chore: update version to 0.17.1 for v0.17.1 release

Signed-off-by: phernandez <paul@basicmachines.co>

CHANGELOG.md

@@ -1,5 +1,14 @@
 # CHANGELOG
 
+## v0.17.1 (2025-12-29)
+
+### Bug Fixes
+
+- **#482**: Only set BASIC_MEMORY_ENV=test during pytest runs
+  ([`98fbd60`](https://github.com/basicmachines-co/basic-memory/commit/98fbd60))
+  - Fixes environment variable pollution affecting alembic migrations
+  - Test environment detection now scoped to pytest execution only
+
 ## v0.17.0 (2025-12-28)
 
 ### Features

src/basic_memory/__init__.py

@@ -1,7 +1,7 @@
 """basic-memory - Local-first knowledge management combining Zettelkasten with knowledge graphs"""
 
 # Package version - updated by release automation
-__version__ = "0.17.0"
+__version__ = "0.17.1"
 
 # API version for FastAPI - independent of package version
 __api_version__ = "v0"

src/basic_memory/alembic/env.py

@@ -21,8 +21,12 @@ from alembic import context
 
 from basic_memory.config import ConfigManager
 
-# set config.env to "test" for pytest to prevent logging to file in utils.setup_logging()
-os.environ["BASIC_MEMORY_ENV"] = "test"
+# Trigger: only set test env when actually running under pytest
+# Why: alembic/env.py is imported during normal operations (MCP server startup, migrations)
+#      but we only want test behavior during actual test runs
+# Outcome: prevents is_test_env from returning True in production, enabling watch service
+if os.getenv("PYTEST_CURRENT_TEST") is not None:
+    os.environ["BASIC_MEMORY_ENV"] = "test"
 
 # Import after setting environment variable  # noqa: E402
 from basic_memory.models import Base  # noqa: E402