diff --git a/.github/workflows/main.yml b/.github/workflows/main.yml
index 5d8066725ddbf3..b40f0e7fc61965 100644
--- a/.github/workflows/main.yml
+++ b/.github/workflows/main.yml
@@ -278,8 +278,7 @@ jobs:
             cc: clang
             pool: macos-13
           - jobname: osx-gcc
-            cc: gcc
-            cc_package: gcc-13
+            cc: gcc-13
             pool: macos-13
           - jobname: linux-gcc-default
             cc: gcc
diff --git a/Documentation/RelNotes/2.39.5.txt b/Documentation/RelNotes/2.39.5.txt
new file mode 100644
index 00000000000000..519ba4ef3f97c7
--- /dev/null
+++ b/Documentation/RelNotes/2.39.5.txt
@@ -0,0 +1,26 @@
+Git 2.39.5 Release Notes
+========================
+
+Relative to Git 2.39.5, this release has fixes for regressions that
+were introduced in 2.39.4, most notably the error message shown when
+cloning Git LFS-enabled repositories. It also contains a fix for the
+`osx-gcc` CI job.
+
+Fixes since Git 2.39.4
+----------------------
+
+ * Hooks that are intentionally installed _during_ a clone operation
+   (like Git LFS does in its `smudge` filter) can now be marked as
+   intentional by appending `safe.hook.sha256` values to a protected
+   config.
+
+   The hooks installed by the current Git LFS version (3.5.1) are
+   hard-coded as being safe.
+
+ * The `core.hooksPath` setting is allowed in repository-local
+   configs again; The benefits of making it protected were
+   outweighed by the cost.
+
+ * Fix a memory leak.
+
+ * CI fix.
diff --git a/Documentation/RelNotes/2.40.3.txt b/Documentation/RelNotes/2.40.3.txt
new file mode 100644
index 00000000000000..adc9641db3ad48
--- /dev/null
+++ b/Documentation/RelNotes/2.40.3.txt
@@ -0,0 +1,6 @@
+Git v2.40.3 Release Notes
+=========================
+
+This release merges up the regression bug fixes in v2.39.5,
+most notably the bug where cloning Git LFS-enabled repositories
+failed; see the release notes for that version for details.
diff --git a/Documentation/RelNotes/2.41.2.txt b/Documentation/RelNotes/2.41.2.txt
new file mode 100644
index 00000000000000..2aa3db6a42ee12
--- /dev/null
+++ b/Documentation/RelNotes/2.41.2.txt
@@ -0,0 +1,7 @@
+Git v2.41.2 Release Notes
+=========================
+
+This release merges up the regression bug fixes in v2.39.5 and
+v2.40.3, most notably the bug where cloning Git LFS-enabled
+repositories failed; see the release notes for these versions
+for details.
diff --git a/Documentation/config/safe.txt b/Documentation/config/safe.txt
index bde7f31459b981..69ee845be89e4a 100644
--- a/Documentation/config/safe.txt
+++ b/Documentation/config/safe.txt
@@ -59,3 +59,9 @@ which id the original user has.
 If that is not what you would prefer and want git to only trust
 repositories that are owned by root instead, then you can remove
 the `SUDO_UID` variable from root's environment before invoking git.
+
+safe.hook.sha256::
+	The value is the SHA-256 of hooks that are considered to be safe
+	to run during a clone operation.
++
+Multiple values can be added via `git config --global --add`.
diff --git a/ci/install-dependencies.sh b/ci/install-dependencies.sh
index 4f407530d30575..33039d516b8d17 100755
--- a/ci/install-dependencies.sh
+++ b/ci/install-dependencies.sh
@@ -34,8 +34,6 @@ macos-*)
 	export HOMEBREW_NO_AUTO_UPDATE=1 HOMEBREW_NO_INSTALL_CLEANUP=1
 	# Uncomment this if you want to run perf tests:
 	# brew install gnu-time
-	test -z "$BREW_INSTALL_PACKAGES" ||
-	brew install $BREW_INSTALL_PACKAGES
 	brew link --force gettext
 	mkdir -p $HOME/bin
 	(
diff --git a/config.c b/config.c
index cccda75a7885f5..3846a37be971c9 100644
--- a/config.c
+++ b/config.c
@@ -1558,19 +1558,8 @@ static int git_default_core_config(const char *var, const char *value,
 	if (!strcmp(var, "core.attributesfile"))
 		return git_config_pathname(&git_attributes_file, var, value);
 
-	if (!strcmp(var, "core.hookspath")) {
-		if (ctx->kvi && ctx->kvi->scope == CONFIG_SCOPE_LOCAL &&
-		    git_env_bool("GIT_CLONE_PROTECTION_ACTIVE", 0))
-			die(_("active `core.hooksPath` found in the local "
-			      "repository config:\n\t%s\nFor security "
-			      "reasons, this is disallowed by default.\nIf "
-			      "this is intentional and the hook should "
-			      "actually be run, please\nrun the command "
-			      "again with "
-			      "`GIT_CLONE_PROTECTION_ACTIVE=false`"),
-			    value);
+	if (!strcmp(var, "core.hookspath"))
 		return git_config_pathname(&git_hooks_path, var, value);
-	}
 
 	if (!strcmp(var, "core.bare")) {
 		is_bare_repository_cfg = git_config_bool(var, value);
diff --git a/copy.c b/copy.c
index 3df156f6cea04b..d9d20920126905 100644
--- a/copy.c
+++ b/copy.c
@@ -70,61 +70,3 @@ int copy_file_with_time(const char *dst, const char *src, int mode)
 		return copy_times(dst, src);
 	return status;
 }
-
-static int do_symlinks_match(const char *path1, const char *path2)
-{
-	struct strbuf buf1 = STRBUF_INIT, buf2 = STRBUF_INIT;
-	int ret = 0;
-
-	if (!strbuf_readlink(&buf1, path1, 0) &&
-	    !strbuf_readlink(&buf2, path2, 0))
-		ret = !strcmp(buf1.buf, buf2.buf);
-
-	strbuf_release(&buf1);
-	strbuf_release(&buf2);
-	return ret;
-}
-
-int do_files_match(const char *path1, const char *path2)
-{
-	struct stat st1, st2;
-	int fd1 = -1, fd2 = -1, ret = 1;
-	char buf1[8192], buf2[8192];
-
-	if ((fd1 = open_nofollow(path1, O_RDONLY)) < 0 ||
-	    fstat(fd1, &st1) || !S_ISREG(st1.st_mode)) {
-		if (fd1 < 0 && errno == ELOOP)
-			/* maybe this is a symbolic link? */
-			return do_symlinks_match(path1, path2);
-		ret = 0;
-	} else if ((fd2 = open_nofollow(path2, O_RDONLY)) < 0 ||
-		   fstat(fd2, &st2) || !S_ISREG(st2.st_mode)) {
-		ret = 0;
-	}
-
-	if (ret)
-		/* to match, neither must be executable, or both */
-		ret = !(st1.st_mode & 0111) == !(st2.st_mode & 0111);
-
-	if (ret)
-		ret = st1.st_size == st2.st_size;
-
-	while (ret) {
-		ssize_t len1 = read_in_full(fd1, buf1, sizeof(buf1));
-		ssize_t len2 = read_in_full(fd2, buf2, sizeof(buf2));
-
-		if (len1 < 0 || len2 < 0 || len1 != len2)
-			ret = 0; /* read error or different file size */
-		else if (!len1) /* len2 is also 0; hit EOF on both */
-			break; /* ret is still true */
-		else
-			ret = !memcmp(buf1, buf2, len1);
-	}
-
-	if (fd1 >= 0)
-		close(fd1);
-	if (fd2 >= 0)
-		close(fd2);
-
-	return ret;
-}
diff --git a/copy.h b/copy.h
index 057259a3a7a726..2af77cba8649b3 100644
--- a/copy.h
+++ b/copy.h
@@ -7,18 +7,4 @@ int copy_fd(int ifd, int ofd);
 int copy_file(const char *dst, const char *src, int mode);
 int copy_file_with_time(const char *dst, const char *src, int mode);
 
-/*
- * Compare the file mode and contents of two given files.
- *
- * If both files are actually symbolic links, the function returns 1 if the link
- * targets are identical or 0 if they are not.
- *
- * If any of the two files cannot be accessed or in case of read failures, this
- * function returns 0.
- *
- * If the file modes and contents are identical, the function returns 1,
- * otherwise it returns 0.
- */
-int do_files_match(const char *path1, const char *path2);
-
 #endif /* COPY_H */
diff --git a/hook.c b/hook.c
index eebc4d44734a80..69a15d47031e94 100644
--- a/hook.c
+++ b/hook.c
@@ -9,30 +9,88 @@
 #include "strbuf.h"
 #include "environment.h"
 #include "setup.h"
-#include "copy.h"
+#include "hex.h"
+#include "strmap.h"
 
-static int identical_to_template_hook(const char *name, const char *path)
+static struct strset safe_hook_sha256s = STRSET_INIT;
+static int safe_hook_sha256s_initialized;
+
+static int get_sha256_of_file_contents(const char *path, char *sha256)
 {
-	const char *env = getenv("GIT_CLONE_TEMPLATE_DIR");
-	const char *template_dir = get_template_dir(env && *env ? env : NULL);
-	struct strbuf template_path = STRBUF_INIT;
-	int found_template_hook, ret;
+	struct strbuf sb = STRBUF_INIT;
+	int fd;
+	ssize_t res;
 
-	strbuf_addf(&template_path, "%s/hooks/%s", template_dir, name);
-	found_template_hook = access(template_path.buf, X_OK) >= 0;
-#ifdef STRIP_EXTENSION
-	if (!found_template_hook) {
-		strbuf_addstr(&template_path, STRIP_EXTENSION);
-		found_template_hook = access(template_path.buf, X_OK) >= 0;
+	git_hash_ctx ctx;
+	const struct git_hash_algo *algo = &hash_algos[GIT_HASH_SHA256];
+	unsigned char hash[GIT_MAX_RAWSZ];
+
+	if ((fd = open(path, O_RDONLY)) < 0)
+		return -1;
+	res = strbuf_read(&sb, fd, 400);
+	close(fd);
+	if (res < 0)
+		return -1;
+
+	algo->init_fn(&ctx);
+	algo->update_fn(&ctx, sb.buf, sb.len);
+	strbuf_release(&sb);
+	algo->final_fn(hash, &ctx);
+
+	hash_to_hex_algop_r(sha256, hash, algo);
+
+	return 0;
+}
+
+void add_safe_hook(const char *path)
+{
+	char sha256[GIT_SHA256_HEXSZ + 1] = { '\0' };
+
+	if (!get_sha256_of_file_contents(path, sha256)) {
+		char *p;
+
+		strset_add(&safe_hook_sha256s, sha256);
+
+		/* support multi-process operations e.g. recursive clones */
+		p = xstrfmt("safe.hook.sha256=%s", sha256);
+		git_config_push_parameter(p);
+		free(p);
 	}
-#endif
-	if (!found_template_hook)
+}
+
+static int safe_hook_cb(const char *key, const char *value,
+			const struct config_context *ctx, void *d)
+{
+	struct strset *set = d;
+
+	if (value && !strcmp(key, "safe.hook.sha256"))
+		strset_add(set, value);
+
+	return 0;
+}
+
+static int is_hook_safe_during_clone(const char *name, const char *path, char *sha256)
+{
+	if (get_sha256_of_file_contents(path, sha256) < 0)
 		return 0;
 
-	ret = do_files_match(template_path.buf, path);
+	if (!safe_hook_sha256s_initialized) {
+		safe_hook_sha256s_initialized = 1;
 
-	strbuf_release(&template_path);
-	return ret;
+		/* Hard-code known-safe values for Git LFS v3.4.0..v3.5.1 */
+		/* pre-push */
+		strset_add(&safe_hook_sha256s, "df5417b2daa3aa144c19681d1e997df7ebfe144fb7e3e05138bd80ae998008e4");
+		/* post-checkout */
+		strset_add(&safe_hook_sha256s, "791471b4ff472aab844a4fceaa48bbb0a12193616f971e8e940625498b4938a6");
+		/* post-commit */
+		strset_add(&safe_hook_sha256s, "21e961572bb3f43a5f2fbafc1cc764d86046cc2e5f0bbecebfe9684a0b73b664");
+		/* post-merge */
+		strset_add(&safe_hook_sha256s, "75da0da66a803b4b030ad50801ba57062c6196105eb1d2251590d100edb9390b");
+
+		git_protected_config(safe_hook_cb, &safe_hook_sha256s);
+	}
+
+	return strset_contains(&safe_hook_sha256s, sha256);
 }
 
 const char *find_hook(const char *name)
@@ -40,6 +98,7 @@ const char *find_hook(const char *name)
 	static struct strbuf path = STRBUF_INIT;
 
 	int found_hook;
+	char sha256[GIT_SHA256_HEXSZ + 1] = { '\0' };
 
 	strbuf_reset(&path);
 	strbuf_git_path(&path, "hooks/%s", name);
@@ -71,13 +130,13 @@ const char *find_hook(const char *name)
 		return NULL;
 	}
 	if (!git_hooks_path && git_env_bool("GIT_CLONE_PROTECTION_ACTIVE", 0) &&
-	    !identical_to_template_hook(name, path.buf))
+	    !is_hook_safe_during_clone(name, path.buf, sha256))
 		die(_("active `%s` hook found during `git clone`:\n\t%s\n"
 		      "For security reasons, this is disallowed by default.\n"
-		      "If this is intentional and the hook should actually "
-		      "be run, please\nrun the command again with "
-		      "`GIT_CLONE_PROTECTION_ACTIVE=false`"),
-		    name, path.buf);
+		      "If this is intentional and the hook is safe to run, "
+		      "please run the following command and try again:\n\n"
+		      "  git config --global --add safe.hook.sha256 %s"),
+		    name, path.buf, sha256);
 	return path.buf;
 }
 
diff --git a/hook.h b/hook.h
index 19ab9a5806e1c1..b4770d9bd88014 100644
--- a/hook.h
+++ b/hook.h
@@ -87,4 +87,14 @@ int run_hooks(const char *hook_name);
  * hook. This function behaves like the old run_hook_le() API.
  */
 int run_hooks_l(const char *hook_name, ...);
+
+/**
+ * Mark the contents of the provided path as safe to run during a clone
+ * operation.
+ *
+ * This function is mainly used when copying templates to mark the
+ * just-copied hooks as benign.
+ */
+void add_safe_hook(const char *path);
+
 #endif
diff --git a/setup.c b/setup.c
index 881935f0956bec..a9e8ee9dbbd336 100644
--- a/setup.c
+++ b/setup.c
@@ -18,6 +18,8 @@
 #include "trace2.h"
 #include "worktree.h"
 #include "exec-cmd.h"
+#include "run-command.h"
+#include "hook.h"
 
 static int inside_git_dir = -1;
 static int inside_work_tree = -1;
@@ -1793,6 +1795,7 @@ static void copy_templates_1(struct strbuf *path, struct strbuf *template_path,
 	size_t path_baselen = path->len;
 	size_t template_baselen = template_path->len;
 	struct dirent *de;
+	int is_hooks_dir = ends_with(template_path->buf, "/hooks/");
 
 	/* Note: if ".git/hooks" file exists in the repository being
 	 * re-initialized, /etc/core-git/templates/hooks/update would
@@ -1845,6 +1848,11 @@ static void copy_templates_1(struct strbuf *path, struct strbuf *template_path,
 			strbuf_release(&lnk);
 		}
 		else if (S_ISREG(st_template.st_mode)) {
+			if (is_hooks_dir &&
+			    is_executable(template_path->buf))
+				add_safe_hook(template_path->buf);
+
+
 			if (copy_file(path->buf, template_path->buf, st_template.st_mode))
 				die_errno(_("cannot copy '%s' to '%s'"),
 					  template_path->buf, path->buf);
diff --git a/t/helper/test-path-utils.c b/t/helper/test-path-utils.c
index 023ed2e1a7835c..bf0e23ed50507b 100644
--- a/t/helper/test-path-utils.c
+++ b/t/helper/test-path-utils.c
@@ -501,16 +501,6 @@ int cmd__path_utils(int argc, const char **argv)
 		return !!res;
 	}
 
-	if (argc == 4 && !strcmp(argv[1], "do_files_match")) {
-		int ret = do_files_match(argv[2], argv[3]);
-
-		if (ret)
-			printf("equal\n");
-		else
-			printf("different\n");
-		return !ret;
-	}
-
 	fprintf(stderr, "%s: unknown function name: %s\n", argv[0],
 		argv[1] ? argv[1] : "(there was none)");
 	return 1;
diff --git a/t/t0060-path-utils.sh b/t/t0060-path-utils.sh
index 85686ee15dadca..0afa3d0d312ca6 100755
--- a/t/t0060-path-utils.sh
+++ b/t/t0060-path-utils.sh
@@ -610,45 +610,4 @@ test_expect_success !VALGRIND,RUNTIME_PREFIX,CAN_EXEC_IN_PWD '%(prefix)/ works'
 	test_cmp expect actual
 '
 
-test_expect_success 'do_files_match()' '
-	test_seq 0 10 >0-10.txt &&
-	test_seq -1 10 >-1-10.txt &&
-	test_seq 1 10 >1-10.txt &&
-	test_seq 1 9 >1-9.txt &&
-	test_seq 0 8 >0-8.txt &&
-
-	test-tool path-utils do_files_match 0-10.txt 0-10.txt >out &&
-
-	assert_fails() {
-		test_must_fail \
-		test-tool path-utils do_files_match "$1" "$2" >out &&
-		grep different out
-	} &&
-
-	assert_fails 0-8.txt 1-9.txt &&
-	assert_fails -1-10.txt 0-10.txt &&
-	assert_fails 1-10.txt 1-9.txt &&
-	assert_fails 1-10.txt .git &&
-	assert_fails does-not-exist 1-10.txt &&
-
-	if test_have_prereq FILEMODE
-	then
-		cp 0-10.txt 0-10.x &&
-		chmod a+x 0-10.x &&
-		assert_fails 0-10.txt 0-10.x
-	fi &&
-
-	if test_have_prereq SYMLINKS
-	then
-		ln -sf 0-10.txt symlink &&
-		ln -s 0-10.txt another-symlink &&
-		ln -s over-the-ocean yet-another-symlink &&
-		ln -s "$PWD/0-10.txt" absolute-symlink &&
-		assert_fails 0-10.txt symlink &&
-		test-tool path-utils do_files_match symlink another-symlink &&
-		assert_fails symlink yet-another-symlink &&
-		assert_fails symlink absolute-symlink
-	fi
-'
-
 test_done
diff --git a/t/t1350-config-hooks-path.sh b/t/t1350-config-hooks-path.sh
index f6dc83e2aabf69..45a04929170640 100755
--- a/t/t1350-config-hooks-path.sh
+++ b/t/t1350-config-hooks-path.sh
@@ -41,4 +41,11 @@ test_expect_success 'git rev-parse --git-path hooks' '
 	test .git/custom-hooks/abc = "$(cat actual)"
 '
 
+test_expect_success 'core.hooksPath=/dev/null' '
+	git clone -c core.hooksPath=/dev/null . no-templates &&
+	value="$(git -C no-templates config --local core.hooksPath)" &&
+	# The Bash used by Git for Windows rewrites `/dev/null` to `nul`
+	{ test /dev/null = "$value" || test nul = "$value"; }
+'
+
 test_done
diff --git a/t/t1800-hook.sh b/t/t1800-hook.sh
index 750011d717f109..c51be5f7a06834 100755
--- a/t/t1800-hook.sh
+++ b/t/t1800-hook.sh
@@ -185,19 +185,39 @@ test_expect_success 'stdin to hooks' '
 	test_cmp expect actual
 '
 
-test_expect_success 'clone protections' '
-	test_config core.hooksPath "$(pwd)/my-hooks" &&
-	mkdir -p my-hooks &&
-	write_script my-hooks/test-hook <<-\EOF &&
-	echo Hook ran $1
+test_expect_success '`safe.hook.sha256` and clone protections' '
+	git init safe-hook &&
+	write_script safe-hook/.git/hooks/pre-push <<-\EOF &&
+	echo "called hook" >safe-hook.log
 	EOF
 
-	git hook run test-hook 2>err &&
-	grep "Hook ran" err &&
 	test_must_fail env GIT_CLONE_PROTECTION_ACTIVE=true \
-		git hook run test-hook 2>err &&
-	grep "active .core.hooksPath" err &&
-	! grep "Hook ran" err
+		git -C safe-hook hook run pre-push 2>err &&
+	cmd="$(grep "git config --global --add safe.hook.sha256 [0-9a-f]" err)" &&
+	eval "$cmd" &&
+	GIT_CLONE_PROTECTION_ACTIVE=true \
+		git -C safe-hook hook run pre-push &&
+	test "called hook" = "$(cat safe-hook/safe-hook.log)"
+'
+
+write_lfs_pre_push_hook () {
+	write_script "$1" <<-\EOF
+	command -v git-lfs >/dev/null 2>&1 || { echo >&2 "\nThis repository is configured for Git LFS but 'git-lfs' was not found on your path. If you no longer wish to use Git LFS, remove this hook by deleting the 'pre-push' file in the hooks directory (set by 'core.hookspath'; usually '.git/hooks').\n"; exit 2; }
+	git lfs pre-push "$@"
+	EOF
+}
+
+test_expect_success 'Git LFS special-handling in clone protections' '
+	git init lfs-hooks &&
+	write_lfs_pre_push_hook lfs-hooks/.git/hooks/pre-push &&
+	write_script git-lfs <<-\EOF &&
+	echo "called $*" >fake-git-lfs.log
+	EOF
+
+	PATH="$PWD:$PATH" GIT_CLONE_PROTECTION_ACTIVE=true \
+		git -C lfs-hooks hook run pre-push &&
+	test_write_lines "called pre-push" >expect &&
+	test_cmp lfs-hooks/fake-git-lfs.log expect
 '
 
 test_done
diff --git a/t/t5601-clone.sh b/t/t5601-clone.sh
index 1bcf652b109600..f03a076418b031 100755
--- a/t/t5601-clone.sh
+++ b/t/t5601-clone.sh
@@ -819,6 +819,25 @@ test_expect_success 'clone with init.templatedir runs hooks' '
 		git config --unset init.templateDir &&
 		! grep "active .* hook found" err &&
 		test_path_is_missing hook-run-local-config/hook.run
+	) &&
+
+	test_config_global protocol.file.allow always &&
+	git -C tmpl/hooks submodule add "$(pwd)/tmpl/hooks" sub &&
+	test_tick &&
+	git -C tmpl/hooks add .gitmodules sub &&
+	git -C tmpl/hooks commit -m submodule &&
+
+	(
+		sane_unset GIT_TEMPLATE_DIR &&
+		NO_SET_GIT_TEMPLATE_DIR=t &&
+		export NO_SET_GIT_TEMPLATE_DIR &&
+
+		git -c init.templateDir="$(pwd)/tmpl" \
+			clone --recurse-submodules \
+			tmpl/hooks hook-run-submodule 2>err &&
+		! grep "active .* hook found" err &&
+		test_path_is_file hook-run-submodule/hook.run &&
+		test_path_is_file hook-run-submodule/sub/hook.run
 	)
 '