diff --git a/src/pyra/setup/wizard.py b/src/pyra/setup/wizard.py
index d3897a6..eb9ab3f 100644
--- a/src/pyra/setup/wizard.py
+++ b/src/pyra/setup/wizard.py
@@ -391,7 +391,7 @@ def fetch_loaded_models(provider: Provider) -> list[str]:
             resp.raise_for_status()
             return [
                 m["id"] for m in resp.json().get("data", [])
-                if m.get("state") == "loaded_instance"
+                if m.get("state") == "loaded"
             ]
         else:  # llamacpp — /models returns only the active loaded model
             resp = httpx.get(f"{provider.base_url}/models", timeout=3.0)
@@ -427,7 +427,7 @@ def _fetch_local_models(provider: Provider) -> list[str]:
             resp.raise_for_status()
             return [
                 m["id"] for m in resp.json().get("data", [])
-                if m.get("state") == "loaded_instance"
+                if m.get("state") == "loaded"
             ]
         else:
             resp = httpx.get(f"{provider.base_url}/models", timeout=3.0)
diff --git a/tests/unit/test_setup_wizard.py b/tests/unit/test_setup_wizard.py
index 5cf77f7..8c0313e 100644
--- a/tests/unit/test_setup_wizard.py
+++ b/tests/unit/test_setup_wizard.py
@@ -101,7 +101,7 @@ def test_fetch_local_models_lmstudio_returns_loaded_model_ids(monkeypatch):
     mock_resp = MagicMock()
     mock_resp.json.return_value = {
         "data": [
-            {"id": "gemma-4b", "state": "loaded_instance"},
+            {"id": "gemma-4b", "state": "loaded"},
             {"id": "llama3", "state": "not_loaded"},
         ]
     }
@@ -418,7 +418,7 @@ def test_fetch_loaded_models_lmstudio_uses_beta_api_and_filters(monkeypatch):
     mock_resp = MagicMock()
     mock_resp.json.return_value = {
         "data": [
-            {"id": "gemma-4b", "state": "loaded_instance"},
+            {"id": "gemma-4b", "state": "loaded"},
             {"id": "llama3", "state": "not_loaded"},
         ]
     }