Two-step nilpotent monodromy of local systems on special varieties

Let $X$ be a smooth complex quasi-projective variety that is special in the sense of Campana. We prove that the monodromy group of any complex local system on $X$ is virtually nilpotent of class at most $2$. This result sharply refines a theorem of Cadorel, Yamanoi, and the second author. To establish this result, we develop a deformation theory for certain local systems on quasi-compact K\"ahler manifolds by constructing universal deformations for such local systems. As a byproduct of our argument, we also show that a general fiber of the quasi-Albanese map of $X$ is special, extending a result of Campana and Claudon from the projective to the quasi-projective setting.