diff --git a/.github/workflows/sonarcloud_pr.yml b/.github/workflows/sonarcloud_pr.yml
index 19eecd8b03..380118d7b5 100644
--- a/.github/workflows/sonarcloud_pr.yml
+++ b/.github/workflows/sonarcloud_pr.yml
@@ -152,11 +152,27 @@ jobs:
           echo "All changed files in PR:"
           echo "$files"
 
-          # Convert to comma-separated list for sonar.inclusions
+          # Filter out files that are excluded by .coveragerc to avoid coverage conflicts
+          # This prevents SonarCloud from analyzing files that have no coverage data
           if [ -n "$files" ]; then
-            inclusions=$(echo "$files" | tr '\n' ',' | sed 's/,$//')
-            echo "SONAR_INCLUSIONS=$inclusions" >> $GITHUB_ENV
-            echo "└── Result: ✅ Will scan these files: $inclusions"
+            # Filter out files matching .coveragerc omit patterns
+            filtered_files=$(echo "$files" | grep -v "settings/.*_defaults\.py$" | grep -v "settings/defaults\.py$" | grep -v "main/migrations/")
+
+            # Show which files were filtered out for transparency
+            excluded_files=$(echo "$files" | grep -E "(settings/.*_defaults\.py$|settings/defaults\.py$|main/migrations/)" || true)
+            if [ -n "$excluded_files" ]; then
+              echo "├── Filtered out (coverage-excluded): $(echo "$excluded_files" | wc -l) file(s)"
+              echo "$excluded_files" | sed 's/^/│   - /'
+            fi
+
+            if [ -n "$filtered_files" ]; then
+              inclusions=$(echo "$filtered_files" | tr '\n' ',' | sed 's/,$//')
+              echo "SONAR_INCLUSIONS=$inclusions" >> $GITHUB_ENV
+              echo "└── Result: ✅ Will scan these files (excluding coverage-omitted files): $inclusions"
+            else
+              echo "└── Result: ✅ All changed files are excluded by coverage config, running full SonarCloud analysis"
+              # Don't set SONAR_INCLUSIONS, let it scan everything per sonar-project.properties
+            fi
           else
             echo "└── Result: ✅ Running SonarCloud analysis"
           fi
diff --git a/awx/main/tests/functional/dab_feature_flags/test_feature_flags_api.py b/awx/main/tests/functional/dab_feature_flags/test_feature_flags_api.py
index 490b3ac6e1..7601e4ddc4 100644
--- a/awx/main/tests/functional/dab_feature_flags/test_feature_flags_api.py
+++ b/awx/main/tests/functional/dab_feature_flags/test_feature_flags_api.py
@@ -1,36 +1,30 @@
 import pytest
-from django.test import override_settings
-
+from flags.state import get_flags, flag_state
+from ansible_base.feature_flags.models import AAPFlag
+from ansible_base.feature_flags.utils import create_initial_data as seed_feature_flags
+from django.conf import settings
 from awx.main.models import User
 
 
-@override_settings(FLAGS={})
 @pytest.mark.django_db
 def test_feature_flags_list_endpoint(get):
-    bob = User.objects.create(username='bob', password='test_user', is_superuser=False)
-
-    url = "/api/v2/feature_flags_state/"
+    bob = User.objects.create(username='bob', password='test_user', is_superuser=True)
+    url = "/api/v2/feature_flags/states/"
     response = get(url, user=bob, expect=200)
-    assert len(response.data) == 0
+    assert len(get_flags()) > 0
+    assert len(response.data["results"]) == len(get_flags())
 
 
-@override_settings(
-    FLAGS={
-        "FEATURE_SOME_PLATFORM_FLAG_ENABLED": [
-            {"condition": "boolean", "value": False},
-            {"condition": "before date", "value": "2022-06-01T12:00Z"},
-        ],
-        "FEATURE_SOME_PLATFORM_FLAG_FOO_ENABLED": [
-            {"condition": "boolean", "value": True},
-        ],
-    }
-)
 @pytest.mark.django_db
-def test_feature_flags_list_endpoint_override(get):
-    bob = User.objects.create(username='bob', password='test_user', is_superuser=False)
+@pytest.mark.parametrize('flag_val', (True, False))
+def test_feature_flags_list_endpoint_override(get, flag_val):
+    bob = User.objects.create(username='bob', password='test_user', is_superuser=True)
 
-    url = "/api/v2/feature_flags_state/"
+    AAPFlag.objects.all().delete()
+    flag_name = "FEATURE_DISPATCHERD_ENABLED"
+    setattr(settings, flag_name, flag_val)
+    seed_feature_flags()
+    url = "/api/v2/feature_flags/states/"
     response = get(url, user=bob, expect=200)
-    assert len(response.data) == 2
-    assert response.data["FEATURE_SOME_PLATFORM_FLAG_ENABLED"] is False
-    assert response.data["FEATURE_SOME_PLATFORM_FLAG_FOO_ENABLED"] is True
+    assert len(response.data["results"]) == 6
+    assert flag_state(flag_name) == flag_val
diff --git a/awx/main/tests/functional/test_dispatch.py b/awx/main/tests/functional/test_dispatch.py
index a5a344d504..b752762fa6 100644
--- a/awx/main/tests/functional/test_dispatch.py
+++ b/awx/main/tests/functional/test_dispatch.py
@@ -5,11 +5,8 @@ import signal
 import time
 import yaml
 from unittest import mock
-from copy import deepcopy
-
+from flags.state import disable_flag, enable_flag
 from django.utils.timezone import now as tz_now
-from django.conf import settings
-from django.test.utils import override_settings
 import pytest
 
 from awx.main.models import Job, WorkflowJob, Instance
@@ -302,13 +299,14 @@ class TestTaskDispatcher:
         assert str(result) == "No module named 'awx.foo'"  # noqa
 
 
+@pytest.mark.django_db
 class TestTaskPublisher:
     @pytest.fixture(autouse=True)
     def _disable_dispatcherd(self):
-        ffs = deepcopy(settings.FLAGS)
-        ffs['FEATURE_DISPATCHERD_ENABLED'][0]['value'] = False
-        with override_settings(FLAGS=ffs):
-            yield
+        flag_name = "FEATURE_DISPATCHERD_ENABLED"
+        disable_flag(flag_name)
+        yield
+        enable_flag(flag_name)
 
     def test_function_callable(self):
         assert add(2, 2) == 4
diff --git a/awx/main/tests/unit/test_settings.py b/awx/main/tests/unit/test_settings.py
index acc376c15c..42ad771b1a 100644
--- a/awx/main/tests/unit/test_settings.py
+++ b/awx/main/tests/unit/test_settings.py
@@ -9,6 +9,9 @@ LOCAL_SETTINGS = (
     'DEBUG',
     'NAMED_URL_GRAPH',
     'DISPATCHER_MOCK_PUBLISH',
+    # Platform flags are managed by the platform flags system and have environment-specific defaults
+    'FEATURE_DISPATCHERD_ENABLED',
+    'FEATURE_INDIRECT_NODE_COUNTING_ENABLED',
 )
 
 
@@ -28,7 +31,7 @@ def test_default_settings():
             continue
         default_val = getattr(settings.default_settings, k, None)
         snapshot_val = settings.DEFAULTS_SNAPSHOT[k]
-        assert default_val == snapshot_val, f'Setting for {k} does not match shapshot:\nsnapshot: {snapshot_val}\ndefault: {default_val}'
+        assert default_val == snapshot_val, f'Setting for {k} does not match snapshot:\nsnapshot: {snapshot_val}\ndefault: {default_val}'
 
 
 def test_django_conf_settings_is_awx_settings():
@@ -69,3 +72,27 @@ def test_merge_application_name():
     result = merge_application_name(settings)["DATABASES__default__OPTIONS__application_name"]
     assert result.startswith("awx-")
     assert "test-cluster" in result
+
+
+def test_development_defaults_feature_flags(monkeypatch):
+    """Ensure that development_defaults.py sets the correct feature flags."""
+    monkeypatch.setenv('AWX_MODE', 'development')
+
+    # Import the development_defaults module directly to trigger coverage of the new lines
+    import importlib.util
+    import os
+
+    spec = importlib.util.spec_from_file_location("development_defaults", os.path.join(os.path.dirname(__file__), "../../../settings/development_defaults.py"))
+    development_defaults = importlib.util.module_from_spec(spec)
+    spec.loader.exec_module(development_defaults)
+
+    # Also import through the development settings to ensure both paths are tested
+    from awx.settings.development import FEATURE_INDIRECT_NODE_COUNTING_ENABLED, FEATURE_DISPATCHERD_ENABLED
+
+    # Verify the feature flags are set correctly in both the module and settings
+    assert hasattr(development_defaults, 'FEATURE_INDIRECT_NODE_COUNTING_ENABLED')
+    assert development_defaults.FEATURE_INDIRECT_NODE_COUNTING_ENABLED is True
+    assert hasattr(development_defaults, 'FEATURE_DISPATCHERD_ENABLED')
+    assert development_defaults.FEATURE_DISPATCHERD_ENABLED is True
+    assert FEATURE_INDIRECT_NODE_COUNTING_ENABLED is True
+    assert FEATURE_DISPATCHERD_ENABLED is True
diff --git a/awx/main/tests/unit/test_tasks.py b/awx/main/tests/unit/test_tasks.py
index 980eab2959..cd4d343b87 100644
--- a/awx/main/tests/unit/test_tasks.py
+++ b/awx/main/tests/unit/test_tasks.py
@@ -461,6 +461,7 @@ class TestExtraVarSanitation(TestJobExecution):
 
 
 class TestGenericRun:
+    @pytest.mark.django_db(reset_sequences=True)
     def test_generic_failure(self, patch_Job, execution_environment, mock_me, mock_create_partition):
         job = Job(status='running', inventory=Inventory(), project=Project(local_path='/projects/_23_foo'))
         job.websocket_emit_status = mock.Mock()
@@ -545,6 +546,7 @@ class TestGenericRun:
         private_data_dir, extra_vars, safe_dict = call_args
         assert extra_vars['super_secret'] == "CLASSIFIED"
 
+    @pytest.mark.django_db
     def test_awx_task_env(self, patch_Job, private_data_dir, execution_environment, mock_me):
         job = Job(project=Project(), inventory=Inventory())
         job.execution_environment = execution_environment
@@ -845,6 +847,7 @@ class TestJobCredentials(TestJobExecution):
             [None, '0'],
         ],
     )
+    @pytest.mark.django_db
     def test_net_credentials(self, authorize, expected_authorize, job, private_data_dir, mock_me):
         task = jobs.RunJob()
         task.instance = job
@@ -901,6 +904,7 @@ class TestJobCredentials(TestJobExecution):
 
         assert safe_env['AZURE_PASSWORD'] == HIDDEN_PASSWORD
 
+    @pytest.mark.django_db
     def test_awx_task_env(self, settings, private_data_dir, job, mock_me):
         settings.AWX_TASK_ENV = {'FOO': 'BAR'}
         task = jobs.RunJob()
diff --git a/awx/resource_api.py b/awx/resource_api.py
index f169bf9c5a..10c2eac4ed 100644
--- a/awx/resource_api.py
+++ b/awx/resource_api.py
@@ -1,8 +1,14 @@
 from ansible_base.resource_registry.registry import ParentResource, ResourceConfig, ServiceAPIConfig, SharedResource
-from ansible_base.resource_registry.shared_types import OrganizationType, TeamType, UserType
 from ansible_base.rbac.models import RoleDefinition
-from ansible_base.resource_registry.shared_types import RoleDefinitionType
 
+from ansible_base.resource_registry.shared_types import (
+    FeatureFlagType,
+    RoleDefinitionType,
+    OrganizationType,
+    TeamType,
+    UserType,
+)
+from ansible_base.feature_flags.models import AAPFlag
 from awx.main import models
 
 
@@ -15,7 +21,11 @@ RESOURCE_LIST = (
         models.Organization,
         shared_resource=SharedResource(serializer=OrganizationType, is_provider=False),
     ),
-    ResourceConfig(models.User, shared_resource=SharedResource(serializer=UserType, is_provider=False), name_field="username"),
+    ResourceConfig(
+        models.User,
+        shared_resource=SharedResource(serializer=UserType, is_provider=False),
+        name_field="username",
+    ),
     ResourceConfig(
         models.Team,
         shared_resource=SharedResource(serializer=TeamType, is_provider=False),
@@ -25,4 +35,8 @@ RESOURCE_LIST = (
         RoleDefinition,
         shared_resource=SharedResource(serializer=RoleDefinitionType, is_provider=False),
     ),
+    ResourceConfig(
+        AAPFlag,
+        shared_resource=SharedResource(serializer=FeatureFlagType, is_provider=False),
+    ),
 )
diff --git a/awx/settings/__init__.py b/awx/settings/__init__.py
index 641d442bbc..2332863d7b 100644
--- a/awx/settings/__init__.py
+++ b/awx/settings/__init__.py
@@ -8,7 +8,6 @@ from ansible_base.lib.dynamic_config import (
     load_envvars,
     load_python_file_with_injected_context,
     load_standard_settings_files,
-    toggle_feature_flags,
 )
 from .functions import (
     assert_production_settings,
@@ -71,12 +70,5 @@ DYNACONF.update(
     merge=True,
 )
 
-# Toggle feature flags based on installer settings
-DYNACONF.update(
-    toggle_feature_flags(DYNACONF),
-    loader_identifier="awx.settings:toggle_feature_flags",
-    merge=True,
-)
-
 # Update django.conf.settings with DYNACONF values
 export(__name__, DYNACONF)
diff --git a/awx/settings/defaults.py b/awx/settings/defaults.py
index bf04830942..3bd9510072 100644
--- a/awx/settings/defaults.py
+++ b/awx/settings/defaults.py
@@ -1148,11 +1148,8 @@ OPA_REQUEST_TIMEOUT = 1.5  # The number of seconds after which the connection to
 OPA_REQUEST_RETRIES = 2  # The number of retry attempts for connecting to the OPA server. Default is 2.
 
 # feature flags
-FLAG_SOURCES = ('flags.sources.SettingsFlagsSource',)
-FLAGS = {
-    'FEATURE_INDIRECT_NODE_COUNTING_ENABLED': [{'condition': 'boolean', 'value': False}],
-    'FEATURE_DISPATCHERD_ENABLED': [{'condition': 'boolean', 'value': False}],
-}
+FEATURE_INDIRECT_NODE_COUNTING_ENABLED = False
+FEATURE_DISPATCHERD_ENABLED = False
 
 # Dispatcher worker lifetime. If set to None, workers will never be retired
 # based on age. Note workers will finish their last task before retiring if
diff --git a/awx/settings/development_defaults.py b/awx/settings/development_defaults.py
index 1e5ecff78a..c7f43e880e 100644
--- a/awx/settings/development_defaults.py
+++ b/awx/settings/development_defaults.py
@@ -11,8 +11,6 @@ import socket
 # /usr/lib64/python/mimetypes.py
 import mimetypes
 
-from dynaconf import post_hook
-
 # awx-manage shell_plus --notebook
 NOTEBOOK_ARGUMENTS = ['--NotebookApp.token=', '--ip', '0.0.0.0', '--port', '9888', '--allow-root', '--no-browser']
 
@@ -70,11 +68,5 @@ AWX_DISABLE_TASK_MANAGERS = False
 # Needed for launching runserver in debug mode
 # ======================!!!!!!! FOR DEVELOPMENT ONLY !!!!!!!=================================
 
-
-# This modifies FLAGS set by defaults, must be deferred to run later
-@post_hook
-def set_dev_flags(settings):
-    defaults_flags = settings.get("FLAGS", {})
-    defaults_flags['FEATURE_INDIRECT_NODE_COUNTING_ENABLED'] = [{'condition': 'boolean', 'value': True}]
-    defaults_flags['FEATURE_DISPATCHERD_ENABLED'] = [{'condition': 'boolean', 'value': True}]
-    return {'FLAGS': defaults_flags}
+FEATURE_INDIRECT_NODE_COUNTING_ENABLED = True
+FEATURE_DISPATCHERD_ENABLED = True
diff --git a/requirements/requirements.txt b/requirements/requirements.txt
index fbf6c37451..1da974773a 100644
--- a/requirements/requirements.txt
+++ b/requirements/requirements.txt
@@ -22,7 +22,7 @@ ansi2html==1.9.2
     # via -r /awx_devel/requirements/requirements_git.txt
 asciichartpy==1.5.25
     # via -r /awx_devel/requirements/requirements.in
-asgiref==3.10.0
+asgiref==3.11.0
     # via
     #   channels
     #   channels-redis
@@ -104,7 +104,7 @@ click==8.1.8
     # via receptorctl
 constantly==23.10.4
     # via twisted
-cryptography==46.0.2
+cryptography==46.0.3
     # via
     #   -r /awx_devel/requirements/requirements.in
     #   adal
@@ -138,7 +138,7 @@ django==4.2.26
     #   django-solo
     #   djangorestframework
     #   drf-spectacular
-# django-ansible-base @ git+https://github.com/ansible/django-ansible-base@devel  # git requirements installed separately
+# django-ansible-base[feature-flags,jwt-consumer,rbac,resource-registry,rest-filters] @ git+https://github.com/ansible/django-ansible-base@devel  # git requirements installed separately
     # via -r /awx_devel/requirements/requirements_git.txt
 django-cors-headers==4.9.0
     # via -r /awx_devel/requirements/requirements.in
@@ -148,7 +148,7 @@ django-crum==0.7.9
     #   django-ansible-base
 django-extensions==4.1
     # via -r /awx_devel/requirements/requirements.in
-django-flags==5.0.14
+django-flags==5.1.0
     # via
     #   -r /awx_devel/requirements/requirements.in
     #   django-ansible-base
@@ -169,7 +169,7 @@ drf-spectacular==0.29.0
     # via -r /awx_devel/requirements/requirements.in
 durationpy==0.10
     # via kubernetes
-dynaconf==3.2.11
+dynaconf==3.2.12
     # via
     #   -r /awx_devel/requirements/requirements.in
     #   django-ansible-base