From 95bca2c3b39c83e4cab6e4a5b09215e534fbd33c Mon Sep 17 00:00:00 2001
From: Abhi <43648792+abhipatel12@users.noreply.github.com>
Date: Tue, 17 Mar 2026 17:48:24 -0400
Subject: [PATCH] fix(cli): expand tilde in policy paths from settings.json
 (#22772)

---
 packages/cli/src/config/config.test.ts | 5 ++++-
 packages/cli/src/config/config.ts      | 8 ++++++--
 2 files changed, 10 insertions(+), 3 deletions(-)

diff --git a/packages/cli/src/config/config.test.ts b/packages/cli/src/config/config.test.ts
index 8990224b0f..57d1a150f8 100644
--- a/packages/cli/src/config/config.test.ts
+++ b/packages/cli/src/config/config.test.ts
@@ -3347,7 +3347,10 @@ describe('Policy Engine Integration in loadCliConfig', () => {
 
     expect(ServerConfig.createPolicyEngineConfig).toHaveBeenCalledWith(
       expect.objectContaining({
-        policyPaths: ['/path/to/policy1.toml', '/path/to/policy2.toml'],
+        policyPaths: [
+          path.normalize('/path/to/policy1.toml'),
+          path.normalize('/path/to/policy2.toml'),
+        ],
       }),
       expect.anything(),
     );
diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index aba827d08e..b4c8c9ca2e 100755
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -651,8 +651,12 @@ export async function loadCliConfig(
       ...settings.mcp,
       allowed: argv.allowedMcpServerNames ?? settings.mcp?.allowed,
     },
-    policyPaths: argv.policy ?? settings.policyPaths,
-    adminPolicyPaths: argv.adminPolicy ?? settings.adminPolicyPaths,
+    policyPaths: (argv.policy ?? settings.policyPaths)?.map((p) =>
+      resolvePath(p),
+    ),
+    adminPolicyPaths: (argv.adminPolicy ?? settings.adminPolicyPaths)?.map(
+      (p) => resolvePath(p),
+    ),
   };
 
   const { workspacePoliciesDir, policyUpdateConfirmationRequest } =