diff --git a/cmd/atlas/internal/cmdapi/cmdapi_oss.go b/cmd/atlas/internal/cmdapi/cmdapi_oss.go
index b193edd80a9..5594040ba81 100644
--- a/cmd/atlas/internal/cmdapi/cmdapi_oss.go
+++ b/cmd/atlas/internal/cmdapi/cmdapi_oss.go
@@ -16,7 +16,6 @@ import (
 	"text/template"
 	"time"
 
-	"ariga.io/atlas/cmd/atlas/internal/cloudapi"
 	"ariga.io/atlas/cmd/atlas/internal/cmdext"
 	"ariga.io/atlas/cmd/atlas/internal/cmdlog"
 	"ariga.io/atlas/cmd/atlas/internal/cmdstate"
@@ -467,9 +466,8 @@ func promptApply(cmd *cobra.Command, flags schemaApplyFlags, diff *diff, client,
 	return nil
 }
 
-// withTokenContext allows attaching token to the context.
-func withTokenContext(ctx context.Context, _ string, _ *cloudapi.Client) (context.Context, error) {
-	return ctx, nil // unimplemented.
+func maySetLoginContext(*cobra.Command, *Project) error {
+	return nil
 }
 
 func setEnvs(context.Context, []*Env) {}
diff --git a/cmd/atlas/internal/cmdapi/project.go b/cmd/atlas/internal/cmdapi/project.go
index b312cfedbf8..b1434486b42 100644
--- a/cmd/atlas/internal/cmdapi/project.go
+++ b/cmd/atlas/internal/cmdapi/project.go
@@ -534,7 +534,7 @@ func EnvByName(cmd *cobra.Command, name string, vars map[string]cty.Value) (*Pro
 		setEnvs(cmd.Context(), envs[name])
 	}()
 	if p, e, ok := envsCache.load(GlobalFlags.ConfigURL, name, vars); ok {
-		return p, e, maySetTokenContext(cmd, p)
+		return p, e, maySetLoginContext(cmd, p)
 	}
 	u, err := url.Parse(GlobalFlags.ConfigURL)
 	if err != nil {
@@ -554,9 +554,9 @@ func EnvByName(cmd *cobra.Command, name string, vars map[string]cty.Value) (*Pro
 	if err != nil {
 		return nil, nil, err
 	}
-	// The project token predates 'atlas login' command. If exists,
+	// The atlas.hcl token predates 'atlas login' command. If exists,
 	// attach it to the context to indicate the user is authenticated.
-	if err := maySetTokenContext(cmd, project); err != nil {
+	if err := maySetLoginContext(cmd, project); err != nil {
 		return nil, nil, err
 	}
 	if err := project.Lint.remainedLog(); err != nil {
@@ -596,19 +596,6 @@ func EnvByName(cmd *cobra.Command, name string, vars map[string]cty.Value) (*Pro
 	}
 }
 
-// maySetTokenContext sets the token context and cloud client if
-// defined in the project file.
-func maySetTokenContext(cmd *cobra.Command, p *Project) error {
-	if p.cloud.Token != "" && p.cloud.Client != nil {
-		ctx, err := withTokenContext(cmd.Context(), p.cloud.Token, p.cloud.Client)
-		if err != nil {
-			return err
-		}
-		cmd.SetContext(ctx)
-	}
-	return nil
-}
-
 type (
 	envCacheK struct {
 		path, env, vars string
diff --git a/cmd/atlas/internal/cmdapi/schema.go b/cmd/atlas/internal/cmdapi/schema.go
index 363296fd0cd..e25f540b3c1 100644
--- a/cmd/atlas/internal/cmdapi/schema.go
+++ b/cmd/atlas/internal/cmdapi/schema.go
@@ -381,12 +381,12 @@ flag.
   atlas schema inspect -u "mariadb://user:pass@localhost:3306/" --schema=schemaA,schemaB -s schemaC
   atlas schema inspect --url "postgres://user:pass@host:port/dbname?sslmode=disable"
   atlas schema inspect -u "sqlite://file:ex1.db?_fk=1"`,
-			PreRunE: func(cmd *cobra.Command, args []string) (err error) {
+			PreRunE: RunE(func(cmd *cobra.Command, args []string) (err error) {
 				if env, err = selectEnv(cmd); err != nil {
 					return err
 				}
 				return setSchemaEnvFlags(cmd, env)
-			},
+			}),
 			RunE: RunE(func(cmd *cobra.Command, args []string) error {
 				return schemaInspectRun(cmd, args, flags, env)
 			}),
diff --git a/cmd/atlas/internal/cmdext/cmdext.go b/cmd/atlas/internal/cmdext/cmdext.go
index 56bdac6e47a..fd2663ff8b6 100644
--- a/cmd/atlas/internal/cmdext/cmdext.go
+++ b/cmd/atlas/internal/cmdext/cmdext.go
@@ -17,7 +17,6 @@ import (
 	"os/exec"
 	"path"
 	"path/filepath"
-	"reflect"
 	"text/template"
 	"time"
 
@@ -26,11 +25,9 @@ import (
 	"ariga.io/atlas/sql/migrate"
 	"ariga.io/atlas/sql/schema"
 	"ariga.io/atlas/sql/sqlclient"
+
 	"github.com/aws/aws-sdk-go-v2/config"
 	"github.com/aws/aws-sdk-go-v2/feature/rds/auth"
-	"golang.org/x/oauth2/google"
-	sqladmin "google.golang.org/api/sqladmin/v1beta4"
-
 	"github.com/hashicorp/hcl/v2"
 	"github.com/hashicorp/hcl/v2/gohcl"
 	"github.com/hashicorp/hcl/v2/hclsyntax"
@@ -44,6 +41,8 @@ import (
 	_ "gocloud.dev/runtimevar/gcpruntimeconfig"
 	_ "gocloud.dev/runtimevar/gcpsecretmanager"
 	_ "gocloud.dev/runtimevar/httpvar"
+	"golang.org/x/oauth2/google"
+	sqladmin "google.golang.org/api/sqladmin/v1beta4"
 )
 
 // SpecOptions exposes the schema spec options like data-sources provided by this package.
@@ -63,6 +62,16 @@ var SpecOptions = append(
 	specOptions...,
 )
 
+// AtlasConfig exposes non-sensitive information returned by the "atlas" init-block.
+// By invoking AtlasInitBlock() a new config is returned that is set by the init block
+// defined and executed on schemahcl Eval functions.
+type AtlasConfig struct {
+	Client  *cloudapi.Client // Client attached to Atlas Cloud.
+	Token   string           // User token.
+	Org     string           // Organization to connect to.
+	Project string           // Optional project.
+}
+
 // RuntimeVar exposes the gocloud.dev/runtimevar as a schemahcl datasource.
 //
 //	data "runtimevar" "pass" {
@@ -473,67 +482,6 @@ func TemplateDir(_ context.Context, ectx *hcl.EvalContext, block *hclsyntax.Bloc
 	}), nil
 }
 
-// AtlasConfig exposes non-sensitive information returned by the "atlas" init-block.
-// By invoking AtlasInitBlock() a new config is returned that is set by the init block
-// defined and executed on schemahcl Eval functions.
-type AtlasConfig struct {
-	Client  *cloudapi.Client // Client attached to Atlas Cloud.
-	Token   string           // User token.
-	Project string           // Optional project.
-}
-
-// InitBlock returns the handler for the "atlas" init block.
-//
-//	atlas {
-//	  cloud {
-//	    token   = data.runtimevar.token  // User token.
-//	    url     = var.cloud_url          // Optional URL.
-//	    project = var.project            // Optional project. Defaults to DefaultProjectName.
-//	  }
-//	}
-func (c *AtlasConfig) InitBlock() schemahcl.Option {
-	return schemahcl.WithInitBlock("atlas", func(_ context.Context, ectx *hcl.EvalContext, block *hclsyntax.Block) (cty.Value, error) {
-		atlasVal, diags := (&hclsyntax.ScopeTraversalExpr{
-			Traversal: hcl.Traversal{hcl.TraverseRoot{Name: "atlas", SrcRange: block.Range()}},
-		}).Value(ectx)
-		if diags.HasErrors() {
-			if len(diags) > 1 || diags[0].Summary != "Unknown variable" {
-				return cty.NilVal, fmt.Errorf("atlas.cloud: getting config: %v", diags)
-			}
-			// Create an empty object if the atlas object is not set.
-			atlasVal = cty.ObjectVal(map[string]cty.Value{})
-		}
-		var args struct {
-			Cloud struct {
-				Token   string `hcl:"token"`
-				URL     string `hcl:"url,optional"`
-				Project string `hcl:"project,optional"`
-			} `hcl:"cloud,block"`
-		}
-		switch diags := gohcl.DecodeBody(block.Body, ectx, &args); {
-		case diags.HasErrors():
-			return cty.NilVal, fmt.Errorf("atlas.cloud: decoding body: %v", diags)
-		case args.Cloud.Token == "":
-			return atlasVal, nil // If no token was set, the cloud is not initialized.
-		default:
-			if args.Cloud.Project == "" {
-				args.Cloud.Project = cloudapi.DefaultProjectName
-			}
-			c.Token = args.Cloud.Token
-			c.Project = args.Cloud.Project
-			c.Client = cloudapi.New(args.Cloud.URL, args.Cloud.Token)
-			m := atlasVal.AsValueMap()
-			m["cloud"] = cty.ObjectVal(map[string]cty.Value{
-				"client":  cty.CapsuleVal(clientType, c.Client),
-				"project": cty.StringVal(args.Cloud.Project),
-			})
-			return cty.ObjectVal(m), nil
-		}
-	})
-}
-
-var clientType = cty.Capsule("client", reflect.TypeOf(cloudapi.Client{}))
-
 // SchemaHCL is a data source that reads an Atlas HCL schema file(s), evaluates it
 // with the given variables and exposes its resulting schema as in-memory HCL file.
 func SchemaHCL(_ context.Context, ectx *hcl.EvalContext, block *hclsyntax.Block) (cty.Value, error) {
diff --git a/cmd/atlas/internal/cmdext/cmdext_oss.go b/cmd/atlas/internal/cmdext/cmdext_oss.go
index 8f2855583b7..0ec0b028b3f 100644
--- a/cmd/atlas/internal/cmdext/cmdext_oss.go
+++ b/cmd/atlas/internal/cmdext/cmdext_oss.go
@@ -46,3 +46,10 @@ func (l EntLoader) LoadState(context.Context, *StateReaderConfig) (*StateReadClo
 func (l EntLoader) MigrateDiff(context.Context, *MigrateDiffOptions) error {
 	return fmt.Errorf("ent:// scheme is no longer supported by this release. See: https://atlasgo.io/getting-started")
 }
+
+// InitBlock returns the handler for the "atlas" init block.
+func (c *AtlasConfig) InitBlock() schemahcl.Option {
+	return schemahcl.WithInitBlock("atlas", func(_ context.Context, ectx *hcl.EvalContext, block *hclsyntax.Block) (cty.Value, error) {
+		return cty.NilVal, fmt.Errorf("atlas block is not supported by this release. See: https://atlasgo.io/getting-started")
+	})
+}
diff --git a/cmd/atlas/internal/cmdext/cmdext_test.go b/cmd/atlas/internal/cmdext/cmdext_test.go
index da7edbe5871..5d51949ab37 100644
--- a/cmd/atlas/internal/cmdext/cmdext_test.go
+++ b/cmd/atlas/internal/cmdext/cmdext_test.go
@@ -16,7 +16,6 @@ import (
 	"strings"
 	"testing"
 
-	"ariga.io/atlas/cmd/atlas/internal/cloudapi"
 	"ariga.io/atlas/cmd/atlas/internal/cmdext"
 	"ariga.io/atlas/schemahcl"
 	"ariga.io/atlas/sql/migrate"
@@ -475,86 +474,6 @@ output = local.dot_env.URL
 	require.Equal(t, "https://example.com", v.Output)
 }
 
-func TestAtlasConfig(t *testing.T) {
-	var (
-		v struct {
-			Env       string    `spec:"env"`
-			HasClient bool      `spec:"has_client"`
-			CloudKeys []string  `spec:"cloud_keys"`
-			Atlas     cty.Value `spec:"atlas"`
-		}
-		cfg   = &cmdext.AtlasConfig{}
-		state = schemahcl.New(append(cmdext.SpecOptions, cfg.InitBlock(), schemahcl.WithVariables(map[string]cty.Value{
-			"atlas": cty.ObjectVal(map[string]cty.Value{
-				"env": cty.StringVal("dev"),
-			}),
-		}))...)
-	)
-	require.Nil(t, cfg.Client)
-	require.Empty(t, cfg.Project)
-	err := state.EvalBytes([]byte(`
-atlas {
-  cloud {
-    url = "url"
-    token = "token"
-    project = "atlasgo.io"
-  }
-}
-
-env = atlas.env
-has_client = atlas.cloud != null
-cloud_keys = keys(atlas.cloud)
-`), &v, map[string]cty.Value{})
-	require.NoError(t, err)
-	require.Equal(t, "dev", v.Env)
-	require.True(t, v.HasClient)
-	require.Equal(t, []string{"client", "project"}, v.CloudKeys, "token and url should not be exported")
-	// Config options should be populated from the init block.
-	require.NotNil(t, cfg.Client)
-	require.Equal(t, "token", cfg.Token)
-	require.Equal(t, "atlasgo.io", cfg.Project)
-
-	err = state.EvalBytes([]byte(`
-atlas {
-  cloud {
-    url = "url"
-    token = "token"
-  }
-}
-`), &v, map[string]cty.Value{})
-	require.NoError(t, err)
-	require.Equal(t, cloudapi.DefaultProjectName, cfg.Project)
-
-	cfg = &cmdext.AtlasConfig{}
-	err = state.EvalBytes([]byte(`
-atlas {
-  cloud {
-    url   = "url"
-    token = ""
-  }
-}
-`), &v, map[string]cty.Value{})
-	require.NoError(t, err)
-	require.Nil(t, cfg.Client)
-	require.Empty(t, cfg.Project)
-
-	cfg = &cmdext.AtlasConfig{}
-	err = state.EvalBytes([]byte(`
-atlas {
-  cloud {
-    url   = "url"
-    token = ""
-  }
-}
-env {
-  name = atlas.env
-}
-`), &v, map[string]cty.Value{})
-	require.NoError(t, err)
-	require.Nil(t, cfg.Client)
-	require.Empty(t, cfg.Project)
-}
-
 // backupEnv backs up the current value of an environment variable
 // and returns a function to restore it.
 func backupEnv(keys ...string) (restoreFunc func()) {