v0 chat uses production environment variables and fails to create NeonDB branch

Vsme Tee
Wed, 18 Mar 2026 07:54:16 +0000
v0

Problem

When creating a new chat for an existing project running on Vercel using the NeonDB integration, a new git branch is created as expected, safeguarding main. However, the chat still uses the same production environment variables the app is running with in production.

Current Behavior

No new NeonDB branch is created (though it works fine when creating a new branch outside of v0).

VERCEL_ENV and NEXT_PUBLIC_VERCEL_ENV are not set to preview or development as expected.

This is dangerous because the development environment pushes migrations on start, which could break production.

The release article does mention new Neon branch creations so I assume something is going wrong on our side or Vercel’s: The New v0 Is Ready for Production Apps and Agents - Neon

Question

How can we proceed to debug this issue?

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