diff --git a/src/aipass/cli/apps/modules/__init__.py b/src/aipass/cli/apps/modules/__init__.py
index f9ffbaf9..68b3e9df 100644
--- a/src/aipass/cli/apps/modules/__init__.py
+++ b/src/aipass/cli/apps/modules/__init__.py
@@ -21,7 +21,7 @@ PATTERN (from Prax):
 """
 
 # Rich console (primary service - like Prax logger)
-from aipass.cli.apps.modules.display import console
+from aipass.cli.apps.modules.display import console, err_console
 
 # Display functions
 from aipass.cli.apps.modules.display import (
@@ -29,6 +29,7 @@ from aipass.cli.apps.modules.display import (
     success,
     error,
     warning,
+    fatal,
     section
 )
 
@@ -41,12 +42,14 @@ from aipass.cli.apps.modules.templates import (
 __all__ = [
     # Rich console (primary service)
     'console',
+    'err_console',
 
     # Display
     'header',
     'success',
     'error',
     'warning',
+    'fatal',
     'section',
 
     # Templates
diff --git a/src/aipass/cli/apps/modules/display.py b/src/aipass/cli/apps/modules/display.py
index 2a823714..6be98483 100755
--- a/src/aipass/cli/apps/modules/display.py
+++ b/src/aipass/cli/apps/modules/display.py
@@ -35,6 +35,7 @@ from rich.columns import Columns
 # Initialize Rich console (lowercase follows service instance pattern)
 CONSOLE = Console()  # Internal constant
 console = CONSOLE  # Primary export (lowercase service instance pattern)
+err_console = Console(stderr=True)  # Stderr console for error/warning output
 
 # Trigger loaded lazily to avoid circular import
 _trigger = None
@@ -325,9 +326,9 @@ def error(message: str, suggestion: str | None = None) -> None:
     Example:
         error('Branch not found', suggestion='Check branch name spelling')
     """
-    CONSOLE.print(f"❌ [red bold]{message}[/red bold]")
+    err_console.print(f"❌ [red bold]{message}[/red bold]")
     if suggestion:
-        CONSOLE.print(f"   [yellow]→ Try: {suggestion}[/yellow]")
+        err_console.print(f"   [yellow]→ Try: {suggestion}[/yellow]")
 
 
 def warning(message: str, details: str | None = None) -> None:
@@ -341,9 +342,28 @@ def warning(message: str, details: str | None = None) -> None:
     Example:
         warning('Branch already exists, skipping')
     """
-    CONSOLE.print(f"⚠️  [yellow]{message}[/yellow]")
+    err_console.print(f"⚠️  [yellow]{message}[/yellow]")
     if details:
-        CONSOLE.print(f"   [dim]{details}[/dim]")
+        err_console.print(f"   [dim]{details}[/dim]")
+
+
+def fatal(message: str, suggestion: str | None = None) -> None:
+    """
+    Display error message with Rich styling and exit with code 1
+
+    Like error() but terminates the process. Use for unrecoverable failures.
+
+    Args:
+        message: Error message
+        suggestion: Optional suggestion for fixing
+
+    Example:
+        fatal('Config file missing', suggestion='Run aipass init first')
+    """
+    err_console.print(f"❌ [red bold]{message}[/red bold]")
+    if suggestion:
+        err_console.print(f"   [yellow]→ Try: {suggestion}[/yellow]")
+    sys.exit(1)
 
 
 def section(title: str) -> None:
@@ -369,10 +389,12 @@ def section(title: str) -> None:
 __all__ = [
     'console',  # Primary export (service instance pattern)
     'CONSOLE',  # Internal constant (kept for backward compatibility)
+    'err_console',  # Stderr console for error/warning output
     'header',
     'success',
     'error',
     'warning',
+    'fatal',
     'section',
 ]
 
diff --git a/src/aipass/devpulse/dplan-003/credential_model.md b/src/aipass/devpulse/dplan-003/credential_model.md
index 27c5e43a..8bfb76ed 100644
--- a/src/aipass/devpulse/dplan-003/credential_model.md
+++ b/src/aipass/devpulse/dplan-003/credential_model.md
@@ -149,3 +149,6 @@ Discovered during testing. Reference for future work.
 - **2026-03-14:** Scope limited to `src/aipass/` branches only. Commons and skills excluded.
 - **2026-03-14:** All 4 open questions resolved. `init_project.py` built and tested — creates registry with UUID, passport with matching registry_id, .trinity/, .aipass/, AIPASS.md. Tested with temp directory — drone isolation confirmed (only built-in modules visible, not AIPass branches).
 - **2026-03-14:** UUID migration executed (FPLAN-0030). Registry + 13 passports updated. Registry and passports are gitignored — UUID is machine-local, not repo state.
+- **2026-03-14:** Drone verification added (`_verify_registry_credential` in load_registry). Drone dispatched and fixed error propagation — new `RegistryMismatchError` class separates "not found" (fallback OK) from "mismatch" (hard error). Spawn templates updated with `{{REGISTRY_ID}}` placeholder.
+- **2026-03-14:** Stage 1 complete. Credential model is end-to-end: init creates credentialed registries, drone verifies on load, spawn injects into new passports, mismatch = hard error. Remaining: drone CLI stderr surfacing (DPLAN-0031), `aipass init` CLI command (future).
+- **2026-03-14:** FPLAN-0032 executed — CLI stderr standardization Phase 1+2 done. CLI owns err_console, error()/warning() go to stderr. Drone imports from CLI instead of creating its own Console(stderr=True). Credential mismatch errors now properly surface to terminal via stderr. The stderr issue that blocked error visibility during DPLAN-003 testing is resolved.
diff --git a/src/aipass/drone/apps/drone.py b/src/aipass/drone/apps/drone.py
index 3d0d04d9..58fc6f1b 100644
--- a/src/aipass/drone/apps/drone.py
+++ b/src/aipass/drone/apps/drone.py
@@ -16,13 +16,9 @@ Standard branch entry point (apps/drone.py pattern).
 import sys
 from typing import List
 
-from rich.console import Console
-
 from aipass.prax import logger
-from aipass.cli.apps.modules import console
-
-err_console = Console(stderr=True)
-from aipass.drone.apps.modules import BranchNotFoundError, CommandExecutionError
+from aipass.cli.apps.modules import console, err_console
+from aipass.drone.apps.modules import BranchNotFoundError, CommandExecutionError, RegistryError
 from aipass.drone.apps.modules.discovery import get_help
 from aipass.drone.apps.modules.resolver import list_branches
 from aipass.drone.apps.modules.router import route_command
@@ -187,10 +183,7 @@ def _handle_target(args: List[str]) -> int:
     if not rest:
         try:
             result = route_command(target)
-        except BranchNotFoundError as exc:
-            err_console.print(f"drone: {exc}")
-            return 1
-        except CommandExecutionError as exc:
+        except (BranchNotFoundError, CommandExecutionError, RegistryError) as exc:
             err_console.print(f"drone: {exc}")
             return 1
         if result.stdout:
@@ -207,10 +200,7 @@ def _handle_target(args: List[str]) -> int:
                 console.print(result.text, end="", highlight=False)
             else:
                 console.print(f"No help available for {target}.")
-        except BranchNotFoundError as exc:
-            err_console.print(f"drone: {exc}")
-            return 1
-        except CommandExecutionError as exc:
+        except (BranchNotFoundError, CommandExecutionError, RegistryError) as exc:
             err_console.print(f"drone: {exc}")
             return 1
         return 0
@@ -228,10 +218,7 @@ def _handle_target(args: List[str]) -> int:
             args=cmd_args if cmd_args else None,
             interactive=interactive,
         )
-    except BranchNotFoundError as exc:
-        err_console.print(f"drone: {exc}")
-        return 1
-    except CommandExecutionError as exc:
+    except (BranchNotFoundError, CommandExecutionError, RegistryError) as exc:
         err_console.print(f"drone: {exc}")
         return 1
 
@@ -252,7 +239,11 @@ def main() -> int:
 
     # No args -> introspection
     if not args:
-        show_introspection()
+        try:
+            show_introspection()
+        except RegistryError as exc:
+            err_console.print(f"drone: {exc}")
+            return 1
         return 0
 
     # --version
@@ -269,7 +260,11 @@ def main() -> int:
 
     # systems — list branches and modules
     if command == "systems":
-        return _handle_systems()
+        try:
+            return _handle_systems()
+        except RegistryError as exc:
+            err_console.print(f"drone: {exc}")
+            return 1
 
     # @target — route to branch or module
     if command.startswith("@"):
diff --git a/src/aipass/drone/apps/handlers/exceptions.py b/src/aipass/drone/apps/handlers/exceptions.py
index 745ba313..4fb93f7d 100644
--- a/src/aipass/drone/apps/handlers/exceptions.py
+++ b/src/aipass/drone/apps/handlers/exceptions.py
@@ -43,6 +43,15 @@ class RegistryNotFoundError(RegistryError):
     pass
 
 
+class RegistryMismatchError(RegistryError):
+    """Raised when registry credential doesn't match caller's passport.
+
+    NOT recoverable — unlike RegistryNotFoundError (no file, use fallback),
+    a mismatch means the wrong registry was found. Must error, not fall back.
+    """
+    pass
+
+
 class RegistryCorruptError(RegistryError):
     """Raised when the registry file is corrupted or invalid JSON."""
     pass
diff --git a/src/aipass/drone/apps/handlers/registry_handler.py b/src/aipass/drone/apps/handlers/registry_handler.py
index 67cab989..73249ac1 100644
--- a/src/aipass/drone/apps/handlers/registry_handler.py
+++ b/src/aipass/drone/apps/handlers/registry_handler.py
@@ -21,6 +21,7 @@ from typing import Any, Dict, List, Optional
 from aipass.prax import logger
 from .exceptions import (
     RegistryCorruptError,
+    RegistryMismatchError,
     RegistryNotFoundError,
     RegistryPermissionError,
 )
@@ -133,12 +134,12 @@ def _verify_registry_credential(registry_path: Path, registry_data: Dict[str, An
             return
 
         if passport_id != registry_id:
-            raise RegistryNotFoundError(
+            raise RegistryMismatchError(
                 f"Registry mismatch: citizen belongs to registry "
                 f"'{passport_id}' but found registry '{registry_id}' "
                 f"at {registry_path}"
             )
-    except RegistryNotFoundError:
+    except RegistryMismatchError:
         raise
     except Exception:
         pass  # Verification should never crash drone
diff --git a/src/aipass/drone/apps/modules/__init__.py b/src/aipass/drone/apps/modules/__init__.py
index 51d28f48..cee4ee07 100644
--- a/src/aipass/drone/apps/modules/__init__.py
+++ b/src/aipass/drone/apps/modules/__init__.py
@@ -8,6 +8,7 @@ from aipass.drone.apps.handlers.exceptions import (
     InvalidPathError,
     RegistryCorruptError,
     RegistryError,
+    RegistryMismatchError,
     RegistryNotFoundError,
     RegistryPermissionError,
     RoutingError,
@@ -23,6 +24,7 @@ __all__ = [
     "InvalidPathError",
     "RegistryCorruptError",
     "RegistryError",
+    "RegistryMismatchError",
     "RegistryNotFoundError",
     "RegistryPermissionError",
     "RoutingError",