diff --git a/registry/coder/modules/amazon-q/README.md b/registry/coder/modules/amazon-q/README.md
index 630c3a6bc..3146f01eb 100644
--- a/registry/coder/modules/amazon-q/README.md
+++ b/registry/coder/modules/amazon-q/README.md
@@ -13,7 +13,7 @@ Run [Amazon Q](https://aws.amazon.com/q/) in your workspace to access Amazon's A
 ```tf
 module "amazon-q" {
   source   = "registry.coder.com/coder/amazon-q/coder"
-  version  = "2.1.0"
+  version  = "2.1.1"
   agent_id = coder_agent.example.id
   workdir  = "/home/coder"
 
@@ -102,7 +102,7 @@ data "coder_parameter" "ai_prompt" {
 
 module "amazon-q" {
   source          = "registry.coder.com/coder/amazon-q/coder"
-  version         = "2.1.0"
+  version         = "2.1.1"
   agent_id        = coder_agent.example.id
   workdir         = "/home/coder"
   auth_tarball    = var.amazon_q_auth_tarball
@@ -228,7 +228,7 @@ If no custom `agent_config` is provided, the default agent name "agent" is used.
 ```tf
 module "amazon-q" {
   source       = "registry.coder.com/coder/amazon-q/coder"
-  version      = "2.1.0"
+  version      = "2.1.1"
   agent_id     = coder_agent.example.id
   workdir      = "/home/coder"
   auth_tarball = var.amazon_q_auth_tarball
@@ -258,7 +258,7 @@ This example will:
 ```tf
 module "amazon-q" {
   source          = "registry.coder.com/coder/amazon-q/coder"
-  version         = "2.1.0"
+  version         = "2.1.1"
   agent_id        = coder_agent.example.id
   workdir         = "/home/coder"
   auth_tarball    = var.amazon_q_auth_tarball
@@ -279,7 +279,7 @@ module "amazon-q" {
 ```tf
 module "amazon-q" {
   source       = "registry.coder.com/coder/amazon-q/coder"
-  version      = "2.1.0"
+  version      = "2.1.1"
   agent_id     = coder_agent.example.id
   workdir      = "/home/coder"
   auth_tarball = var.amazon_q_auth_tarball
@@ -305,7 +305,7 @@ module "amazon-q" {
 ```tf
 module "amazon-q" {
   source           = "registry.coder.com/coder/amazon-q/coder"
-  version          = "2.1.0"
+  version          = "2.1.1"
   agent_id         = coder_agent.example.id
   workdir          = "/home/coder"
   auth_tarball     = var.amazon_q_auth_tarball
@@ -319,7 +319,7 @@ module "amazon-q" {
 ```tf
 module "amazon-q" {
   source       = "registry.coder.com/coder/amazon-q/coder"
-  version      = "2.1.0"
+  version      = "2.1.1"
   agent_id     = coder_agent.example.id
   workdir      = "/home/coder"
   auth_tarball = var.amazon_q_auth_tarball
@@ -340,7 +340,7 @@ module "amazon-q" {
 ```tf
 module "amazon-q" {
   source       = "registry.coder.com/coder/amazon-q/coder"
-  version      = "2.1.0"
+  version      = "2.1.1"
   agent_id     = coder_agent.example.id
   workdir      = "/home/coder"
   auth_tarball = var.amazon_q_auth_tarball
@@ -358,7 +358,7 @@ For environments without direct internet access, you can host Amazon Q installat
 ```tf
 module "amazon-q" {
   source       = "registry.coder.com/coder/amazon-q/coder"
-  version      = "2.1.0"
+  version      = "2.1.1"
   agent_id     = coder_agent.example.id
   workdir      = "/home/coder"
   auth_tarball = var.amazon_q_auth_tarball
diff --git a/registry/coder/modules/amazon-q/main.tf b/registry/coder/modules/amazon-q/main.tf
index a4bac213d..84ac3c031 100644
--- a/registry/coder/modules/amazon-q/main.tf
+++ b/registry/coder/modules/amazon-q/main.tf
@@ -96,8 +96,6 @@ variable "workdir" {
   description = "The folder to run Amazon Q in."
 }
 
-# ---------------------------------------------
-
 variable "install_amazon_q" {
   type        = bool
   description = "Whether to install Amazon Q."
@@ -190,6 +188,7 @@ resource "coder_env" "auth_tarball" {
 
 locals {
   app_slug               = "amazonq"
+  workdir                = trimsuffix(var.workdir, "/")
   install_script         = file("${path.module}/scripts/install.sh")
   start_script           = file("${path.module}/scripts/start.sh")
   module_dir_name        = ".amazonq-module"
@@ -218,6 +217,7 @@ module "agentapi" {
   version = "1.2.0"
 
   agent_id             = var.agent_id
+  folder               = local.workdir
   web_app_slug         = local.app_slug
   web_app_order        = var.order
   web_app_group        = var.group
diff --git a/registry/coder/modules/amazon-q/scripts/install.sh b/registry/coder/modules/amazon-q/scripts/install.sh
index e3ae3361a..f8e43e763 100644
--- a/registry/coder/modules/amazon-q/scripts/install.sh
+++ b/registry/coder/modules/amazon-q/scripts/install.sh
@@ -94,6 +94,13 @@ function install_amazon_q() {
 function extract_auth_tarball() {
   if [ -n "$ARG_AUTH_TARBALL" ]; then
     echo "Extracting auth tarball..."
+
+    if ! command_exists zstd; then
+      echo "Error: zstd is required to extract the authentication tarball but is not installed."
+      echo "Please install zstd using the pre_install_script parameter."
+      exit 1
+    fi
+
     PREV_DIR="$PWD"
     echo "$ARG_AUTH_TARBALL" | base64 -d > /tmp/auth.tar.zst
     rm -rf ~/.local/share/amazon-q