diff --git a/dlplus/config/settings.py b/dlplus/config/settings.py
index 77b4dcf..d42ee8e 100644
--- a/dlplus/config/settings.py
+++ b/dlplus/config/settings.py
@@ -10,39 +10,45 @@
     from pydantic_settings import BaseSettings
 except ImportError:
     from pydantic import BaseSettings
-from pydantic import Field
+from pydantic import Field, ConfigDict
 
 
 class Settings(BaseSettings):
     """Main system settings / الإعدادات الرئيسية للنظام"""
     
+    model_config = ConfigDict(
+        env_file=".env",
+        env_file_encoding="utf-8",
+        case_sensitive=False
+    )
+    
     # API Keys
-    openrouter_api_key: str = Field(default="", env="OPENROUTER_API_KEY")
-    openai_api_key: str = Field(default="", env="OPENAI_API_KEY")
-    anthropic_api_key: str = Field(default="", env="ANTHROPIC_API_KEY")
+    openrouter_api_key: str = Field(default="")
+    openai_api_key: str = Field(default="")
+    anthropic_api_key: str = Field(default="")
     
     # Server Configuration
-    api_host: str = Field(default="0.0.0.0", env="API_HOST")
-    api_port: int = Field(default=8000, env="API_PORT")
-    debug_mode: bool = Field(default=False, env="DEBUG_MODE")
+    api_host: str = Field(default="0.0.0.0")
+    api_port: int = Field(default=8000)
+    debug_mode: bool = Field(default=False)
     
     # VPS/Hostinger Configuration
-    vps_host: Optional[str] = Field(default=None, env="VPS_HOST")
-    vps_user: Optional[str] = Field(default=None, env="VPS_USER")
-    vps_key: Optional[str] = Field(default=None, env="VPS_KEY")
-    vps_port: int = Field(default=22, env="VPS_PORT")
+    vps_host: Optional[str] = Field(default=None)
+    vps_user: Optional[str] = Field(default=None)
+    vps_key: Optional[str] = Field(default=None)
+    vps_port: int = Field(default=22)
     
     # Model Configuration
-    default_model: str = Field(default="gpt-3.5-turbo", env="DEFAULT_MODEL")
-    default_arabic_model: str = Field(default="qwen-2.5-arabic", env="DEFAULT_ARABIC_MODEL")
-    max_tokens: int = Field(default=2000, env="MAX_TOKENS")
-    temperature: float = Field(default=0.7, env="TEMPERATURE")
+    default_model: str = Field(default="gpt-3.5-turbo")
+    default_arabic_model: str = Field(default="qwen-2.5-arabic")
+    max_tokens: int = Field(default=2000)
+    temperature: float = Field(default=0.7)
     
     # Agent Configuration
-    max_reasoning_steps: int = Field(default=5, env="MAX_REASONING_STEPS")
-    enable_web_search: bool = Field(default=True, env="ENABLE_WEB_SEARCH")
-    enable_code_generation: bool = Field(default=True, env="ENABLE_CODE_GENERATION")
-    enable_shell_execution: bool = Field(default=False, env="ENABLE_SHELL_EXECUTION")
+    max_reasoning_steps: int = Field(default=5)
+    enable_web_search: bool = Field(default=True)
+    enable_code_generation: bool = Field(default=True)
+    enable_shell_execution: bool = Field(default=False)
     
     # Paths
     base_dir: Path = Path(__file__).parent.parent.parent
@@ -62,11 +68,6 @@ class Settings(BaseSettings):
     supported_languages: List[str] = ["ar", "en"]
     default_language: str = "ar"
     
-    class Config:
-        env_file = ".env"
-        env_file_encoding = "utf-8"
-        case_sensitive = False
-    
     def __init__(self, **kwargs):
         super().__init__(**kwargs)
         # Create necessary directories
diff --git a/requirements.txt b/requirements.txt
index 1553b13..0f3f219 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,41 +1,41 @@
 # Core Dependencies
-fastapi==0.104.1
-uvicorn[standard]==0.24.0
-pydantic==2.5.0
-pydantic-settings==2.1.0
-python-dotenv==1.0.0
-httpx==0.25.1
-aiohttp==3.9.0
+fastapi~=0.104.1
+uvicorn[standard]~=0.24.0
+pydantic~=2.5
+pydantic-settings~=2.1
+python-dotenv~=1.0
+httpx~=0.25
+aiohttp~=3.9
 
-# AI and NLP
-openai==1.3.5
-anthropic==0.7.1
-transformers==4.35.2
-torch==2.1.1
-sentence-transformers==2.2.2
+# AI and NLP (using compatible versions for Python 3.12)
+openai~=1.3
+anthropic~=0.7
+transformers~=4.35
+torch>=2.2.0,<3.0.0
+sentence-transformers~=2.2
 
 # Arabic Language Processing
-camel-tools==1.5.2
-pyarabic==0.6.15
-nltk==3.8.1
+camel-tools~=1.5
+pyarabic~=0.6
+nltk~=3.8
 
 # Data Processing
-pandas==2.1.3
-numpy==1.26.2
-beautifulsoup4==4.12.2
-lxml==4.9.3
+pandas~=2.1
+numpy~=1.26
+beautifulsoup4~=4.12
+lxml~=4.9
 
 # Utilities
-requests==2.31.0
-python-multipart==0.0.6
-jinja2==3.1.2
-markdown==3.5.1
+requests~=2.31
+python-multipart~=0.0.6
+jinja2~=3.1
+markdown~=3.5
 
 # Testing
-pytest==7.4.3
-pytest-asyncio==0.21.1
-pytest-cov==4.1.0
+pytest~=7.4
+pytest-asyncio~=0.21
+pytest-cov~=4.1
 
 # Security
-cryptography==41.0.7
-pyjwt==2.8.0
+cryptography~=41.0
+pyjwt~=2.8