diff --git a/.github/workflows/fpga-build.yml b/.github/workflows/fpga-build.yml
index e818e974a..a56d42087 100644
--- a/.github/workflows/fpga-build.yml
+++ b/.github/workflows/fpga-build.yml
@@ -592,7 +592,9 @@ jobs:
             for sby_file in build/fpga/formal/*.sby; do
               module_name=$(basename "$sby_file" .sby)
               echo "Running formal: $module_name"
-              if sby -f "$sby_file" 2>&1 | tee "build/fpga/formal/${module_name}.log"; then
+              # sby resolves [files] against the INVOCATION cwd, not the .sby
+              # location -- run from the formal dir so local paths bind.
+              if (cd build/fpga/formal && sby -f "${module_name}.sby" 2>&1 | tee "${module_name}.log"); then
                 echo "| $module_name | Z3 | BMC+prove | PASS |" >> $GITHUB_STEP_SUMMARY
               else
                 echo "| $module_name | Z3 | BMC+prove | FAIL/UNKNOWN |" >> $GITHUB_STEP_SUMMARY
diff --git a/docs/NOW.md b/docs/NOW.md
index 3d3eb99f9..d31f85586 100644
--- a/docs/NOW.md
+++ b/docs/NOW.md
@@ -1,3 +1,19 @@
+# NOW -- sby runs from where its files are (2026-08-20)
+
+Last updated: 2026-08-20
+
+## ci(fpga): formal invokes sby from the formal dir (Closes #2254)
+
+- Third formal layer: sby resolves [files] against the invocation cwd, not the
+  .sby location -- all three tasks died on FileNotFoundError while their .v
+  files sat next to the configs. The honest gate recorded FAIL and failed the
+  step, exactly as designed. sby now runs from build/fpga/formal
+- Same run: fpga-lint GREEN for real (readiness 100%, 32/32 yosys after the
+  codegen fix); conformance honestly red -- 28/32 do not iverilog-compile, and
+  the classification (hierarchy elaboration + unbound flattened refs, mac.v:98
+  word_raw among them) is recorded in #2241: the job's premise must narrow to
+  vector-backed modules rather than chase meaningless RTL for config models
+
 # NOW -- readiness is READY, for real (2026-08-20)
 
 Last updated: 2026-08-20