docs: update CHANGELOG and README with LM Studio embedding improvements

CHANGELOG updates:
- Added new section documenting LM Studio provider fixes
- Documented with_auto_from_env() support for LM Studio
- Documented embeddings-lmstudio feature flag addition
- Documented architectural consolidation to single config path
- Explained impact: LM Studio now works in all code paths

README updates:
- Added LM Studio as explicit embedding provider option
- Added side-by-side comparison of Ollama vs LM Studio providers
- Updated LM Studio setup with new build commands (Makefile + feature flags)
- Added environment variable configuration option
- Fixed LM Studio URL to include /v1 endpoint
- Improved clarity on supported embedding models for LM Studio

Both files now accurately reflect the current state of LM Studio support.

Author: jruokola

CHANGELOG.md

@@ -9,6 +9,17 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Added
 
+#### **LM Studio Embedding Provider - Full Environment Variable Support**
+- **Fixed `with_auto_from_env()`** to support LM Studio provider (previously only supported Jina and Ollama)
+- **Added `embeddings-lmstudio` feature flag** to MCP crate for explicit LM Studio support
+- **Exposed in build scripts**: Added to `build-mcp-autoagents` and `build-mcp-http` Makefile targets
+- **Environment variable detection**: `CODEGRAPH_EMBEDDING_PROVIDER=lmstudio` now properly initializes provider
+- **Architectural improvement**: Consolidates embedding initialization to single code path
+  - Symbol resolution now uses `with_config()` instead of `with_auto_from_env()`
+  - Eliminates duplicate initialization logic and configuration inconsistencies
+  - Single source of truth for all embedding configuration
+- **Impact**: LM Studio embeddings now work in all code paths (main indexing, symbol resolution, API)
+
 #### **Fast ML Code Enhancement (Always-On)**
 - **Aho-Corasick pattern matching** for sub-microsecond multi-pattern code analysis (50-500ns per file)
   - Detects common patterns: `use`, `impl`, `class`, `extends`, `async fn`, `trait`, `import`, etc.

README.md

@@ -23,18 +23,30 @@ CodeGraph indexes your source code to a graph database, creates semantic embeddi
 
 ### Local Embeddings & Reranking (SurrealDB)
 
-CodeGraph now writes Ollama/LM Studio embeddings directly into SurrealDB’s dedicated HNSW columns. Pick the model you want and set the matching env vars before running `codegraph index`:
+CodeGraph supports multiple local embedding providers (Ollama, LM Studio, ONNX) and writes embeddings directly into SurrealDB's dedicated HNSW columns. Pick the provider you want and set the matching env vars before running `codegraph index`:
 
+**Option 1: Ollama**
 ```bash
 export CODEGRAPH_EMBEDDING_PROVIDER=ollama
 export CODEGRAPH_EMBEDDING_MODEL=qwen3-embedding:0.6b   # or all-mini-llm, qwen3-embedding:4b, embeddinggemma etc.
 export CODEGRAPH_EMBEDDING_DIMENSION=1024               # 384, 768, 1024, 1536, 2048, 2560, 3072 or 4096 dimensions supported
+```
+
+**Option 2: LM Studio (OpenAI-compatible)**
+```bash
+export CODEGRAPH_EMBEDDING_PROVIDER=lmstudio
+export CODEGRAPH_LMSTUDIO_MODEL=jina-embeddings-v3      # or jina-embeddings-v4, qwen3-embedding-0.6b, nomic-embed-text-v1.5, etc.
+export CODEGRAPH_LMSTUDIO_URL=http://localhost:1234/v1  # Default LM Studio endpoint
+export CODEGRAPH_EMBEDDING_DIMENSION=1024               # Auto-detected for 20+ models, or set manually
+```
 
-# Optional local reranking (LM Studio exposes an OpenAI-compatible reranker endpoint)
+**Optional local reranking:**
+```bash
+# LM Studio exposes an OpenAI-compatible reranker endpoint
 export CODEGRAPH_RERANKING_PROVIDER=lmstudio
 ```
 
-We automatically route embeddings to `embedding_384`, `embedding_768`, `embedding_1024`, `embedding_2048`, `embedding_2056`, or `embedding_4096` and keep reranking disabled unless a provider is configured.
+We automatically route embeddings to `embedding_384`, `embedding_768`, `embedding_1024`, `embedding_2048`, `embedding_2560`, or `embedding_4096` columns and keep reranking disabled unless a provider is configured.
 
 ---
 
@@ -282,18 +294,23 @@ ollama_url = "http://localhost:11434"
 ```bash
 cd codegraph-rust
 
-# Build with OpenAI-compatible support (for LM Studio)
-cargo build --release --features "openai-compatible"
+# Build MCP server with LM Studio support (recommended)
+make build-mcp-autoagents
+
+# Or build manually with feature flags
+cargo build --release -p codegraph-mcp --features "ai-enhanced,autoagents-experimental,embeddings-lmstudio,codegraph-ai/openai-compatible"
 ```
 
 **Step 5: Configure**
 
+**Option A: Config file (recommended)**
+
 Create `~/.codegraph/config.toml`:
 ```toml
 [embedding]
 provider = "lmstudio"
 model = "jinaai/jina-embeddings-v4"
-lmstudio_url = "http://localhost:1234"
+lmstudio_url = "http://localhost:1234/v1"
 dimension = 2048
 
 [llm]
@@ -303,6 +320,14 @@ model = "lmstudio-community/DeepSeek-Coder-V2-Lite-Instruct-GGUF"
 lmstudio_url = "http://localhost:1234"
 ```
 
+**Option B: Environment variables**
+```bash
+export CODEGRAPH_EMBEDDING_PROVIDER=lmstudio
+export CODEGRAPH_LMSTUDIO_MODEL=jinaai/jina-embeddings-v4
+export CODEGRAPH_LMSTUDIO_URL=http://localhost:1234/v1
+export CODEGRAPH_EMBEDDING_DIMENSION=2048
+```
+
 **Step 6: Index and run**
 ```bash
 # Index your project