Forking Language Server in the Project Manager (#1305)

.github/workflows/scala.yml

@@ -133,6 +133,11 @@ jobs:
           # test run. It is built before starting the tests to conserve system
           # memory
           echo "LAUNCHER_NATIVE_IMAGE_TEST_SKIP_BUILD=true" >> $GITHUB_ENV
+      - name: Build the Runner & Runtime Uberjars
+        run: |
+          sleep 1
+          sbt --no-colors engine-runner/assembly
+
       - name: Test Enso
         run: |
           sleep 1
@@ -151,10 +156,6 @@ jobs:
           sbt --no-colors searcher/Benchmark/compile
 
       # Build Distribution
-      - name: Build the Runner & Runtime Uberjars
-        run: |
-          sleep 1
-          sbt --no-colors engine-runner/assembly
       - name: Build the Project Manager Uberjar
         run: |
           sleep 1

build.sbt

@@ -609,6 +609,26 @@ lazy val `logging-service` = project
   )
   .dependsOn(`akka-native`)
 
+ThisBuild / testOptions += Tests.Setup(_ =>
+  // Note [Logging Service in Tests]
+  sys.props("org.enso.loggingservice.test-log-level") = "2"
+)
+
+/* Note [Logging Service in Tests]
+ * ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ * As migrating the runner to our new logging service has forced us to migrate
+ * other components that are related to it too, some tests that used to be
+ * configured by logback are not properly configured anymore and log a lot of
+ * debug information. This is a temporary fix to make sure that there are not
+ * too much logs in the CI - it sets the log level for all tests to be at most
+ * info by default. It can be overridden by particular tests if they set up a
+ * logging service.
+ *
+ * This is a temporary solution and it will be obsoleted once all of our
+ * components do a complete migration to the new logging service, which is
+ * planned in tasks #1144 and #1151.
+ */
+
 lazy val cli = project
   .in(file("lib/scala/cli"))
   .configs(Test)
@@ -647,15 +667,7 @@ lazy val `project-manager` = (project in file("lib/scala/project-manager"))
     (Compile / run / fork) := true,
     (Test / fork) := true,
     (Compile / run / connectInput) := true,
-    javaOptions ++= {
+    libraryDependencies ++= akka ++ Seq(akkaTestkit % Test),
-      // Note [Classpath Separation]
-      val runtimeClasspath =
-        (runtime / Compile / fullClasspath).value
-          .map(_.data)
-          .mkString(File.pathSeparator)
-      Seq(s"-Dtruffle.class.path.append=$runtimeClasspath")
-    },
-    libraryDependencies ++= akka,
     libraryDependencies ++= circe,
     libraryDependencies ++= Seq(
       "com.typesafe"                % "config"              % typesafeConfigVersion,
@@ -665,6 +677,7 @@ lazy val `project-manager` = (project in file("lib/scala/project-manager"))
       "dev.zio"                    %% "zio-interop-cats"    % zioInteropCatsVersion,
       "commons-cli"                 % "commons-cli"         % commonsCliVersion,
       "commons-io"                  % "commons-io"          % commonsIoVersion,
+      "org.apache.commons"          % "commons-lang3"       % commonsLangVersion,
       "com.beachape"               %% "enumeratum-circe"    % enumeratumCirceVersion,
       "com.miguno.akka"            %% "akka-mock-scheduler" % akkaMockSchedulerVersion % Test,
       "org.mockito"                %% "mockito-scala"       % mockitoScalaVersion      % Test
@@ -697,13 +710,12 @@ lazy val `project-manager` = (project in file("lib/scala/project-manager"))
           )
         )
       ),
-    assembly := assembly
+    assembly := assembly.dependsOn(`engine-runner` / assembly).value,
-      .dependsOn(runtime / assembly)
+    (Test / test) := (Test / test).dependsOn(`engine-runner` / assembly).value
-      .value
   )
   .dependsOn(`version-output`)
   .dependsOn(pkg)
-  .dependsOn(`language-server`)
+  .dependsOn(`polyglot-api`)
   .dependsOn(`runtime-version-manager`)
   .dependsOn(`json-rpc-server`)
   .dependsOn(`json-rpc-server-test` % Test)
@@ -867,8 +879,7 @@ lazy val `polyglot-api` = project
 
 lazy val `language-server` = (project in file("engine/language-server"))
   .settings(
-    libraryDependencies ++= akka ++ akkaTest ++ circe ++ Seq(
+    libraryDependencies ++= akka ++ circe ++ Seq(
-      "ch.qos.logback"              % "logback-classic"      % logbackClassicVersion,
       "com.typesafe.scala-logging" %% "scala-logging"        % scalaLoggingVersion,
       "io.circe"                   %% "circe-generic-extras" % circeGenericExtrasVersion,
       "io.circe"                   %% "circe-literal"        % circeVersion,
@@ -902,6 +913,7 @@ lazy val `language-server` = (project in file("engine/language-server"))
   .dependsOn(`text-buffer`)
   .dependsOn(`searcher`)
   .dependsOn(testkit % Test)
+  .dependsOn(`logging-service`)
 
 lazy val ast = (project in file("lib/scala/ast"))
   .settings(

distribution/engine/THIRD-PARTY/NOTICE

@@ -261,11 +261,6 @@ The license file can be found at `licenses/APACHE2.0`.
 Copyright notices related to this dependency can be found in the directory `com.google.auto.service.auto-service-annotations-1.0-rc7`.
 
 
-'logback-classic', licensed under the GNU Lesser General Public License, is distributed with the engine.
-The license information can be found along with the copyright notices.
-Copyright notices related to this dependency can be found in the directory `ch.qos.logback.logback-classic-1.2.3`.
-
-
 'scala-collection-compat_2.13', licensed under the Apache-2.0, is distributed with the engine.
 The license file can be found at `licenses/APACHE2.0`.
 Copyright notices related to this dependency can be found in the directory `org.scala-lang.modules.scala-collection-compat_2.13-2.0.0`.
@@ -466,11 +461,6 @@ The license information can be found along with the copyright notices.
 Copyright notices related to this dependency can be found in the directory `com.beachape.enumeratum_2.13-1.6.1`.
 
 
-'logback-core', licensed under the GNU Lesser General Public License, is distributed with the engine.
-The license information can be found along with the copyright notices.
-Copyright notices related to this dependency can be found in the directory `ch.qos.logback.logback-core-1.2.3`.
-
-
 'pureconfig_2.13', licensed under the Mozilla Public License, version 2.0, is distributed with the engine.
 The license information can be found along with the copyright notices.
 Copyright notices related to this dependency can be found in the directory `com.github.pureconfig.pureconfig_2.13-0.13.0`.

distribution/engine/THIRD-PARTY/ch.qos.logback.logback-classic-1.2.3/Eclipse Public License - Version 1.0.html

@@ -1,259 +0,0 @@
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-
-<title>Eclipse Public License - Version 1.0</title>
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-    margin: 0.25in 0.5in 0.25in 0.5in;
-    tab-interval: 0.5in;
-    }
-  p {  	
-    margin-left: auto;
-    margin-top:  0.5em;
-    margin-bottom: 0.5em;
-    }
-  p.list {
-  	margin-left: 0.5in;
-    margin-top:  0.05em;
-    margin-bottom: 0.05em;
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-  </style>
-
-</head>
-
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distribution/engine/THIRD-PARTY/ch.qos.logback.logback-classic-1.2.3/NOTICE

@@ -1,16 +0,0 @@
-Logback: the reliable, generic, fast and flexible logging framework.
-Copyright (C) 1999-2017, QOS.ch. All rights reserved.
-
-This program and the accompanying materials are dual-licensed under
-either the terms of the Eclipse Public License v1.0 as published by
-the Eclipse Foundation
-
-  or (per the licensee's choosing)
-
-under the terms of the GNU Lesser General Public License version 2.1
-as published by the Free Software Foundation.
-
-
-------------------
-
-We have chosen EPL in this project.

distribution/engine/THIRD-PARTY/ch.qos.logback.logback-core-1.2.3/NOTICE

@@ -1 +0,0 @@
-Please see ch.qos.logback.logback-classic-1.2 for notices related to logback.

docs/distribution/licenses.md

@@ -116,6 +116,12 @@ The review can be performed manually by modifying the settings inside of the
 
 #### Review Process
 
+> The updates performed using the web script are remembered locally, so they
+> **will not show up after the refresh**. If you ever need to open the edit mode
+> after closing its window, you should re-generate the report using
+> `enso/gatherLicenses` or just open it using `enso/openLegalReviewReport` which
+> will refresh it automatically.
+
 1. Open the review in edit mode using the helper script.
    - You can type `enso / openLegalReviewReport` if you have `npm` in your PATH
      as visible from SBT.
@@ -192,12 +198,6 @@ The review can be performed manually by modifying the settings inside of the
    - Ensure that there are no more warnings, and if there are any go back to fix
      the issues.
 
-The updates performed using the web script are remembered locally, so they will
-not show up after the refresh. If you ever need to open the edit mode after
-closing its window, you should re-generate the report using
-`enso/gatherLicenses` or just open it using `enso/openLegalReviewReport` which
-will refresh it automatically.
-
 #### Additional Manual Considerations
 
 The Scala Library notice contains the following mention:

docs/language-server/protocol-language-server.md

@@ -65,6 +65,8 @@ transport formats, please look [here](./protocol-architecture).
   - [`executionContext/canModify`](#executioncontextcanmodify)
   - [`executionContext/receivesUpdates`](#executioncontextreceivesupdates)
   - [`search/receivesSuggestionsDatabaseUpdates`](#searchreceivessuggestionsdatabaseupdates)
+  - [Enables](#enables-4)
+  - [Disables](#disables-4)
 - [File Management Operations](#file-management-operations)
   - [`file/write`](#filewrite)
   - [`file/read`](#fileread)
@@ -94,6 +96,9 @@ transport formats, please look [here](./protocol-architecture).
   - [`workspace/redo`](#workspaceredo)
 - [Monitoring](#monitoring)
   - [`heartbeat/ping`](#heartbeatping)
+  - [`heartbeat/init`](#heartbeatinit)
+- [Refactoring](#refactoring)
+  - [`refactoring/renameProject`](#refactoringrenameproject)
 - [Execution Management Operations](#execution-management-operations)
   - [Execution Management Example](#execution-management-example)
   - [Create Execution Context](#create-execution-context)
@@ -113,9 +118,9 @@ transport formats, please look [here](./protocol-architecture).
   - [`executionContext/modifyVisualisation`](#executioncontextmodifyvisualisation)
   - [`executionContext/visualisationUpdate`](#executioncontextvisualisationupdate)
 - [Search Operations](#search-operations)
-  - [Suggestions Database Example](#suggestionsdatabaseexample)
+  - [Suggestions Database Example](#suggestions-database-example)
   - [`search/getSuggestionsDatabase`](#searchgetsuggestionsdatabase)
-  - [`search/invalidateSuggestionsDatabase`](#invalidatesuggestionsdatabase)
+  - [`search/invalidateSuggestionsDatabase`](#searchinvalidatesuggestionsdatabase)
   - [`search/getSuggestionsDatabaseVersion`](#searchgetsuggestionsdatabaseversion)
   - [`search/suggestionsDatabaseUpdate`](#searchsuggestionsdatabaseupdate)
   - [`search/completion`](#searchcompletion)
@@ -124,17 +129,17 @@ transport formats, please look [here](./protocol-architecture).
   - [`io/redirectStandardOutput`](#ioredirectstdardoutput)
   - [`io/suppressStandardOutput`](#iosuppressstdardoutput)
   - [`io/standardOutputAppended`](#iostandardoutputappended)
-  - [`io/redirectStandardError`](#ioredirectstdarderror)
+  - [`io/redirectStandardError`](#ioredirectstandarderror)
-  - [`io/suppressStandardError`](#iosuppressstdarderror)
+  - [`io/suppressStandardError`](#iosuppressstandarderror)
   - [`io/standardErrorAppended`](#iostandarderrorappended)
   - [`io/feedStandardInput`](#iofeedstandardinput)
   - [`io/waitingForStandardInput`](#iowaitingforstandardinput)
-- [Errors](#errors)
+- [Errors](#errors-57)
   - [`AccessDeniedError`](#accessdeniederror)
   - [`FileSystemError`](#filesystemerror)
   - [`ContentRootNotFoundError`](#contentrootnotfounderror)
   - [`FileNotFound`](#filenotfound)
-  - [`FileExists`](#fileexists-1)
+  - [`FileExists`](#fileexists)
   - [`OperationTimeoutError`](#operationtimeouterror)
   - [`NotDirectory`](#notdirectory)
   - [`StackItemNotFoundError`](#stackitemnotfounderror)
@@ -145,7 +150,6 @@ transport formats, please look [here](./protocol-architecture).
   - [`VisualisationNotFoundError`](#visualisationnotfounderror)
   - [`VisualisationExpressionError`](#visualisationexpressionerror)
   - [`VisualisationEvaluationError`](#visualisationevaluationerror)
-  - [`ExecutionFailedError`](#executionfailederror)
   - [`FileNotOpenedError`](#filenotopenederror)
   - [`TextEditValidationError`](#texteditvalidationerror)
   - [`InvalidVersionError`](#invalidversionerror)
@@ -154,6 +158,8 @@ transport formats, please look [here](./protocol-architecture).
   - [`SessionNotInitialisedError`](#sessionnotinitialisederror)
   - [`SessionAlreadyInitialisedError`](#sessionalreadyinitialisederror)
   - [`SuggestionsDatabaseError`](#suggestionsdatabaseerror)
+  - [`ProjectNotFoundError`](#projectnotfounderror)
+  - [`ModuleNameNotResolvedError`](#modulenamenotresolvederror)
 
 <!-- /MarkdownTOC -->
 
@@ -2085,6 +2091,33 @@ null;
 
 None
 
+### `heartbeat/init`
+
+This request is sent from the bootloader to check if the started language server
+instance has finished initialization. A reply should only be sent when the main
+module has been fully initialized.
+
+- **Type:** Request
+- **Direction:** Supervisor -> Server
+- **Connection:** Protocol
+- **Visibility:** Private
+
+#### Parameters
+
+```typescript
+null;
+```
+
+#### Result
+
+```typescript
+null;
+```
+
+#### Errors
+
+None
+
 ## Refactoring
 
 The language server also provides refactoring operations to restructure an

docs/language-server/protocol-project-manager.md

@@ -65,6 +65,7 @@ transport formats, please look [here](./protocol-architecture.md).
   - [`ProjectCloseError`](#projectcloseerror)
   - [`LanguageServerError`](#languageservererror)
   - [`GlobalConfigurationAccessError`](#globalconfigurationaccesserror)
+  - [`ProjectCreateError`](#projectcreateerror)
   - [`LoggingServiceUnavailable`](#loggingserviceunavailable)
 
 <!-- /MarkdownTOC -->
@@ -143,8 +144,8 @@ operation also includes spawning an instance of the language server open on the
 specified project.
 
 To open a project, an engine version that is specified in project settings needs
-to be installed. If `missingComponentAction` is set to `install` or
+to be installed. If `missingComponentAction` is set to `Install` or
-`force-install-broken`, this action will install any missing components,
+`ForceInstallBroken`, this action will install any missing components,
 otherwise, an error will be reported if a component is missing. A typical usage
 scenario may consist of first trying to open the project without installing
 missing components. If that fails with the `MissingComponentError`, the client
@@ -165,7 +166,7 @@ interface ProjectOpenRequest {
   /**
    * Specifies how to handle missing components.
    *
-   * If not provided, defaults to `fail`.
+   * If not provided, defaults to `Fail`.
    */
   missingComponentAction?: MissingComponentAction;
 }
@@ -303,7 +304,7 @@ interface ProjectCreateRequest {
   /**
    * Specifies how to handle missing components.
    *
-   * If not provided, defaults to `fail`.
+   * If not provided, defaults to `Fail`.
    */
   missingComponentAction?: MissingComponentAction;
 }
@@ -1045,13 +1046,24 @@ Signals that the global configuration file could not be accessed or parsed.
 }
 ```
 
+### `ProjectCreateError`
+
+Signals that an error occurred when creating the project.
+
+```typescript
+"error" : {
+  "code" : 4012,
+  "message" : "Could not create the project."
+}
+```
+
 ### `LoggingServiceUnavailable`
 
 Signals that the logging service is not available.
 
 ```typescript
 "error" : {
-  "code" : 4012,
+  "code" : 4013,
   "message" : "The logging service has failed to boot."
 }
 ```

engine/language-server/src/main/resources/logback.xml

@@ -1,16 +0,0 @@
-<configuration>
-
-  <appender name="STDOUT" class="ch.qos.logback.core.ConsoleAppender">
-    <!-- encoders are assigned the type
-         ch.qos.logback.classic.encoder.PatternLayoutEncoder by default -->
-    <encoder>
-      <pattern>%d{HH:mm:ss.SSS} %-5level [%-15thread] %-36logger{36} %msg%n</pattern>
-    </encoder>
-  </appender>
-
-  <logger name="org.enso" level="TRACE"/>
-
-  <root level="INFO">
-    <appender-ref ref="STDOUT"/>
-  </root>
-</configuration>

engine/language-server/src/main/scala/org/enso/languageserver/boot/LanguageServerComponent.scala

@@ -14,6 +14,7 @@ import org.enso.languageserver.runtime.RuntimeKiller.{
   RuntimeShutdownResult,
   ShutDownRuntime
 }
+import org.enso.loggingservice.LogLevel
 
 import scala.concurrent.duration._
 import scala.concurrent.{Await, Future}
@@ -21,8 +22,9 @@ import scala.concurrent.{Await, Future}
 /** A lifecycle component used to start and stop a Language Server.
   *
   * @param config a LS config
+  * @param logLevel log level for the Language Server
   */
-class LanguageServerComponent(config: LanguageServerConfig)
+class LanguageServerComponent(config: LanguageServerConfig, logLevel: LogLevel)
     extends LifecycleComponent
     with LazyLogging {
 
@@ -34,7 +36,7 @@ class LanguageServerComponent(config: LanguageServerConfig)
   /** @inheritdoc */
   override def start(): Future[ComponentStarted.type] = {
     logger.info("Starting Language Server...")
-    val module = new MainModule(config)
+    val module = new MainModule(config, logLevel)
     val initMainModule =
       for {
         _ <- module.init

engine/language-server/src/main/scala/org/enso/languageserver/boot/MainModule.scala

@@ -2,7 +2,6 @@ package org.enso.languageserver.boot
 
 import java.io.File
 import java.net.URI
-import java.util.logging.ConsoleHandler
 
 import akka.actor.ActorSystem
 import org.enso.jsonrpc.JsonRpcServer
@@ -29,8 +28,8 @@ import org.enso.languageserver.runtime._
 import org.enso.languageserver.search.SuggestionsHandler
 import org.enso.languageserver.session.SessionRouter
 import org.enso.languageserver.text.BufferRegistry
-import org.enso.languageserver.util.Logging
 import org.enso.languageserver.util.binary.BinaryEncoder
+import org.enso.loggingservice.{JavaLoggingLogHandler, LogLevel}
 import org.enso.polyglot.{LanguageInfo, RuntimeOptions, RuntimeServerInfo}
 import org.enso.searcher.sql.{SqlDatabase, SqlSuggestionsRepo, SqlVersionsRepo}
 import org.enso.text.{ContentBasedVersioning, Sha3_224VersionCalculator}
@@ -45,8 +44,9 @@ import scala.util.{Failure, Success}
 /** A main module containing all components of the server.
   *
   * @param serverConfig configuration for the language server
+  * @param logLevel log level for the Language Server
   */
-class MainModule(serverConfig: LanguageServerConfig) {
+class MainModule(serverConfig: LanguageServerConfig, logLevel: LogLevel) {
 
   val log = LoggerFactory.getLogger(this.getClass)
   log.trace("Initializing...")
@@ -150,21 +150,16 @@ class MainModule(serverConfig: LanguageServerConfig) {
   val stdIn     = new ObservablePipedInputStream(stdInSink)
 
   log.trace("Initializing Runtime context...")
-  val logHandler = Logging.getLogHandler(LanguageInfo.ID) match {
-    case Left(t) =>
-      log.warn("Failed to create the Runtime logger", t)
-      new ConsoleHandler()
-    case Right(handler) =>
-      log.trace(s"Setting Runtime logger")
-      handler
-  }
   val context = Context
     .newBuilder(LanguageInfo.ID)
     .allowAllAccess(true)
     .allowExperimentalOptions(true)
     .option(RuntimeServerInfo.ENABLE_OPTION, "true")
     .option(RuntimeOptions.PACKAGES_PATH, serverConfig.contentRootPath)
-    .option(RuntimeOptions.LOG_LEVEL, logHandler.getLevel.toString)
+    .option(
+      RuntimeOptions.LOG_LEVEL,
+      JavaLoggingLogHandler.getJavaLogLevelFor(logLevel).getName
+    )
     .option(
       RuntimeServerInfo.JOB_PARALLELISM_OPTION,
       Runtime.getRuntime.availableProcessors().toString
@@ -172,7 +167,9 @@ class MainModule(serverConfig: LanguageServerConfig) {
     .out(stdOut)
     .err(stdErr)
     .in(stdIn)
-    .logHandler(logHandler)
+    .logHandler(
+      JavaLoggingLogHandler.create(JavaLoggingLogHandler.defaultLevelMapping)
+    )
     .serverTransport((uri: URI, peerEndpoint: MessageEndpoint) => {
       if (uri.toString == RuntimeServerInfo.URI) {
         val connection = new RuntimeConnector.Endpoint(
@@ -187,8 +184,7 @@ class MainModule(serverConfig: LanguageServerConfig) {
   context.initialize(LanguageInfo.ID)
   log.trace("Runtime context initialized")
 
-  val logLevel = Logging.LogLevel.fromJava(logHandler.getLevel)
+  system.eventStream.setLogLevel(LogLevel.toAkka(logLevel))
-  system.eventStream.setLogLevel(Logging.LogLevel.toAkka(logLevel))
   log.trace(s"Set akka log level to $logLevel")
 
   val runtimeKiller =
@@ -267,9 +263,18 @@ class MainModule(serverConfig: LanguageServerConfig) {
         log.error("Failed to initialize SQL versions repo", ex)
     }(system.dispatcher)
 
-    Future
+    val initialization = Future
       .sequence(Seq(suggestionsRepoInit, versionsRepoInit))
       .map(_ => ())
+
+    initialization.onComplete {
+      case Success(()) =>
+        system.eventStream.publish(InitializedEvent.InitializationFinished)
+      case _ =>
+        system.eventStream.publish(InitializedEvent.InitializationFailed)
+    }
+
+    initialization
   }
 
   /** Close the main module releasing all resources. */

engine/language-server/src/main/scala/org/enso/languageserver/event/InitializedEvent.scala

@@ -7,4 +7,6 @@ object InitializedEvent {
 
   case object SuggestionsRepoInitialized  extends InitializedEvent
   case object FileVersionsRepoInitialized extends InitializedEvent
+  case object InitializationFinished      extends InitializedEvent
+  case object InitializationFailed        extends InitializedEvent
 }

engine/language-server/src/main/scala/org/enso/languageserver/monitoring/MonitoringApi.scala

@@ -17,4 +17,13 @@ object MonitoringApi {
     }
   }
 
+  case object InitialPing extends Method("heartbeat/init") {
+    implicit val hasParams = new HasParams[this.type] {
+      type Params = Unused.type
+    }
+    implicit val hasResult = new HasResult[this.type] {
+      type Result = Unused.type
+    }
+  }
+
 }

engine/language-server/src/main/scala/org/enso/languageserver/protocol/json/JsonConnectionController.scala

@@ -21,12 +21,15 @@ import org.enso.languageserver.filemanager.PathWatcherProtocol
 import org.enso.languageserver.io.InputOutputApi._
 import org.enso.languageserver.io.OutputKind.{StandardError, StandardOutput}
 import org.enso.languageserver.io.{InputOutputApi, InputOutputProtocol}
-import org.enso.languageserver.monitoring.MonitoringApi.Ping
+import org.enso.languageserver.monitoring.MonitoringApi.{InitialPing, Ping}
 import org.enso.languageserver.refactoring.RefactoringApi.RenameProject
 import org.enso.languageserver.requesthandler._
 import org.enso.languageserver.requesthandler.capability._
 import org.enso.languageserver.requesthandler.io._
-import org.enso.languageserver.requesthandler.monitoring.PingHandler
+import org.enso.languageserver.requesthandler.monitoring.{
+  InitialPingHandler,
+  PingHandler
+}
 import org.enso.languageserver.requesthandler.refactoring.RenameProjectHandler
 import org.enso.languageserver.requesthandler.session.InitProtocolConnectionHandler
 import org.enso.languageserver.requesthandler.text._
@@ -37,18 +40,12 @@ import org.enso.languageserver.requesthandler.visualisation.{
 }
 import org.enso.languageserver.runtime.ContextRegistryProtocol
 import org.enso.languageserver.runtime.ExecutionApi._
-import org.enso.languageserver.search.SearchApi.{
-  Completion,
-  GetSuggestionsDatabase,
-  GetSuggestionsDatabaseVersion,
-  Import,
-  InvalidateSuggestionsDatabase
-}
 import org.enso.languageserver.runtime.VisualisationApi.{
   AttachVisualisation,
   DetachVisualisation,
   ModifyVisualisation
 }
+import org.enso.languageserver.search.SearchApi._
 import org.enso.languageserver.search.{SearchApi, SearchProtocol}
 import org.enso.languageserver.session.JsonSession
 import org.enso.languageserver.session.SessionApi.{
@@ -246,6 +243,7 @@ class JsonConnectionController(
         ),
         requestTimeout
       ),
+      InitialPing -> InitialPingHandler.props,
       AcquireCapability -> AcquireCapabilityHandler
         .props(capabilityRouter, requestTimeout, rpcSession),
       ReleaseCapability -> ReleaseCapabilityHandler

engine/language-server/src/main/scala/org/enso/languageserver/protocol/json/JsonRpc.scala

@@ -10,7 +10,7 @@ import org.enso.languageserver.capability.CapabilityApi.{
 }
 import org.enso.languageserver.filemanager.FileManagerApi._
 import org.enso.languageserver.io.InputOutputApi._
-import org.enso.languageserver.monitoring.MonitoringApi.Ping
+import org.enso.languageserver.monitoring.MonitoringApi.{InitialPing, Ping}
 import org.enso.languageserver.refactoring.RefactoringApi.RenameProject
 import org.enso.languageserver.runtime.ExecutionApi._
 import org.enso.languageserver.search.SearchApi._
@@ -24,6 +24,7 @@ object JsonRpc {
     */
   val protocol: Protocol = Protocol.empty
     .registerRequest(Ping)
+    .registerRequest(InitialPing)
     .registerRequest(InitProtocolConnection)
     .registerRequest(AcquireCapability)
     .registerRequest(ReleaseCapability)

engine/language-server/src/main/scala/org/enso/languageserver/requesthandler/monitoring/InitialPingHandler.scala

@@ -0,0 +1,57 @@
+package org.enso.languageserver.requesthandler.monitoring
+
+import akka.actor.{Actor, ActorLogging, ActorRef, Props}
+import org.enso.jsonrpc.Errors.ServiceError
+import org.enso.jsonrpc.{Id, Request, ResponseError, ResponseResult, Unused}
+import org.enso.languageserver.event.InitializedEvent
+import org.enso.languageserver.monitoring.MonitoringApi
+
+/** A request handler for `heartbeat/init` commands. */
+class InitialPingHandler extends Actor with ActorLogging {
+
+  override def preStart(): Unit = {
+    context.system.eventStream.subscribe(self, classOf[InitializedEvent])
+  }
+
+  override def receive: Receive = waitingForInitialization(Nil)
+
+  private def waitingForInitialization(
+    pendingRequests: List[(ActorRef, Id)]
+  ): Receive = {
+    case Request(MonitoringApi.InitialPing, id, Unused) =>
+      context.become(
+        waitingForInitialization((sender() -> id) :: pendingRequests)
+      )
+    case InitializedEvent.InitializationFinished =>
+      for ((ref, id) <- pendingRequests) {
+        ref ! ResponseResult(MonitoringApi.InitialPing, id, Unused)
+      }
+      context.become(initialized)
+    case InitializedEvent.InitializationFailed =>
+      for ((ref, id) <- pendingRequests) {
+        ref ! ResponseError(Some(id), ServiceError)
+      }
+      context.become(failed)
+    case _: InitializedEvent =>
+  }
+
+  private def initialized: Receive = {
+    case Request(MonitoringApi.InitialPing, id, Unused) =>
+      sender() ! ResponseResult(MonitoringApi.InitialPing, id, Unused)
+  }
+
+  private def failed: Receive = {
+    case Request(MonitoringApi.InitialPing, id, Unused) =>
+      ResponseError(Some(id), ServiceError)
+  }
+}
+
+object InitialPingHandler {
+
+  /** Creates a configuration object used to create a
+    * [[InitialPingHandler]]
+    *
+    * @return a configuration object
+    */
+  def props: Props = Props(new InitialPingHandler)
+}

engine/language-server/src/main/scala/org/enso/languageserver/util/LogHandler.scala

@@ -1,41 +0,0 @@
-package org.enso.languageserver.util
-
-import java.util.logging.{Handler, Level, LogRecord}
-
-import ch.qos.logback.classic
-import org.slf4j.event
-
-class LogHandler(logger: classic.Logger) extends Handler {
-
-  private val level = logger.getLevel
-
-  /** @inheritdoc */
-  override def publish(record: LogRecord): Unit = {
-    logger.log(
-      null,
-      record.getSourceClassName,
-      LogHandler.toSlf4j(record.getLevel).toInt,
-      record.getMessage,
-      record.getParameters,
-      record.getThrown
-    )
-  }
-
-  /** @inheritdoc */
-  override def flush(): Unit = ()
-
-  /** @inheritdoc */
-  override def close(): Unit = ()
-
-  /** @inheritdoc */
-  override def getLevel: Level =
-    Logging.LogLevel.toJava(Logging.LogLevel.fromLogback(level))
-
-}
-
-object LogHandler {
-
-  /** Convert java utils log level to slf4j. */
-  private def toSlf4j(level: Level): event.Level =
-    Logging.LogLevel.toSlf4j(Logging.LogLevel.fromJava(level))
-}

engine/language-server/src/main/scala/org/enso/languageserver/util/Logging.scala

@@ -1,134 +0,0 @@
-package org.enso.languageserver.util
-
-import java.util
-
-import cats.syntax.either._
-import ch.qos.logback.classic.{Level, Logger, LoggerContext}
-import org.slf4j.{event, LoggerFactory}
-
-object Logging {
-
-  /** Application log level. */
-  sealed trait LogLevel
-  object LogLevel {
-
-    case object Error   extends LogLevel
-    case object Warning extends LogLevel
-    case object Info    extends LogLevel
-    case object Debug   extends LogLevel
-    case object Trace   extends LogLevel
-
-    /** Convert to logback log level. */
-    def toLogback(level: LogLevel): Level =
-      level match {
-        case Error   => Level.ERROR
-        case Warning => Level.WARN
-        case Info    => Level.INFO
-        case Debug   => Level.DEBUG
-        case Trace   => Level.TRACE
-      }
-
-    /** Convert from logback log level. */
-    def fromLogback(level: Level): LogLevel = {
-      level match {
-        case Level.`ERROR` => Error
-        case Level.`WARN`  => Warning
-        case Level.`INFO`  => Info
-        case Level.`DEBUG` => Debug
-        case Level.`TRACE` => Trace
-      }
-    }
-
-    /** Convert to java util logging level. */
-    def toJava(level: LogLevel): util.logging.Level =
-      level match {
-        case Error   => util.logging.Level.SEVERE
-        case Warning => util.logging.Level.WARNING
-        case Info    => util.logging.Level.INFO
-        case Debug   => util.logging.Level.FINE
-        case Trace   => util.logging.Level.FINEST
-      }
-
-    /** Convert from java util logging level. */
-    def fromJava(level: util.logging.Level): LogLevel =
-      level match {
-        case util.logging.Level.`SEVERE`  => LogLevel.Error
-        case util.logging.Level.`WARNING` => LogLevel.Warning
-        case util.logging.Level.`INFO`    => LogLevel.Info
-        case util.logging.Level.`CONFIG`  => LogLevel.Debug
-        case util.logging.Level.`FINE`    => LogLevel.Debug
-        case util.logging.Level.`FINER`   => LogLevel.Debug
-        case util.logging.Level.`FINEST`  => LogLevel.Trace
-      }
-
-    /** Convert to slf4j logging level. */
-    def toSlf4j(level: LogLevel): event.Level =
-      level match {
-        case Error   => event.Level.ERROR
-        case Warning => event.Level.WARN
-        case Info    => event.Level.INFO
-        case Debug   => event.Level.DEBUG
-        case Trace   => event.Level.TRACE
-      }
-
-    /** Convert to akka logging level. */
-    def toAkka(level: LogLevel): akka.event.Logging.LogLevel =
-      level match {
-        case Error   => akka.event.Logging.ErrorLevel
-        case Warning => akka.event.Logging.WarningLevel
-        case Info    => akka.event.Logging.InfoLevel
-        case Debug   => akka.event.Logging.DebugLevel
-        case Trace   => akka.event.Logging.DebugLevel
-      }
-  }
-
-  private val ROOT_LOGGER = "org.enso"
-
-  /** Set log level for the application root logger.
-    *
-    * @param level the log level
-    * @return the new log level
-    */
-  def setLogLevel(level: LogLevel): Either[Throwable, LogLevel] = {
-    Either.catchNonFatal {
-      val ctx = LoggerFactory.getILoggerFactory.asInstanceOf[LoggerContext]
-      ctx.getLogger(ROOT_LOGGER).setLevel(LogLevel.toLogback(level))
-      level
-    }
-  }
-
-  /** Get log level of the application root logger. */
-  def getLogLevel: Either[Throwable, LogLevel] = {
-    Either.catchNonFatal {
-      val ctx   = LoggerFactory.getILoggerFactory.asInstanceOf[LoggerContext]
-      val level = ctx.getLogger(ROOT_LOGGER).getLevel
-      LogLevel.fromLogback(level)
-    }
-  }
-
-  /** Get the application logger.
-    *
-    * @param name the logger name
-    * @return the application logger
-    */
-  def getLogger(name: String): Either[Throwable, Logger] = {
-    Either.catchNonFatal {
-      val ctx = LoggerFactory.getILoggerFactory.asInstanceOf[LoggerContext]
-      ctx.getLogger(name)
-    }
-  }
-
-  /** Get the java log handler instance backed by the application logger.
-    *
-    * @param name the logger name
-    * @return the application log handler
-    */
-  def getLogHandler(name: String): Either[Throwable, LogHandler] =
-    for {
-      level  <- Logging.getLogLevel
-      logger <- Logging.getLogger(name)
-    } yield {
-      logger.setLevel(Logging.LogLevel.toLogback(level))
-      new LogHandler(logger)
-    }
-}

engine/language-server/src/test/resources/logback-test.xml

@@ -1,18 +0,0 @@
-<configuration>
-
-  <appender name="STDOUT" class="ch.qos.logback.core.ConsoleAppender">
-    <!-- encoders are assigned the type
-         ch.qos.logback.classic.encoder.PatternLayoutEncoder by default -->
-    <encoder>
-      <pattern>%d{HH:mm:ss.SSS} [%-15thread] %-5level %logger{36} %msg%n</pattern>
-    </encoder>
-  </appender>
-
-  <logger name="com.zaxxer.hikari" level="ERROR"/>
-  <logger name="slick" level="INFO"/>
-  <logger name="slick.compiler" level="INFO"/>
-
-  <root level="ERROR">
-    <appender-ref ref="STDOUT"/>
-  </root>
-</configuration>

engine/language-server/src/test/scala/org/enso/languageserver/requesthandler/monitoring/PingHandlerSpec.scala

@@ -29,7 +29,11 @@ class PingHandlerSpec
         .props(List(subsystem1.ref, subsystem2.ref, subsystem3.ref), 10.seconds)
     )
     //when
-    actorUnderTest ! Request(MonitoringApi.Ping, Number(1), Unused)
+    actorUnderTest ! Request(
+      MonitoringApi.Ping,
+      Number(1),
+      Unused
+    )
     //then
     subsystem1.expectMsg(Ping)
     subsystem2.expectMsg(Ping)
@@ -48,7 +52,11 @@ class PingHandlerSpec
         .props(List(subsystem1.ref, subsystem2.ref, subsystem3.ref), 10.seconds)
     )
     //when
-    actorUnderTest ! Request(MonitoringApi.Ping, Number(1), Unused)
+    actorUnderTest ! Request(
+      MonitoringApi.Ping,
+      Number(1),
+      Unused
+    )
     subsystem1.expectMsg(Ping)
     subsystem1.lastSender ! Pong
     subsystem2.expectMsg(Ping)
@@ -56,7 +64,9 @@ class PingHandlerSpec
     subsystem3.expectMsg(Ping)
     subsystem3.lastSender ! Pong
     //then
-    expectMsg(ResponseResult(MonitoringApi.Ping, Number(1), Unused))
+    expectMsg(
+      ResponseResult(MonitoringApi.Ping, Number(1), Unused)
+    )
     //teardown
     system.stop(actorUnderTest)
   }
@@ -72,7 +82,11 @@ class PingHandlerSpec
     )
     watch(actorUnderTest)
     //when
-    actorUnderTest ! Request(MonitoringApi.Ping, Number(1), Unused)
+    actorUnderTest ! Request(
+      MonitoringApi.Ping,
+      Number(1),
+      Unused
+    )
     subsystem2.expectMsg(Ping)
     subsystem2.lastSender ! Pong
     subsystem3.expectMsg(Ping)

engine/language-server/src/test/scala/org/enso/languageserver/websocket/json/BaseServerTest.scala

@@ -154,6 +154,7 @@ class BaseServerTest extends JsonRpcServerTestKit {
 
     Await.ready(suggestionsRepoInit, timeout)
     Await.ready(versionsRepoInit, timeout)
+    system.eventStream.publish(InitializedEvent.InitializationFinished)
 
     new JsonConnectionControllerFactory(
       bufferRegistry,

engine/language-server/src/test/scala/org/enso/languageserver/websocket/json/SuggestionsHandlerEventsTest.scala

@@ -8,13 +8,13 @@ import org.enso.languageserver.search.Suggestions
 import org.enso.languageserver.websocket.json.{SearchJsonMessages => json}
 import org.enso.polyglot.data.Tree
 import org.enso.polyglot.runtime.Runtime.Api
-import org.enso.testkit.FlakySpec
+import org.enso.testkit.RetrySpec
 
-class SuggestionsHandlerEventsTest extends BaseServerTest with FlakySpec {
+class SuggestionsHandlerEventsTest extends BaseServerTest with RetrySpec {
 
   "SuggestionsHandlerEvents" must {
 
-    "send suggestions database notifications" taggedAs Flaky in {
+    "send suggestions database notifications" taggedAs Retry in {
       val client = getInitialisedWsClient()
       system.eventStream.publish(ProjectNameChangedEvent("Test", "Test"))
 

engine/launcher/src/main/scala/org/enso/launcher/Launcher.scala

@@ -81,7 +81,7 @@ case class Launcher(cliOptions: GlobalCLIOptions) {
           .newProject(
             path                = actualPath,
             name                = name,
-            version             = version,
+            engineVersion       = version,
             authorName          = globalConfig.authorName,
             authorEmail         = globalConfig.authorEmail,
             additionalArguments = additionalArguments
@@ -414,7 +414,9 @@ case class Launcher(cliOptions: GlobalCLIOptions) {
     val (runtimeVersionRunSettings, whichEngine) = runner.version(useJSON).get
 
     val isEngineInstalled =
-      componentsManager.findEngine(runtimeVersionRunSettings.version).isDefined
+      componentsManager
+        .findEngine(runtimeVersionRunSettings.engineVersion)
+        .isDefined
     val runtimeVersionString = if (isEngineInstalled) {
       val output = runner.withCommand(
         runtimeVersionRunSettings,

engine/launcher/src/test/scala/org/enso/launcher/components/LauncherRunnerSpec.scala

@@ -120,14 +120,14 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         .newProject(
           path                = projectPath,
           name                = "ProjectName",
-          version             = defaultEngineVersion,
+          engineVersion       = defaultEngineVersion,
           authorName          = Some(authorName),
           authorEmail         = Some(authorEmail),
           additionalArguments = Seq(additionalArgument)
         )
         .get
 
-      runSettings.version shouldEqual defaultEngineVersion
+      runSettings.engineVersion shouldEqual defaultEngineVersion
       runSettings.runnerArguments should contain(additionalArgument)
       val commandLine = runSettings.runnerArguments.mkString(" ")
       commandLine should include(
@@ -149,7 +149,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      runSettings.version shouldEqual defaultEngineVersion
+      runSettings.engineVersion shouldEqual defaultEngineVersion
       runSettings.runnerArguments should (contain("arg") and contain("--flag"))
       runSettings.runnerArguments.mkString(" ") should
       (include("--repl") and not include s"--in-project")
@@ -174,7 +174,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      outsideProject.version shouldEqual version
+      outsideProject.engineVersion shouldEqual version
       outsideProject.runnerArguments.mkString(" ") should
       (include(s"--in-project $normalizedPath") and include("--repl"))
 
@@ -188,7 +188,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      insideProject.version shouldEqual version
+      insideProject.engineVersion shouldEqual version
       insideProject.runnerArguments.mkString(" ") should
       (include(s"--in-project $normalizedPath") and include("--repl"))
 
@@ -202,7 +202,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      overriddenRun.version shouldEqual overridden
+      overriddenRun.engineVersion shouldEqual overridden
       overriddenRun.runnerArguments.mkString(" ") should
       (include(s"--in-project $normalizedPath") and include("--repl"))
     }
@@ -230,7 +230,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      runSettings.version shouldEqual version
+      runSettings.engineVersion shouldEqual version
       val commandLine = runSettings.runnerArguments.mkString(" ")
       commandLine should include(s"--interface ${options.interface}")
       commandLine should include(s"--rpc-port ${options.rpcPort}")
@@ -250,7 +250,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
           logLevel            = LogLevel.Info
         )
         .get
-        .version shouldEqual overridden
+        .engineVersion shouldEqual overridden
     }
 
     "run a project" in {
@@ -270,7 +270,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      outsideProject.version shouldEqual version
+      outsideProject.engineVersion shouldEqual version
       outsideProject.runnerArguments.mkString(" ") should
       include(s"--run $normalizedPath")
 
@@ -284,7 +284,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      insideProject.version shouldEqual version
+      insideProject.engineVersion shouldEqual version
       insideProject.runnerArguments.mkString(" ") should
       include(s"--run $normalizedPath")
 
@@ -298,7 +298,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      overriddenRun.version shouldEqual overridden
+      overriddenRun.engineVersion shouldEqual overridden
       overriddenRun.runnerArguments.mkString(" ") should
       include(s"--run $normalizedPath")
 
@@ -338,7 +338,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      runSettings.version shouldEqual defaultEngineVersion
+      runSettings.engineVersion shouldEqual defaultEngineVersion
       runSettings.runnerArguments.mkString(" ") should
       (include(s"--run $normalizedPath") and (not(include("--in-project"))))
     }
@@ -362,7 +362,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         )
         .get
 
-      runSettings.version shouldEqual version
+      runSettings.engineVersion shouldEqual version
       runSettings.runnerArguments.mkString(" ") should
       (include(s"--run $normalizedFilePath") and
       include(s"--in-project $normalizedProjectPath"))
@@ -374,7 +374,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         .version(useJSON = true)
         .get
 
-      runSettings.version shouldEqual defaultEngineVersion
+      runSettings.engineVersion shouldEqual defaultEngineVersion
       runSettings.runnerArguments should
       (contain("--version") and contain("--json"))
 
@@ -391,7 +391,7 @@ class LauncherRunnerSpec extends RuntimeVersionManagerTest {
         .version(useJSON = false)
         .get
 
-      runSettings.version shouldEqual version
+      runSettings.engineVersion shouldEqual version
       runSettings.runnerArguments should
       (contain("--version") and not(contain("--json")))
 

engine/launcher/src/test/scala/org/enso/launcher/upgrade/UpgradeSpec.scala

@@ -72,7 +72,7 @@ class UpgradeSpec
     *
     * If `launcherVersion` is not provided, the default one is used.
     *
-    * It waits a 100ms delay after creating the launcher copy to ensure that the
+    * It waits a 250ms delay after creating the launcher copy to ensure that the
     * copy can be called right away after calling this function. It is not
     * absolutely certain that this is helpful, but from time to time, the tests
     * fail because the filesystem does not allow to access the executable as
@@ -94,7 +94,7 @@ class UpgradeSpec
       val root = launcherPath.getParent.getParent
       FileSystem.writeTextFile(root / ".enso.portable", "mark")
     }
-    Thread.sleep(100)
+    Thread.sleep(250)
   }
 
   /** Path to the launcher executable in the temporary distribution.
@@ -156,7 +156,7 @@ class UpgradeSpec
   }
 
   "upgrade" should {
-    "upgrade to latest version (excluding broken)" in {
+    "upgrade to latest version (excluding broken)" taggedAs Retry in {
       prepareDistribution(
         portable        = true,
         launcherVersion = Some(SemVer(0, 0, 2))
@@ -166,7 +166,7 @@ class UpgradeSpec
       checkVersion() shouldEqual SemVer(0, 0, 4)
     }
 
-    "not downgrade without being explicitly asked to do so" in {
+    "not downgrade without being explicitly asked to do so" taggedAs Retry in {
       // precondition for the test to make sense
       SemVer(buildinfo.Info.ensoVersion).value should be > SemVer(0, 0, 4)
 
@@ -177,7 +177,7 @@ class UpgradeSpec
     }
 
     "upgrade/downgrade to a specific version " +
-    "(and update necessary files)" in {
+    "(and update necessary files)" taggedAs Retry in {
       // precondition for the test to make sense
       SemVer(buildinfo.Info.ensoVersion).value should be > SemVer(0, 0, 4)
 
@@ -194,7 +194,7 @@ class UpgradeSpec
         .trim shouldEqual "Test license"
     }
 
-    "upgrade also in installed mode" in {
+    "upgrade also in installed mode" taggedAs Retry in {
       prepareDistribution(
         portable        = false,
         launcherVersion = Some(SemVer(0, 0, 0))
@@ -228,37 +228,46 @@ class UpgradeSpec
       )
 
       checkVersion() shouldEqual SemVer(0, 0, 0)
-      run(Seq("upgrade", "0.0.3")) should returnSuccess
+      val process = startLauncher(Seq("upgrade", "0.0.3"))
+      try {
+        process.join(timeoutSeconds = 30) should returnSuccess
 
-      checkVersion() shouldEqual SemVer(0, 0, 3)
+        checkVersion() shouldEqual SemVer(0, 0, 3)
 
-      val launchedVersions = Seq(
+        val launchedVersions = Seq(
-        "0.0.0",
+          "0.0.0",
-        "0.0.0",
+          "0.0.0",
-        "0.0.1",
+          "0.0.1",
-        "0.0.2",
+          "0.0.2",
-        "0.0.3"
+          "0.0.3"
-      )
+        )
 
-      val reportedLaunchLog = TestHelpers
+        val reportedLaunchLog = TestHelpers
-        .readFileContent(launcherPath.getParent / ".launcher_version_log")
+          .readFileContent(launcherPath.getParent / ".launcher_version_log")
-        .trim
+          .trim
-        .linesIterator
+          .linesIterator
-        .toSeq
+          .toSeq
 
-      reportedLaunchLog shouldEqual launchedVersions
+        reportedLaunchLog shouldEqual launchedVersions
 
-      withClue(
+        withClue(
-        "After the update we run the version check, running the launcher " +
+          "After the update we run the version check, running the launcher " +
-        "after the update should ensure no leftover temporary executables " +
+          "after the update should ensure no leftover temporary executables " +
-        "are left in the bin directory."
+          "are left in the bin directory."
-      ) {
+        ) {
-        val binDirectory = launcherPath.getParent
+          val binDirectory = launcherPath.getParent
-        val leftOverExecutables = FileSystem
+          val leftOverExecutables = FileSystem
-          .listDirectory(binDirectory)
+            .listDirectory(binDirectory)
-          .map(_.getFileName.toString)
+            .map(_.getFileName.toString)
-          .filter(_.startsWith("enso"))
+            .filter(_.startsWith("enso"))
-        leftOverExecutables shouldEqual Seq(OS.executableName("enso"))
+          leftOverExecutables shouldEqual Seq(OS.executableName("enso"))
+        }
+      } finally {
+        if (process.isAlive) {
+          // ensure that the child process frees resources if retrying the test
+          process.kill()
+          Thread.sleep(500)
+        }
       }
     }
 
@@ -271,8 +280,8 @@ class UpgradeSpec
       val enginesPath = getTestDirectory / "enso" / "dist"
       Files.createDirectories(enginesPath)
 
-      // TODO [RW] re-enable this test when #1046 is done and the engine
+      // TODO [RW] re-enable this test when #1046 or #1273 is done and the
-      //  distribution can be used in the test
+      //  engine distribution can be used in the test
 //      FileSystem.copyDirectory(
 //        Path.of("target/distribution/"),
 //        enginesPath / "0.1.0"

engine/runner/src/main/scala/org/enso/runner/CurrentVersion.scala

@@ -0,0 +1,31 @@
+package org.enso.runner
+
+import nl.gn0s1s.bump.SemVer
+
+/** A helper object that allows to access current version of the runner.
+  *
+  * The current version is parsed from [[buildinfo]], but in development mode it
+  * can be overridden by setting `enso.version.override` property. This is used
+  * in project-manager tests to override the version of projects created using
+  * the runner.
+  */
+object CurrentVersion {
+
+  /** The version that the application should report. */
+  lazy val version: SemVer = computeVersion()
+
+  private def computeVersion(): SemVer = {
+    val buildVersion = SemVer(buildinfo.Info.ensoVersion).getOrElse {
+      throw new IllegalStateException(
+        "Fatal error: Enso version included in buildinfo is not a valid " +
+        "semver string, this should never happen."
+      )
+    }
+    if (buildinfo.Info.isRelease) buildVersion
+    else
+      sys.props
+        .get("enso.version.override")
+        .flatMap(SemVer(_))
+        .getOrElse(buildVersion)
+  }
+}

engine/runner/src/main/scala/org/enso/runner/LanguageServerApp.scala

@@ -4,6 +4,7 @@ import org.enso.languageserver.boot.{
   LanguageServerComponent,
   LanguageServerConfig
 }
+import org.enso.loggingservice.LogLevel
 
 import scala.concurrent.Await
 import scala.concurrent.duration._
@@ -16,10 +17,11 @@ object LanguageServerApp {
   /** Runs a Language Server
     *
     * @param config a config
+    * @param logLevel log level
     */
-  def run(config: LanguageServerConfig): Unit = {
+  def run(config: LanguageServerConfig, logLevel: LogLevel): Unit = {
     println("Starting Language Server...")
-    val server = new LanguageServerComponent(config)
+    val server = new LanguageServerComponent(config, logLevel)
     Await.result(server.start(), 10.seconds)
     StdIn.readLine()
     Await.result(server.stop(), 10.seconds)

engine/runner/src/main/scala/org/enso/runner/Main.scala

@@ -5,7 +5,6 @@ import java.util.UUID
 
 import akka.http.scaladsl.model.{IllegalUriException, Uri}
 import cats.implicits._
-import nl.gn0s1s.bump.SemVer
 import org.apache.commons.cli.{Option => CliOption, _}
 import org.enso.languageserver.boot
 import org.enso.languageserver.boot.LanguageServerConfig
@@ -234,19 +233,13 @@ object Main {
   ): Unit = {
     val root = new File(path)
     val name = nameOption.getOrElse(PackageManager.Default.generateName(root))
-    val currentVersion = SemVer(buildinfo.Info.ensoVersion).getOrElse {
-      throw new IllegalStateException(
-        "Fatal error: Enso version included in buildinfo is not a valid " +
-        "semver string, this should never happen."
-      )
-    }
     val authors =
       if (authorName.isEmpty && authorEmail.isEmpty) List()
       else List(Contact(name = authorName, email = authorEmail))
     PackageManager.Default.create(
       root        = root,
       name        = name,
-      ensoVersion = SemVerEnsoVersion(currentVersion),
+      ensoVersion = SemVerEnsoVersion(CurrentVersion.version),
       authors     = authors,
       maintainers = authors
     )
@@ -432,8 +425,6 @@ object Main {
     * @param logLevel log level to set for the engine runtime
     */
   private def runLanguageServer(line: CommandLine, logLevel: LogLevel): Unit = {
-    val _ = logLevel // TODO [RW] handle logging in the Language Server (#1144)
-
     val maybeConfig = parseSeverOptions(line)
 
     maybeConfig match {
@@ -442,7 +433,7 @@ object Main {
         exitFail()
 
       case Right(config) =>
-        LanguageServerApp.run(config)
+        LanguageServerApp.run(config, logLevel)
         exitSuccess()
     }
   }
@@ -481,7 +472,8 @@ object Main {
   def displayVersion(useJson: Boolean): Unit = {
     val versionDescription = VersionDescription.make(
       "Enso Compiler and Runtime",
-      includeRuntimeJVMInfo = true
+      includeRuntimeJVMInfo = true,
+      customVersion         = Some(CurrentVersion.version.toString)
     )
     println(versionDescription.asString(useJson))
   }

lib/scala/json-rpc-server-test/src/main/scala/org/enso/jsonrpc/test/JsonRpcServerTestKit.scala

@@ -62,7 +62,7 @@ abstract class JsonRpcServerTestKit
     val _ = binding.unbind()
   }
 
-  class WsTestClient(address: String) {
+  class WsTestClient(address: String, debugMessages: Boolean = false) {
     private var inActor: ActorRef   = _
     private val outActor: TestProbe = TestProbe()
     private val source: Source[Message, NotUsed] = Source
@@ -104,8 +104,11 @@ abstract class JsonRpcServerTestKit
 
     def send(json: Json): Unit = send(json.noSpaces)
 
-    def expectMessage(timeout: FiniteDuration = 3.seconds.dilated): String =
+    def expectMessage(timeout: FiniteDuration = 3.seconds.dilated): String = {
-      outActor.expectMsgClass[String](timeout, classOf[String])
+      val message = outActor.expectMsgClass[String](timeout, classOf[String])
+      if (debugMessages) println(message)
+      message
+    }
 
     def expectJson(
       json: Json,

lib/scala/logging-service/src/main/scala/org/enso/loggingservice/LogLevel.scala

@@ -15,6 +15,7 @@ sealed abstract class LogLevel(final val level: Int) {
   def shouldLog(other: LogLevel): Boolean =
     other.level <= level
 }
+
 object LogLevel {
 
   /** This log level should not be used by messages, instead it can be set as
@@ -93,19 +94,38 @@ object LogLevel {
       level.level.asJson
   }
 
+  /** Creates a [[LogLevel]] from its integer representation.
+    *
+    * Returns None if the number does not represent a valid log level.
+    */
+  def fromInteger(level: Int): Option[LogLevel] = level match {
+    case Error.level   => Some(Error)
+    case Warning.level => Some(Warning)
+    case Info.level    => Some(Info)
+    case Debug.level   => Some(Debug)
+    case Trace.level   => Some(Trace)
+    case _             => None
+  }
+
   /** [[Decoder]] instance for [[LogLevel]].
     */
   implicit val decoder: Decoder[LogLevel] = { json =>
-    json.as[Int].flatMap {
+    json.as[Int].flatMap { level =>
-      case Error.level   => Right(Error)
+      fromInteger(level).toRight(
-      case Warning.level => Right(Warning)
+        DecodingFailure(s"`$level` is not a valid log level.", json.history)
-      case Info.level    => Right(Info)
+      )
-      case Debug.level   => Right(Debug)
-      case Trace.level   => Right(Trace)
-      case other =>
-        Left(
-          DecodingFailure(s"`$other` is not a valid log level.", json.history)
-        )
     }
   }
+
+  /** Converts our internal [[LogLevel]] to the corresponding instance of
+    * Akka-specific log level.
+    */
+  def toAkka(logLevel: LogLevel): akka.event.Logging.LogLevel = logLevel match {
+    case Off     => akka.event.Logging.LogLevel(Int.MinValue)
+    case Error   => akka.event.Logging.ErrorLevel
+    case Warning => akka.event.Logging.WarningLevel
+    case Info    => akka.event.Logging.InfoLevel
+    case Debug   => akka.event.Logging.DebugLevel
+    case Trace   => akka.event.Logging.DebugLevel
+  }
 }

lib/scala/logging-service/src/main/scala/org/enso/loggingservice/LoggingServiceManager.scala

@@ -1,12 +1,7 @@
 package org.enso.loggingservice
 
 import org.enso.loggingservice.internal.service.{Client, Local, Server, Service}
-import org.enso.loggingservice.internal.{
+import org.enso.loggingservice.internal._
-  BlockingConsumerMessageQueue,
-  InternalLogMessage,
-  InternalLogger,
-  LoggerConnection
-}
 import org.enso.loggingservice.printers.{Printer, StderrPrinter}
 
 import scala.concurrent.{ExecutionContext, Future}
@@ -14,8 +9,37 @@ import scala.concurrent.{ExecutionContext, Future}
 /** Manages the logging service.
   */
 object LoggingServiceManager {
-  private val messageQueue           = new BlockingConsumerMessageQueue()
+  private val testLoggingPropertyKey = "org.enso.loggingservice.test-log-level"
-  private var currentLevel: LogLevel = LogLevel.Trace
+
+  private var currentService: Option[Service] = None
+  private var currentLevel: LogLevel          = LogLevel.Trace
+
+  /** Creates an instance for the [[messageQueue]].
+    *
+    * Runs special workaround logic if test mode is detected.
+    */
+  private def initializeMessageQueue(): BlockingConsumerMessageQueue = {
+    sys.props.get(testLoggingPropertyKey) match {
+      case Some(value) =>
+        val logLevel =
+          value.toIntOption.flatMap(LogLevel.fromInteger).getOrElse {
+            System.err.println(
+              s"Invalid log level for $testLoggingPropertyKey, " +
+              s"falling back to info."
+            )
+            LogLevel.Info
+          }
+
+        val shouldOverride = () => currentService.isEmpty
+
+        new TestMessageQueue(logLevel, shouldOverride)
+      case None => productionMessageQueue()
+    }
+  }
+
+  private def productionMessageQueue() = new BlockingConsumerMessageQueue()
+
+  private val messageQueue = initializeMessageQueue()
 
   /** The default [[LoggerConnection]] that should be used by all backends which
     * want to use the logging service.
@@ -32,8 +56,6 @@ object LoggingServiceManager {
     override def logLevel: LogLevel = currentLevel
   }
 
-  private var currentService: Option[Service] = None
-
   /** Sets up the logging service, but in a separate thread to avoid stalling
     * the application.
     *

lib/scala/logging-service/src/main/scala/org/enso/loggingservice/internal/TestMessageQueue.scala

@@ -0,0 +1,33 @@
+package org.enso.loggingservice.internal
+import org.enso.loggingservice.LogLevel
+import org.enso.loggingservice.internal.protocol.WSLogMessage
+import org.enso.loggingservice.printers.StderrPrinter
+
+/** A message queue for use in testing.
+  *
+  * It has a smaller buffer and ignores messages from a certain log level.
+  *
+  * @param logLevel
+  * @param shouldOverride
+  */
+class TestMessageQueue(logLevel: LogLevel, shouldOverride: () => Boolean)
+    extends BlockingConsumerMessageQueue(bufferSize = 100) {
+
+  private def shouldKeepMessage(
+    message: Either[InternalLogMessage, WSLogMessage]
+  ): Boolean = message match {
+    case Left(value)  => logLevel.shouldLog(value.level)
+    case Right(value) => logLevel.shouldLog(value.level)
+  }
+
+  private val overridePrinter = StderrPrinter.create()
+
+  /** @inheritdoc */
+  override def send(message: Either[InternalLogMessage, WSLogMessage]): Unit =
+    if (shouldKeepMessage(message)) {
+      if (shouldOverride())
+        overridePrinter.print(message.fold(_.toLogMessage, identity))
+      else
+        super.send(message)
+    }
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/boot/MainModule.scala

@@ -9,6 +9,7 @@ import org.enso.projectmanager.control.core.{Applicative, CovariantFlatMap}
 import org.enso.projectmanager.control.effect.{Async, ErrorChannel, Exec, Sync}
 import org.enso.projectmanager.infrastructure.file.BlockingFileSystem
 import org.enso.projectmanager.infrastructure.languageserver.{
+  ExecutorWithUnlimitedPool,
   LanguageServerGatewayImpl,
   LanguageServerRegistry,
   ShutdownHookActivator
@@ -25,6 +26,7 @@ import org.enso.projectmanager.service.config.GlobalConfigService
 import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagementService
 import org.enso.projectmanager.service.{
   MonadicProjectValidator,
+  ProjectCreationService,
   ProjectService,
   ProjectServiceFailure,
   ValidationFailure
@@ -76,7 +78,9 @@ class MainModule[
           config.network,
           config.bootloader,
           config.supervision,
-          config.timeout
+          config.timeout,
+          DefaultDistributionConfiguration,
+          ExecutorWithUnlimitedPool
         ),
       "language-server-registry"
     )
@@ -94,19 +98,25 @@ class MainModule[
     config.timeout
   )
 
+  lazy val projectCreationService =
+    new ProjectCreationService[F](DefaultDistributionConfiguration)
+
+  lazy val globalConfigService =
+    new GlobalConfigService[F](DefaultDistributionConfiguration)
+
   lazy val projectService =
     new ProjectService[F](
       projectValidator,
       projectRepository,
+      projectCreationService,
+      globalConfigService,
       logging,
       clock,
       gen,
-      languageServerGateway
+      languageServerGateway,
+      DefaultDistributionConfiguration
     )
 
-  lazy val globalConfigService =
-    new GlobalConfigService[F](DefaultDistributionConfiguration)
-
   lazy val runtimeVersionManagementService =
     new RuntimeVersionManagementService[F](DefaultDistributionConfiguration)
 

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/http/AkkaBasedWebSocketConnection.scala

@@ -8,7 +8,10 @@ import akka.pattern.pipe
 import akka.stream.scaladsl.{Flow, Sink, Source}
 import akka.stream.{CompletionStrategy, OverflowStrategy}
 import org.enso.projectmanager.infrastructure.http.AkkaBasedWebSocketConnection._
-import org.enso.projectmanager.infrastructure.http.FanOutReceiver.Listen
+import org.enso.projectmanager.infrastructure.http.FanOutReceiver.{
+  Attach,
+  Detach
+}
 import org.enso.projectmanager.infrastructure.http.WebSocketConnection.{
   WebSocketConnected,
   WebSocketMessage,
@@ -65,7 +68,11 @@ class AkkaBasedWebSocketConnection(address: String)(implicit
 
   /** @inheritdoc */
   override def attachListener(listener: ActorRef): Unit =
-    receiver ! Listen(listener)
+    receiver ! Attach(listener)
+
+  /** @inheritdoc */
+  override def detachListener(listener: ActorRef): Unit =
+    receiver ! Detach(listener)
 
   /** @inheritdoc */
   def connect(): Unit = {
@@ -83,6 +90,7 @@ class AkkaBasedWebSocketConnection(address: String)(implicit
         case InvalidUpgradeResponse(_, cause) =>
           WebSocketStreamFailure(new Exception(s"Cannot connect $cause"))
       }
+      .recover(WebSocketStreamFailure(_))
       .pipeTo(receiver)
     ()
   }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/http/FanOutReceiver.scala

@@ -1,7 +1,10 @@
 package org.enso.projectmanager.infrastructure.http
 
 import akka.actor.{Actor, ActorRef}
-import org.enso.projectmanager.infrastructure.http.FanOutReceiver.Listen
+import org.enso.projectmanager.infrastructure.http.FanOutReceiver.{
+  Attach,
+  Detach
+}
 
 /** A fan-out receiver that delivers messages to multiple listeners.
   */
@@ -10,7 +13,8 @@ class FanOutReceiver extends Actor {
   override def receive: Receive = running()
 
   private def running(listeners: Set[ActorRef] = Set.empty): Receive = {
-    case Listen(listener) => context.become(running(listeners + listener))
+    case Attach(listener) => context.become(running(listeners + listener))
+    case Detach(listener) => context.become(running(listeners - listener))
     case msg              => listeners.foreach(_ ! msg)
   }
 
@@ -22,6 +26,6 @@ object FanOutReceiver {
     *
     * @param listener a listener to attach
     */
-  case class Listen(listener: ActorRef)
+  case class Attach(listener: ActorRef)
-
+  case class Detach(listener: ActorRef)
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/http/WebSocketConnection.scala

@@ -26,6 +26,12 @@ trait WebSocketConnection {
     */
   def attachListener(listener: ActorRef): Unit
 
+  /** Removes the listener of incoming messages.
+    *
+    * Can be useful when disconnecting has timed out and we do not want to
+    * receive the disconnected message after the owning actor is long dead.
+    */
+  def detachListener(listener: ActorRef): Unit
 }
 
 object WebSocketConnection {

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/ExecutorWithUnlimitedPool.scala

@@ -0,0 +1,134 @@
+package org.enso.projectmanager.infrastructure.languageserver
+
+import java.io.PrintWriter
+import java.lang.ProcessBuilder.Redirect
+import java.util.concurrent.Executors
+
+import akka.actor.ActorRef
+import org.apache.commons.lang3.concurrent.BasicThreadFactory
+import org.enso.loggingservice.LogLevel
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerFactory
+import org.enso.runtimeversionmanager.runner.{LanguageServerOptions, Runner}
+
+import scala.concurrent.Future
+import scala.util.Using
+
+object ExecutorWithUnlimitedPool extends LanguageServerExecutor {
+
+  /** An executor that ensures each job runs in a separate thread.
+    *
+    * It is used to run the process in a background thread. It is blocking by
+    * design to ensure that the locking API is used correctly. This executor
+    * should start no more than one thread per Language Server instance.
+    */
+  private val forkedProcessExecutor = {
+    val threadFactory =
+      new BasicThreadFactory.Builder()
+        .namingPattern("language-server-pool-%d")
+        .build()
+    Executors.newCachedThreadPool(threadFactory)
+  }
+
+  /** @inheritdoc */
+  override def spawn(
+    descriptor: LanguageServerDescriptor,
+    progressTracker: ActorRef,
+    rpcPort: Int,
+    dataPort: Int,
+    lifecycleListener: LanguageServerExecutor.LifecycleListener
+  ): Unit = {
+    val runnable: Runnable = { () =>
+      try {
+        runServer(
+          descriptor,
+          progressTracker,
+          rpcPort,
+          dataPort,
+          lifecycleListener
+        )
+      } catch {
+        case throwable: Throwable =>
+          lifecycleListener.onFailed(throwable)
+      }
+    }
+    forkedProcessExecutor.submit(runnable)
+  }
+
+  /** Runs the child process, ensuring that the proper locks are kept for the
+    * used engine for the whole lifetime of that process.
+    *
+    * Returns the exit code of the process. This function is blocking so it
+    * should be run in a backgroung thread.
+    */
+  private def runServer(
+    descriptor: LanguageServerDescriptor,
+    progressTracker: ActorRef,
+    rpcPort: Int,
+    dataPort: Int,
+    lifecycleListener: LanguageServerExecutor.LifecycleListener
+  ): Unit = {
+    val distributionConfiguration = descriptor.distributionConfiguration
+    val versionManager = RuntimeVersionManagerFactory(distributionConfiguration)
+      .makeRuntimeVersionManager(progressTracker)
+
+    // TODO [RW] logging #1151
+    val loggerConnection = Future.successful(None)
+    val logLevel         = LogLevel.Info
+    val options = LanguageServerOptions(
+      rootId    = descriptor.rootId,
+      interface = descriptor.networkConfig.interface,
+      rpcPort   = rpcPort,
+      dataPort  = dataPort
+    )
+
+    val runner = new Runner(
+      versionManager,
+      distributionConfiguration.environment,
+      loggerConnection
+    )
+    val runSettings = runner
+      .startLanguageServer(
+        options             = options,
+        projectPath         = descriptor.rootPath,
+        version             = descriptor.engineVersion,
+        logLevel            = logLevel,
+        additionalArguments = Seq()
+      )
+      .get
+    runner.withCommand(runSettings, descriptor.jvmSettings) { command =>
+      val process = {
+        val pb = command.builder()
+        pb.inheritIO()
+
+        pb.redirectInput(Redirect.PIPE)
+        if (descriptor.discardOutput) {
+          pb.redirectError(Redirect.DISCARD)
+          pb.redirectOutput(Redirect.DISCARD)
+        }
+
+        pb.start()
+      }
+
+      lifecycleListener.onStarted(new LanguageServerProcessHandle(process))
+      val exitCode = process.waitFor()
+      lifecycleListener.onTerminated(exitCode)
+    }
+  }
+
+  private class LanguageServerProcessHandle(private val process: Process)
+      extends LanguageServerExecutor.ProcessHandle {
+
+    /** Requests the child process to terminate gracefully by sending the
+      * termination request to its standard input stream.
+      */
+    def requestGracefulTermination(): Unit =
+      Using(new PrintWriter(process.getOutputStream)) { writer =>
+        writer.println()
+      }
+
+    /** @inheritdoc */
+    def kill(): Unit = {
+      process.destroyForcibly()
+    }
+  }
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/HeartbeatSession.scala

@@ -17,7 +17,10 @@ import org.enso.projectmanager.infrastructure.languageserver.HeartbeatSession.{
   HeartbeatTimeout,
   SocketClosureTimeout
 }
-import org.enso.projectmanager.infrastructure.languageserver.LanguageServerSupervisor.ServerUnresponsive
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerSupervisor.{
+  HeartbeatReceived,
+  ServerUnresponsive
+}
 import org.enso.projectmanager.util.UnhandledLogging
 
 import scala.concurrent.duration.FiniteDuration
@@ -28,12 +31,21 @@ import scala.concurrent.duration.FiniteDuration
   * @param timeout a session timeout
   * @param connectionFactory a web socket connection factory
   * @param scheduler a scheduler
+  * @param method api method to use for the heartbeat message
+  * @param sendConfirmations whether to send [[HeartbeatReceived]] to confirm
+  *                          that a response has been received
+  * @param quietErrors if set, reports errors in debug level instead of error
+  *                    level, can be used when errors are expected (i.e. on
+  *                    startup)
   */
 class HeartbeatSession(
   socket: Socket,
   timeout: FiniteDuration,
   connectionFactory: WebSocketConnectionFactory,
-  scheduler: Scheduler
+  scheduler: Scheduler,
+  method: String,
+  sendConfirmations: Boolean,
+  quietErrors: Boolean
 ) extends Actor
     with ActorLogging
     with UnhandledLogging {
@@ -57,7 +69,7 @@ class HeartbeatSession(
       connection.send(s"""
                          |{ 
                          |   "jsonrpc": "2.0",
-                         |   "method": "heartbeat/ping",
+                         |   "method": "$method",
                          |   "id": "$requestId",
                          |   "params": null
                          |}
@@ -66,7 +78,7 @@ class HeartbeatSession(
       context.become(pongStage(cancellable))
 
     case WebSocketStreamFailure(th) =>
-      log.error(th, s"An error occurred during connecting to websocket $socket")
+      logError(th, s"An error occurred during connecting to websocket $socket")
       context.parent ! ServerUnresponsive
       stop()
 
@@ -81,16 +93,18 @@ class HeartbeatSession(
 
       maybeJson match {
         case Left(error) =>
-          log.error(error, "An error occurred during parsing pong reply")
+          logError(error, "An error occurred during parsing pong reply")
 
         case Right(id) =>
           if (id == requestId.toString) {
             log.debug(s"Received correct pong message from $socket")
+
+            if (sendConfirmations) {
+              context.parent ! HeartbeatReceived
+            }
+
             cancellable.cancel()
-            connection.disconnect()
+            stop()
-            val closureTimeout =
-              scheduler.scheduleOnce(timeout, self, SocketClosureTimeout)
-            context.become(socketClosureStage(closureTimeout))
           } else {
             log.warning(s"Received unknown response $payload")
           }
@@ -99,21 +113,17 @@ class HeartbeatSession(
     case HeartbeatTimeout =>
       log.debug(s"Heartbeat timeout detected for $requestId")
       context.parent ! ServerUnresponsive
-      connection.disconnect()
+      stop()
-      val closureTimeout =
-        scheduler.scheduleOnce(timeout, self, SocketClosureTimeout)
-      context.become(socketClosureStage(closureTimeout))
 
     case WebSocketStreamClosed =>
       context.parent ! ServerUnresponsive
       context.stop(self)
 
     case WebSocketStreamFailure(th) =>
-      log.error(th, s"An error occurred during waiting for Pong message")
+      logError(th, s"An error occurred during waiting for Pong message")
       context.parent ! ServerUnresponsive
       cancellable.cancel()
-      connection.disconnect()
+      stop()
-      context.stop(self)
 
     case GracefulStop =>
       cancellable.cancel()
@@ -126,13 +136,14 @@ class HeartbeatSession(
       cancellable.cancel()
 
     case WebSocketStreamFailure(th) =>
-      log.error(th, s"An error occurred during closing web socket")
+      logError(th, s"An error occurred during closing web socket")
       context.stop(self)
       cancellable.cancel()
 
     case SocketClosureTimeout =>
-      log.error(s"Socket closure timed out")
+      logError(s"Socket closure timed out")
       context.stop(self)
+      connection.detachListener(self)
 
     case GracefulStop => // ignoring it, because the actor is already closing
   }
@@ -144,6 +155,22 @@ class HeartbeatSession(
     context.become(socketClosureStage(closureTimeout))
   }
 
+  private def logError(throwable: Throwable, message: String): Unit = {
+    if (quietErrors) {
+      log.debug(s"$message ($throwable)")
+    } else {
+      log.error(throwable, message)
+    }
+  }
+
+  private def logError(message: String): Unit = {
+    if (quietErrors) {
+      log.debug(message)
+    } else {
+      log.error(message)
+    }
+  }
+
 }
 
 object HeartbeatSession {
@@ -156,7 +183,8 @@ object HeartbeatSession {
     */
   case object SocketClosureTimeout
 
-  /** Creates a configuration object used to create a [[LanguageServerSupervisor]].
+  /** Creates a configuration object used to create an ordinary
+    * [[HeartbeatSession]] for monitoring server's status.
     *
     * @param socket a server socket
     * @param timeout a session timeout
@@ -170,6 +198,43 @@ object HeartbeatSession {
     connectionFactory: WebSocketConnectionFactory,
     scheduler: Scheduler
   ): Props =
-    Props(new HeartbeatSession(socket, timeout, connectionFactory, scheduler))
+    Props(
+      new HeartbeatSession(
+        socket,
+        timeout,
+        connectionFactory,
+        scheduler,
+        "heartbeat/ping",
+        sendConfirmations = false,
+        quietErrors       = false
+      )
+    )
+
+  /** Creates a configuration object used to create an initial
+    * [[HeartbeatSession]] for checking if the server has finished booting.
+    *
+    * @param socket a server socket
+    * @param timeout a session timeout
+    * @param connectionFactory a web socket connection factory
+    * @param scheduler a scheduler
+    * @return a configuration object
+    */
+  def initialProps(
+    socket: Socket,
+    timeout: FiniteDuration,
+    connectionFactory: WebSocketConnectionFactory,
+    scheduler: Scheduler
+  ): Props =
+    Props(
+      new HeartbeatSession(
+        socket,
+        timeout,
+        connectionFactory,
+        scheduler,
+        "heartbeat/init",
+        sendConfirmations = true,
+        quietErrors       = true
+      )
+    )
 
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerBootLoader.scala

@@ -1,35 +1,52 @@
 package org.enso.projectmanager.infrastructure.languageserver
 
-import akka.actor.Status.Failure
+import akka.actor.{Actor, ActorLogging, ActorRef, Props}
-import akka.actor.{Actor, ActorLogging, Props}
-import akka.pattern.pipe
-import org.enso.languageserver.boot.{
-  LanguageServerComponent,
-  LanguageServerConfig
-}
 import org.enso.projectmanager.boot.configuration.BootloaderConfig
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerBootLoader.{
-  Boot,
-  FindFreeSocket,
   ServerBootFailed,
   ServerBooted
 }
 import org.enso.projectmanager.infrastructure.net.Tcp
 import org.enso.projectmanager.util.UnhandledLogging
 
+import scala.concurrent.duration.FiniteDuration
+
 /** It boots a Language Sever described by the `descriptor`. Upon boot failure
   * looks up new available port and retries to boot the server.
   *
+  * Once the server is booted it can restart it on request.
+  *
+  * The `bootProgressTracker` has to be provided because, while the process
+  * assumes that the required engine version has been pre-installed, it still
+  * may sometimes need to wait on a lock (for example if an engine is being
+  * uninstalled), so these events need to be reported to the progress tracker.
+  *
+  * @param bootProgressTracker an [[ActorRef]] that will get progress updates
+  *                            related to initializing the engine
   * @param descriptor a LS descriptor
   * @param config a bootloader config
+  * @param bootTimeout a finite duration that determines the deadline for
+  *                    initialization of the server process, if the process
+  *                    starts but fails to initialize after this timeout, it is
+  *                    treated as a boot failure and the process is gracefully
+  *                    stopped
+  * @param executor an executor service used to start the language server
+  *                 process
   */
 class LanguageServerBootLoader(
+  bootProgressTracker: ActorRef,
   descriptor: LanguageServerDescriptor,
-  config: BootloaderConfig
+  config: BootloaderConfig,
+  bootTimeout: FiniteDuration,
+  executor: LanguageServerExecutor
 ) extends Actor
     with ActorLogging
     with UnhandledLogging {
 
+  // TODO [RW] consider adding a stop timeout so that if the graceful stop on
+  //  timed-out boot also does not work, the process can be killed forcibly
+  //  (#1315)
+
   import context.dispatcher
 
   override def preStart(): Unit = {
@@ -39,6 +56,10 @@ class LanguageServerBootLoader(
 
   override def receive: Receive = findingSocket()
 
+  /** First bootloader phase - looking for a free set of ports for the server.
+    *
+    * Once the ports are found, the process starts booting.
+    */
   private def findingSocket(retry: Int = 0): Receive = {
     case FindFreeSocket =>
       log.debug("Looking for available socket to bind the language server")
@@ -53,53 +74,190 @@ class LanguageServerBootLoader(
         s"binary:${descriptor.networkConfig.interface}:$binaryPort]"
       )
       self ! Boot
-      context.become(booting(jsonRpcPort, binaryPort, retry))
+      context.become(
+        bootingFirstTime(
+          rpcPort    = jsonRpcPort,
+          dataPort   = binaryPort,
+          retryCount = retry
+        )
+      )
 
     case GracefulStop =>
       context.stop(self)
   }
 
-  private def booting(rpcPort: Int, dataPort: Int, retryCount: Int): Receive = {
+  /** This phase is triggered when the ports are found.
+    *
+    * When booting for the first time, the actor that will be notified is the
+    * parent and retries are allowed (upon retry new set of ports will be tried).
+    */
+  private def bootingFirstTime(
+    rpcPort: Int,
+    dataPort: Int,
+    retryCount: Int
+  ): Receive = booting(
+    rpcPort       = rpcPort,
+    dataPort      = dataPort,
+    shouldRetry   = true,
+    retryCount    = retryCount,
+    bootRequester = context.parent
+  )
+
+  /** A general booting phase.
+    *
+    * It spawns the [[LanguageServerProcess]] child actor and waits for it to
+    * confirm that the server has been successfully initialized (or failed to
+    * boot). Once booted it enters the running phase.
+    */
+  private def booting(
+    rpcPort: Int,
+    dataPort: Int,
+    shouldRetry: Boolean,
+    retryCount: Int,
+    bootRequester: ActorRef
+  ): Receive = {
     case Boot =>
       log.debug("Booting a language server")
-      val config = LanguageServerConfig(
+      context.actorOf(
-        descriptor.networkConfig.interface,
+        LanguageServerProcess.props(
-        rpcPort,
+          progressTracker = bootProgressTracker,
-        dataPort,
+          descriptor      = descriptor,
-        descriptor.rootId,
+          bootTimeout     = bootTimeout,
-        descriptor.root,
+          rpcPort         = rpcPort,
-        descriptor.name,
+          dataPort        = dataPort,
-        context.dispatcher
+          executor        = executor
+        ),
+        s"process-wrapper-${descriptor.name}"
       )
-      val server = new LanguageServerComponent(config)
-      server.start().map(_ => config -> server) pipeTo self
 
-    case Failure(th) =>
+    case LanguageServerProcess.ServerTerminated(exitCode) =>
-      log.error(
+      handleBootFailure(
-        th,
+        shouldRetry,
-        s"An error occurred during boot of Language Server [${descriptor.name}]"
+        retryCount,
+        bootRequester,
+        s"Language server terminated with exit code $exitCode before " +
+        s"finishing booting.",
+        None
       )
-      if (retryCount < config.numberOfRetries) {
+
-        context.system.scheduler
+    case LanguageServerProcess.ServerThreadFailed(throwable) =>
-          .scheduleOnce(config.delayBetweenRetry, self, FindFreeSocket)
+      handleBootFailure(
-        context.become(findingSocket(retryCount + 1))
+        shouldRetry,
-      } else {
+        retryCount,
+        bootRequester,
+        s"Language server thread failed with $throwable.",
+        Some(throwable)
+      )
+
+    case LanguageServerProcess.ServerConfirmedFinishedBooting =>
+      val connectionInfo = LanguageServerConnectionInfo(
+        descriptor.networkConfig.interface,
+        rpcPort  = rpcPort,
+        dataPort = dataPort
+      )
+      log.info(s"Language server booted [$connectionInfo].")
+
+      bootRequester ! ServerBooted(connectionInfo, self)
+      context.become(running(connectionInfo))
+
+    case GracefulStop =>
+      context.children.foreach(_ ! LanguageServerProcess.Stop)
+  }
+
+  /** Handles a boot failure by logging it and depending on configuration,
+    * retrying or notifying the proper actor about the failure.
+    */
+  private def handleBootFailure(
+    shouldRetry: Boolean,
+    retryCount: Int,
+    bootRequester: ActorRef,
+    message: String,
+    throwable: Option[Throwable]
+  ): Unit = {
+    log.warning(message)
+
+    if (shouldRetry && retryCount < config.numberOfRetries) {
+      context.system.scheduler
+        .scheduleOnce(config.delayBetweenRetry, self, FindFreeSocket)
+      context.become(findingSocket(retryCount + 1))
+    } else {
+      if (shouldRetry) {
         log.error(
           s"Tried $retryCount times to boot Language Server. Giving up."
         )
-        context.parent ! ServerBootFailed(th)
+      } else {
-        context.stop(self)
+        log.error("Failed to restart the server. Giving up.")
       }
-
+      bootRequester ! ServerBootFailed(
-    case (config: LanguageServerConfig, server: LanguageServerComponent) =>
+        throwable.getOrElse(new RuntimeException(message))
-      log.info(s"Language server booted [$config].")
+      )
-      context.parent ! ServerBooted(config, server)
       context.stop(self)
+    }
+  }
+
+  /** After successful boot, we cannot stop as it would stop our child process,
+    * so we just wait for it to terminate.
+    *
+    * The restart command can trigger the restarting phase which consists of two
+    * parts: waiting for the old process to shutdown and rebooting a new one.
+    */
+  private def running(connectionInfo: LanguageServerConnectionInfo): Receive = {
+    case msg @ LanguageServerProcess.ServerTerminated(exitCode) =>
+      log.debug(
+        s"Language Server process has terminated with exit code $exitCode"
+      )
+      context.parent ! msg
+      context.stop(self)
+
+    case Restart =>
+      context.children.foreach(_ ! LanguageServerProcess.Stop)
+      context.become(
+        restartingWaitingForShutdown(connectionInfo, rebootRequester = sender())
+      )
 
     case GracefulStop =>
-      context.stop(self)
+      context.children.foreach(_ ! LanguageServerProcess.Stop)
   }
 
+  // TODO [RW] handling stop timeout (#1315)
+  //  may also consider a stop timeout for GracefulStop and killing the process?
+  /** First phase of restart waits fot the old process to shutdown and boots the
+    * new process.
+    */
+  def restartingWaitingForShutdown(
+    connectionInfo: LanguageServerConnectionInfo,
+    rebootRequester: ActorRef
+  ): Receive = {
+    case LanguageServerProcess.ServerTerminated(exitCode) =>
+      log.debug(
+        s"Language Server process has terminated (as requested to reboot) " +
+        s"with exit code $exitCode"
+      )
+
+      context.become(rebooting(connectionInfo, rebootRequester))
+      self ! Boot
+
+    case GracefulStop =>
+      context.children.foreach(_ ! LanguageServerProcess.Stop)
+  }
+
+  /** Currently rebooting does not retry.
+    *
+    * We cannot directly re-use the retry logic from the initial boot, because
+    * we need to keep the ports unchanged, since they are already passed to
+    * other components that will try to connect there.
+    */
+  def rebooting(
+    connectionInfo: LanguageServerConnectionInfo,
+    rebootRequester: ActorRef
+  ): Receive = booting(
+    rpcPort       = connectionInfo.rpcPort,
+    dataPort      = connectionInfo.dataPort,
+    shouldRetry   = false,
+    retryCount    = config.numberOfRetries,
+    bootRequester = rebootRequester
+  )
+
   private def findPort(): Int =
     Tcp.findAvailablePort(
       descriptor.networkConfig.interface,
@@ -107,29 +265,41 @@ class LanguageServerBootLoader(
       descriptor.networkConfig.maxPort
     )
 
+  private case object FindFreeSocket
+  private case object Boot
 }
 
 object LanguageServerBootLoader {
 
   /** Creates a configuration object used to create a [[LanguageServerBootLoader]].
     *
+    * @param bootProgressTracker an [[ActorRef]] that will get progress updates
+    *                            related to initializing the engine
     * @param descriptor a LS descriptor
     * @param config a bootloader config
+    * @param bootTimeout maximum time the server can use to boot,
+    *                    does not include the time needed to install any missing
+    *                    components
+    * @param executor an executor service used to start the language server
+    *                 process
     * @return a configuration object
     */
   def props(
+    bootProgressTracker: ActorRef,
     descriptor: LanguageServerDescriptor,
-    config: BootloaderConfig
+    config: BootloaderConfig,
+    bootTimeout: FiniteDuration,
+    executor: LanguageServerExecutor
   ): Props =
-    Props(new LanguageServerBootLoader(descriptor, config))
+    Props(
-
+      new LanguageServerBootLoader(
-  /** Find free socket command.
+        bootProgressTracker,
-    */
+        descriptor,
-  case object FindFreeSocket
+        config,
-
+        bootTimeout,
-  /** Boot command.
+        executor: LanguageServerExecutor
-    */
+      )
-  case object Boot
+    )
 
   /** Signals that server boot failed.
     *
@@ -139,12 +309,16 @@ object LanguageServerBootLoader {
 
   /** Signals that server booted successfully.
     *
-    * @param config a server config
+    * @param connectionInfo a server config
-    * @param server a server lifecycle component
+    * @param serverProcessManager an actor that manages the server process
+    *                             lifecycle, currently it is
+    *                             [[LanguageServerBootLoader]]
     */
   case class ServerBooted(
-    config: LanguageServerConfig,
+    connectionInfo: LanguageServerConnectionInfo,
-    server: LanguageServerComponent
+    serverProcessManager: ActorRef
   )
 
+  case class ServerTerminated(exitCode: Int)
+
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerConnectionInfo.scala

@@ -0,0 +1,10 @@
+package org.enso.projectmanager.infrastructure.languageserver
+
+/** Describes how to connect to a Language Server instance by providing its
+  * interface and selected ports.
+  */
+case class LanguageServerConnectionInfo(
+  interface: String,
+  rpcPort: Int,
+  dataPort: Int
+)

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerController.scala

@@ -2,7 +2,6 @@ package org.enso.projectmanager.infrastructure.languageserver
 
 import java.util.UUID
 
-import akka.actor.Status.Failure
 import akka.actor.{
   Actor,
   ActorLogging,
@@ -14,12 +13,7 @@ import akka.actor.{
   SupervisorStrategy,
   Terminated
 }
-import akka.pattern.pipe
+import nl.gn0s1s.bump.SemVer
-import org.enso.languageserver.boot.LifecycleComponent.ComponentStopped
-import org.enso.languageserver.boot.{
-  LanguageServerComponent,
-  LanguageServerConfig
-}
 import org.enso.projectmanager.boot.configuration.{
   BootloaderConfig,
   NetworkConfig,
@@ -34,35 +28,38 @@ import org.enso.projectmanager.infrastructure.languageserver.LanguageServerBootL
   ServerBootFailed,
   ServerBooted
 }
-import org.enso.projectmanager.infrastructure.languageserver.LanguageServerController.{
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerController._
-  Boot,
-  BootTimeout,
-  ServerDied,
-  ShutDownServer,
-  ShutdownTimeout
-}
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProtocol._
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerRegistry.ServerShutDown
 import org.enso.projectmanager.model.Project
 import org.enso.projectmanager.util.UnhandledLogging
-
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
-import scala.concurrent.duration._
 
 /** A language server controller responsible for managing the server lifecycle.
   * It delegates all tasks to other actors like bootloader or supervisor.
   *
   * @param project a project open by the server
+  * @param engineVersion engine version to use for the language server
+  * @param bootProgressTracker an [[ActorRef]] that will get progress updates
+  *                            related to initializing the engine
   * @param networkConfig a net config
   * @param bootloaderConfig a bootloader config
   * @param supervisionConfig a supervision config
   * @param timeoutConfig a timeout config
+  * @param distributionConfiguration configuration of the distribution
+  * @param executor an executor service used to start the language server
+  *                 process
   */
 class LanguageServerController(
   project: Project,
+  engineVersion: SemVer,
+  bootProgressTracker: ActorRef,
   networkConfig: NetworkConfig,
   bootloaderConfig: BootloaderConfig,
   supervisionConfig: SupervisionConfig,
-  timeoutConfig: TimeoutConfig
+  timeoutConfig: TimeoutConfig,
+  distributionConfiguration: DistributionConfiguration,
+  executor: LanguageServerExecutor
 ) extends Actor
     with ActorLogging
     with Stash
@@ -72,10 +69,14 @@ class LanguageServerController(
 
   private val descriptor =
     LanguageServerDescriptor(
-      name          = s"language-server-${project.id}",
+      name                      = s"language-server-${project.id}",
-      rootId        = UUID.randomUUID(),
+      rootId                    = UUID.randomUUID(),
-      root          = project.path.get,
+      rootPath                  = project.path.get,
-      networkConfig = networkConfig
+      networkConfig             = networkConfig,
+      distributionConfiguration = distributionConfiguration,
+      engineVersion             = engineVersion,
+      jvmSettings               = distributionConfiguration.defaultJVMSettings,
+      discardOutput             = distributionConfiguration.shouldDiscardChildOutput
     )
 
   override def supervisorStrategy: SupervisorStrategy =
@@ -92,21 +93,23 @@ class LanguageServerController(
     case Boot =>
       val bootloader =
         context.actorOf(
-          LanguageServerBootLoader.props(descriptor, bootloaderConfig),
+          LanguageServerBootLoader
-          "bootloader"
+            .props(
+              bootProgressTracker,
+              descriptor,
+              bootloaderConfig,
+              timeoutConfig.bootTimeout,
+              executor
+            ),
+          s"bootloader-${descriptor.name}"
         )
       context.watch(bootloader)
-      val timeoutCancellable =
+      context.become(booting(bootloader))
-        context.system.scheduler.scheduleOnce(30.seconds, self, BootTimeout)
-      context.become(booting(bootloader, timeoutCancellable))
 
     case _ => stash()
   }
 
-  private def booting(
+  private def booting(Bootloader: ActorRef): Receive = {
-    Bootloader: ActorRef,
-    timeoutCancellable: Cancellable
-  ): Receive = {
     case BootTimeout =>
       log.error(s"Booting failed for $descriptor")
       unstashAll()
@@ -115,28 +118,25 @@ class LanguageServerController(
     case ServerBootFailed(th) =>
       log.error(th, s"Booting failed for $descriptor")
       unstashAll()
-      timeoutCancellable.cancel()
       context.become(bootFailed(LanguageServerProtocol.ServerBootFailed(th)))
 
-    case ServerBooted(config, server) =>
+    case ServerBooted(connectionInfo, serverProcessManager) =>
       unstashAll()
-      timeoutCancellable.cancel()
+      context.become(supervising(connectionInfo, serverProcessManager))
-      context.become(supervising(config, server))
       context.actorOf(
         LanguageServerSupervisor.props(
-          config,
+          connectionInfo,
-          server,
+          serverProcessManager,
           supervisionConfig,
           new AkkaBasedWebSocketConnectionFactory(),
           context.system.scheduler
         ),
-        "supervisor"
+        s"supervisor-${descriptor.name}"
       )
 
     case Terminated(Bootloader) =>
       log.error(s"Bootloader for project ${project.name} failed")
       unstashAll()
-      timeoutCancellable.cancel()
       context.become(
         bootFailed(
           LanguageServerProtocol.ServerBootFailed(
@@ -149,33 +149,57 @@ class LanguageServerController(
   }
 
   private def supervising(
-    config: LanguageServerConfig,
+    connectionInfo: LanguageServerConnectionInfo,
-    server: LanguageServerComponent,
+    serverProcessManager: ActorRef,
     clients: Set[UUID] = Set.empty
   ): Receive = {
-    case StartServer(clientId, _) =>
+    case StartServer(clientId, _, requestedEngineVersion, _) =>
-      sender() ! ServerStarted(
+      if (requestedEngineVersion != engineVersion) {
-        LanguageServerSockets(
+        sender() ! ServerBootFailed(
-          Socket(config.interface, config.rpcPort),
+          new IllegalStateException(
-          Socket(config.interface, config.dataPort)
+            s"Requested to boot a server version $requestedEngineVersion, " +
+            s"but a server for this project with a different version, " +
+            s"$engineVersion, is already running. Two servers with different " +
+            s"versions cannot be running for a single project."
+          )
         )
-      )
+      } else {
-      context.become(supervising(config, server, clients + clientId))
+        sender() ! ServerStarted(
-
+          LanguageServerSockets(
+            Socket(connectionInfo.interface, connectionInfo.rpcPort),
+            Socket(connectionInfo.interface, connectionInfo.dataPort)
+          )
+        )
+        context.become(
+          supervising(connectionInfo, serverProcessManager, clients + clientId)
+        )
+      }
     case Terminated(_) =>
       log.debug(s"Bootloader for $project terminated.")
 
     case StopServer(clientId, _) =>
-      removeClient(config, server, clients, clientId, Some(sender()))
+      removeClient(
+        connectionInfo,
+        serverProcessManager,
+        clients,
+        clientId,
+        Some(sender())
+      )
 
     case ShutDownServer =>
-      shutDownServer(server, None)
+      shutDownServer(None)
 
     case ClientDisconnected(clientId) =>
-      removeClient(config, server, clients, clientId, None)
+      removeClient(
+        connectionInfo,
+        serverProcessManager,
+        clients,
+        clientId,
+        None
+      )
 
     case RenameProject(_, oldName, newName) =>
-      val socket = Socket(config.interface, config.rpcPort)
+      val socket = Socket(connectionInfo.interface, connectionInfo.rpcPort)
       context.actorOf(
         ProjectRenameAction
           .props(
@@ -191,33 +215,31 @@ class LanguageServerController(
       )
 
     case ServerDied =>
-      log.error(s"Language server died [$config]")
+      log.error(s"Language server died [$connectionInfo]")
       context.stop(self)
   }
 
   private def removeClient(
-    config: LanguageServerConfig,
+    connectionInfo: LanguageServerConnectionInfo,
-    server: LanguageServerComponent,
+    serverProcessManager: ActorRef,
     clients: Set[UUID],
     clientId: UUID,
     maybeRequester: Option[ActorRef]
   ): Unit = {
     val updatedClients = clients - clientId
     if (updatedClients.isEmpty) {
-      shutDownServer(server, maybeRequester)
+      shutDownServer(maybeRequester)
     } else {
       sender() ! CannotDisconnectOtherClients
-      context.become(supervising(config, server, updatedClients))
+      context.become(
+        supervising(connectionInfo, serverProcessManager, updatedClients)
+      )
     }
   }
 
-  private def shutDownServer(
+  private def shutDownServer(maybeRequester: Option[ActorRef]): Unit = {
-    server: LanguageServerComponent,
-    maybeRequester: Option[ActorRef]
-  ): Unit = {
     log.debug(s"Shutting down a language server for project ${project.id}")
     context.children.foreach(_ ! GracefulStop)
-    server.stop() pipeTo self
     val cancellable =
       context.system.scheduler
         .scheduleOnce(timeoutConfig.shutdownTimeout, self, ShutdownTimeout)
@@ -225,7 +247,7 @@ class LanguageServerController(
   }
 
   private def bootFailed(failure: ServerStartupFailure): Receive = {
-    case StartServer(_, _) =>
+    case StartServer(_, _, _, _) =>
       sender() ! failure
       stop()
   }
@@ -234,18 +256,16 @@ class LanguageServerController(
     cancellable: Cancellable,
     maybeRequester: Option[ActorRef]
   ): Receive = {
-    case Failure(th) =>
+    case LanguageServerProcess.ServerTerminated(exitCode) =>
       cancellable.cancel()
-      log.error(
+      if (exitCode == 0) {
-        th,
+        log.info(s"Language server shut down successfully [$project].")
-        s"An error occurred during Language server shutdown [$project]."
+      } else {
-      )
+        log.warning(
-      maybeRequester.foreach(_ ! FailureDuringShutdown(th))
+          s"Language server shut down with non-zero exit code: $exitCode " +
-      stop()
+          s"[$project]."
-
+        )
-    case ComponentStopped =>
+      }
-      cancellable.cancel()
-      log.info(s"Language server shut down successfully [$project].")
       maybeRequester.foreach(_ ! ServerStopped)
       stop()
 
@@ -254,7 +274,7 @@ class LanguageServerController(
       maybeRequester.foreach(_ ! ServerShutdownTimedOut)
       stop()
 
-    case StartServer(_, _) =>
+    case StartServer(_, _, _, _) =>
       sender() ! PreviousInstanceNotShutDown
   }
 
@@ -283,26 +303,40 @@ object LanguageServerController {
   /** Creates a configuration object used to create a [[LanguageServerController]].
     *
     * @param project a project open by the server
+    * @param engineVersion engine version to use for the language server
+    * @param bootProgressTracker an [[ActorRef]] that will get progress updates
+    *                            related to initializing the engine
     * @param networkConfig a net config
     * @param bootloaderConfig a bootloader config
     * @param supervisionConfig a supervision config
     * @param timeoutConfig a timeout config
+    * @param distributionConfiguration configuration of the distribution
+    * @param executor an executor service used to start the language server
+    *                 process
     * @return a configuration object
     */
   def props(
     project: Project,
+    engineVersion: SemVer,
+    bootProgressTracker: ActorRef,
     networkConfig: NetworkConfig,
     bootloaderConfig: BootloaderConfig,
     supervisionConfig: SupervisionConfig,
-    timeoutConfig: TimeoutConfig
+    timeoutConfig: TimeoutConfig,
+    distributionConfiguration: DistributionConfiguration,
+    executor: LanguageServerExecutor
   ): Props =
     Props(
       new LanguageServerController(
         project,
+        engineVersion,
+        bootProgressTracker,
         networkConfig,
         bootloaderConfig,
         supervisionConfig,
-        timeoutConfig
+        timeoutConfig,
+        distributionConfiguration,
+        executor
       )
     )
 

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerDescriptor.scala

@@ -2,18 +2,32 @@ package org.enso.projectmanager.infrastructure.languageserver
 
 import java.util.UUID
 
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.boot.configuration.NetworkConfig
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
+import org.enso.runtimeversionmanager.runner.JVMSettings
 
-/** A descriptor used to start up a Language Server.
+/** A descriptor specifying options related to starting a Language Server.
   *
   * @param name a name of the LS
   * @param rootId a content root id
-  * @param root a path to the content root
+  * @param rootPath a path to the content root
   * @param networkConfig a network config
+  * @param distributionConfiguration configuration of current distribution, used
+  *                                  to find installed (or install new) engine
+  *                                  versions
+  * @param engineVersion version of the langauge server's engine to use
+  * @param jvmSettings settings to use for the JVM that will host the engine
+  * @param discardOutput specifies if the process output should be discarded or
+  *                      printed to parent's streams
   */
 case class LanguageServerDescriptor(
   name: String,
   rootId: UUID,
-  root: String,
+  rootPath: String,
-  networkConfig: NetworkConfig
+  networkConfig: NetworkConfig,
+  distributionConfiguration: DistributionConfiguration,
+  engineVersion: SemVer,
+  jvmSettings: JVMSettings,
+  discardOutput: Boolean
 )

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerExecutor.scala

@@ -0,0 +1,60 @@
+package org.enso.projectmanager.infrastructure.languageserver
+
+import akka.actor.ActorRef
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerExecutor.LifecycleListener
+
+/** A service responsible for executing the forked language server process. */
+trait LanguageServerExecutor {
+
+  /** Starts the language server process in a background thread.
+    *
+    * @param descriptor options related to this language server instance
+    * @param progressTracker reference to an actor that should be notifed of any
+    *                        locks
+    * @param rpcPort port to use for the RPC channel
+    * @param dataPort port to use for the binary channel
+    * @param lifecycleListener a listener that will be notified when the process
+    *                          is started and terminated
+    */
+  def spawn(
+    descriptor: LanguageServerDescriptor,
+    progressTracker: ActorRef,
+    rpcPort: Int,
+    dataPort: Int,
+    lifecycleListener: LifecycleListener
+  ): Unit
+}
+
+object LanguageServerExecutor {
+
+  /** Listens for lifecycle updates of a language server process. */
+  trait LifecycleListener {
+
+    /** Called when the process has been successfully started.
+      *
+      * @param processHandle a handle that can be used to terminate the process
+      */
+    def onStarted(processHandle: ProcessHandle): Unit
+
+    /** Called when the process has terminated (either on request or abruptly).
+      *
+      * @param exitCode exit code of the child process
+      */
+    def onTerminated(exitCode: Int): Unit
+
+    /** Called when the process fails to start or its execution terminates with
+      * an unexpected exception.
+      */
+    def onFailed(throwable: Throwable): Unit
+  }
+
+  /** A handle to the running Language Server child process. */
+  trait ProcessHandle {
+
+    /** Requests the child process to terminate gracefully. */
+    def requestGracefulTermination(): Unit
+
+    /** Tries to forcibly kill the process. */
+    def kill(): Unit
+  }
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerGateway.scala

@@ -2,6 +2,8 @@ package org.enso.projectmanager.infrastructure.languageserver
 
 import java.util.UUID
 
+import akka.actor.ActorRef
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.data.LanguageServerSockets
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProtocol.{
   CheckTimeout,
@@ -20,13 +22,20 @@ trait LanguageServerGateway[F[+_, +_]] {
 
   /** Starts a language server.
     *
+    * It assumes that the required engine version has been preinstalled.
+    *
+    * @param progressTracker an ActorRef that should get notifications when
+    *                        waiting on a lock
     * @param clientId a requester id
     * @param project a project to start
+    * @param version engine version to use for the launched language server
     * @return either a failure or sockets that a language server listens on
     */
   def start(
+    progressTracker: ActorRef,
     clientId: UUID,
-    project: Project
+    project: Project,
+    version: SemVer
   ): F[ServerStartupFailure, LanguageServerSockets]
 
   /** Stops a lang. server.

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerGatewayImpl.scala

@@ -5,6 +5,7 @@ import java.util.UUID
 import akka.actor.{ActorRef, ActorSystem}
 import akka.pattern.ask
 import akka.util.Timeout
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.boot.configuration.TimeoutConfig
 import org.enso.projectmanager.control.core.CovariantFlatMap
 import org.enso.projectmanager.control.core.syntax._
@@ -38,14 +39,23 @@ class LanguageServerGatewayImpl[
 
   /** @inheritdoc */
   override def start(
+    progressTracker: ActorRef,
     clientId: UUID,
-    project: Project
+    project: Project,
+    version: SemVer
   ): F[ServerStartupFailure, LanguageServerSockets] = {
-    implicit val timeout: Timeout = Timeout(timeoutConfig.bootTimeout)
+    implicit val timeout: Timeout = Timeout(2 * timeoutConfig.bootTimeout)
 
+    // TODO [RW] this can timeout if the boot is stuck waiting on a lock, how do
+    //  we want to handle that? #1315
     Async[F]
       .fromFuture { () =>
-        (registry ? StartServer(clientId, project)).mapTo[ServerStartupResult]
+        (registry ? StartServer(
+          clientId,
+          project,
+          version,
+          progressTracker
+        )).mapTo[ServerStartupResult]
       }
       .mapError(_ => ServerBootTimedOut)
       .flatMap {

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerProcess.scala

@@ -0,0 +1,235 @@
+package org.enso.projectmanager.infrastructure.languageserver
+import java.util.UUID
+
+import akka.actor.{Actor, ActorRef, Cancellable, Props, Stash}
+import org.enso.projectmanager.data.Socket
+import org.enso.projectmanager.infrastructure.http.AkkaBasedWebSocketConnectionFactory
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerExecutor.ProcessHandle
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProcess.{
+  Kill,
+  ServerTerminated,
+  ServerThreadFailed,
+  Stop
+}
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerSupervisor.{
+  HeartbeatReceived,
+  ServerUnresponsive
+}
+
+import scala.concurrent.duration.{DurationInt, FiniteDuration}
+
+/** An Actor that manages a single Language Server process.
+  *
+  * It starts the process upon creation and notifies the parent once the process
+  * has finished booting.
+  *
+  * @param progressTracker an [[ActorRef]] that will get progress updates
+  *                        related to initializing the engine
+  * @param descriptor a LS descriptor
+  * @param rpcPort port to bind for RPC connections
+  * @param dataPort port to bind for binary connections
+  * @param bootTimeout maximum time permitted to wait for the process to finish
+  *                    initializing; if the initialization heartbeat is not
+  *                    received within this time the boot is treated as failed
+  *                    and the process is gracefully stopped
+  * @param executor an executor service used to start the language server
+  *                 process
+  */
+class LanguageServerProcess(
+  progressTracker: ActorRef,
+  descriptor: LanguageServerDescriptor,
+  rpcPort: Int,
+  dataPort: Int,
+  bootTimeout: FiniteDuration,
+  executor: LanguageServerExecutor
+) extends Actor
+    with Stash {
+
+  import context.dispatcher
+
+  override def preStart(): Unit = {
+    super.preStart()
+    self ! Boot
+  }
+
+  override def receive: Receive = initializationStage
+
+  object LifecycleListener extends LanguageServerExecutor.LifecycleListener {
+    override def onStarted(processHandle: ProcessHandle): Unit =
+      self ! ProcessStarted(processHandle)
+
+    override def onTerminated(exitCode: Int): Unit =
+      self ! ProcessTerminated(exitCode)
+
+    override def onFailed(throwable: Throwable): Unit =
+      self ! ProcessFailed(throwable)
+  }
+
+  /** First stage, it launches the child process and sets up the futures to send
+    * back the notifications and goes to the startingStage.
+    */
+  private def initializationStage: Receive = {
+    case Boot =>
+      executor.spawn(
+        descriptor        = descriptor,
+        progressTracker   = progressTracker,
+        rpcPort           = rpcPort,
+        dataPort          = dataPort,
+        lifecycleListener = LifecycleListener
+      )
+      context.become(startingStage)
+    case _ => stash()
+  }
+
+  /** Waits for the process to actually start (this may take a long time if
+    * there are locked locks).
+    *
+    * Once the process is started, it goes to the bootingStage.
+    */
+  private def startingStage: Receive = {
+    case ProcessStarted(process) =>
+      val cancellable =
+        context.system.scheduler.scheduleOnce(bootTimeout, self, TimedOut)
+      context.become(bootingStage(process, cancellable))
+      unstashAll()
+      self ! AskServerIfStarted
+    case ProcessFailed(error) => handleFatalError(error)
+    case _                    => stash()
+  }
+
+  private def handleFatalError(error: Throwable): Unit = {
+    context.parent ! ServerThreadFailed(error)
+    context.stop(self)
+  }
+
+  /** In booting stage, the actor is retrying to connect to the server to verify
+    * that it has finished initialization.
+    *
+    * Once initialization is confirmed, it notifies the parent and proceeds to
+    * runningStage.
+    *
+    * Before initialization is confirmed the actor can also:
+    * - trigger the timeout or receive a graceful stop message which will ask
+    *   the child process to terminate gracefully,
+    * - get a notification that the child process has terminated spuriously
+    *   (possibly a crash).
+    */
+  private def bootingStage(
+    process: ProcessHandle,
+    bootTimeout: Cancellable
+  ): Receive =
+    handleBootResponse(process, bootTimeout).orElse(runningStage(process))
+
+  case object AskServerIfStarted
+  case object TimedOut
+  private val retryDelay = 100.milliseconds
+
+  private def handleBootResponse(
+    process: ProcessHandle,
+    bootTimeout: Cancellable
+  ): Receive = {
+    case AskServerIfStarted =>
+      val socket = Socket(descriptor.networkConfig.interface, rpcPort)
+      context.actorOf(
+        HeartbeatSession.initialProps(
+          socket,
+          retryDelay,
+          new AkkaBasedWebSocketConnectionFactory()(context.system),
+          context.system.scheduler
+        ),
+        s"initial-heartbeat-${UUID.randomUUID()}"
+      )
+    case TimedOut =>
+      self ! Stop
+    case HeartbeatReceived =>
+      context.parent ! LanguageServerProcess.ServerConfirmedFinishedBooting
+      bootTimeout.cancel()
+      context.become(runningStage(process))
+    case ServerUnresponsive =>
+      import context.dispatcher
+      context.system.scheduler.scheduleOnce(
+        retryDelay,
+        self,
+        AskServerIfStarted
+      )
+      context.become(bootingStage(process, bootTimeout))
+  }
+
+  /** When the process is running, the actor is monitoring it and managing its
+    * lifetime.
+    *
+    * If termination is requested, the process will be asked to gracefully
+    * terminate or be killed. If the process terminates (either on request or
+    * spuriously, e.g. by a crash), the parent is notified and the current actor
+    * is stopped.
+    */
+  private def runningStage(process: ProcessHandle): Receive = {
+    case Stop => process.requestGracefulTermination()
+    case Kill => process.kill()
+    case ProcessTerminated(exitCode) =>
+      context.parent ! ServerTerminated(exitCode)
+      context.stop(self)
+    case ProcessFailed(error) => handleFatalError(error)
+  }
+
+  private case object Boot
+  private case class ProcessStarted(process: ProcessHandle)
+  private case class ProcessTerminated(exitCode: Int)
+  private case class ProcessFailed(throwable: Throwable)
+}
+
+object LanguageServerProcess {
+
+  /** Creates a configuration object used to create a [[LanguageServerProcess]].
+    *
+    * @param progressTracker an [[ActorRef]] that will get progress updates
+    *                        related to initializing the engine
+    * @param descriptor a LS descriptor
+    * @param rpcPort port to bind for RPC connections
+    * @param dataPort port to bind for binary connections
+    * @param bootTimeout maximum time permitted to wait for the process to finish
+    *                    initializing; if the initialization heartbeat is not
+    *                    received within this time the boot is treated as failed
+    *                    and the process is gracefully stopped
+    * @param executor an executor service used to start the language server
+    *                 process
+    * @return a configuration object
+    */
+  def props(
+    progressTracker: ActorRef,
+    descriptor: LanguageServerDescriptor,
+    rpcPort: Int,
+    dataPort: Int,
+    bootTimeout: FiniteDuration,
+    executor: LanguageServerExecutor
+  ): Props = Props(
+    new LanguageServerProcess(
+      progressTracker,
+      descriptor,
+      rpcPort,
+      dataPort,
+      bootTimeout,
+      executor
+    )
+  )
+
+  /** Sent to the parent when the server has terminated (for any reason: on
+    * request or on its own, e.g. due to a signal or crash).
+    */
+  case class ServerTerminated(exitCode: Int)
+
+  /** Sent to the parent when starting the server has failed with an exception.
+    */
+  case class ServerThreadFailed(throwable: Throwable)
+
+  /** Sent to the parent when the child process has confirmed that it is fully
+    * initialized.
+    */
+  case object ServerConfirmedFinishedBooting
+
+  /** Sent to forcibly kill the server. */
+  case object Kill
+
+  /** Sent to gracefully request to stop the server. */
+  case object Stop
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerProtocol.scala

@@ -2,6 +2,8 @@ package org.enso.projectmanager.infrastructure.languageserver
 
 import java.util.UUID
 
+import akka.actor.ActorRef
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.data.LanguageServerSockets
 import org.enso.projectmanager.model.Project
 
@@ -13,8 +15,16 @@ object LanguageServerProtocol {
     *
     * @param clientId the requester id
     * @param project the project to start
+    * @param engineVersion version of the engine to use
+    * @param progressTracker an actor that should be sent notifications about
+    *                        locks
     */
-  case class StartServer(clientId: UUID, project: Project)
+  case class StartServer(
+    clientId: UUID,
+    project: Project,
+    engineVersion: SemVer,
+    progressTracker: ActorRef
+  )
 
   /** Base trait for server startup results.
     */

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerRegistry.scala

@@ -20,21 +20,27 @@ import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProto
 }
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerRegistry.ServerShutDown
 import org.enso.projectmanager.util.UnhandledLogging
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
 
 /** An actor that routes request regarding lang. server lifecycle to the
   * right controller that manages the server.
-  * It creates a controller actor, if a server doesn't exists.
+  * It creates a controller actor, if a server doesn't exist.
   *
   * @param networkConfig a net config
   * @param bootloaderConfig a bootloader config
   * @param supervisionConfig a supervision config
   * @param timeoutConfig a timeout config
+  * @param distributionConfiguration configuration of the distribution
+  * @param executor an executor service used to start the language server
+  *                 process
   */
 class LanguageServerRegistry(
   networkConfig: NetworkConfig,
   bootloaderConfig: BootloaderConfig,
   supervisionConfig: SupervisionConfig,
-  timeoutConfig: TimeoutConfig
+  timeoutConfig: TimeoutConfig,
+  distributionConfiguration: DistributionConfiguration,
+  executor: LanguageServerExecutor
 ) extends Actor
     with ActorLogging
     with UnhandledLogging {
@@ -44,7 +50,7 @@ class LanguageServerRegistry(
   private def running(
     serverControllers: Map[UUID, ActorRef] = Map.empty
   ): Receive = {
-    case msg @ StartServer(_, project) =>
+    case msg @ StartServer(_, project, engineVersion, progressTracker) =>
       if (serverControllers.contains(project.id)) {
         serverControllers(project.id).forward(msg)
       } else {
@@ -52,10 +58,14 @@ class LanguageServerRegistry(
           LanguageServerController
             .props(
               project,
+              engineVersion,
+              progressTracker,
               networkConfig,
               bootloaderConfig,
               supervisionConfig,
-              timeoutConfig
+              timeoutConfig,
+              distributionConfiguration,
+              executor
             ),
           s"language-server-controller-${project.id}"
         )
@@ -116,20 +126,27 @@ object LanguageServerRegistry {
     * @param bootloaderConfig a bootloader config
     * @param supervisionConfig a supervision config
     * @param timeoutConfig a timeout config
-    * @return
+    * @param distributionConfiguration configuration of the distribution
+    * @param executor an executor service used to start the language server
+    *                 process
+    * @return a configuration object
     */
   def props(
     networkConfig: NetworkConfig,
     bootloaderConfig: BootloaderConfig,
     supervisionConfig: SupervisionConfig,
-    timeoutConfig: TimeoutConfig
+    timeoutConfig: TimeoutConfig,
+    distributionConfiguration: DistributionConfiguration,
+    executor: LanguageServerExecutor
   ): Props =
     Props(
       new LanguageServerRegistry(
         networkConfig,
         bootloaderConfig,
         supervisionConfig,
-        timeoutConfig
+        timeoutConfig,
+        distributionConfiguration,
+        executor
       )
     )
 

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerSupervisor.scala

@@ -2,24 +2,24 @@ package org.enso.projectmanager.infrastructure.languageserver
 
 import java.util.UUID
 
-import akka.actor.Status.Failure
 import akka.actor.{
   Actor,
   ActorLogging,
+  ActorRef,
   Cancellable,
   Props,
   Scheduler,
   Terminated
 }
-import akka.pattern.pipe
-import org.enso.languageserver.boot.LifecycleComponent.ComponentRestarted
-import org.enso.languageserver.boot.{LanguageServerConfig, LifecycleComponent}
 import org.enso.projectmanager.boot.configuration.SupervisionConfig
 import org.enso.projectmanager.data.Socket
 import org.enso.projectmanager.infrastructure.http.WebSocketConnectionFactory
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerBootLoader.{
+  ServerBootFailed,
+  ServerBooted
+}
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerController.ServerDied
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerSupervisor.{
-  RestartServer,
   SendHeartbeat,
   ServerUnresponsive,
   StartSupervision
@@ -30,15 +30,16 @@ import org.enso.projectmanager.util.UnhandledLogging
   * restarting it when the server is unresponsive. It delegates server
   * monitoring to the [[HeartbeatSession]] actor.
   *
-  * @param config a server config
+  * @param connectionInfo a server connection info
-  * @param server a server handle
+  * @param serverProcessManager an actor that manages the lifecycle of the
+  *                             server process
   * @param supervisionConfig a supervision config
   * @param connectionFactory a web socket connection factory
   * @param scheduler a scheduler
   */
 class LanguageServerSupervisor(
-  config: LanguageServerConfig,
+  connectionInfo: LanguageServerConnectionInfo,
-  server: LifecycleComponent,
+  serverProcessManager: ActorRef,
   supervisionConfig: SupervisionConfig,
   connectionFactory: WebSocketConnectionFactory,
   scheduler: Scheduler
@@ -69,7 +70,7 @@ class LanguageServerSupervisor(
 
   private def supervising(cancellable: Cancellable): Receive = {
     case SendHeartbeat =>
-      val socket = Socket(config.interface, config.rpcPort)
+      val socket = Socket(connectionInfo.interface, connectionInfo.rpcPort)
       context.actorOf(
         HeartbeatSession.props(
           socket,
@@ -81,40 +82,31 @@ class LanguageServerSupervisor(
       )
 
     case ServerUnresponsive =>
-      log.info(s"Server is unresponsive [$config]. Restarting it...")
+      log.info(s"Server is unresponsive [$connectionInfo]. Restarting it...")
       cancellable.cancel()
-      log.info(s"Restarting first time the server")
+      log.info(s"Restarting the server")
-      server.restart() pipeTo self
+      serverProcessManager ! Restart
-      context.become(restarting())
+      context.become(restarting)
 
     case GracefulStop =>
       cancellable.cancel()
       stop()
   }
 
-  private def restarting(restartCount: Int = 1): Receive = {
+  private def restarting: Receive = {
-    case RestartServer =>
+    case ServerBootFailed(_) =>
-      log.info(s"Restarting $restartCount time the server")
+      log.error("Cannot restart language server")
-      server.restart() pipeTo self
+      context.parent ! ServerDied
-      ()
+      context.stop(self)
 
-    case Failure(th) =>
+    case ServerBooted(_, newProcessManager) =>
-      log.error(th, s"An error occurred during restarting the server [$config]")
+      if (newProcessManager != serverProcessManager) {
-      if (restartCount < supervisionConfig.numberOfRestarts) {
+        log.error(
-        scheduler.scheduleOnce(
+          "The process manager actor has changed. This should never happen. " +
-          supervisionConfig.delayBetweenRestarts,
+          "Supervisor may no longer work correctly."
-          self,
-          RestartServer
         )
-        context.become(restarting(restartCount + 1))
-      } else {
-        log.error("Cannot restart language server")
-        context.parent ! ServerDied
-        context.stop(self)
       }
-
+      log.info(s"Language server restarted [$connectionInfo]")
-    case ComponentRestarted =>
-      log.info(s"Language server restarted [$config]")
       val cancellable =
         scheduler.scheduleAtFixedRate(
           supervisionConfig.initialDelay,
@@ -150,8 +142,6 @@ object LanguageServerSupervisor {
 
   private case object StartSupervision
 
-  private case object RestartServer
-
   /** A command responsible for initiating heartbeat session.
     */
   case object SendHeartbeat
@@ -160,26 +150,30 @@ object LanguageServerSupervisor {
     */
   case object ServerUnresponsive
 
+  /** Signals that the heartbeat has been received (only sent if demanded). */
+  case object HeartbeatReceived
+
   /** Creates a configuration object used to create a [[LanguageServerSupervisor]].
     *
-    * @param config a server config
+    * @param connectionInfo a server config
-    * @param server a server handle
+    * @param serverProcessManager an actor that manages the lifecycle of the
+    *                             server process
     * @param supervisionConfig a supervision config
     * @param connectionFactory a web socket connection factory
     * @param scheduler a scheduler
     * @return a configuration object
     */
   def props(
-    config: LanguageServerConfig,
+    connectionInfo: LanguageServerConnectionInfo,
-    server: LifecycleComponent,
+    serverProcessManager: ActorRef,
     supervisionConfig: SupervisionConfig,
     connectionFactory: WebSocketConnectionFactory,
     scheduler: Scheduler
   ): Props =
     Props(
       new LanguageServerSupervisor(
-        config,
+        connectionInfo,
-        server,
+        serverProcessManager,
         supervisionConfig,
         connectionFactory,
         scheduler

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/languageserver/package.scala

@@ -2,8 +2,9 @@ package org.enso.projectmanager.infrastructure
 
 package object languageserver {
 
-  /** A stop command.
+  /** A stop command. */
-    */
   case object GracefulStop
 
+  /** Requests to restart the language server. */
+  case object Restart
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/repository/ProjectFileRepository.scala

@@ -1,6 +1,7 @@
 package org.enso.projectmanager.infrastructure.repository
 
 import java.io.File
+import java.nio.file.Path
 import java.util.UUID
 
 import org.enso.pkg.{Package, PackageManager}
@@ -73,16 +74,9 @@ class ProjectFileRepository[
     getAll().map(_.find(_.id == projectId))
 
   /** @inheritdoc */
-  override def create(
+  override def findPathForNewProject(
     project: Project
-  ): F[ProjectRepositoryFailure, Unit] =
+  ): F[ProjectRepositoryFailure, Path] = findTargetPath(project).map(_.toPath)
-    for {
-      projectPath <- findTargetPath(project)
-      _           <- createProjectStructure(project, projectPath)
-      _ <- metadataStorage(projectPath)
-        .persist(ProjectMetadata(project))
-        .mapError(th => StorageFailure(th.toString))
-    } yield ()
 
   private def tryLoadProject(
     directory: File
@@ -97,12 +91,13 @@ class ProjectFileRepository[
       meta <- metaOpt
     } yield {
       Project(
-        id         = meta.id,
+        id            = meta.id,
-        name       = pkg.name,
+        name          = pkg.name,
-        kind       = meta.kind,
+        kind          = meta.kind,
-        created    = meta.created,
+        created       = meta.created,
-        lastOpened = meta.lastOpened,
+        engineVersion = pkg.config.ensoVersion,
-        path       = Some(directory.toString)
+        lastOpened    = meta.lastOpened,
+        path          = Some(directory.toString)
       )
     }
   }
@@ -115,14 +110,6 @@ class ProjectFileRepository[
       .map(Some(_))
       .mapError(_.fold(convertFileStorageFailure))
 
-  private def createProjectStructure(
-    project: Project,
-    projectPath: File
-  ): F[StorageFailure, Package[File]] =
-    Sync[F]
-      .blockingOp { PackageManager.Default.create(projectPath, project.name) }
-      .mapError(th => StorageFailure(th.toString))
-
   /** @inheritdoc */
   override def rename(
     projectId: UUID,

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/infrastructure/repository/ProjectRepository.scala

@@ -1,6 +1,7 @@
 package org.enso.projectmanager.infrastructure.repository
 
 import java.io.File
+import java.nio.file.Path
 import java.util.UUID
 
 import org.enso.projectmanager.model.Project
@@ -18,12 +19,15 @@ trait ProjectRepository[F[+_, +_]] {
     */
   def exists(name: String): F[ProjectRepositoryFailure, Boolean]
 
-  /** Creates the provided user project in the storage.
+  /** Ensures that the path property is set in the project.
     *
-    * @param project the project to insert
+    * If it was not set, a new path is generated for it. Otherwise, the function
-    * @return
+    * acts as identity.
+    *
+    * @param project the project to find the path for
+    * @return the project, with the updated path
     */
-  def create(project: Project): F[ProjectRepositoryFailure, Unit]
+  def findPathForNewProject(project: Project): F[ProjectRepositoryFailure, Path]
 
   /** Saves the provided user project in the index.
     *

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/model/Project.scala

@@ -3,12 +3,15 @@ package org.enso.projectmanager.model
 import java.time.OffsetDateTime
 import java.util.UUID
 
+import org.enso.pkg.{DefaultEnsoVersion, EnsoVersion}
+
 /** Project entity.
   *
   * @param id a project id
   * @param name a project name
   * @param kind a project kind
   * @param created a project creation time
+  * @param engineVersion version of the engine associated with the project
   * @param lastOpened a project last open time
   * @param path a path to the project structure
   */
@@ -17,6 +20,7 @@ case class Project(
   name: String,
   kind: ProjectKind,
   created: OffsetDateTime,
+  engineVersion: EnsoVersion         = DefaultEnsoVersion,
   lastOpened: Option[OffsetDateTime] = None,
   path: Option[String]               = None
 )

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/protocol/ClientController.scala

@@ -6,7 +6,7 @@ import akka.actor.{Actor, ActorLogging, ActorRef, Props, Stash}
 import org.enso.jsonrpc.{JsonRpcServer, MessageHandler, Method, Request}
 import org.enso.projectmanager.boot.configuration.TimeoutConfig
 import org.enso.projectmanager.control.core.CovariantFlatMap
-import org.enso.projectmanager.control.effect.Exec
+import org.enso.projectmanager.control.effect.{ErrorChannel, Exec}
 import org.enso.projectmanager.event.ClientEvent.{
   ClientConnected,
   ClientDisconnected
@@ -30,7 +30,7 @@ import scala.concurrent.duration._
   * @param runtimeVersionManagementService version management service
   * @param timeoutConfig a request timeout config
   */
-class ClientController[F[+_, +_]: Exec: CovariantFlatMap](
+class ClientController[F[+_, +_]: Exec: CovariantFlatMap: ErrorChannel](
   clientId: UUID,
   projectService: ProjectServiceApi[F],
   globalConfigService: GlobalConfigServiceApi[F],
@@ -44,11 +44,19 @@ class ClientController[F[+_, +_]: Exec: CovariantFlatMap](
   private val requestHandlers: Map[Method, Props] =
     Map(
       ProjectCreate -> ProjectCreateHandler
-        .props[F](projectService, timeoutConfig.requestTimeout),
+        .props[F](
+          globalConfigService,
+          projectService,
+          timeoutConfig.requestTimeout
+        ),
       ProjectDelete -> ProjectDeleteHandler
         .props[F](projectService, timeoutConfig.requestTimeout),
       ProjectOpen -> ProjectOpenHandler
-        .props[F](clientId, projectService, timeoutConfig.bootTimeout),
+        .props[F](
+          clientId,
+          projectService,
+          timeoutConfig.bootTimeout
+        ),
       ProjectClose -> ProjectCloseHandler
         .props[F](
           clientId,
@@ -118,7 +126,7 @@ object ClientController {
     * @param timeoutConfig a request timeout config
     * @return a configuration object
     */
-  def props[F[+_, +_]: Exec: CovariantFlatMap](
+  def props[F[+_, +_]: Exec: CovariantFlatMap: ErrorChannel](
     clientId: UUID,
     projectService: ProjectServiceApi[F],
     globalConfigService: GlobalConfigServiceApi[F],

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/protocol/ManagerClientControllerFactory.scala

@@ -6,7 +6,7 @@ import akka.actor.{ActorRef, ActorSystem}
 import org.enso.jsonrpc.ClientControllerFactory
 import org.enso.projectmanager.boot.configuration.TimeoutConfig
 import org.enso.projectmanager.control.core.CovariantFlatMap
-import org.enso.projectmanager.control.effect.Exec
+import org.enso.projectmanager.control.effect.{ErrorChannel, Exec}
 import org.enso.projectmanager.service.ProjectServiceApi
 import org.enso.projectmanager.service.config.GlobalConfigServiceApi
 import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagementServiceApi
@@ -19,7 +19,9 @@ import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagemen
   * @param runtimeVersionManagementService version management service
   * @param timeoutConfig a request timeout config
   */
-class ManagerClientControllerFactory[F[+_, +_]: Exec: CovariantFlatMap](
+class ManagerClientControllerFactory[
+  F[+_, +_]: Exec: CovariantFlatMap: ErrorChannel
+](
   system: ActorSystem,
   projectService: ProjectServiceApi[F],
   globalConfigService: GlobalConfigServiceApi[F],

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/protocol/ProjectManagementApi.scala

@@ -321,4 +321,8 @@ object ProjectManagementApi {
   case class GlobalConfigurationAccessError(msg: String)
       extends Error(4011, msg)
 
+  case class ProjectCreateError(msg: String) extends Error(4012, msg)
+
+  case class LoggingServiceUnavailable(msg: String) extends Error(4013, msg)
+
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/EngineInstallHandler.scala

@@ -26,12 +26,11 @@ class EngineInstallHandler[F[+_, +_]: Exec: CovariantFlatMap](
 
   /** @inheritdoc */
   override def handleRequest = { params =>
-    val progressTracker = sender()
     for {
       _ <- service.installEngine(
-        progressTracker,
+        progressTracker    = self,
-        params.version,
+        version            = params.version,
-        params.forceInstallBroken.getOrElse(false)
+        forceInstallBroken = params.forceInstallBroken.getOrElse(false)
       )
     } yield Unused
   }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/EngineUninstallHandler.scala

@@ -29,9 +29,11 @@ class EngineUninstallHandler[F[+_, +_]: Exec: CovariantFlatMap](
 
   /** @inheritdoc */
   override def handleRequest = { params =>
-    val progressTracker = sender()
     for {
-      _ <- service.uninstallEngine(progressTracker, params.version)
+      _ <- service.uninstallEngine(
+        progressTracker = self,
+        version         = params.version
+      )
     } yield Unused
   }
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/ProjectCreateHandler.scala

@@ -1,109 +1,86 @@
 package org.enso.projectmanager.requesthandler
 
-import java.util.UUID
-
 import akka.actor._
-import akka.pattern.pipe
-import org.enso.jsonrpc.Errors.{NotImplementedError, ServiceError}
-import org.enso.jsonrpc._
 import org.enso.pkg.DefaultEnsoVersion
-import org.enso.projectmanager.control.effect.Exec
+import org.enso.projectmanager.control.core.CovariantFlatMap
+import org.enso.projectmanager.control.core.syntax._
+import org.enso.projectmanager.control.effect.syntax._
+import org.enso.projectmanager.control.effect.{ErrorChannel, Exec}
 import org.enso.projectmanager.data.MissingComponentAction
 import org.enso.projectmanager.protocol.ProjectManagementApi.ProjectCreate
-import org.enso.projectmanager.requesthandler.ProjectServiceFailureMapper.mapFailure
+import org.enso.projectmanager.requesthandler.ProjectServiceFailureMapper.failureMapper
+import org.enso.projectmanager.service.config.GlobalConfigServiceApi
 import org.enso.projectmanager.service.{
   ProjectServiceApi,
   ProjectServiceFailure
 }
-import org.enso.projectmanager.util.UnhandledLogging
 
 import scala.concurrent.duration.FiniteDuration
 
 /** A request handler for `project/create` commands.
   *
-  * @param service a project service
+  * @param configurationService the configuration service
+  * @param projectService a project service
   * @param requestTimeout a request timeout
   */
-class ProjectCreateHandler[F[+_, +_]: Exec](
+class ProjectCreateHandler[F[+_, +_]: Exec: CovariantFlatMap: ErrorChannel](
-  service: ProjectServiceApi[F],
+  configurationService: GlobalConfigServiceApi[F],
+  projectService: ProjectServiceApi[F],
   requestTimeout: FiniteDuration
-) extends Actor
+) extends RequestHandler[
-    with ActorLogging
+      F,
-    with UnhandledLogging {
+      ProjectServiceFailure,
-  override def receive: Receive = requestStage
+      ProjectCreate.type,
+      ProjectCreate.Params,
+      ProjectCreate.Result
+    ](
+      ProjectCreate,
+      Some(requestTimeout)
+    ) {
 
-  import context.dispatcher
+  override def handleRequest = { params =>
+    val version = params.version.getOrElse(DefaultEnsoVersion)
+    val missingComponentAction =
+      params.missingComponentAction.getOrElse(MissingComponentAction.Fail)
 
-  private def requestStage: Receive = {
+    for {
-    case Request(ProjectCreate, id, params: ProjectCreate.Params) =>
+      actualVersion <- configurationService
-      if (params.version.isDefined) {
+        .resolveEnsoVersion(version)
-        // TODO [RW] just to indicate that choosing specific version is not yet
+        .mapError { error =>
-        //  implemented, should be removed once that functionality is added
+          ProjectServiceFailure.ComponentRepositoryAccessFailure(
-        sender() ! ResponseError(Some(id), NotImplementedError)
+            s"Could not determine the default version: $error"
-        context.stop(self)
-      } else {
-        val version = params.version.getOrElse(DefaultEnsoVersion)
-        val missingComponentAction =
-          params.missingComponentAction.getOrElse(MissingComponentAction.Fail)
-        Exec[F]
-          .exec(
-            service
-              .createUserProject(params.name, version, missingComponentAction)
           )
-          .pipeTo(self)
+        }
-        val cancellable =
+      projectId <- projectService.createUserProject(
-          context.system.scheduler
+        progressTracker        = self,
-            .scheduleOnce(requestTimeout, self, RequestTimeout)
+        name                   = params.name,
-        context.become(responseStage(id, sender(), cancellable))
+        engineVersion          = actualVersion,
-      }
+        missingComponentAction = missingComponentAction
-  }
-
-  private def responseStage(
-    id: Id,
-    replyTo: ActorRef,
-    cancellable: Cancellable
-  ): Receive = {
-    case Status.Failure(ex) =>
-      log.error(ex, s"Failure during $ProjectCreate operation:")
-      replyTo ! ResponseError(Some(id), ServiceError)
-      cancellable.cancel()
-      context.stop(self)
-
-    case RequestTimeout =>
-      log.error(s"Request $ProjectCreate with $id timed out")
-      replyTo ! ResponseError(Some(id), ServiceError)
-      context.stop(self)
-
-    case Left(failure: ProjectServiceFailure) =>
-      log.error(s"Request $id failed due to $failure")
-      replyTo ! ResponseError(Some(id), mapFailure(failure))
-      cancellable.cancel()
-      context.stop(self)
-
-    case Right(projectId: UUID) =>
-      replyTo ! ResponseResult(
-        ProjectCreate,
-        id,
-        ProjectCreate.Result(projectId)
       )
-      cancellable.cancel()
+    } yield ProjectCreate.Result(projectId)
-      context.stop(self)
   }
-
 }
 
 object ProjectCreateHandler {
 
   /** Creates a configuration object used to create a [[ProjectCreateHandler]].
     *
-    * @param service a project service
+    * @param configurationService
+    * @param projectService a project service
     * @param requestTimeout a request timeout
     * @return a configuration object
     */
-  def props[F[+_, +_]: Exec](
+  def props[F[+_, +_]: Exec: CovariantFlatMap: ErrorChannel](
-    service: ProjectServiceApi[F],
+    configurationService: GlobalConfigServiceApi[F],
+    projectService: ProjectServiceApi[F],
     requestTimeout: FiniteDuration
   ): Props =
-    Props(new ProjectCreateHandler(service, requestTimeout))
+    Props(
+      new ProjectCreateHandler(
+        configurationService,
+        projectService,
+        requestTimeout
+      )
+    )
 
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/ProjectOpenHandler.scala

@@ -2,88 +2,59 @@ package org.enso.projectmanager.requesthandler
 
 import java.util.UUID
 
-import akka.actor.{Actor, ActorLogging, ActorRef, Cancellable, Props, Status}
+import akka.actor.Props
-import akka.pattern.pipe
+import org.enso.projectmanager.control.core.CovariantFlatMap
-import org.enso.jsonrpc.Errors.ServiceError
+import org.enso.projectmanager.control.core.syntax._
-import org.enso.jsonrpc.{Id, Request, ResponseError, ResponseResult}
 import org.enso.projectmanager.control.effect.Exec
-import org.enso.projectmanager.data.{
+import org.enso.projectmanager.data.MissingComponentAction
-  LanguageServerSockets,
-  MissingComponentAction
-}
 import org.enso.projectmanager.protocol.ProjectManagementApi.ProjectOpen
-import org.enso.projectmanager.requesthandler.ProjectServiceFailureMapper.mapFailure
+import org.enso.projectmanager.requesthandler.ProjectServiceFailureMapper.failureMapper
 import org.enso.projectmanager.service.{
   ProjectServiceApi,
   ProjectServiceFailure
 }
-import org.enso.projectmanager.util.UnhandledLogging
 
 import scala.concurrent.duration.FiniteDuration
 
 /** A request handler for `project/open` commands.
   *
   * @param clientId the requester id
-  * @param service a project service
+  * @param projectService a project service
   * @param requestTimeout a request timeout
   */
-class ProjectOpenHandler[F[+_, +_]: Exec](
+class ProjectOpenHandler[F[+_, +_]: Exec: CovariantFlatMap](
   clientId: UUID,
-  service: ProjectServiceApi[F],
+  projectService: ProjectServiceApi[F],
   requestTimeout: FiniteDuration
-) extends Actor
+) extends RequestHandler[
-    with ActorLogging
+      F,
-    with UnhandledLogging {
+      ProjectServiceFailure,
-  override def receive: Receive = requestStage
+      ProjectOpen.type,
+      ProjectOpen.Params,
+      ProjectOpen.Result
+    ](
+      ProjectOpen,
+      // TODO [RW] maybe we can get rid of this timeout since boot timeout is
+      //  handled by the LanguageServerProcess; still the ? message of
+      //  LanguageServerGateway will result in timeouts
+      Some(requestTimeout)
+    ) {
 
-  import context.dispatcher
+  override def handleRequest = { params =>
+    val missingComponentAction =
+      params.missingComponentAction.getOrElse(MissingComponentAction.Fail)
 
-  private def requestStage: Receive = {
+    for {
-    case Request(ProjectOpen, id, params: ProjectOpen.Params) =>
+      sockets <- projectService.openProject(
-      val missingComponentAction =
+        progressTracker        = self,
-        params.missingComponentAction.getOrElse(MissingComponentAction.Fail)
+        clientId               = clientId,
-      Exec[F]
+        projectId              = params.projectId,
-        .exec(
+        missingComponentAction = missingComponentAction
-          service
-            .openProject(clientId, params.projectId, missingComponentAction)
-        )
-        .pipeTo(self)
-      val cancellable =
-        context.system.scheduler
-          .scheduleOnce(requestTimeout, self, RequestTimeout)
-      context.become(responseStage(id, sender(), cancellable))
-  }
-
-  private def responseStage(
-    id: Id,
-    replyTo: ActorRef,
-    cancellable: Cancellable
-  ): Receive = {
-    case Status.Failure(ex) =>
-      log.error(ex, s"Failure during $ProjectOpen operation:")
-      replyTo ! ResponseError(Some(id), ServiceError)
-      cancellable.cancel()
-      context.stop(self)
-
-    case RequestTimeout =>
-      log.error(s"Request $ProjectOpen with $id timed out")
-      replyTo ! ResponseError(Some(id), ServiceError)
-      context.stop(self)
-
-    case Left(failure: ProjectServiceFailure) =>
-      log.error(s"Request $id failed due to $failure")
-      replyTo ! ResponseError(Some(id), mapFailure(failure))
-      cancellable.cancel()
-      context.stop(self)
-
-    case Right(sockets: LanguageServerSockets) =>
-      replyTo ! ResponseResult(
-        ProjectOpen,
-        id,
-        ProjectOpen.Result(sockets.jsonSocket, sockets.binarySocket)
       )
-      cancellable.cancel()
+    } yield ProjectOpen.Result(
-      context.stop(self)
+      languageServerJsonAddress   = sockets.jsonSocket,
+      languageServerBinaryAddress = sockets.binarySocket
+    )
   }
 
 }
@@ -93,15 +64,21 @@ object ProjectOpenHandler {
   /** Creates a configuration object used to create a [[ProjectOpenHandler]].
     *
     * @param clientId the requester id
-    * @param service a project service
+    * @param projectService a project service
     * @param requestTimeout a request timeout
     * @return a configuration object
     */
-  def props[F[+_, +_]: Exec](
+  def props[F[+_, +_]: Exec: CovariantFlatMap](
     clientId: UUID,
-    service: ProjectServiceApi[F],
+    projectService: ProjectServiceApi[F],
     requestTimeout: FiniteDuration
   ): Props =
-    Props(new ProjectOpenHandler(clientId, service, requestTimeout))
+    Props(
+      new ProjectOpenHandler(
+        clientId,
+        projectService,
+        requestTimeout
+      )
+    )
 
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/ProjectServiceFailureMapper.scala

@@ -19,6 +19,7 @@ object ProjectServiceFailureMapper {
     case DataStoreFailure(msg)      => ProjectDataStoreError(msg)
     case ProjectExists              => ProjectExistsError
     case ProjectNotFound            => ProjectNotFoundError
+    case ProjectCreateFailed(msg)   => ProjectCreateError(msg)
     case ProjectOpenFailed(msg)     => ProjectOpenError(msg)
     case ProjectCloseFailed(msg)    => ProjectCloseError(msg)
     case ProjectNotOpen             => ProjectNotOpenError

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/requesthandler/RequestHandler.scala

@@ -61,7 +61,7 @@ abstract class RequestHandler[
       .exec(result)
       .map(_.map(ResponseResult(method, request.id, _)))
       .pipeTo(self)
-    val cancellable = {
+    val timeoutCancellable = {
       requestTimeout.map { timeout =>
         context.system.scheduler.scheduleOnce(
           timeout,
@@ -70,7 +70,7 @@ abstract class RequestHandler[
         )
       }
     }
-    context.become(responseStage(request.id, sender(), cancellable))
+    context.become(responseStage(request.id, sender(), timeoutCancellable))
   }
 
   /** Defines the actual logic for handling the request.
@@ -86,12 +86,12 @@ abstract class RequestHandler[
   private def responseStage(
     id: Id,
     replyTo: ActorRef,
-    cancellable: Option[Cancellable]
+    timeoutCancellable: Option[Cancellable]
   ): Receive = {
     case Status.Failure(ex) =>
       log.error(ex, s"Failure during $method operation:")
       replyTo ! ResponseError(Some(id), ServiceError)
-      cancellable.foreach(_.cancel())
+      timeoutCancellable.foreach(_.cancel())
       context.stop(self)
 
     case RequestTimeout =>
@@ -103,15 +103,34 @@ abstract class RequestHandler[
       log.error(s"Request $id failed due to $failure")
       val error = implicitly[FailureMapper[FailureType]].mapFailure(failure)
       replyTo ! ResponseError(Some(id), error)
-      cancellable.foreach(_.cancel())
+      timeoutCancellable.foreach(_.cancel())
       context.stop(self)
 
     case Right(response) =>
       replyTo ! response
-      cancellable.foreach(_.cancel())
+      timeoutCancellable.foreach(_.cancel())
       context.stop(self)
 
     case notification: ProgressNotification =>
+      notification match {
+        case ProgressNotification.TaskStarted(_, _, _) =>
+          abandonTimeout(id, replyTo, timeoutCancellable)
+        case _ =>
+      }
       replyTo ! translateProgressNotification(method.name, notification)
   }
+
+  /** Cancels the timeout operation.
+    *
+    * Should be called when a long-running task is detected that we do not want
+    * to interrupt.
+    */
+  private def abandonTimeout(
+    id: Id,
+    replyTo: ActorRef,
+    timeoutCancellable: Option[Cancellable]
+  ): Unit = {
+    timeoutCancellable.foreach(_.cancel())
+    context.become(responseStage(id, replyTo, None))
+  }
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/ProjectCreationService.scala

@@ -0,0 +1,68 @@
+package org.enso.projectmanager.service
+
+import java.nio.file.Path
+
+import akka.actor.ActorRef
+import nl.gn0s1s.bump.SemVer
+import org.enso.projectmanager.control.core.CovariantFlatMap
+import org.enso.projectmanager.control.core.syntax._
+import org.enso.projectmanager.control.effect.{ErrorChannel, Sync}
+import org.enso.projectmanager.data.MissingComponentAction
+import org.enso.projectmanager.service.ProjectServiceFailure.ProjectCreateFailed
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerErrorRecoverySyntax._
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerFactory
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
+import org.enso.runtimeversionmanager.runner.Runner
+
+import scala.concurrent.Future
+
+/** A service for creating new project structures using the runner of the
+  * specific engine version selected for the project.
+  */
+class ProjectCreationService[
+  F[+_, +_]: Sync: ErrorChannel: CovariantFlatMap
+](
+  distributionConfiguration: DistributionConfiguration
+) extends ProjectCreationServiceApi[F] {
+
+  /** @inheritdoc */
+  override def createProject(
+    progressTracker: ActorRef,
+    path: Path,
+    name: String,
+    engineVersion: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): F[ProjectServiceFailure, Unit] = Sync[F]
+    .blockingOp {
+      val versionManager = RuntimeVersionManagerFactory(
+        distributionConfiguration
+      ).makeRuntimeVersionManager(progressTracker, missingComponentAction)
+      val runner =
+        new Runner(
+          versionManager,
+          distributionConfiguration.environment,
+          Future.successful(None)
+        )
+
+      val settings =
+        runner.newProject(path, name, engineVersion, None, None, Seq()).get
+      val jvmSettings = distributionConfiguration.defaultJVMSettings
+      runner.withCommand(settings, jvmSettings) { command =>
+        command.run().get
+      }
+    }
+    .mapRuntimeManagerErrors { other: Throwable =>
+      ProjectCreateFailed(other.getMessage)
+    }
+    .flatMap { exitCode =>
+      if (exitCode == 0)
+        CovariantFlatMap[F].pure(())
+      else
+        ErrorChannel[F].fail(
+          ProjectCreateFailed(
+            s"The runner used to create the project returned exit code " +
+            s"$exitCode."
+          )
+        )
+    }
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/ProjectCreationServiceApi.scala

@@ -0,0 +1,30 @@
+package org.enso.projectmanager.service
+
+import java.nio.file.Path
+
+import akka.actor.ActorRef
+import nl.gn0s1s.bump.SemVer
+import org.enso.projectmanager.data.MissingComponentAction
+
+/** An abstraction for creating new project structures under the given location.
+  */
+trait ProjectCreationServiceApi[F[+_, +_]] {
+
+  /** Creates a project with the provided configuration.
+    *
+    * @param progressTracker an actor that will be sent notifcation regarding
+    *                        progress of installation of any missing components
+    *                        or waiting on locks
+    * @param path path at which to create the project
+    * @param name name of the project
+    * @param engineVersion version of the engine this project is meant for
+    * @param missingComponentAction specifies how to handle missing components
+    */
+  def createProject(
+    progressTracker: ActorRef,
+    path: Path,
+    name: String,
+    engineVersion: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): F[ProjectServiceFailure, Unit]
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/ProjectService.scala

@@ -2,19 +2,21 @@ package org.enso.projectmanager.service
 
 import java.util.UUID
 
+import akka.actor.ActorRef
 import cats.MonadError
-import org.enso.pkg.{EnsoVersion, PackageManager}
+import nl.gn0s1s.bump.SemVer
+import org.enso.pkg.PackageManager
 import org.enso.projectmanager.control.core.CovariantFlatMap
 import org.enso.projectmanager.control.core.syntax._
-import org.enso.projectmanager.control.effect.{ErrorChannel, Sync}
 import org.enso.projectmanager.control.effect.syntax._
+import org.enso.projectmanager.control.effect.{ErrorChannel, Sync}
 import org.enso.projectmanager.data.{
   LanguageServerSockets,
   MissingComponentAction,
   ProjectMetadata
 }
-import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProtocol._
 import org.enso.projectmanager.infrastructure.languageserver.LanguageServerGateway
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerProtocol._
 import org.enso.projectmanager.infrastructure.log.Logging
 import org.enso.projectmanager.infrastructure.random.Generator
 import org.enso.projectmanager.infrastructure.repository.ProjectRepositoryFailure.{
@@ -35,11 +37,18 @@ import org.enso.projectmanager.service.ValidationFailure.{
   EmptyName,
   NameContainsForbiddenCharacter
 }
+import org.enso.projectmanager.service.config.GlobalConfigServiceApi
+import org.enso.projectmanager.service.config.GlobalConfigServiceFailure.ConfigurationFileAccessFailure
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerErrorRecoverySyntax._
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerFactory
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
 
 /** Implementation of business logic for project management.
   *
   * @param validator a project validator
   * @param repo a project repository
+  * @param projectCreationService a service for creating projects
+  * @param configurationService a service for managing configuration
   * @param log a logging facility
   * @param clock a clock
   * @param gen a random generator
@@ -47,10 +56,13 @@ import org.enso.projectmanager.service.ValidationFailure.{
 class ProjectService[F[+_, +_]: ErrorChannel: CovariantFlatMap: Sync](
   validator: ProjectValidator[F],
   repo: ProjectRepository[F],
+  projectCreationService: ProjectCreationServiceApi[F],
+  configurationService: GlobalConfigServiceApi[F],
   log: Logging[F],
   clock: Clock[F],
   gen: Generator[F],
-  languageServerGateway: LanguageServerGateway[F]
+  languageServerGateway: LanguageServerGateway[F],
+  distributionConfiguration: DistributionConfiguration
 )(implicit E: MonadError[F[ProjectServiceFailure, *], ProjectServiceFailure])
     extends ProjectServiceApi[F] {
 
@@ -58,25 +70,30 @@ class ProjectService[F[+_, +_]: ErrorChannel: CovariantFlatMap: Sync](
 
   /** @inheritdoc */
   override def createUserProject(
+    progressTracker: ActorRef,
     name: String,
-    version: EnsoVersion,
+    engineVersion: SemVer,
     missingComponentAction: MissingComponentAction
-  ): F[ProjectServiceFailure, UUID] = {
+  ): F[ProjectServiceFailure, UUID] = for {
-    // TODO [RW] new component handling
+    projectId    <- gen.randomUUID()
-    val _ = (version, missingComponentAction)
+    _            <- log.debug(s"Creating project $name $projectId.")
-    // format: off
+    _            <- validateName(name)
-    for {
+    _            <- checkIfNameExists(name)
-      projectId    <- gen.randomUUID()
+    creationTime <- clock.nowInUtc()
-      _            <- log.debug(s"Creating project $name $projectId.")
+    project = Project(projectId, name, UserProject, creationTime)
-      _            <- validateName(name)
+    path <- repo.findPathForNewProject(project).mapError(toServiceFailure)
-      _            <- checkIfNameExists(name)
+    _ <- projectCreationService.createProject(
-      creationTime <- clock.nowInUtc()
+      progressTracker,
-      project       = Project(projectId, name, UserProject, creationTime)
+      path,
-      _            <- repo.create(project).mapError(toServiceFailure)
+      name,
-      _            <- log.info(s"Project $project created.")
+      engineVersion,
-    } yield projectId
+      missingComponentAction
-    // format: on
+    )
-  }
+    _ <- repo
+      .update(project.copy(path = Some(path.toString)))
+      .mapError(toServiceFailure)
+    _ <- log.info(s"Project $project created.")
+  } yield projectId
 
   /** @inheritdoc */
   override def deleteUserProject(
@@ -176,12 +193,11 @@ class ProjectService[F[+_, +_]: ErrorChannel: CovariantFlatMap: Sync](
 
   /** @inheritdoc */
   override def openProject(
+    progressTracker: ActorRef,
     clientId: UUID,
     projectId: UUID,
     missingComponentAction: MissingComponentAction
   ): F[ProjectServiceFailure, LanguageServerSockets] = {
-    // TODO [RW] new component handling
-    val _ = missingComponentAction
     // format: off
     for {
       _        <- log.debug(s"Opening project $projectId")
@@ -189,17 +205,46 @@ class ProjectService[F[+_, +_]: ErrorChannel: CovariantFlatMap: Sync](
       openTime <- clock.nowInUtc()
       updated   = project.copy(lastOpened = Some(openTime))
       _        <- repo.update(updated).mapError(toServiceFailure)
-      sockets  <- startServer(clientId, updated)
+      sockets  <- startServer(progressTracker, clientId, updated, missingComponentAction)
     } yield sockets
     // format: on
   }
 
+  private def preinstallEngine(
+    progressTracker: ActorRef,
+    version: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): F[ProjectServiceFailure, Unit] =
+    Sync[F]
+      .blockingOp {
+        RuntimeVersionManagerFactory(distributionConfiguration)
+          .makeRuntimeVersionManager(progressTracker, missingComponentAction)
+          .findOrInstallEngine(version)
+        ()
+      }
+      .mapRuntimeManagerErrors(th =>
+        ProjectOpenFailed(
+          s"Cannot install the required engine ${th.getMessage}"
+        )
+      )
+
   private def startServer(
+    progressTracker: ActorRef,
     clientId: UUID,
-    project: Project
+    project: Project,
-  ): F[ProjectServiceFailure, LanguageServerSockets] =
+    missingComponentAction: MissingComponentAction
-    languageServerGateway
+  ): F[ProjectServiceFailure, LanguageServerSockets] = for {
-      .start(clientId, project)
+    version <- configurationService
+      .resolveEnsoVersion(project.engineVersion)
+      .mapError { case ConfigurationFileAccessFailure(message) =>
+        ProjectOpenFailed(
+          s"Could not deduce the default version to use for the project: " +
+          s"$message"
+        )
+      }
+    _ <- preinstallEngine(progressTracker, version, missingComponentAction)
+    sockets <- languageServerGateway
+      .start(progressTracker, clientId, project, version)
       .mapError {
         case PreviousInstanceNotShutDown =>
           ProjectOpenFailed(
@@ -215,6 +260,7 @@ class ProjectService[F[+_, +_]: ErrorChannel: CovariantFlatMap: Sync](
             s"Language server boot failed: ${th.getMessage}"
           )
       }
+  } yield sockets
 
   /** @inheritdoc */
   override def closeProject(

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/ProjectServiceApi.scala

@@ -2,7 +2,8 @@ package org.enso.projectmanager.service
 
 import java.util.UUID
 
-import org.enso.pkg.EnsoVersion
+import akka.actor.ActorRef
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.data.{
   LanguageServerSockets,
   MissingComponentAction,
@@ -17,14 +18,16 @@ trait ProjectServiceApi[F[+_, +_]] {
 
   /** Creates a user project.
     *
+    * @param progressTracker the actor to send progress updates to
     * @param name the name of th project
-    * @param version Enso version to use for the new project
+    * @param engineVersion Enso version to use for the new project
     * @param missingComponentAction specifies how to handle missing components
     * @return projectId
     */
   def createUserProject(
+    progressTracker: ActorRef,
     name: String,
-    version: EnsoVersion,
+    engineVersion: SemVer,
     missingComponentAction: MissingComponentAction
   ): F[ProjectServiceFailure, UUID]
 
@@ -48,11 +51,14 @@ trait ProjectServiceApi[F[+_, +_]] {
 
   /** Opens a project. It starts up a Language Server if needed.
     *
+    * @param progressTracker the actor to send progress updates to
     * @param clientId the requester id
     * @param projectId the project id
+    * @param missingComponentAction specifies how to handle missing components
     * @return either failure or a socket of the Language Server
     */
   def openProject(
+    progressTracker: ActorRef,
     clientId: UUID,
     projectId: UUID,
     missingComponentAction: MissingComponentAction

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/ProjectServiceFailure.scala

@@ -28,6 +28,12 @@ object ProjectServiceFailure {
     */
   case object ProjectNotFound extends ProjectServiceFailure
 
+  /** Signals that a failure occured when creating the project.
+    *
+    * @param message a failure message
+    */
+  case class ProjectCreateFailed(message: String) extends ProjectServiceFailure
+
   /** Signals that a failure occurred during project startup.
     *
     * @param message a failure message

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/config/GlobalConfigService.scala

@@ -1,6 +1,9 @@
 package org.enso.projectmanager.service.config
 
 import io.circe.Json
+import nl.gn0s1s.bump.SemVer
+import org.enso.pkg.{DefaultEnsoVersion, EnsoVersion, SemVerEnsoVersion}
+import org.enso.projectmanager.control.core.CovariantFlatMap
 import org.enso.projectmanager.control.effect.{ErrorChannel, Sync}
 import org.enso.projectmanager.service.config.GlobalConfigServiceFailure.ConfigurationFileAccessFailure
 import org.enso.projectmanager.service.versionmanagement.NoOpInterface
@@ -11,7 +14,7 @@ import org.enso.runtimeversionmanager.config.GlobalConfigurationManager
   *
   * @param distributionConfiguration a distribution configuration
   */
-class GlobalConfigService[F[+_, +_]: Sync: ErrorChannel](
+class GlobalConfigService[F[+_, +_]: Sync: ErrorChannel: CovariantFlatMap](
   distributionConfiguration: DistributionConfiguration
 ) extends GlobalConfigServiceApi[F] {
 
@@ -20,26 +23,46 @@ class GlobalConfigService[F[+_, +_]: Sync: ErrorChannel](
     distributionConfiguration.distributionManager
   )
 
+  /** @inheritdoc */
   override def getKey(
     key: String
   ): F[GlobalConfigServiceFailure, Option[String]] =
-    Sync[F].blockingIO {
+    Sync[F].blockingOp {
       val valueOption = configurationManager.getConfig.original.apply(key)
       valueOption.map(json => json.asString.getOrElse(json.toString()))
     }.recoverAccessErrors
 
+  /** @inheritdoc */
   override def setKey(
     key: String,
     value: String
-  ): F[GlobalConfigServiceFailure, Unit] = Sync[F].blockingIO {
+  ): F[GlobalConfigServiceFailure, Unit] = Sync[F].blockingOp {
     configurationManager.updateConfigRaw(key, Json.fromString(value))
   }.recoverAccessErrors
 
+  /** @inheritdoc */
   override def deleteKey(key: String): F[GlobalConfigServiceFailure, Unit] =
-    Sync[F].blockingIO {
+    Sync[F].blockingOp {
       configurationManager.removeFromConfig(key)
     }.recoverAccessErrors
 
+  /** @inheritdoc */
+  override def getDefaultEnsoVersion: F[GlobalConfigServiceFailure, SemVer] =
+    Sync[F].blockingOp {
+      configurationManager.defaultVersion
+    }.recoverAccessErrors
+
+  /** @inheritdoc */
+  override def resolveEnsoVersion(
+    ensoVersion: EnsoVersion
+  ): F[GlobalConfigServiceFailure, SemVer] = ensoVersion match {
+    case DefaultEnsoVersion         => getDefaultEnsoVersion
+    case SemVerEnsoVersion(version) => CovariantFlatMap[F].pure(version)
+  }
+
+  /** Syntax for recovering arbitrary errors into errors describing
+    * configuration access failure.
+    */
   implicit class AccessErrorRecovery[A](fa: F[Throwable, A]) {
     def recoverAccessErrors: F[GlobalConfigServiceFailure, A] = {
       ErrorChannel[F].mapError(fa) { throwable =>
@@ -47,4 +70,5 @@ class GlobalConfigService[F[+_, +_]: Sync: ErrorChannel](
       }
     }
   }
+
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/config/GlobalConfigServiceApi.scala

@@ -1,5 +1,8 @@
 package org.enso.projectmanager.service.config
 
+import nl.gn0s1s.bump.SemVer
+import org.enso.pkg.EnsoVersion
+
 /** A contract for the Global Config Service.
   *
   * @tparam F a monadic context
@@ -23,4 +26,19 @@ trait GlobalConfigServiceApi[F[+_, +_]] {
     * If the value was not present already, nothing happens.
     */
   def deleteKey(key: String): F[GlobalConfigServiceFailure, Unit]
+
+  /** Returns the default engine version.
+    *
+    * It reads the setting from the config, or if no version is set, falls back
+    * to the latest installed (or latest available if none are installed)
+    * version.
+    */
+  def getDefaultEnsoVersion: F[GlobalConfigServiceFailure, SemVer]
+
+  /** Resolves an [[EnsoVersion]] which can indicate to use a 'default' version
+    * to a concrete version.
+    */
+  def resolveEnsoVersion(
+    ensoVersion: EnsoVersion
+  ): F[GlobalConfigServiceFailure, SemVer]
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/versionmanagement/RuntimeVersionManagementService.scala

@@ -10,6 +10,7 @@ import org.enso.projectmanager.service.ProjectServiceFailure.{
   ComponentRepositoryAccessFailure,
   ComponentUninstallationFailure
 }
+import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagerErrorRecoverySyntax._
 import org.enso.projectmanager.versionmanagement.DistributionConfiguration
 import org.enso.runtimeversionmanager.components.ComponentMissingError
 
@@ -19,9 +20,10 @@ import org.enso.runtimeversionmanager.components.ComponentMissingError
   * @param distributionConfiguration a distribution configuration
   */
 class RuntimeVersionManagementService[F[+_, +_]: Sync: ErrorChannel](
-  override val distributionConfiguration: DistributionConfiguration
+  distributionConfiguration: DistributionConfiguration
-) extends RuntimeVersionManagementServiceApi[F]
+) extends RuntimeVersionManagementServiceApi[F] {
-    with RuntimeVersionManagerMixin {
+
+  val factory = RuntimeVersionManagerFactory(distributionConfiguration)
 
   /** @inheritdoc */
   override def installEngine(
@@ -31,11 +33,13 @@ class RuntimeVersionManagementService[F[+_, +_]: Sync: ErrorChannel](
   ): F[ProjectServiceFailure, Unit] = {
     Sync[F]
       .blockingOp {
-        makeRuntimeVersionManager(
+        factory
-          progressTracker,
+          .makeRuntimeVersionManager(
-          allowMissingComponents = true,
+            progressTracker,
-          allowBrokenComponents  = forceInstallBroken
+            allowMissingComponents = true,
-        ).findOrInstallEngine(version)
+            allowBrokenComponents  = forceInstallBroken
+          )
+          .findOrInstallEngine(version)
         ()
       }
       .mapRuntimeManagerErrors(throwable =>
@@ -50,11 +54,13 @@ class RuntimeVersionManagementService[F[+_, +_]: Sync: ErrorChannel](
   ): F[ProjectServiceFailure, Unit] = Sync[F]
     .blockingOp {
       try {
-        makeRuntimeVersionManager(
+        factory
-          progressTracker,
+          .makeRuntimeVersionManager(
-          allowMissingComponents = false,
+            progressTracker,
-          allowBrokenComponents  = false
+            allowMissingComponents = false,
-        ).uninstallEngine(version)
+            allowBrokenComponents  = false
+          )
+          .uninstallEngine(version)
       } catch {
         case _: ComponentMissingError =>
       }
@@ -67,7 +73,7 @@ class RuntimeVersionManagementService[F[+_, +_]: Sync: ErrorChannel](
   override def listInstalledEngines()
     : F[ProjectServiceFailure, Seq[EngineVersion]] = Sync[F]
     .blockingOp {
-      makeReadOnlyVersionManager().listInstalledEngines().map {
+      factory.makeReadOnlyVersionManager().listInstalledEngines().map {
         installedEngine =>
           EngineVersion(installedEngine.version, installedEngine.isMarkedBroken)
       }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/versionmanagement/RuntimeVersionManagerErrorRecoverySyntax.scala

@@ -0,0 +1,51 @@
+package org.enso.projectmanager.service.versionmanagement
+
+import org.enso.projectmanager.control.effect.ErrorChannel
+import org.enso.projectmanager.service.ProjectServiceFailure
+import org.enso.projectmanager.service.ProjectServiceFailure.{
+  BrokenComponentFailure,
+  ComponentInstallationFailure,
+  MissingComponentFailure,
+  ProjectManagerUpgradeRequiredFailure
+}
+import org.enso.runtimeversionmanager.components.{
+  BrokenComponentError,
+  ComponentMissingError,
+  ComponentsException,
+  InstallationError,
+  UpgradeRequiredError
+}
+
+object RuntimeVersionManagerErrorRecoverySyntax {
+  implicit class ErrorRecovery[F[+_, +_]: ErrorChannel, A](
+    fa: F[Throwable, A]
+  ) {
+
+    /** Converts relevant [[ComponentsException]] errors into their counterparts
+      * in the protocol.
+      *
+      * @param mapDefault a mapping that should be used for other errors that do
+      *                   not have a direct counterpart
+      */
+    def mapRuntimeManagerErrors(
+      mapDefault: Throwable => ProjectServiceFailure
+    ): F[ProjectServiceFailure, A] = ErrorChannel[F].mapError(fa) {
+      case componentsException: ComponentsException =>
+        componentsException match {
+          case InstallationError(message, _) =>
+            ComponentInstallationFailure(message)
+          case BrokenComponentError(message, _) =>
+            BrokenComponentFailure(message)
+          case ComponentMissingError(message, _) =>
+            MissingComponentFailure(message)
+          case upgradeRequired: UpgradeRequiredError =>
+            ProjectManagerUpgradeRequiredFailure(
+              upgradeRequired.expectedVersion
+            )
+          case _ => mapDefault(componentsException)
+        }
+      case other: Throwable =>
+        mapDefault(other)
+    }
+  }
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/versionmanagement/RuntimeVersionManagerFactory.scala

@@ -0,0 +1,73 @@
+package org.enso.projectmanager.service.versionmanagement
+
+import akka.actor.ActorRef
+import org.enso.projectmanager.data.MissingComponentAction
+import org.enso.projectmanager.versionmanagement.DistributionConfiguration
+import org.enso.runtimeversionmanager.components._
+
+/** A helper class that defines methods for creating the
+  * [[RuntimeVersionManager]] based on a
+  * [[DistributionConfiguration]].
+  */
+case class RuntimeVersionManagerFactory(
+  distributionConfiguration: DistributionConfiguration
+) {
+
+  /** Creates a [[RuntimeVersionManager]] that will send
+    * [[ProgressNotification]] to the specified [[ActorRef]] and with the
+    * specified settings for handling missing and broken components.
+    *
+    * @param progressTracker the actor that tracks installation progress/lock
+    *                        notifications
+    * @param allowMissingComponents if set to true, missing components will be
+    *                               installed
+    * @param allowBrokenComponents if allowMissingComponents and this flag are
+    *                              set to true, missing components will be
+    *                              installed even if they are marked as broken
+    */
+  def makeRuntimeVersionManager(
+    progressTracker: ActorRef,
+    allowMissingComponents: Boolean = false,
+    allowBrokenComponents: Boolean  = false
+  ): RuntimeVersionManager =
+    distributionConfiguration.makeRuntimeVersionManager(
+      new ControllerInterface(
+        progressTracker        = progressTracker,
+        allowMissingComponents = allowMissingComponents,
+        allowBrokenComponents  = allowBrokenComponents
+      )
+    )
+
+  /** Creates a [[RuntimeVersionManager]] that will send
+    * [[ProgressNotification]] to the specified [[ActorRef]] and with the
+    * specified settings for handling missing and broken components.
+    *
+    * @param progressTracker the actor that tracks installation progress/lock
+    *                        notifications
+    * @param missingComponentAction specifies how to handle missing components
+    */
+  def makeRuntimeVersionManager(
+    progressTracker: ActorRef,
+    missingComponentAction: MissingComponentAction
+  ): RuntimeVersionManager = {
+    val (missing, broken) = missingComponentAction match {
+      case MissingComponentAction.Fail               => (false, false)
+      case MissingComponentAction.Install            => (true, false)
+      case MissingComponentAction.ForceInstallBroken => (true, true)
+    }
+    makeRuntimeVersionManager(
+      progressTracker,
+      allowMissingComponents = missing,
+      allowBrokenComponents  = broken
+    )
+  }
+
+  /** Creates a simple [[RuntimeVersionManager]] that ignores progress (it can
+    * be used when we know that no relevant progress will be reported) and not
+    * allowing to install any components.
+    *
+    * It is useful for simple queries, like listing installed versions.
+    */
+  def makeReadOnlyVersionManager(): RuntimeVersionManager =
+    distributionConfiguration.makeRuntimeVersionManager(new NoOpInterface)
+}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/service/versionmanagement/RuntimeVersionManagerMixin.scala

@@ -1,78 +0,0 @@
-package org.enso.projectmanager.service.versionmanagement
-
-import akka.actor.ActorRef
-import org.enso.projectmanager.control.effect.ErrorChannel
-import org.enso.projectmanager.service.ProjectServiceFailure
-import org.enso.projectmanager.service.ProjectServiceFailure.{
-  BrokenComponentFailure,
-  ComponentInstallationFailure,
-  MissingComponentFailure,
-  ProjectManagerUpgradeRequiredFailure
-}
-import org.enso.projectmanager.versionmanagement.DistributionConfiguration
-import org.enso.runtimeversionmanager.components._
-
-/** A helper class that defines methods for creating the
-  * [[RuntimeVersionManager]] based on a
-  * [[DistributionConfiguration]].
-  */
-trait RuntimeVersionManagerMixin {
-
-  /** The distribution configuration to use. */
-  def distributionConfiguration: DistributionConfiguration
-
-  /** Creates a [[RuntimeVersionManager]] that will send
-    * [[ProgressNotification]] to the specified [[ActorRef]] and with the
-    * specified settings for handling missing and broken components.
-    */
-  def makeRuntimeVersionManager(
-    progressTracker: ActorRef,
-    allowMissingComponents: Boolean,
-    allowBrokenComponents: Boolean
-  ): RuntimeVersionManager =
-    distributionConfiguration.makeRuntimeVersionManager(
-      new ControllerInterface(
-        progressTracker        = progressTracker,
-        allowMissingComponents = allowMissingComponents,
-        allowBrokenComponents  = allowBrokenComponents
-      )
-    )
-
-  /** Creates a simple [[RuntimeVersionManager]] that ignores progress (it can
-    * be used when we know that no relevant progress will be reported) and not
-    * allowing to install any components.
-    *
-    * It is useful for simple queries, like listing installed versions.
-    */
-  def makeReadOnlyVersionManager(): RuntimeVersionManager =
-    distributionConfiguration.makeRuntimeVersionManager(new NoOpInterface)
-
-  implicit class ErrorRecovery[F[+_, +_]: ErrorChannel, A](
-    fa: F[Throwable, A]
-  ) {
-
-    /** Converts relevant [[ComponentsException]] errors into their counterparts
-      * in the protocol.
-      */
-    def mapRuntimeManagerErrors(
-      wrapDefault: Throwable => ProjectServiceFailure
-    ): F[ProjectServiceFailure, A] = ErrorChannel[F].mapError(fa) {
-      case componentsException: ComponentsException =>
-        componentsException match {
-          case InstallationError(message, _) =>
-            ComponentInstallationFailure(message)
-          case BrokenComponentError(message, _) =>
-            BrokenComponentFailure(message)
-          case ComponentMissingError(message, _) =>
-            MissingComponentFailure(message)
-          case upgradeRequired: UpgradeRequiredError =>
-            ProjectManagerUpgradeRequiredFailure(
-              upgradeRequired.expectedVersion
-            )
-          case _ => wrapDefault(componentsException)
-        }
-      case other: Throwable =>
-        wrapDefault(other)
-    }
-  }
-}

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/versionmanagement/DefaultDistributionConfiguration.scala

@@ -16,6 +16,7 @@ import org.enso.runtimeversionmanager.releases.engine.{
   EngineRepository
 }
 import org.enso.runtimeversionmanager.releases.graalvm.GraalCEReleaseProvider
+import org.enso.runtimeversionmanager.runner.JVMSettings
 
 /** Default distribution configuration to use for the Project Manager in
   * production.
@@ -27,13 +28,13 @@ import org.enso.runtimeversionmanager.releases.graalvm.GraalCEReleaseProvider
 object DefaultDistributionConfiguration extends DistributionConfiguration {
 
   /** The default [[Environment]] implementation, with no overrides. */
-  object DefaultEnvironment extends Environment
+  val environment: Environment = new Environment {}
 
   // TODO [RW, AO] should the PM support portable distributions?
   //  If so, where will be the project-manager binary located with respect to
   //  the distribution root?
   /** @inheritdoc */
-  lazy val distributionManager = new DistributionManager(DefaultEnvironment)
+  lazy val distributionManager = new DistributionManager(environment)
 
   /** @inheritdoc */
   lazy val lockManager = new FileLockManager(distributionManager.paths.locks)
@@ -63,4 +64,10 @@ object DefaultDistributionConfiguration extends DistributionConfiguration {
       engineReleaseProvider     = engineReleaseProvider,
       runtimeReleaseProvider    = runtimeReleaseProvider
     )
+
+  /** @inheritdoc */
+  override def defaultJVMSettings: JVMSettings = JVMSettings.default
+
+  /** @inheritdoc */
+  override def shouldDiscardChildOutput: Boolean = false
 }

lib/scala/project-manager/src/main/scala/org/enso/projectmanager/versionmanagement/DistributionConfiguration.scala

@@ -1,5 +1,6 @@
 package org.enso.projectmanager.versionmanagement
 
+import org.enso.runtimeversionmanager.Environment
 import org.enso.runtimeversionmanager.components.{
   RuntimeVersionManagementUserInterface,
   RuntimeVersionManager
@@ -11,6 +12,7 @@ import org.enso.runtimeversionmanager.distribution.{
 import org.enso.runtimeversionmanager.locking.ResourceManager
 import org.enso.runtimeversionmanager.releases.ReleaseProvider
 import org.enso.runtimeversionmanager.releases.engine.EngineRelease
+import org.enso.runtimeversionmanager.runner.JVMSettings
 
 /** Specifies the configuration of project manager's distribution.
   *
@@ -20,6 +22,9 @@ import org.enso.runtimeversionmanager.releases.engine.EngineRelease
   */
 trait DistributionConfiguration {
 
+  /** An [[Environment]] instance. */
+  def environment: Environment
+
   /** A [[DistributionManager]] instance. */
   def distributionManager: DistributionManager
 
@@ -39,4 +44,19 @@ trait DistributionConfiguration {
   def makeRuntimeVersionManager(
     userInterface: RuntimeVersionManagementUserInterface
   ): RuntimeVersionManager
+
+  /** Default set of JVM settings to use when launching the runner.
+    *
+    * This is exposed mostly for ease of overriding the settings in tests.
+    */
+  def defaultJVMSettings: JVMSettings
+
+  /** Specifies if output of the child Language Server process should be ignored
+    * or piped to parent's streams.
+    *
+    * This option is used to easily turn off logging in tests.
+    *
+    * TODO [RW] It will likely become obsolete once #1151 (or #1144) is done.
+    */
+  def shouldDiscardChildOutput: Boolean
 }

lib/scala/project-manager/src/test/resources/application.conf

@@ -43,7 +43,7 @@ project-manager {
     io-timeout = 5 seconds
     request-timeout = 10 seconds
     boot-timeout = 30 seconds
-    shutdown-timeout = 10 seconds
+    shutdown-timeout = 20 seconds
     socket-close-timeout = 2 seconds
   }
 

lib/scala/project-manager/src/test/resources/logback-test.xml

@@ -1,18 +0,0 @@
-<configuration>
-
-  <appender name="STDOUT" class="ch.qos.logback.core.ConsoleAppender">
-    <!-- encoders are assigned the type
-         ch.qos.logback.classic.encoder.PatternLayoutEncoder by default -->
-    <encoder>
-      <pattern>%d{HH:mm:ss.SSS} [%-15thread] %-5level %logger{36} %msg%n</pattern>
-    </encoder>
-  </appender>
-
-  <logger name="com.zaxxer.hikari" level="ERROR"/>
-  <logger name="slick" level="INFO"/>
-  <logger name="slick.compiler" level="INFO"/>
-
-  <root level="ERROR">
-    <appender-ref ref="STDOUT"/>
-  </root>
-</configuration>

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/BaseServerSpec.scala

@@ -1,19 +1,26 @@
 package org.enso.projectmanager
 
 import java.io.File
-import java.nio.file.Files
+import java.nio.file.{Files, Path}
 import java.time.{OffsetDateTime, ZoneOffset}
 import java.util.UUID
 
+import akka.testkit.TestActors.blackholeProps
 import akka.testkit._
+import io.circe.Json
+import io.circe.parser.parse
+import nl.gn0s1s.bump.SemVer
 import org.apache.commons.io.FileUtils
 import org.enso.jsonrpc.test.JsonRpcServerTestKit
 import org.enso.jsonrpc.{ClientControllerFactory, Protocol}
+import org.enso.loggingservice.printers.StderrPrinterWithColors
+import org.enso.loggingservice.{LogLevel, LoggerMode, LoggingServiceManager}
 import org.enso.projectmanager.boot.Globals.{ConfigFilename, ConfigNamespace}
 import org.enso.projectmanager.boot.configuration._
 import org.enso.projectmanager.control.effect.ZioEnvExec
 import org.enso.projectmanager.infrastructure.file.BlockingFileSystem
 import org.enso.projectmanager.infrastructure.languageserver.{
+  ExecutorWithUnlimitedPool,
   LanguageServerGatewayImpl,
   LanguageServerRegistry,
   ShutdownHookActivator
@@ -26,18 +33,27 @@ import org.enso.projectmanager.protocol.{
 }
 import org.enso.projectmanager.service.config.GlobalConfigService
 import org.enso.projectmanager.service.versionmanagement.RuntimeVersionManagementService
-import org.enso.projectmanager.service.{MonadicProjectValidator, ProjectService}
+import org.enso.projectmanager.service.{
+  MonadicProjectValidator,
+  ProjectCreationService,
+  ProjectService
+}
 import org.enso.projectmanager.test.{ObservableGenerator, ProgrammableClock}
+import org.enso.runtimeversionmanager.OS
 import org.enso.runtimeversionmanager.test.{DropLogs, FakeReleases}
+import org.scalatest.BeforeAndAfterAll
 import pureconfig.ConfigSource
 import pureconfig.generic.auto._
 import zio.interop.catz.core._
 import zio.{Runtime, Semaphore, ZEnv, ZIO}
 
-import scala.concurrent.{Await, Future}
 import scala.concurrent.duration._
+import scala.concurrent.{Await, Future}
 
-class BaseServerSpec extends JsonRpcServerTestKit with DropLogs {
+class BaseServerSpec
+    extends JsonRpcServerTestKit
+    with DropLogs
+    with BeforeAndAfterAll {
 
   override def protocol: Protocol = JsonRpc.protocol
 
@@ -97,10 +113,25 @@ class BaseServerSpec extends JsonRpcServerTestKit with DropLogs {
 
   lazy val projectValidator = new MonadicProjectValidator[ZIO[ZEnv, *, *]]()
 
+  lazy val distributionConfiguration =
+    TestDistributionConfiguration(
+      distributionRoot       = testDistributionRoot.toPath,
+      engineReleaseProvider  = FakeReleases.engineReleaseProvider,
+      runtimeReleaseProvider = FakeReleases.runtimeReleaseProvider,
+      discardChildOutput     = !debugChildLogs
+    )
+
   lazy val languageServerRegistry =
     system.actorOf(
       LanguageServerRegistry
-        .props(netConfig, bootloaderConfig, supervisionConfig, timeoutConfig)
+        .props(
+          netConfig,
+          bootloaderConfig,
+          supervisionConfig,
+          timeoutConfig,
+          distributionConfiguration,
+          ExecutorWithUnlimitedPool
+        )
     )
 
   lazy val shutdownHookActivator =
@@ -114,27 +145,26 @@ class BaseServerSpec extends JsonRpcServerTestKit with DropLogs {
       timeoutConfig
     )
 
-  lazy val projectService =
+  lazy val projectCreationService =
-    new ProjectService[ZIO[ZEnv, +*, +*]](
+    new ProjectCreationService[ZIO[ZEnv, +*, +*]](distributionConfiguration)
-      projectValidator,
-      projectRepository,
-      new Slf4jLogging[ZIO[ZEnv, +*, +*]],
-      testClock,
-      gen,
-      languageServerGateway
-    )
-
-  lazy val distributionConfiguration =
-    TestDistributionConfiguration(
-      distributionRoot       = testDistributionRoot.toPath,
-      engineReleaseProvider  = FakeReleases.engineReleaseProvider,
-      runtimeReleaseProvider = FakeReleases.runtimeReleaseProvider
-    )
 
   lazy val globalConfigService = new GlobalConfigService[ZIO[ZEnv, +*, +*]](
     distributionConfiguration
   )
 
+  lazy val projectService =
+    new ProjectService[ZIO[ZEnv, +*, +*]](
+      projectValidator,
+      projectRepository,
+      projectCreationService,
+      globalConfigService,
+      new Slf4jLogging[ZIO[ZEnv, +*, +*]],
+      testClock,
+      gen,
+      languageServerGateway,
+      distributionConfiguration
+    )
+
   lazy val runtimeVersionManagementService =
     new RuntimeVersionManagementService[ZIO[ZEnv, +*, +*]](
       distributionConfiguration
@@ -150,9 +180,141 @@ class BaseServerSpec extends JsonRpcServerTestKit with DropLogs {
     )
   }
 
+  /** Can be used to avoid deleting the project's root. */
+  val deleteProjectsRootAfterEachTest = true
+
   override def afterEach(): Unit = {
     super.afterEach()
+
+    if (deleteProjectsRootAfterEachTest)
+      FileUtils.deleteQuietly(testProjectsRoot)
+  }
+
+  override def afterAll(): Unit = {
+    super.afterAll()
+
     FileUtils.deleteQuietly(testProjectsRoot)
   }
 
+  /** Tests can override this value to request a specific engine version to be
+    * preinstalled when running the suite.
+    */
+  val engineToInstall: Option[SemVer] = None
+
+  /** Tests can override this to set up a logging service that will print debug
+    * logs.
+    */
+  val debugLogs: Boolean = false
+
+  /** Tests can override this to allow child process output to be displayed. */
+  val debugChildLogs: Boolean = false
+
+  override def beforeAll(): Unit = {
+    super.beforeAll()
+
+    if (debugLogs) {
+      LoggingServiceManager.setup(
+        LoggerMode.Local(
+          Seq(StderrPrinterWithColors.colorPrinterIfAvailable(true))
+        ),
+        LogLevel.Trace
+      )
+    }
+
+    engineToInstall.foreach(preInstallEngine)
+  }
+
+  /** This is a temporary solution to ensure that a valid engine distribution is
+    * preinstalled.
+    *
+    * In the future the fake release mechanism can be properly updated to allow
+    * for this kind of configuration without special logic.
+    */
+  def preInstallEngine(version: SemVer): Unit = {
+    val os   = OS.operatingSystem.configName
+    val ext  = if (OS.isWindows) "zip" else "tar.gz"
+    val arch = OS.architecture
+    val path = FakeReleases.releaseRoot
+      .resolve("enso")
+      .resolve(s"enso-$version")
+      .resolve(s"enso-engine-$version-$os-$arch.$ext")
+      .resolve(s"enso-$version")
+      .resolve("component")
+    val root = Path.of("../../../").toAbsolutePath.normalize
+    FileUtils.copyFile(
+      root.resolve("runner.jar").toFile,
+      path.resolve("runner.jar").toFile
+    )
+    FileUtils.copyFile(
+      root.resolve("runtime.jar").toFile,
+      path.resolve("runtime.jar").toFile
+    )
+
+    val blackhole = system.actorOf(blackholeProps)
+    val installAction = runtimeVersionManagementService.installEngine(
+      blackhole,
+      version,
+      forceInstallBroken = false
+    )
+    Runtime.default.unsafeRun(installAction)
+  }
+
+  def uninstallEngine(version: SemVer): Unit = {
+    val blackhole = system.actorOf(blackholeProps)
+    val action = runtimeVersionManagementService.uninstallEngine(
+      blackhole,
+      version
+    )
+    Runtime.default.unsafeRun(action)
+  }
+
+  implicit class ClientSyntax(client: WsTestClient) {
+    def expectTaskStarted(
+      timeout: FiniteDuration = 20.seconds.dilated
+    ): Unit = {
+      inside(parse(client.expectMessage(timeout))) { case Right(json) =>
+        getMethod(json) shouldEqual Some("task/started")
+      }
+    }
+
+    private def getMethod(json: Json): Option[String] = for {
+      obj    <- json.asObject
+      method <- obj("method").flatMap(_.asString)
+    } yield method
+
+    def expectJsonIgnoring(
+      shouldIgnore: Json => Boolean,
+      timeout: FiniteDuration = 20.seconds.dilated
+    ): Json = {
+      inside(parse(client.expectMessage(timeout))) { case Right(json) =>
+        if (shouldIgnore(json)) expectJsonIgnoring(shouldIgnore, timeout)
+        else json
+      }
+    }
+
+    def expectError(
+      expectedCode: Int,
+      timeout: FiniteDuration = 10.seconds.dilated
+    ): Unit = {
+      withClue("Response should be an error: ") {
+        inside(parse(client.expectMessage(timeout))) { case Right(json) =>
+          val code = for {
+            obj   <- json.asObject
+            error <- obj("error").flatMap(_.asObject)
+            code  <- error("code").flatMap(_.asNumber).flatMap(_.toInt)
+          } yield code
+          code shouldEqual Some(expectedCode)
+        }
+      }
+    }
+
+    def expectJsonAfterSomeProgress(
+      json: Json,
+      timeout: FiniteDuration = 10.seconds.dilated
+    ): Unit =
+      expectJsonIgnoring(
+        json => getMethod(json).exists(_.startsWith("task/")),
+        timeout
+      ) shouldEqual json
+  }
 }

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/ProjectManagementOps.scala

@@ -2,6 +2,7 @@ package org.enso.projectmanager
 
 import java.util.UUID
 
+import akka.testkit.TestDuration
 import io.circe.Json
 import io.circe.syntax._
 import io.circe.literal._
@@ -58,7 +59,7 @@ trait ProjectManagementOps { this: BaseServerSpec =>
               }
             }
           """)
-    val Right(openReply) = parse(client.expectMessage(10.seconds))
+    val Right(openReply) = parse(client.expectMessage(10.seconds.dilated))
     val socket = for {
       result <- openReply.hcursor.downExpectedField("result")
       addr   <- result.downExpectedField("languageServerJsonAddress")
@@ -81,13 +82,16 @@ trait ProjectManagementOps { this: BaseServerSpec =>
               }
             }
           """)
-    client.expectJson(json"""
+    client.expectJson(
+      json"""
           {
             "jsonrpc":"2.0",
             "id":0,
             "result": null
           }
-          """)
+          """,
+      10.seconds.dilated
+    )
   }
 
   def deleteProject(

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/TestDistributionConfiguration.scala

@@ -25,12 +25,14 @@ import org.enso.runtimeversionmanager.releases.{
   ReleaseProvider,
   SimpleReleaseProvider
 }
+import org.enso.runtimeversionmanager.runner.{JVMSettings, JavaCommand}
 import org.enso.runtimeversionmanager.test.{
   FakeEnvironment,
   HasTestDirectory,
   TestLocalLockManager
 }
 
+import scala.jdk.OptionConverters.RichOptional
 import scala.util.{Failure, Success, Try}
 
 /** A distribution configuration for use in tests.
@@ -39,20 +41,23 @@ import scala.util.{Failure, Success, Try}
   *                         within some temporary directory
   * @param engineReleaseProvider provider of (fake) engine releases
   * @param runtimeReleaseProvider provider of (fake) Graal releases
+  * @param discardChildOutput specifies if input of launched runner processes
+  *                           should be ignored
   */
 class TestDistributionConfiguration(
   distributionRoot: Path,
   override val engineReleaseProvider: ReleaseProvider[EngineRelease],
-  runtimeReleaseProvider: GraalVMRuntimeReleaseProvider
+  runtimeReleaseProvider: GraalVMRuntimeReleaseProvider,
+  discardChildOutput: Boolean
 ) extends DistributionConfiguration
     with FakeEnvironment
     with HasTestDirectory {
 
   def getTestDirectory: Path = distributionRoot
 
-  lazy val distributionManager = new DistributionManager(
+  lazy val environment = fakeInstalledEnvironment()
-    fakeInstalledEnvironment()
+
-  )
+  lazy val distributionManager = new DistributionManager(environment)
 
   lazy val lockManager = new TestLocalLockManager
 
@@ -71,36 +76,66 @@ class TestDistributionConfiguration(
     engineReleaseProvider     = engineReleaseProvider,
     runtimeReleaseProvider    = runtimeReleaseProvider
   )
-}
 
-object TestDistributionConfiguration {
+  /** JVM settings that will force to use the same JVM that we are running.
-  def withoutReleases(distributionRoot: Path): TestDistributionConfiguration = {
+    *
-    val noReleaseProvider = new SimpleReleaseProvider {
+    * This is done to avoiding downloading GraalVM in tests (that would be far
-      override def releaseForTag(tag: String): Try[Release] = Failure(
+    * too slow) and to ensure that a GraalVM instance is selected, regardless of
-        new IllegalStateException(
+    * the default JVM set in the current environment.
-          "This provider does not support fetching releases."
+    */
-        )
+  override def defaultJVMSettings: JVMSettings = {
-      )
+    val currentProcess =
-
+      ProcessHandle.current().info().command().toScala.getOrElse("java")
-      override def listReleases(): Try[Seq[Release]] = Success(Seq())
+    val javaCommand = JavaCommand(currentProcess, None)
-    }
+    new JVMSettings(
-
+      javaCommandOverride = Some(javaCommand),
-    new TestDistributionConfiguration(
+      jvmOptions          = Seq()
-      distributionRoot       = distributionRoot,
-      engineReleaseProvider  = new EngineReleaseProvider(noReleaseProvider),
-      runtimeReleaseProvider = new GraalCEReleaseProvider(noReleaseProvider)
     )
   }
 
+  override def shouldDiscardChildOutput: Boolean = discardChildOutput
+}
+
+object TestDistributionConfiguration {
+
+  /** Creates a [[TestDistributionConfiguration]] with repositories that do not
+    * have any available releases.
+    */
+  def withoutReleases(
+    distributionRoot: Path,
+    discardChildOutput: Boolean
+  ): TestDistributionConfiguration = {
+    val noReleaseProvider = new NoReleaseProvider
+    new TestDistributionConfiguration(
+      distributionRoot       = distributionRoot,
+      engineReleaseProvider  = new EngineReleaseProvider(noReleaseProvider),
+      runtimeReleaseProvider = new GraalCEReleaseProvider(noReleaseProvider),
+      discardChildOutput
+    )
+  }
+
+  /** Creates a [[TestDistributionConfiguration]] instance. */
   def apply(
     distributionRoot: Path,
     engineReleaseProvider: ReleaseProvider[EngineRelease],
-    runtimeReleaseProvider: GraalVMRuntimeReleaseProvider
+    runtimeReleaseProvider: GraalVMRuntimeReleaseProvider,
+    discardChildOutput: Boolean
   ): TestDistributionConfiguration =
     new TestDistributionConfiguration(
       distributionRoot,
       engineReleaseProvider,
-      runtimeReleaseProvider
+      runtimeReleaseProvider,
+      discardChildOutput
     )
 
+  /** A [[SimpleReleaseProvider]] that has no releases. */
+  private class NoReleaseProvider extends SimpleReleaseProvider {
+    override def releaseForTag(tag: String): Try[Release] = Failure(
+      new IllegalStateException(
+        "This provider does not support fetching releases."
+      )
+    )
+
+    override def listReleases(): Try[Seq[Release]] = Success(Seq())
+  }
 }

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerGatewaySpec.scala

@@ -1,8 +1,10 @@
 package org.enso.projectmanager.infrastructure.languageserver
 
+import akka.testkit.TestDuration
+import nl.gn0s1s.bump.SemVer
 import org.enso.projectmanager.test.Net._
 import org.enso.projectmanager.{BaseServerSpec, ProjectManagementOps}
-import org.enso.testkit.FlakySpec
+import org.enso.testkit.{FlakySpec, RetrySpec}
 
 import scala.concurrent.Await
 import scala.concurrent.duration._
@@ -10,11 +12,14 @@ import scala.concurrent.duration._
 class LanguageServerGatewaySpec
     extends BaseServerSpec
     with FlakySpec
-    with ProjectManagementOps {
+    with ProjectManagementOps
+    with RetrySpec {
+
+  override val engineToInstall = Some(SemVer(0, 0, 1))
 
   "A language server service" must {
 
-    "kill all running language servers" ignore {
+    "kill all running language servers" taggedAs Retry ignore {
       implicit val client = new WsTestClient(address)
       val fooId           = createProject("foo")
       val barId           = createProject("bar")
@@ -27,7 +32,7 @@ class LanguageServerGatewaySpec
       tryConnect(bazSocket).isRight shouldBe true
       //when
       val future = exec.exec(languageServerGateway.killAllServers())
-      Await.result(future, 20.seconds)
+      Await.result(future, 30.seconds.dilated)
       //then
       tryConnect(fooSocket).isLeft shouldBe true
       tryConnect(barSocket).isLeft shouldBe true

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/infrastructure/languageserver/LanguageServerSupervisorSpec.scala

@@ -1,15 +1,11 @@
 package org.enso.projectmanager.infrastructure.languageserver
 
-import java.util.UUID
+import akka.actor.{ActorRef, ActorSystem, Props}
-
+import akka.testkit.{ImplicitSender, TestActor, TestKit, TestProbe}
-import akka.actor.{ActorSystem, Props}
-import akka.testkit.{ImplicitSender, TestKit, TestProbe}
 import com.miguno.akka.testing.VirtualTime
-import org.enso.languageserver.boot.LifecycleComponent.ComponentRestarted
-import org.enso.languageserver.boot.{LanguageServerConfig, LifecycleComponent}
 import org.enso.projectmanager.boot.configuration.SupervisionConfig
 import org.enso.projectmanager.infrastructure.http.AkkaBasedWebSocketConnectionFactory
-import org.enso.projectmanager.infrastructure.languageserver.LanguageServerController.ServerDied
+import org.enso.projectmanager.infrastructure.languageserver.LanguageServerBootLoader.ServerBooted
 import org.enso.projectmanager.infrastructure.languageserver.ProgrammableWebSocketServer.{
   Reject,
   ReplyWith
@@ -17,14 +13,11 @@ import org.enso.projectmanager.infrastructure.languageserver.ProgrammableWebSock
 import org.enso.projectmanager.infrastructure.languageserver.StepParent.ChildTerminated
 import org.enso.projectmanager.infrastructure.net.Tcp
 import org.enso.testkit.FlakySpec
-import org.mockito.BDDMockito._
-import org.mockito.Mockito._
 import org.mockito.MockitoSugar
 import org.scalatest.BeforeAndAfterAll
 import org.scalatest.flatspec.AnyFlatSpecLike
 import org.scalatest.matchers.must.Matchers
 
-import scala.concurrent.Future
 import scala.concurrent.duration._
 
 class LanguageServerSupervisorSpec
@@ -55,7 +48,7 @@ class LanguageServerSupervisorSpec
       virtualTimeAdvances(testHeartbeatInterval / 2)
     }
     //then
-    `then`(serverComponent.restart()).shouldHaveNoInteractions()
+    processManagerProbe.expectNoMessage()
     //teardown
     parent ! GracefulStop
     parentProbe.expectMsg(ChildTerminated)
@@ -65,8 +58,6 @@ class LanguageServerSupervisorSpec
 
   it should "restart server when pong message doesn't arrive on time" taggedAs Flaky in new TestCtx {
     //given
-    when(serverComponent.restart())
-      .thenReturn(Future.successful(ComponentRestarted))
     val probe               = TestProbe()
     @volatile var pingCount = 0
     fakeServer.withBehaviour { case ping @ PingMatcher(requestId) =>
@@ -84,7 +75,7 @@ class LanguageServerSupervisorSpec
     //when
     virtualTimeAdvances(testInitialDelay)
     (1 to 2).foreach { _ =>
-      verifyNoInteractions(serverComponent)
+      processManagerProbe.expectNoMessage()
       probe.expectMsgPF() { case PingMatcher(_) => () }
       virtualTimeAdvances(testHeartbeatInterval / 2)
       probe.expectNoMessage()
@@ -92,10 +83,11 @@ class LanguageServerSupervisorSpec
     }
     probe.expectMsgPF() { case PingMatcher(_) => () }
     virtualTimeAdvances(testHeartbeatTimeout)
-    verify(serverComponent, timeout(VerificationTimeout).times(1)).restart()
+    processManagerProbe.expectMsg(Restart)
+    restartRequests mustEqual 1
     virtualTimeAdvances(testInitialDelay)
     (1 to 2).foreach { _ =>
-      verifyNoMoreInteractions(serverComponent)
+      processManagerProbe.expectNoMessage()
       probe.expectMsgPF() { case PingMatcher(_) => () }
       virtualTimeAdvances(testHeartbeatInterval / 2)
       probe.expectNoMessage()
@@ -108,35 +100,6 @@ class LanguageServerSupervisorSpec
     fakeServer.stop()
   }
 
-  it should "restart server limited number of times" in new TestCtx {
-    //given
-    when(serverComponent.restart()).thenReturn(Future.failed(new Exception))
-    val probe = TestProbe()
-    fakeServer.withBehaviour { case ping @ PingMatcher(_) =>
-      probe.ref ! ping
-      Reject
-    }
-    probe.expectNoMessage()
-    //when
-    virtualTimeAdvances(testInitialDelay)
-    probe.expectMsgPF(5.seconds) { case PingMatcher(_) => () }
-    verifyNoInteractions(serverComponent)
-    virtualTimeAdvances(testHeartbeatTimeout)
-    (1 to testRestartLimit).foreach { i =>
-      verify(serverComponent, timeout(VerificationTimeout).times(i)).restart()
-      virtualTimeAdvances(testRestartDelay)
-    }
-    virtualTimeAdvances(testHeartbeatInterval)
-    probe.expectNoMessage()
-    verifyNoMoreInteractions(serverComponent)
-    //then
-    parentProbe.expectMsg(ServerDied)
-    parentProbe.expectMsg(ChildTerminated)
-    //teardown
-    system.stop(parent)
-    fakeServer.stop()
-  }
-
   override def afterAll(): Unit = {
     TestKit.shutdownActorSystem(system)
   }
@@ -147,8 +110,6 @@ class LanguageServerSupervisorSpec
 
     val virtualTime = new VirtualTime
 
-    val serverComponent = mock[LifecycleComponent]
-
     val testHost = "127.0.0.1"
 
     val testRpcPort = Tcp.findAvailablePort(testHost, 49152, 55535)
@@ -168,13 +129,11 @@ class LanguageServerSupervisorSpec
     val fakeServer = new ProgrammableWebSocketServer(testHost, testRpcPort)
     fakeServer.start()
 
-    val serverConfig =
+    val connectionInfo =
-      LanguageServerConfig(
+      LanguageServerConnectionInfo(
         testHost,
         testRpcPort,
-        testDataPort,
+        testDataPort
-        UUID.randomUUID(),
-        "/tmp"
       )
 
     val supervisionConfig =
@@ -188,15 +147,28 @@ class LanguageServerSupervisorSpec
 
     val parentProbe = TestProbe()
 
+    val processManagerProbe = TestProbe()
+    var restartRequests     = 0
+    processManagerProbe
+      .setAutoPilot((sender: ActorRef, msg: Any) =>
+        msg match {
+          case Restart =>
+            restartRequests += 1
+            sender ! ServerBooted(connectionInfo, processManagerProbe.ref)
+            TestActor.KeepRunning
+          case _ => TestActor.KeepRunning
+        }
+      )
+
     val parent = system.actorOf(
       Props(
         new StepParent(
           LanguageServerSupervisor.props(
-            serverConfig,
+            connectionInfo       = connectionInfo,
-            serverComponent,
+            serverProcessManager = processManagerProbe.ref,
-            supervisionConfig,
+            supervisionConfig    = supervisionConfig,
-            new AkkaBasedWebSocketConnectionFactory(),
+            connectionFactory    = new AkkaBasedWebSocketConnectionFactory(),
-            virtualTime.scheduler
+            scheduler            = virtualTime.scheduler
           ),
           parentProbe.ref
         )

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/protocol/EngineManagementApiSpec.scala

@@ -64,7 +64,8 @@ class EngineManagementApiSpec extends BaseServerSpec with FlakySpec {
               }
             }
           """)
-      client.expectJson(
+      client.expectTaskStarted()
+      client.expectJsonAfterSomeProgress(
         json"""
           {
             "jsonrpc":"2.0",
@@ -84,7 +85,8 @@ class EngineManagementApiSpec extends BaseServerSpec with FlakySpec {
               }
             }
           """)
-      client.expectJson(
+      client.expectTaskStarted()
+      client.expectJsonAfterSomeProgress(
         json"""
           {
             "jsonrpc":"2.0",
@@ -164,11 +166,15 @@ class EngineManagementApiSpec extends BaseServerSpec with FlakySpec {
               }
             }
           """)
+
+      val message =
+        "Installation has been cancelled by the user because the requested " +
+        "engine release is marked as broken."
       client.expectJson(json"""
           {
             "jsonrpc":"2.0",
             "id":0,
-            "error": { "code": 4021, "message": "Installation has been cancelled by the user because the requested engine release is marked as broken." }
+            "error": { "code": 4021, "message": $message }
           }
           """)
 
@@ -182,7 +188,8 @@ class EngineManagementApiSpec extends BaseServerSpec with FlakySpec {
               }
             }
           """)
-      client.expectJson(
+      client.expectTaskStarted()
+      client.expectJsonAfterSomeProgress(
         json"""
           {
             "jsonrpc":"2.0",

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/protocol/MissingComponentBehavior.scala

@@ -0,0 +1,58 @@
+package org.enso.projectmanager.protocol
+
+import io.circe.Json
+import nl.gn0s1s.bump.SemVer
+import org.enso.projectmanager.BaseServerSpec
+import org.enso.projectmanager.data.MissingComponentAction
+import org.enso.testkit.RetrySpec
+import org.scalatest.wordspec.AnyWordSpecLike
+
+trait MissingComponentBehavior {
+  this: BaseServerSpec with AnyWordSpecLike with RetrySpec =>
+  def buildRequest(
+    version: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): Json
+
+  def isSuccess(json: Json): Boolean
+
+  private val defaultVersion = SemVer(0, 0, 1)
+  private val brokenVersion  = SemVer(0, 999, 0, Some("broken"))
+
+  def correctlyHandleMissingComponents(): Unit = {
+    "fail if a missing version is requested with Fail" in {
+      val client = new WsTestClient(address)
+      client.send(buildRequest(defaultVersion, MissingComponentAction.Fail))
+      client.expectError(4020)
+    }
+
+    "install the missing version and succeed with Install" taggedAs Retry in {
+      val client = new WsTestClient(address)
+      client.send(
+        buildRequest(defaultVersion, MissingComponentAction.Install)
+      )
+
+      /** We do not check for success here as we are concerned onyl that the
+        * installation is attempted. Installation and creating/opening projects
+        * are tested elsewhere.
+        */
+      client.expectTaskStarted()
+    }
+
+    "fail if the requested missing version is marked as broken with " +
+    "Install" in {
+      val client = new WsTestClient(address)
+      client.send(buildRequest(brokenVersion, MissingComponentAction.Install))
+      client.expectError(4021)
+    }
+
+    "succeed even if the requested missing version is marked as broken " +
+    "with ForceInstallBroken" taggedAs Retry in {
+      val client = new WsTestClient(address)
+      client.send(
+        buildRequest(brokenVersion, MissingComponentAction.ForceInstallBroken)
+      )
+      client.expectTaskStarted()
+    }
+  }
+}

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/protocol/ProjectCreateMissingComponentsSpec.scala

@@ -0,0 +1,44 @@
+package org.enso.projectmanager.protocol
+
+import io.circe.Json
+import io.circe.literal.JsonStringContext
+import nl.gn0s1s.bump.SemVer
+import org.enso.projectmanager.data.MissingComponentAction
+import org.enso.projectmanager.{BaseServerSpec, ProjectManagementOps}
+import org.enso.testkit.RetrySpec
+import org.enso.pkg.SemVerJson._
+
+class ProjectCreateMissingComponentsSpec
+    extends BaseServerSpec
+    with RetrySpec
+    with ProjectManagementOps
+    with MissingComponentBehavior {
+  override def buildRequest(
+    version: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): Json =
+    json"""
+        { "jsonrpc": "2.0",
+          "method": "project/create",
+          "id": 1,
+          "params": {
+            "name": "testproj",
+            "missingComponentAction": $missingComponentAction,
+            "version": $version
+          }
+        }
+        """
+
+  override def isSuccess(json: Json): Boolean = {
+    val projectId = for {
+      obj    <- json.asObject
+      result <- obj("result").flatMap(_.asObject)
+      id     <- result("projectId")
+    } yield id
+    projectId.isDefined
+  }
+
+  "project/create" should {
+    behave like correctlyHandleMissingComponents()
+  }
+}

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/protocol/ProjectManagementApiSpec.scala

@@ -5,6 +5,7 @@ import java.nio.file.Paths
 import java.util.UUID
 
 import io.circe.literal._
+import nl.gn0s1s.bump.SemVer
 import org.apache.commons.io.FileUtils
 import org.enso.projectmanager.test.Net.tryConnect
 import org.enso.projectmanager.{BaseServerSpec, ProjectManagementOps}
@@ -22,6 +23,8 @@ class ProjectManagementApiSpec
     gen.reset()
   }
 
+  override val engineToInstall = Some(SemVer(0, 0, 1))
+
   "project/create" must {
 
     "check if project name is not empty" taggedAs Flaky in {
@@ -31,7 +34,8 @@ class ProjectManagementApiSpec
             "method": "project/create",
             "id": 1,
             "params": {
-              "name": ""
+              "name": "",
+              "missingComponentAction": "Install"
             }
           }
           """)
@@ -124,26 +128,23 @@ class ProjectManagementApiSpec
     }
 
     "create project with specific version" in {
-      // TODO [RW] this is just a stub test for parsing, it should be replaced
-      //  with actual tests once this functionality is implemented
       implicit val client = new WsTestClient(address)
       client.send(json"""
             { "jsonrpc": "2.0",
               "method": "project/create",
-              "id": 0,
+              "id": 1,
               "params": {
                 "name": "foo",
-                "version": "1.2.3"
+                "version": "0.0.1"
               }
             }
           """)
       client.expectJson(json"""
           {
-            "jsonrpc":"2.0",
+            "jsonrpc" : "2.0",
-            "id":0,
+            "id" : 1,
-            "error":{
+            "result" : {
-              "code":10,
+              "projectId" : $getGeneratedUUID
-              "message":"The requested method is not implemented"
             }
           }
           """)

lib/scala/project-manager/src/test/scala/org/enso/projectmanager/protocol/ProjectOpenMissingComponentsSpec.scala

@@ -0,0 +1,91 @@
+package org.enso.projectmanager.protocol
+
+import java.io.File
+import java.util.UUID
+
+import akka.testkit.TestActors.blackholeProps
+import io.circe.Json
+import io.circe.literal.JsonStringContext
+import nl.gn0s1s.bump.SemVer
+import org.enso.pkg.SemVerEnsoVersion
+import org.enso.projectmanager.data.MissingComponentAction
+import org.enso.projectmanager.{BaseServerSpec, ProjectManagementOps}
+import org.enso.testkit.RetrySpec
+import zio.Runtime
+
+class ProjectOpenMissingComponentsSpec
+    extends BaseServerSpec
+    with RetrySpec
+    with ProjectManagementOps
+    with MissingComponentBehavior {
+  val ordinaryVersion                          = SemVer(0, 0, 1)
+  override val engineToInstall: Option[SemVer] = Some(ordinaryVersion)
+  var ordinaryProject: UUID                    = _
+  var brokenProject: UUID                      = _
+
+  override val deleteProjectsRootAfterEachTest = false
+  override def beforeAll(): Unit = {
+    super.beforeAll()
+
+    val blackhole = system.actorOf(blackholeProps)
+    val ordinaryAction = projectService.createUserProject(
+      blackhole,
+      "proj1",
+      ordinaryVersion,
+      MissingComponentAction.Fail
+    )
+    ordinaryProject = Runtime.default.unsafeRun(ordinaryAction)
+    val brokenName = "projbroken"
+    val brokenAction = projectService.createUserProject(
+      blackhole,
+      brokenName,
+      ordinaryVersion,
+      MissingComponentAction.Fail
+    )
+    brokenProject = Runtime.default.unsafeRun(brokenAction)
+
+    // TODO [RW] this hack should not be necessary with #1273
+    val projectDir = new File(userProjectDir, brokenName)
+    val pkgManager = org.enso.pkg.PackageManager.Default
+    val pkg        = pkgManager.loadPackage(projectDir).get
+    pkg.updateConfig(config =>
+      config.copy(ensoVersion =
+        SemVerEnsoVersion(SemVer(0, 999, 0, Some("broken")))
+      )
+    )
+
+    uninstallEngine(ordinaryVersion)
+  }
+
+  override def buildRequest(
+    version: SemVer,
+    missingComponentAction: MissingComponentAction
+  ): Json = {
+    val projectId =
+      if (version.preRelease.contains("broken")) brokenProject
+      else ordinaryProject
+
+    json"""
+        { "jsonrpc": "2.0",
+          "method": "project/open",
+          "id": 1,
+          "params": {
+            "projectId": $projectId,
+            "missingComponentAction": $missingComponentAction
+          }
+        }
+        """
+  }
+
+  override def isSuccess(json: Json): Boolean = {
+    val result = for {
+      obj    <- json.asObject
+      result <- obj("result").flatMap(_.asObject)
+    } yield result
+    result.isDefined
+  }
+
+  "project/open" should {
+    behave like correctlyHandleMissingComponents()
+  }
+}

lib/scala/runtime-version-manager-test/src/main/resources/org/enso/runtimeversionmanager/test/fake-releases/enso/enso-0.0.1/manifest.yaml

@@ -1,3 +1,12 @@
 minimum-launcher-version: 0.0.1
 graal-vm-version: 2.0.0
 graal-java-version: 11
+jvm-options:
+  - value: "-Dpolyglot.engine.IterativePartialEscape=true"
+  - value: "-Dtruffle.class.path.append=$enginePackagePath\\component\\runtime.jar"
+    os: "windows"
+  - value: "-Dtruffle.class.path.append=$enginePackagePath/component/runtime.jar"
+    os: "linux"
+  - value: "-Dtruffle.class.path.append=$enginePackagePath/component/runtime.jar"
+    os: "macos"
+  - value: "-Denso.version.override=0.0.1"

lib/scala/runtime-version-manager-test/src/main/resources/org/enso/runtimeversionmanager/test/fake-releases/graalvm/vm-1.0.0/graalvm-ce-java11-darwin-amd64-1.0.0.tar.gz/graalvm-ce-java11-1.0.0/Contents/Home/bin/java

@@ -1,2 +1,2 @@
 #!/bin/sh
-echo "Hello"
+echo "Fake JVM executable has been executed"

lib/scala/runtime-version-manager-test/src/main/resources/org/enso/runtimeversionmanager/test/fake-releases/graalvm/vm-1.0.0/graalvm-ce-java11-linux-amd64-1.0.0.tar.gz/graalvm-ce-java11-1.0.0/bin/java

@@ -1,2 +1,2 @@
 #!/bin/sh
-echo "Hello"
+echo "Fake JVM executable has been executed"

lib/scala/runtime-version-manager-test/src/main/resources/org/enso/runtimeversionmanager/test/fake-releases/graalvm/vm-2.0.0/graalvm-ce-java11-darwin-amd64-2.0.0.tar.gz/graalvm-ce-java11-2.0.0/Contents/Home/bin/java

@@ -1,2 +1,2 @@
 #!/bin/sh
-echo "Hello"
+echo "Fake JVM executable has been executed"

lib/scala/runtime-version-manager-test/src/main/resources/org/enso/runtimeversionmanager/test/fake-releases/graalvm/vm-2.0.0/graalvm-ce-java11-linux-amd64-2.0.0.tar.gz/graalvm-ce-java11-2.0.0/bin/java

@@ -1,2 +1,2 @@
 #!/bin/sh
-echo "Hello"
+echo "Fake JVM executable has been executed"

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/CurrentVersion.scala

@@ -4,7 +4,7 @@ import buildinfo.Info
 import com.typesafe.scalalogging.Logger
 import nl.gn0s1s.bump.SemVer
 
-/** Helper object that allows to get the current launcher version.
+/** Helper object that allows to get the current application version.
   *
   * In development-mode it allows to override the returned version for testing
   * purposes.

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/components/RuntimeVersionManager.scala

@@ -4,8 +4,13 @@ import java.nio.file.{Files, Path, StandardOpenOption}
 
 import com.typesafe.scalalogging.Logger
 import nl.gn0s1s.bump.SemVer
+import org.enso.runtimeversionmanager.FileSystem
 import org.enso.runtimeversionmanager.FileSystem.PathSyntax
 import org.enso.runtimeversionmanager.archive.Archive
+import org.enso.runtimeversionmanager.distribution.{
+  DistributionManager,
+  TemporaryDirectoryManager
+}
 import org.enso.runtimeversionmanager.locking.{
   LockType,
   Resource,
@@ -14,11 +19,6 @@ import org.enso.runtimeversionmanager.locking.{
 import org.enso.runtimeversionmanager.releases.ReleaseProvider
 import org.enso.runtimeversionmanager.releases.engine.EngineRelease
 import org.enso.runtimeversionmanager.releases.graalvm.GraalVMRuntimeReleaseProvider
-import org.enso.runtimeversionmanager.FileSystem
-import org.enso.runtimeversionmanager.distribution.{
-  DistributionManager,
-  TemporaryDirectoryManager
-}
 
 import scala.util.control.NonFatal
 import scala.util.{Failure, Success, Try, Using}

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/locking/ResourceManager.scala

@@ -20,18 +20,7 @@ class ResourceManager(lockManager: LockManager) {
     resource: Resource,
     lockType: LockType
   )(action: => R): R = {
-    var waited = false
+    Using(acquireResource(waitingInterface, resource, lockType)) { _ =>
-    Using {
-      lockManager.acquireLockWithWaitingAction(
-        resource.name,
-        lockType = lockType,
-        () => {
-          waited = true
-          waitingInterface.startWaitingForResource(resource)
-        }
-      )
-    } { _ =>
-      if (waited) waitingInterface.finishWaitingForResource(resource)
       action
     }.get
   }
@@ -52,6 +41,27 @@ class ResourceManager(lockManager: LockManager) {
         action
     }
 
+  /** Acquires a resource, handling possible waiting, and returns its [[Lock]]
+    * instance that can be used to unlock it.
+    */
+  private def acquireResource(
+    waitingInterface: LockUserInterface,
+    resource: Resource,
+    lockType: LockType
+  ): Lock = {
+    var waited = false
+    val lock = lockManager.acquireLockWithWaitingAction(
+      resource.name,
+      lockType = lockType,
+      () => {
+        waited = true
+        waitingInterface.startWaitingForResource(resource)
+      }
+    )
+    if (waited) waitingInterface.finishWaitingForResource(resource)
+    lock
+  }
+
   var mainLock: Option[Lock] = None
 
   /** Initializes the [[MainLock]].

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/runner/Command.scala

@@ -21,10 +21,7 @@ case class Command(command: Seq[String], extraEnv: Seq[(String, String)]) {
   def run(): Try[Int] =
     wrapError {
       logger.debug(s"Executing $toString")
-      val processBuilder = new java.lang.ProcessBuilder(command: _*)
+      val processBuilder = builder()
-      for ((key, value) <- extraEnv) {
-        processBuilder.environment().put(key, value)
-      }
       processBuilder.inheritIO()
       val process = processBuilder.start()
       process.waitFor()
@@ -44,6 +41,21 @@ case class Command(command: Seq[String], extraEnv: Seq[(String, String)]) {
       processBuilder.!!
     }
 
+  /** Returns a [[ProcessBuilder]] that can be used to start the process.
+    *
+    * This is an advanced feature and it has to be used very carefully - the
+    * builder and the constructed process (as long as it is running) must not
+    * leak outside of the enclosing `withCommand` function to preserve the
+    * guarantees that the environment the process requires still exists.
+    */
+  def builder(): ProcessBuilder = {
+    val processBuilder = new java.lang.ProcessBuilder(command: _*)
+    for ((key, value) <- extraEnv) {
+      processBuilder.environment().put(key, value)
+    }
+    processBuilder
+  }
+
   /** Runs the provided action and wraps any errors into a [[Failure]]
     * containing a [[RunnerError]].
     */

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/runner/JVMSettings.scala

@@ -2,8 +2,37 @@ package org.enso.runtimeversionmanager.runner
 
 /** Represents settings that are used to launch the runtime JVM.
   *
-  * @param useSystemJVM if set, the system configured JVM is used instead of
+  * @param javaCommandOverride the command should be used to launch the JVM
-  *                     the one managed by the launcher
+  *                           instead of the default JVM provided with the
+  *                           release; it can be an absolute path to a java
+  *                           executable
   * @param jvmOptions options that should be added to the launched JVM
   */
-case class JVMSettings(useSystemJVM: Boolean, jvmOptions: Seq[(String, String)])
+case class JVMSettings(
+  javaCommandOverride: Option[JavaCommand],
+  jvmOptions: Seq[(String, String)]
+)
+
+object JVMSettings {
+
+  /** Creates settings that are used to launch the runtime JVM.
+    *
+    * @param useSystemJVM if set, the system configured JVM is used instead of
+    *                     the one managed by the launcher
+    * @param jvmOptions options that should be added to the launched JVM
+    */
+  def apply(
+    useSystemJVM: Boolean,
+    jvmOptions: Seq[(String, String)]
+  ): JVMSettings =
+    new JVMSettings(
+      if (useSystemJVM) Some(JavaCommand.systemJavaCommand) else None,
+      jvmOptions
+    )
+
+  /** Creates a default instance of [[JVMSettings]] that just use the default
+    * JVM with no options overrides.
+    */
+  def default: JVMSettings =
+    JVMSettings(useSystemJVM = false, jvmOptions = Seq())
+}

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/runner/JavaCommand.scala

@@ -0,0 +1,31 @@
+package org.enso.runtimeversionmanager.runner
+
+import org.enso.runtimeversionmanager.components.GraalRuntime
+
+/** Represents a way of launching the JVM.
+  *
+  * @param executableName name of the `java` executable to run
+  * @param javaHomeOverride if set, asks to override the JAVA_HOME environment
+  *                         variable when launching the JVM
+  */
+case class JavaCommand(
+  executableName: String,
+  javaHomeOverride: Option[String]
+)
+
+object JavaCommand {
+
+  /** The [[JavaCommand]] representing the system-configured JVM.
+    */
+  def systemJavaCommand: JavaCommand = JavaCommand("java", None)
+
+  /** The [[JavaCommand]] representing a managed [[GraalRuntime]].
+    */
+  def forRuntime(runtime: GraalRuntime): JavaCommand =
+    JavaCommand(
+      executableName = runtime.javaExecutable.toAbsolutePath.normalize.toString,
+      javaHomeOverride =
+        Some(runtime.javaHome.toAbsolutePath.normalize.toString)
+    )
+
+}

lib/scala/runtime-version-manager/src/main/scala/org/enso/runtimeversionmanager/runner/RunSettings.scala

@@ -4,13 +4,13 @@ import nl.gn0s1s.bump.SemVer
 
 /** Represents settings that are used to launch the runner JAR.
   *
-  * @param version Enso engine version to use
+  * @param engineVersion Enso engine version to use
   * @param runnerArguments arguments that should be passed to the runner
   * @param connectLoggerIfAvailable specifies if the ran component should
   *                                 connect to launcher's logging service
   */
 case class RunSettings(
-  version: SemVer,
+  engineVersion: SemVer,
   runnerArguments: Seq[String],
   connectLoggerIfAvailable: Boolean
 )