
                 memory_text = memory_text[:497] + "..."

lib/crewai/src/crewai/flow/flow.py

@@ -26,14 +26,17 @@ from uuid import uuid4
 from opentelemetry import baggage
 from opentelemetry.context import attach, detach
 from pydantic import BaseModel, Field, ValidationError
+from rich.console import Console
+from rich.panel import Panel
 
 from crewai.events.event_bus import crewai_event_bus
 from crewai.events.listeners.tracing.trace_listener import (
     TraceCollectionListener,
 )
 from crewai.events.listeners.tracing.utils import (
-    is_tracing_enabled,
+    has_user_declined_tracing,
-    should_auto_collect_first_time_traces,
+    set_tracing_enabled,
+    should_enable_tracing,
 )
 from crewai.events.types.flow_events import (
     FlowCreatedEvent,
@@ -452,7 +455,7 @@ class Flow(Generic[T], metaclass=FlowMeta):
     _router_paths: ClassVar[dict[FlowMethodName, list[FlowMethodName]]] = {}
     initial_state: type[T] | T | None = None
     name: str | None = None
-    tracing: bool | None = False
+    tracing: bool | None = None
 
     def __class_getitem__(cls: type[Flow[T]], item: type[T]) -> type[Flow[T]]:
         class _FlowGeneric(cls):  # type: ignore
@@ -464,13 +467,14 @@ class Flow(Generic[T], metaclass=FlowMeta):
     def __init__(
         self,
         persistence: FlowPersistence | None = None,
-        tracing: bool | None = False,
+        tracing: bool | None = None,
         **kwargs: Any,
     ) -> None:
         """Initialize a new Flow instance.
 
         Args:
             persistence: Optional persistence backend for storing flow states
+            tracing: Whether to enable tracing. True=always enable, False=always disable, None=check environment/user settings
             **kwargs: Additional state values to initialize or override
         """
         # Initialize basic instance attributes
@@ -488,13 +492,11 @@ class Flow(Generic[T], metaclass=FlowMeta):
         # Initialize state with initial values
         self._state = self._create_initial_state()
         self.tracing = tracing
-        if (
+        tracing_enabled = should_enable_tracing(override=self.tracing)
-            is_tracing_enabled()
+        set_tracing_enabled(tracing_enabled)
-            or self.tracing
+
-            or should_auto_collect_first_time_traces()
+        trace_listener = TraceCollectionListener()
-        ):
+        trace_listener.setup_listeners(crewai_event_bus)
-            trace_listener = TraceCollectionListener()
-            trace_listener.setup_listeners(crewai_event_bus)
         # Apply any additional kwargs
         if kwargs:
             self._initialize_state(kwargs)
@@ -936,18 +938,13 @@ class Flow(Generic[T], metaclass=FlowMeta):
                 )
                 self._event_futures.clear()
 
-            if (
+            trace_listener = TraceCollectionListener()
-                is_tracing_enabled()
+            if trace_listener.batch_manager.batch_owner_type == "flow":
-                or self.tracing
+                if trace_listener.first_time_handler.is_first_time:
-                or should_auto_collect_first_time_traces()
+                    trace_listener.first_time_handler.mark_events_collected()
-            ):
+                    trace_listener.first_time_handler.handle_execution_completion()
-                trace_listener = TraceCollectionListener()
+                else:
-                if trace_listener.batch_manager.batch_owner_type == "flow":
+                    trace_listener.batch_manager.finalize_batch()
-                    if trace_listener.first_time_handler.is_first_time:
-                        trace_listener.first_time_handler.mark_events_collected()
-                        trace_listener.first_time_handler.handle_execution_completion()
-                    else:
-                        trace_listener.batch_manager.finalize_batch()
 
             return final_output
         finally:
@@ -1381,3 +1378,32 @@ class Flow(Generic[T], metaclass=FlowMeta):
         )
         structure = build_flow_structure(self)
         return render_interactive(structure, filename=filename, show=show)
+
+    @staticmethod
+    def _show_tracing_disabled_message() -> None:
+        """Show a message when tracing is disabled."""
+
+        console = Console()
+
+        if has_user_declined_tracing():
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+        else:
+            message = """Info: Tracing is disabled.
+
+To enable tracing, do any one of these:
+• Set tracing=True in your Flow code
+• Set CREWAI_TRACING_ENABLED=true in your project's .env file
+• Run: crewai traces enable"""
+
+        panel = Panel(
+            message,
+            title="Tracing Status",
+            border_style="blue",
+            padding=(1, 2),
+        )
+        console.print(panel)

lib/crewai/tests/agents/test_agent.py

@@ -2148,7 +2148,7 @@ def test_agent_with_knowledge_with_no_crewai_knowledge():
     mock_knowledge.query.assert_called_once()
 
 
-@pytest.mark.vcr(record_mode="none", filter_headers=["authorization"])
+@pytest.mark.vcr(filter_headers=["authorization"])
 def test_agent_with_only_crewai_knowledge():
     mock_knowledge = MagicMock(spec=Knowledge)
 

lib/crewai/tests/cassettes/TestTraceEnableDisable.test_no_http_calls_when_disabled_via_env.yaml

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+      answer\nFinal Answer: Your final answer must be the great and the most complete
+      as possible, it must be outcome described.\n\nI MUST use these formats, my job
+      depends on it!"},{"role":"user","content":"\nCurrent Task: Say hello\n\nThis
+      is the expected criteria for your final answer: hello\nyou MUST return the actual
+      complete content as the final answer, not a summary.\n\nBegin! This is VERY
+      important to you, use the tools available and give your best Final Answer, your
+      job depends on it!\n\nThought:"}],"model":"gpt-4o-mini"}'
+    headers:
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+      - application/json
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+      - 5ea5f513-c359-4a92-a84a-08ad44d9857b
+      x-runtime:
+      - '0.044665'
+      x-xss-protection:
+      - 1; mode=block
+    status:
+      code: 201
+      message: Created
 version: 1

lib/crewai/tests/test_task.py

@@ -697,8 +697,13 @@ def test_save_task_json_output():
 
 
 @pytest.mark.vcr(filter_headers=["authorization"])
-def test_save_task_pydantic_output():
+def test_save_task_pydantic_output(tmp_path, monkeypatch):
-    import uuid
+    """Test saving pydantic output to a file.
+
+    Uses tmp_path fixture and monkeypatch to change directory to avoid
+    file system race conditions on enterprise systems.
+    """
+    from pathlib import Path
 
     class ScoreOutput(BaseModel):
         score: int
@@ -710,7 +715,9 @@ def test_save_task_pydantic_output():
         allow_delegation=False,
     )
 
-    output_file = f"score_{uuid.uuid4()}.json"
+    monkeypatch.chdir(tmp_path)
+
+    output_file = "score_output.json"
     task = Task(
         description="Give me an integer score between 1-5 for the following title: 'The impact of AI in the future of work'",
         expected_output="The score of the title.",
@@ -722,11 +729,9 @@ def test_save_task_pydantic_output():
     crew = Crew(agents=[scorer], tasks=[task])
     crew.kickoff()
 
-    output_file_exists = os.path.exists(output_file)
+    output_path = Path(output_file).resolve()
-    assert output_file_exists
+    assert output_path.exists()
-    assert {"score": 4} == json.loads(open(output_file).read())
+    assert {"score": 4} == json.loads(output_path.read_text())
-    if output_file_exists:
-        os.remove(output_file)
 
 
 @pytest.mark.vcr(filter_headers=["authorization"])

lib/crewai/tests/tracing/test_trace_enable_disable.py

@@ -0,0 +1,112 @@
+"""Tests to verify that traces are sent when enabled and not sent when disabled.
+
+VCR will record HTTP interactions. Inspect cassettes to verify tracing behavior.
+"""
+
+import pytest
+from crewai import Agent, Crew, Task
+from tests.utils import wait_for_event_handlers
+
+
+class TestTraceEnableDisable:
+    """Test suite to verify trace sending behavior with VCR cassette recording."""
+
+    @pytest.mark.vcr(filter_headers=["authorization"])
+    def test_no_http_calls_when_disabled_via_env(self):
+        """Test execution when tracing disabled via CREWAI_TRACING_ENABLED=false."""
+        with pytest.MonkeyPatch.context() as mp:
+            mp.setenv("CREWAI_TRACING_ENABLED", "false")
+            mp.setenv("CREWAI_DISABLE_TELEMETRY", "false")
+
+            agent = Agent(
+                role="Test Agent",
+                goal="Test goal",
+                backstory="Test backstory",
+                llm="gpt-4o-mini",
+            )
+            task = Task(
+                description="Say hello",
+                expected_output="hello",
+                agent=agent,
+            )
+            crew = Crew(agents=[agent], tasks=[task], verbose=False)
+
+            result = crew.kickoff()
+            wait_for_event_handlers()
+
+            assert result is not None
+
+    @pytest.mark.vcr(filter_headers=["authorization"])
+    def test_no_http_calls_when_disabled_via_tracing_false(self):
+        """Test execution when tracing=False explicitly set."""
+        with pytest.MonkeyPatch.context() as mp:
+            mp.setenv("CREWAI_DISABLE_TELEMETRY", "false")
+
+            agent = Agent(
+                role="Test Agent",
+                goal="Test goal",
+                backstory="Test backstory",
+                llm="gpt-4o-mini",
+            )
+            task = Task(
+                description="Say hello",
+                expected_output="hello",
+                agent=agent,
+            )
+            crew = Crew(agents=[agent], tasks=[task], verbose=False, tracing=False)
+
+            result = crew.kickoff()
+            wait_for_event_handlers()
+
+            assert result is not None
+
+    @pytest.mark.vcr(filter_headers=["authorization"])
+    def test_trace_calls_when_enabled_via_env(self):
+        """Test execution when tracing enabled via CREWAI_TRACING_ENABLED=true."""
+        with pytest.MonkeyPatch.context() as mp:
+            mp.setenv("CREWAI_TRACING_ENABLED", "true")
+            mp.setenv("CREWAI_DISABLE_TELEMETRY", "false")
+            mp.setenv("OTEL_SDK_DISABLED", "false")
+
+            agent = Agent(
+                role="Test Agent",
+                goal="Test goal",
+                backstory="Test backstory",
+                llm="gpt-4o-mini",
+            )
+            task = Task(
+                description="Say hello",
+                expected_output="hello",
+                agent=agent,
+            )
+            crew = Crew(agents=[agent], tasks=[task], verbose=False)
+
+            result = crew.kickoff()
+            wait_for_event_handlers()
+
+            assert result is not None
+
+    @pytest.mark.vcr(filter_headers=["authorization"])
+    def test_trace_calls_when_enabled_via_tracing_true(self):
+        """Test execution when tracing=True explicitly set."""
+        with pytest.MonkeyPatch.context() as mp:
+            mp.setenv("CREWAI_DISABLE_TELEMETRY", "false")
+            mp.setenv("OTEL_SDK_DISABLED", "false")
+
+            agent = Agent(
+                role="Test Agent",
+                goal="Test goal",
+                backstory="Test backstory",
+                llm="gpt-4o-mini",
+            )
+            task = Task(
+                description="Say hello",
+                expected_output="hello",
+                agent=agent,
+            )
+            crew = Crew(agents=[agent], tasks=[task], verbose=False, tracing=True)
+
+            result = crew.kickoff()
+            wait_for_event_handlers()
+
+            assert result is not None

lib/crewai/tests/tracing/test_tracing.py

@@ -20,6 +20,21 @@ from tests.utils import wait_for_event_handlers
 class TestTraceListenerSetup:
     """Test TraceListener is properly setup and collecting events"""
 
+    @pytest.fixture(autouse=True)
+    def mock_user_data_file_io(self):
+        """Mock user data file I/O to prevent file system pollution between tests"""
+        with (
+            patch(
+                "crewai.events.listeners.tracing.utils._load_user_data",
+                return_value={},
+            ),
+            patch(
+                "crewai.events.listeners.tracing.utils._save_user_data",
+                return_value=None,
+            ),
+        ):
+            yield
+
     @pytest.fixture(autouse=True)
     def mock_auth_token(self):
         """Mock authentication token for all tests in this class"""
@@ -45,6 +60,13 @@ class TestTraceListenerSetup:
         """Reset tracing singleton instances between tests"""
         from crewai.events.event_bus import crewai_event_bus
         from crewai.events.event_listener import EventListener
+        from crewai.events.listeners.tracing.utils import _tracing_enabled
+
+        # Reset the tracing enabled contextvar
+        try:
+            _tracing_enabled.set(None)
+        except (LookupError, AttributeError):
+            pass
 
         # Clear event bus handlers BEFORE creating any new singletons
         with crewai_event_bus._rwlock.w_locked():
@@ -53,11 +75,19 @@ class TestTraceListenerSetup:
             crewai_event_bus._handler_dependencies = {}
             crewai_event_bus._execution_plan_cache = {}
 
-        # Reset TraceCollectionListener singleton
+        # Reset TraceCollectionListener singleton - must reset instance attributes too
-        if hasattr(TraceCollectionListener, "_instance"):
+        if TraceCollectionListener._instance is not None:
-            TraceCollectionListener._instance = None
+            # Reset instance attributes that shadow class attributes (only if they exist as instance attrs)
-            TraceCollectionListener._initialized = False
+            instance_dict = TraceCollectionListener._instance.__dict__
-            TraceCollectionListener._listeners_setup = False
+            if "_initialized" in instance_dict:
+                del TraceCollectionListener._instance._initialized
+            if "_listeners_setup" in instance_dict:
+                del TraceCollectionListener._instance._listeners_setup
+
+        # Reset class attributes
+        TraceCollectionListener._instance = None
+        TraceCollectionListener._initialized = False
+        TraceCollectionListener._listeners_setup = False
 
         # Reset EventListener singleton
         if hasattr(EventListener, "_instance"):
@@ -72,10 +102,19 @@ class TestTraceListenerSetup:
             crewai_event_bus._handler_dependencies = {}
             crewai_event_bus._execution_plan_cache = {}
 
-        if hasattr(TraceCollectionListener, "_instance"):
+        # Reset TraceCollectionListener singleton - must reset instance attributes too
-            TraceCollectionListener._instance = None
+        if TraceCollectionListener._instance is not None:
-            TraceCollectionListener._initialized = False
+            # Reset instance attributes that shadow class attributes (only if they exist as instance attrs)
-            TraceCollectionListener._listeners_setup = False
+            instance_dict = TraceCollectionListener._instance.__dict__
+            if "_initialized" in instance_dict:
+                del TraceCollectionListener._instance._initialized
+            if "_listeners_setup" in instance_dict:
+                del TraceCollectionListener._instance._listeners_setup
+
+        # Reset class attributes
+        TraceCollectionListener._instance = None
+        TraceCollectionListener._initialized = False
+        TraceCollectionListener._listeners_setup = False
 
         if hasattr(EventListener, "_instance"):
             EventListener._instance = None
@@ -119,7 +158,15 @@ class TestTraceListenerSetup:
     def test_trace_listener_collects_crew_events(self):
         """Test that trace listener properly collects events from crew execution"""
 
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             agent = Agent(
                 role="Test Agent",
                 goal="Test goal",
@@ -148,7 +195,15 @@ class TestTraceListenerSetup:
     def test_batch_manager_finalizes_batch_clears_buffer(self):
         """Test that batch manager properly finalizes batch and clears buffer"""
 
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             agent = Agent(
                 role="Test Agent",
                 goal="Test goal",
@@ -206,7 +261,15 @@ class TestTraceListenerSetup:
     def test_events_collection_batch_manager(self, mock_plus_api_calls):
         """Test that trace listener properly collects events from crew execution"""
 
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             agent = Agent(
                 role="Test Agent",
                 goal="Test goal",
@@ -300,7 +363,15 @@ class TestTraceListenerSetup:
     def test_trace_listener_setup_correctly_for_crew(self):
         """Test that trace listener is set up correctly when enabled"""
 
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             agent = Agent(
                 role="Test Agent",
                 goal="Test goal",
@@ -318,11 +389,19 @@ class TestTraceListenerSetup:
                 Crew(agents=[agent], tasks=[task], verbose=True)
                 assert mock_listener_setup.call_count >= 1
 
+    @pytest.mark.vcr(filter_headers=["authorization"])
     def test_trace_listener_setup_correctly_for_flow(self):
         """Test that trace listener is set up correctly when enabled"""
 
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
-
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             class FlowExample(Flow):
                 @start()
                 def start(self):
@@ -338,7 +417,15 @@ class TestTraceListenerSetup:
     def test_trace_listener_ephemeral_batch(self):
         """Test that trace listener properly handles ephemeral batches"""
         with (
-            patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}),
+            patch.dict(
+                os.environ,
+                {
+                    "CREWAI_TRACING_ENABLED": "true",
+                    "CREWAI_DISABLE_TELEMETRY": "false",
+                    "CREWAI_DISABLE_TRACKING": "false",
+                    "OTEL_SDK_DISABLED": "false",
+                },
+            ),
             patch(
                 "crewai.events.listeners.tracing.trace_listener.TraceCollectionListener._check_authenticated",
                 return_value=False,
@@ -371,7 +458,15 @@ class TestTraceListenerSetup:
     @pytest.mark.vcr(filter_headers=["authorization"])
     def test_trace_listener_with_authenticated_user(self):
         """Test that trace listener properly handles authenticated batches"""
-        with patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "true"}):
+        with patch.dict(
+            os.environ,
+            {
+                "CREWAI_TRACING_ENABLED": "true",
+                "CREWAI_DISABLE_TELEMETRY": "false",
+                "CREWAI_DISABLE_TRACKING": "false",
+                "OTEL_SDK_DISABLED": "false",
+            },
+        ):
             agent = Agent(
                 role="Test Agent",
                 goal="Test goal",
@@ -433,7 +528,15 @@ class TestTraceListenerSetup:
         """Test first-time user trace collection logic with timeout behavior"""
 
         with (
-            patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "false"}),
+            patch.dict(
+                os.environ,
+                {
+                    "CREWAI_TRACING_ENABLED": "false",
+                    "CREWAI_DISABLE_TELEMETRY": "false",
+                    "CREWAI_DISABLE_TRACKING": "false",
+                    "OTEL_SDK_DISABLED": "false",
+                },
+            ),
             patch(
                 "crewai.events.listeners.tracing.utils._is_test_environment",
                 return_value=False,
@@ -472,6 +575,10 @@ class TestTraceListenerSetup:
             trace_listener = TraceCollectionListener()
             trace_listener.setup_listeners(crewai_event_bus)
 
+            trace_listener.first_time_handler = FirstTimeTraceHandler()
+            if trace_listener.first_time_handler.initialize_for_first_time_user():
+                trace_listener.first_time_handler.set_batch_manager(trace_listener.batch_manager)
+
             assert trace_listener.first_time_handler.is_first_time is True
             assert trace_listener.first_time_handler.collected_events is False
 
@@ -494,7 +601,15 @@ class TestTraceListenerSetup:
         """Test first-time user trace collection when user accepts viewing traces"""
 
         with (
-            patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "false"}),
+            patch.dict(
+                os.environ,
+                {
+                    "CREWAI_TRACING_ENABLED": "false",
+                    "CREWAI_DISABLE_TELEMETRY": "false",
+                    "CREWAI_DISABLE_TRACKING": "false",
+                    "OTEL_SDK_DISABLED": "false",
+                },
+            ),
             patch(
                 "crewai.events.listeners.tracing.utils._is_test_environment",
                 return_value=False,
@@ -531,6 +646,12 @@ class TestTraceListenerSetup:
             from crewai.events.event_bus import crewai_event_bus
 
             trace_listener = TraceCollectionListener()
+            trace_listener.setup_listeners(crewai_event_bus)
+
+            # Re-initialize first-time handler after patches are applied to ensure clean state
+            trace_listener.first_time_handler = FirstTimeTraceHandler()
+            if trace_listener.first_time_handler.initialize_for_first_time_user():
+                trace_listener.first_time_handler.set_batch_manager(trace_listener.batch_manager)
 
             trace_listener.batch_manager.ephemeral_trace_url = (
                 "https://crewai.com/trace/mock-id"
@@ -546,8 +667,6 @@ class TestTraceListenerSetup:
                     trace_listener.first_time_handler, "_display_ephemeral_trace_link"
                 ) as mock_display_link,
             ):
-                trace_listener.setup_listeners(crewai_event_bus)
-
                 assert trace_listener.first_time_handler.is_first_time is True
 
                 trace_listener.first_time_handler.collected_events = True
@@ -567,7 +686,15 @@ class TestTraceListenerSetup:
     def test_first_time_user_trace_consolidation_logic(self, mock_plus_api_calls):
         """Test the consolidation logic for first-time users vs regular tracing"""
         with (
-            patch.dict(os.environ, {"CREWAI_TRACING_ENABLED": "false"}),
+            patch.dict(
+                os.environ,
+                {
+                    "CREWAI_TRACING_ENABLED": "",
+                    "CREWAI_DISABLE_TELEMETRY": "false",
+                    "CREWAI_DISABLE_TRACKING": "false",
+                    "OTEL_SDK_DISABLED": "false",
+                },
+            ),
             patch(
                 "crewai.events.listeners.tracing.utils._is_test_environment",
                 return_value=False,
@@ -588,6 +715,13 @@ class TestTraceListenerSetup:
                 crewai_event_bus._async_handlers = {}
 
             trace_listener = TraceCollectionListener()
+
+            # Re-initialize first-time handler after patches are applied to ensure clean state
+            # This is necessary because the singleton may have been created before patches were active
+            trace_listener.first_time_handler = FirstTimeTraceHandler()
+            if trace_listener.first_time_handler.initialize_for_first_time_user():
+                trace_listener.first_time_handler.set_batch_manager(trace_listener.batch_manager)
+
             trace_listener.setup_listeners(crewai_event_bus)
 
             assert trace_listener.first_time_handler.is_first_time is True
@@ -668,40 +802,41 @@ class TestTraceListenerSetup:
     def test_trace_batch_marked_as_failed_on_finalize_error(self):
         """Test that trace batch is marked as failed when finalization returns non-200 status"""
         # Test the error handling logic directly in TraceBatchManager
-        batch_manager = TraceBatchManager()
+        with patch("crewai.events.listeners.tracing.trace_batch_manager.is_tracing_enabled_in_context", return_value=True):
+            batch_manager = TraceBatchManager()
 
-        # Initialize a batch
+            # Initialize a batch
-        batch_manager.current_batch = batch_manager.initialize_batch(
+            batch_manager.current_batch = batch_manager.initialize_batch(
-            user_context={"privacy_level": "standard"},
+                user_context={"privacy_level": "standard"},
-            execution_metadata={
+                execution_metadata={
-                "execution_type": "crew",
+                    "execution_type": "crew",
-                "crew_name": "test_crew",
+                    "crew_name": "test_crew",
-            },
+                },
-        )
-        batch_manager.trace_batch_id = "test_batch_id_12345"
-        batch_manager.backend_initialized = True
-
-        # Mock the API responses
-        with (
-            patch.object(
-                batch_manager.plus_api,
-                "send_trace_events",
-                return_value=MagicMock(status_code=200),
-            ),
-            patch.object(
-                batch_manager.plus_api,
-                "finalize_trace_batch",
-                return_value=MagicMock(status_code=500, text="Internal Server Error"),
-            ),
-            patch.object(
-                batch_manager.plus_api,
-                "mark_trace_batch_as_failed",
-            ) as mock_mark_failed,
-        ):
-            # Call finalize_batch directly
-            batch_manager.finalize_batch()
-
-            # Verify that mark_trace_batch_as_failed was called with the error message
-            mock_mark_failed.assert_called_once_with(
-                "test_batch_id_12345", "Internal Server Error"
             )
+            batch_manager.trace_batch_id = "test_batch_id_12345"
+            batch_manager.backend_initialized = True
+
+            # Mock the API responses
+            with (
+                patch.object(
+                    batch_manager.plus_api,
+                    "send_trace_events",
+                    return_value=MagicMock(status_code=200),
+                ),
+                patch.object(
+                    batch_manager.plus_api,
+                    "finalize_trace_batch",
+                    return_value=MagicMock(status_code=500, text="Internal Server Error"),
+                ),
+                patch.object(
+                    batch_manager.plus_api,
+                    "mark_trace_batch_as_failed",
+                ) as mock_mark_failed,
+            ):
+                # Call finalize_batch directly
+                batch_manager.finalize_batch()
+
+                # Verify that mark_trace_batch_as_failed was called with the error message
+                mock_mark_failed.assert_called_once_with(
+                    "test_batch_id_12345", "Internal Server Error"
+                )