Update README with setup guide, contributing workflow, and bestiary docs

Fixes packages/app → packages/application path, expands scripts table,
documents the parallel merge gate, adds contributing workflow with
spec-driven process and Claude Code skills, and documents bestiary
index regeneration.

Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>

README.md

@@ -1,4 +1,4 @@
-# Encounter Console
+# Initiative
 
 A local-first initiative tracker and encounter manager for tabletop RPGs (D&D 5e / 2024). Runs entirely in the browser — no server, no account, no data leaves your machine.
 
@@ -34,16 +34,42 @@ Open `http://localhost:5173`.
 | `pnpm --filter web dev` | Start the dev server |
 | `pnpm --filter web build` | Production build |
 | `pnpm test` | Run all tests (Vitest) |
-| `pnpm check` | Full merge gate (knip, biome, typecheck, test, jscpd) |
+| `pnpm test:watch` | Tests in watch mode |
+| `pnpm vitest run path/to/test.ts` | Run a single test file |
+| `pnpm typecheck` | TypeScript type checking |
+| `pnpm lint` | Biome lint |
+| `pnpm format` | Biome format (writes changes) |
+| `pnpm check` | Full merge gate (see below) |
+
+### Merge gate (`pnpm check`)
+
+All of these run at pre-commit via Lefthook (in parallel where possible):
+
+- `pnpm audit` — security audit
+- `knip` — unused code detection
+- `biome check` — formatting + linting
+- `oxlint` — type-aware linting (complements Biome)
+- Custom scripts — lint-ignore caps, className enforcement, component prop limits
+- `tsc --build` — TypeScript strict mode
+- `vitest run` — tests with per-path coverage thresholds
+- `jscpd` + `jsinspect` — copy-paste and structural duplication detection
+
+## Tech Stack
+
+- TypeScript 5.8 (strict mode), React 19, Vite 6
+- Tailwind CSS v4 (dark/light theme)
+- Biome 2.4 (formatting + linting), oxlint (type-aware linting)
+- Vitest (testing, v8 coverage), Lefthook (pre-commit hooks)
+- Knip (unused code), jscpd + jsinspect (duplication detection)
 
 ## Project Structure
 
 ```
 apps/web/                  React 19 + Vite — UI components, hooks, adapters
 packages/domain/           Pure functions — state transitions, types, validation
-packages/app/      Use cases — orchestrates domain via port interfaces
+packages/application/      Use cases — orchestrates domain via port interfaces
-data/bestiary/     Bestiary index for creature search
+data/bestiary/             Pre-built bestiary search index (~10k creatures)
-scripts/           Build tooling (layer boundary checks, index generation)
+scripts/                   Build tooling (layer checks, index generation)
 specs/                     Feature specifications (spec → plan → tasks)
 ```
 
@@ -55,5 +81,45 @@ Strict layered architecture with enforced dependency direction:
 apps/web (adapters)  →  packages/application (use cases)  →  packages/domain (pure logic)
 ```
 
-Domain is pure — no I/O, no randomness, no framework imports. Layer boundaries are enforced by automated import checks that run as part of the test suite. See [CLAUDE.md](./CLAUDE.md) for full conventions.
+- **Domain** — pure functions, no I/O, no randomness, no framework imports. Errors returned as values (`DomainError`), never thrown.
+- **Application** — orchestrates domain calls via port interfaces (`EncounterStore`, `PlayerCharacterStore`, etc.). No business logic.
+- **Web** — React adapter. Implements ports using hooks/state. All UI components, persistence, and external data access live here.
 
+Layer boundaries are enforced by automated import checks that run as part of the test suite.
+
+## Contributing
+
+### Workflow
+
+Development is spec-driven. Feature specs live in `specs/NNN-feature-name/` and are managed through Claude Code skills (see [CLAUDE.md](./CLAUDE.md) for full details).
+
+| Scope | What to do |
+|-------|-----------|
+| Bug fix / CSS tweak | Fix it, run `pnpm check`, commit. Optionally use `/browser-interactive-testing` for visual verification. |
+| Change to existing feature | Update the feature spec, then implement |
+| Larger change to existing feature | Update the spec → `/rpi-research` → `/rpi-plan` → `/rpi-implement` |
+| New feature | `/speckit.specify` → `/speckit.clarify` → `/speckit.plan` → `/speckit.tasks` → `/speckit.implement` |
+
+Use `/write-issue` to create well-structured Gitea issues, and `/integrate-issue` to pull an existing issue's requirements into the relevant feature spec.
+
+### Before committing
+
+Run `pnpm check` — Lefthook runs this automatically at pre-commit, but running it manually first saves time. All checks must pass.
+
+### Conventions
+
+- **Biome** for formatting and linting — tab indentation, 80-char lines
+- **TypeScript strict mode** with `verbatimModuleSyntax` (type-only imports must use `import type`)
+- **Max 8 props** per component interface — use React context for shared state
+- **Tests** in `__tests__/` directories — test pure functions directly, use `renderHook` for hooks
+
+See [CLAUDE.md](./CLAUDE.md) for the full conventions and project constitution.
+
+## Bestiary Index
+
+The bestiary search index (`data/bestiary/index.json`) is pre-built and checked into the repo. To regenerate it (e.g., after a new source book release):
+
+1. Clone [5etools-mirror-3/5etools-src](https://github.com/5etools-mirror-3/5etools-src) locally
+2. Run `node scripts/generate-bestiary-index.mjs /path/to/5etools-src`
+
+The script extracts creature names, stats, and source info into a compact search index.