Update docs, changelog, examples, and add ADRs for v1.2

- Add v1.1.0 and v1.2.0 changelog entries
- Add exclude field to config reference and example config
- Add ADRs documenting all major design decisions
- Fix step numbering in reverse_sync()
- Fix action.yml to copy VERSION file
- Add dist/ and .env to .gitignore
- Use refs/tags/ format for Nix flake tag refs

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>

README.md

@@ -16,12 +16,12 @@ josh:
 targets:
   - name: "billing"
     subfolder: "services/billing"
-    josh_filter: ":/services/billing"
     subrepo_url: "git@gitea.example.com:ext/billing.git"
     subrepo_auth: "ssh"
     branches:
       main: main
-    forward_only: []
+    exclude:                          # files excluded from subrepo (optional)
+      - ".monorepo/"
 
 bot:
   name: "josh-sync-bot"
@@ -58,8 +58,10 @@ Run `josh-sync preflight` to validate your setup.
 
 ## Documentation
 
-- **[Setup Guide](docs/guide.md)** — Step-by-step: prerequisites, importing existing subrepos, CI workflows, and troubleshooting
+- **[Setup Guide](docs/guide.md)** — Step-by-step: prerequisites, importing existing subrepos, CI workflows, file exclusion, and troubleshooting
 - **[Configuration Reference](docs/config-reference.md)** — Full `.josh-sync.yml` field documentation
+- **[Architecture Decision Records](docs/adr/)** — Design rationale and trade-offs
+- **[Changelog](CHANGELOG.md)** — Version history
 
 ## CLI
 
@@ -79,12 +81,16 @@ josh-sync state reset <target> [branch]
 
 - **Forward sync** (mono → subrepo): pushes directly if clean, creates conflict PR if not. Uses `--force-with-lease` for safety.
 - **Reverse sync** (subrepo → mono): always creates a PR, never pushes directly.
+- **File exclusion**: `exclude` patterns are embedded inline in the josh-proxy URL. Excluded files exist only in the monorepo.
+- **Filter reconciliation**: Changing the exclude list auto-creates a merge commit that connects old and new histories — no force-push needed.
 - **Loop prevention**: `Josh-Sync-Origin:` git trailer filters out bot commits.
 - **State tracking**: orphan branch `josh-sync-state` stores JSON per target/branch.
 
 ## Dependencies
 
-`bash >=4`, `git`, `curl`, `jq`, `yq` ([mikefarah/yq](https://github.com/mikefarah/yq) v4+), `openssh`
+`bash >=4`, `git`, `curl`, `jq`, `yq` ([mikefarah/yq](https://github.com/mikefarah/yq) v4+), `openssh`, `rsync`
+
+> The Nix flake bundles all dependencies automatically.
 
 ## License