diff --git a/Makefile b/Makefile
index d453dbc..37c601c 100644
--- a/Makefile
+++ b/Makefile
@@ -12,11 +12,11 @@ test:
 
 bootloader:
 	@echo "Building bootloader..."
-	@cd bootloader && $(MAKE) || echo "Warning: Bootloader build failed (expected in early development)"
+	@cd bootloader && $(MAKE) || echo "Warning: Bootloader build failed (expected during Phase 1 development)"
 
 kernel:
 	@echo "Building kernel..."
-	@cd kernel && $(MAKE) || echo "Warning: Kernel build failed (expected in early development)"
+	@cd kernel && $(MAKE) || echo "Warning: Kernel build failed (expected during Phase 1 development)"
 
 # Create bootable disk image for UEFI/QEMU
 image: bootloader kernel
diff --git a/scripts/create_image.sh b/scripts/create_image.sh
index 9811162..131a043 100755
--- a/scripts/create_image.sh
+++ b/scripts/create_image.sh
@@ -15,16 +15,21 @@ if [ ! -f "bootloader/bootx64.efi" ]; then
     echo "Warning: bootloader/bootx64.efi not found."
     echo "Creating placeholder bootloader for testing..."
     mkdir -p bootloader
-    # Create a minimal placeholder EFI file
-    echo "Placeholder UEFI bootloader" > bootloader/bootx64.efi
+    # NOTE: This creates a text placeholder, NOT a valid EFI executable.
+    # UEFI firmware will fail to execute it, but the image structure will be correct.
+    # This is intentional during early development (Phase 1).
+    # In Phase 2+, a proper UEFI bootloader will be built.
+    echo "Placeholder UEFI bootloader - not executable" > bootloader/bootx64.efi
 fi
 
 if [ ! -f "kernel/metalos.bin" ]; then
     echo "Warning: kernel/metalos.bin not found."
     echo "Creating placeholder kernel for testing..."
     mkdir -p kernel
-    # Create a minimal placeholder kernel
-    echo "Placeholder kernel" > kernel/metalos.bin
+    # NOTE: This creates a text placeholder, NOT a valid kernel binary.
+    # This is intentional during early development (Phase 1).
+    # In Phase 3+, a proper kernel binary will be built.
+    echo "Placeholder kernel - not executable" > kernel/metalos.bin
 fi
 
 # Create directories