diff --git a/cache.h b/cache.h
index 4a24b0ce1d8..3e5658c6dda 100644
--- a/cache.h
+++ b/cache.h
@@ -1682,13 +1682,6 @@ int update_server_info(int);
 const char *get_log_output_encoding(void);
 const char *get_commit_output_encoding(void);
 
-/*
- * This is a hack for test programs like test-dump-untracked-cache to
- * ensure that they do not modify the untracked cache when reading it.
- * Do not use it otherwise!
- */
-extern int ignore_untracked_cache_config;
-
 int committer_ident_sufficiently_given(void);
 int author_ident_sufficiently_given(void);
 
diff --git a/environment.c b/environment.c
index b4ba4fa22db..43bb1b35ffe 100644
--- a/environment.c
+++ b/environment.c
@@ -95,13 +95,6 @@ int auto_comment_line_char;
 /* Parallel index stat data preload? */
 int core_preload_index = 1;
 
-/*
- * This is a hack for test programs like test-dump-untracked-cache to
- * ensure that they do not modify the untracked cache when reading it.
- * Do not use it otherwise!
- */
-int ignore_untracked_cache_config;
-
 /* This is set by setup_git_dir_gently() and/or git_default_config() */
 char *git_work_tree_cfg;
 
@@ -329,8 +322,7 @@ char *get_graft_file(struct repository *r)
 
 static void set_git_dir_1(const char *path)
 {
-	if (setenv(GIT_DIR_ENVIRONMENT, path, 1))
-		die(_("could not set GIT_DIR to '%s'"), path);
+	xsetenv(GIT_DIR_ENVIRONMENT, path, 1);
 	setup_git_env(path);
 }
 
diff --git a/fetch-negotiator.c b/fetch-negotiator.c
index 57ed5784e14..273390229fe 100644
--- a/fetch-negotiator.c
+++ b/fetch-negotiator.c
@@ -19,7 +19,6 @@ void fetch_negotiator_init(struct repository *r,
 		return;
 
 	case FETCH_NEGOTIATION_DEFAULT:
-	default:
 		default_negotiator_init(negotiator);
 		return;
 	}
diff --git a/git-compat-util.h b/git-compat-util.h
index 7c99eef6612..141bb86351e 100644
--- a/git-compat-util.h
+++ b/git-compat-util.h
@@ -878,6 +878,8 @@ void *xmemdupz(const void *data, size_t len);
 char *xstrndup(const char *str, size_t len);
 void *xrealloc(void *ptr, size_t size);
 void *xcalloc(size_t nmemb, size_t size);
+void xsetenv(const char *name, const char *value, int overwrite);
+void xunsetenv(const char *name);
 void *xmmap(void *start, size_t length, int prot, int flags, int fd, off_t offset);
 const char *mmap_os_err(void);
 void *xmmap_gently(void *start, size_t length, int prot, int flags, int fd, off_t offset);
diff --git a/read-cache.c b/read-cache.c
index f5d4385c408..b0a06db5c55 100644
--- a/read-cache.c
+++ b/read-cache.c
@@ -1944,13 +1944,22 @@ static void tweak_untracked_cache(struct index_state *istate)
 
 	prepare_repo_settings(r);
 
-	if (r->settings.core_untracked_cache  == UNTRACKED_CACHE_REMOVE) {
+	switch (r->settings.core_untracked_cache) {
+	case UNTRACKED_CACHE_REMOVE:
 		remove_untracked_cache(istate);
-		return;
-	}
-
-	if (r->settings.core_untracked_cache == UNTRACKED_CACHE_WRITE)
+		break;
+	case UNTRACKED_CACHE_WRITE:
 		add_untracked_cache(istate);
+		break;
+	case UNTRACKED_CACHE_KEEP:
+		/*
+		 * Either an explicit "core.untrackedCache=keep", the
+		 * default if "core.untrackedCache" isn't configured,
+		 * or a fallback on an unknown "core.untrackedCache"
+		 * value.
+		 */
+		break;
+	}
 }
 
 static void tweak_split_index(struct index_state *istate)
diff --git a/repo-settings.c b/repo-settings.c
index 0cfe8b787db..b93e91a212e 100644
--- a/repo-settings.c
+++ b/repo-settings.c
@@ -3,40 +3,77 @@
 #include "repository.h"
 #include "midx.h"
 
-#define UPDATE_DEFAULT_BOOL(s,v) do { if (s == -1) { s = v; } } while(0)
+static void repo_cfg_bool(struct repository *r, const char *key, int *dest,
+			  int def)
+{
+	if (repo_config_get_bool(r, key, dest))
+		*dest = def;
+}
 
 void prepare_repo_settings(struct repository *r)
 {
+	int experimental;
 	int value;
 	char *strval;
+	int manyfiles;
 
-	if (r->settings.initialized)
+	if (r->settings.initialized++)
 		return;
 
 	/* Defaults */
-	memset(&r->settings, -1, sizeof(r->settings));
+	r->settings.index_version = -1;
+	r->settings.core_untracked_cache = UNTRACKED_CACHE_KEEP;
+	r->settings.fetch_negotiation_algorithm = FETCH_NEGOTIATION_DEFAULT;
 
-	if (!repo_config_get_bool(r, "core.commitgraph", &value))
-		r->settings.core_commit_graph = value;
-	if (!repo_config_get_bool(r, "commitgraph.readchangedpaths", &value))
-		r->settings.commit_graph_read_changed_paths = value;
-	if (!repo_config_get_bool(r, "gc.writecommitgraph", &value))
-		r->settings.gc_write_commit_graph = value;
-	UPDATE_DEFAULT_BOOL(r->settings.core_commit_graph, 1);
-	UPDATE_DEFAULT_BOOL(r->settings.commit_graph_read_changed_paths, 1);
-	UPDATE_DEFAULT_BOOL(r->settings.gc_write_commit_graph, 1);
+	/* Booleans config or default, cascades to other settings */
+	repo_cfg_bool(r, "feature.manyfiles", &manyfiles, 0);
+	repo_cfg_bool(r, "feature.experimental", &experimental, 0);
 
+	/* Defaults modified by feature.* */
+	if (experimental) {
+		r->settings.fetch_negotiation_algorithm = FETCH_NEGOTIATION_SKIPPING;
+	}
+	if (manyfiles) {
+		r->settings.index_version = 4;
+		r->settings.core_untracked_cache = UNTRACKED_CACHE_WRITE;
+	}
+
+	/* Boolean config or default, does not cascade (simple)  */
+	repo_cfg_bool(r, "core.commitgraph", &r->settings.core_commit_graph, 1);
+	repo_cfg_bool(r, "commitgraph.readchangedpaths", &r->settings.commit_graph_read_changed_paths, 1);
+	repo_cfg_bool(r, "gc.writecommitgraph", &r->settings.gc_write_commit_graph, 1);
+	repo_cfg_bool(r, "fetch.writecommitgraph", &r->settings.fetch_write_commit_graph, 0);
+	repo_cfg_bool(r, "pack.usesparse", &r->settings.pack_use_sparse, 1);
+	repo_cfg_bool(r, "core.multipackindex", &r->settings.core_multi_pack_index, 1);
+	repo_cfg_bool(r, "index.sparse", &r->settings.sparse_index, 0);
+
+	/*
+	 * The GIT_TEST_MULTI_PACK_INDEX variable is special in that
+	 * either it *or* the config sets
+	 * r->settings.core_multi_pack_index if true. We don't take
+	 * the environment variable if it exists (even if false) over
+	 * any config, as in most other cases.
+	 */
+	if (git_env_bool(GIT_TEST_MULTI_PACK_INDEX, 0))
+		r->settings.core_multi_pack_index = 1;
+
+	/*
+	 * Non-boolean config
+	 */
 	if (!repo_config_get_int(r, "index.version", &value))
 		r->settings.index_version = value;
-	if (!repo_config_get_maybe_bool(r, "core.untrackedcache", &value)) {
-		if (value == 0)
-			r->settings.core_untracked_cache = UNTRACKED_CACHE_REMOVE;
-		else
-			r->settings.core_untracked_cache = UNTRACKED_CACHE_WRITE;
-	} else if (!repo_config_get_string(r, "core.untrackedcache", &strval)) {
-		if (!strcasecmp(strval, "keep"))
-			r->settings.core_untracked_cache = UNTRACKED_CACHE_KEEP;
 
+	if (!repo_config_get_string(r, "core.untrackedcache", &strval)) {
+		int v = git_parse_maybe_bool(strval);
+
+		/*
+		 * If it's set to "keep", or some other non-boolean
+		 * value then "v < 0". Then we do nothing and keep it
+		 * at the default of UNTRACKED_CACHE_KEEP.
+		 */
+		if (v >= 0)
+			r->settings.core_untracked_cache = v ?
+				UNTRACKED_CACHE_WRITE : UNTRACKED_CACHE_REMOVE;
 		free(strval);
 	}
 
@@ -45,39 +82,8 @@ void prepare_repo_settings(struct repository *r)
 			r->settings.fetch_negotiation_algorithm = FETCH_NEGOTIATION_SKIPPING;
 		else if (!strcasecmp(strval, "noop"))
 			r->settings.fetch_negotiation_algorithm = FETCH_NEGOTIATION_NOOP;
-		else
-			r->settings.fetch_negotiation_algorithm = FETCH_NEGOTIATION_DEFAULT;
 	}
 
-	if (!repo_config_get_bool(r, "pack.usesparse", &value))
-		r->settings.pack_use_sparse = value;
-	UPDATE_DEFAULT_BOOL(r->settings.pack_use_sparse, 1);
-
-	value = git_env_bool(GIT_TEST_MULTI_PACK_INDEX, 0);
-	if (value || !repo_config_get_bool(r, "core.multipackindex", &value))
-		r->settings.core_multi_pack_index = value;
-	UPDATE_DEFAULT_BOOL(r->settings.core_multi_pack_index, 1);
-
-	if (!repo_config_get_bool(r, "feature.manyfiles", &value) && value) {
-		UPDATE_DEFAULT_BOOL(r->settings.index_version, 4);
-		UPDATE_DEFAULT_BOOL(r->settings.core_untracked_cache, UNTRACKED_CACHE_WRITE);
-	}
-
-	if (!repo_config_get_bool(r, "fetch.writecommitgraph", &value))
-		r->settings.fetch_write_commit_graph = value;
-	UPDATE_DEFAULT_BOOL(r->settings.fetch_write_commit_graph, 0);
-
-	if (!repo_config_get_bool(r, "feature.experimental", &value) && value)
-		UPDATE_DEFAULT_BOOL(r->settings.fetch_negotiation_algorithm, FETCH_NEGOTIATION_SKIPPING);
-
-	/* Hack for test programs like test-dump-untracked-cache */
-	if (ignore_untracked_cache_config)
-		r->settings.core_untracked_cache = UNTRACKED_CACHE_KEEP;
-	else
-		UPDATE_DEFAULT_BOOL(r->settings.core_untracked_cache, UNTRACKED_CACHE_KEEP);
-
-	UPDATE_DEFAULT_BOOL(r->settings.fetch_negotiation_algorithm, FETCH_NEGOTIATION_DEFAULT);
-
 	/*
 	 * This setting guards all index reads to require a full index
 	 * over a sparse index. After suitable guards are placed in the
@@ -85,11 +91,4 @@ void prepare_repo_settings(struct repository *r)
 	 * removed.
 	 */
 	r->settings.command_requires_full_index = 1;
-
-	/*
-	 * Initialize this as off.
-	 */
-	r->settings.sparse_index = 0;
-	if (!repo_config_get_bool(r, "index.sparse", &value) && value)
-		r->settings.sparse_index = 1;
 }
diff --git a/repository.h b/repository.h
index c24e177c7e6..a057653981c 100644
--- a/repository.h
+++ b/repository.h
@@ -13,18 +13,15 @@ struct submodule_cache;
 struct promisor_remote_config;
 
 enum untracked_cache_setting {
-	UNTRACKED_CACHE_UNSET = -1,
-	UNTRACKED_CACHE_REMOVE = 0,
-	UNTRACKED_CACHE_KEEP = 1,
-	UNTRACKED_CACHE_WRITE = 2
+	UNTRACKED_CACHE_KEEP,
+	UNTRACKED_CACHE_REMOVE,
+	UNTRACKED_CACHE_WRITE,
 };
 
 enum fetch_negotiation_setting {
-	FETCH_NEGOTIATION_UNSET = -1,
-	FETCH_NEGOTIATION_NONE = 0,
-	FETCH_NEGOTIATION_DEFAULT = 1,
-	FETCH_NEGOTIATION_SKIPPING = 2,
-	FETCH_NEGOTIATION_NOOP = 3,
+	FETCH_NEGOTIATION_DEFAULT,
+	FETCH_NEGOTIATION_SKIPPING,
+	FETCH_NEGOTIATION_NOOP,
 };
 
 struct repo_settings {
@@ -34,6 +31,8 @@ struct repo_settings {
 	int commit_graph_read_changed_paths;
 	int gc_write_commit_graph;
 	int fetch_write_commit_graph;
+	int command_requires_full_index;
+	int sparse_index;
 
 	int index_version;
 	enum untracked_cache_setting core_untracked_cache;
@@ -42,9 +41,6 @@ struct repo_settings {
 	enum fetch_negotiation_setting fetch_negotiation_algorithm;
 
 	int core_multi_pack_index;
-
-	unsigned command_requires_full_index:1,
-		 sparse_index:1;
 };
 
 struct repository {
diff --git a/t/helper/test-dump-untracked-cache.c b/t/helper/test-dump-untracked-cache.c
index cf0f2c7228e..99010614f6d 100644
--- a/t/helper/test-dump-untracked-cache.c
+++ b/t/helper/test-dump-untracked-cache.c
@@ -45,8 +45,10 @@ int cmd__dump_untracked_cache(int ac, const char **av)
 	struct untracked_cache *uc;
 	struct strbuf base = STRBUF_INIT;
 
-	/* Hack to avoid modifying the untracked cache when we read it */
-	ignore_untracked_cache_config = 1;
+	/* Set core.untrackedCache=keep before setup_git_directory() */
+	xsetenv("GIT_CONFIG_COUNT", "1", 1);
+	xsetenv("GIT_CONFIG_KEY_0", "core.untrackedCache", 1);
+	xsetenv("GIT_CONFIG_VALUE_0", "keep", 1);
 
 	setup_git_directory();
 	if (read_cache() < 0)
diff --git a/wrapper.c b/wrapper.c
index 7c6586af321..1460d4e27b0 100644
--- a/wrapper.c
+++ b/wrapper.c
@@ -145,6 +145,18 @@ void *xcalloc(size_t nmemb, size_t size)
 	return ret;
 }
 
+void xsetenv(const char *name, const char *value, int overwrite)
+{
+	if (setenv(name, value, overwrite))
+		die_errno(_("could not setenv '%s'"), name ? name : "(null)");
+}
+
+void xunsetenv(const char *name)
+{
+	if (!unsetenv(name))
+		die_errno(_("could not unsetenv '%s'"), name ? name : "(null)");
+}
+
 /*
  * Limit size of IO chunks, because huge chunks only cause pain.  OS X
  * 64-bit is buggy, returning EINVAL if len >= INT_MAX; and even in