fix(cli): resolve environment loading and auth validation issues in ACP mode (#18025)

Co-authored-by: gemini-code-assist[bot] <176961590+gemini-code-assist[bot]@users.noreply.github.com>

packages/cli/src/config/auth.ts

@@ -8,7 +8,7 @@ import { AuthType } from '@google/gemini-cli-core';
 import { loadEnvironment, loadSettings } from './settings.js';
 
 export function validateAuthMethod(authMethod: string): string | null {
-  loadEnvironment(loadSettings().merged);
+  loadEnvironment(loadSettings().merged, process.cwd());
   if (
     authMethod === AuthType.LOGIN_WITH_GOOGLE ||
     authMethod === AuthType.COMPUTE_ADC

packages/cli/src/config/config.ts

@@ -433,7 +433,7 @@ export async function loadCliConfig(
   const ideMode = settings.ide?.enabled ?? false;
 
   const folderTrust = settings.security?.folderTrust?.enabled ?? false;
-  const trustedFolder = isWorkspaceTrusted(settings)?.isTrusted ?? false;
+  const trustedFolder = isWorkspaceTrusted(settings, cwd)?.isTrusted ?? false;
 
   // Set the context filename in the server's memoryTool module BEFORE loading memory
   // TODO(b/343434939): This is a bit of a hack. The contextFileName should ideally be passed

packages/cli/src/config/settings.test.ts

@@ -29,10 +29,11 @@ vi.mock('./settings.js', async (importActual) => {
 });
 
 // Mock trustedFolders
+import * as trustedFolders from './trustedFolders.js';
 vi.mock('./trustedFolders.js', () => ({
-  isWorkspaceTrusted: vi
-    .fn()
-    .mockReturnValue({ isTrusted: true, source: 'file' }),
+  isWorkspaceTrusted: vi.fn(),
+  isFolderTrustEnabled: vi.fn(),
+  loadTrustedFolders: vi.fn(),
 }));
 
 vi.mock('./settingsSchema.js', async (importOriginal) => {
@@ -151,7 +152,7 @@ describe('Settings Loading and Merging', () => {
     (mockFsExistsSync as Mock).mockReturnValue(false);
     (fs.readFileSync as Mock).mockReturnValue('{}'); // Return valid empty JSON
     (mockFsMkdirSync as Mock).mockImplementation(() => undefined);
-    vi.mocked(isWorkspaceTrusted).mockReturnValue({
+    vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
       isTrusted: true,
       source: 'file',
     });
@@ -1635,7 +1636,7 @@ describe('Settings Loading and Merging', () => {
     });
 
     it('should NOT merge workspace settings when workspace is not trusted', () => {
-      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
         isTrusted: false,
         source: 'file',
       });
@@ -1666,23 +1667,60 @@ describe('Settings Loading and Merging', () => {
       expect(settings.merged.context?.fileName).toBe('USER.md'); // User setting
       expect(settings.merged.ui?.theme).toBe('dark'); // User setting
     });
+
+    it('should NOT merge workspace settings when workspace trust is undefined', () => {
+      vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
+        isTrusted: undefined,
+        source: undefined,
+      });
+      (mockFsExistsSync as Mock).mockReturnValue(true);
+      const userSettingsContent = {
+        ui: { theme: 'dark' },
+        tools: { sandbox: false },
+        context: { fileName: 'USER.md' },
+      };
+      const workspaceSettingsContent = {
+        tools: { sandbox: true },
+        context: { fileName: 'WORKSPACE.md' },
+      };
+
+      (fs.readFileSync as Mock).mockImplementation(
+        (p: fs.PathOrFileDescriptor) => {
+          if (p === USER_SETTINGS_PATH)
+            return JSON.stringify(userSettingsContent);
+          if (p === MOCK_WORKSPACE_SETTINGS_PATH)
+            return JSON.stringify(workspaceSettingsContent);
+          return '{}';
+        },
+      );
+
+      const settings = loadSettings(MOCK_WORKSPACE_DIR);
+
+      expect(settings.merged.tools?.sandbox).toBe(false); // User setting
+      expect(settings.merged.context?.fileName).toBe('USER.md'); // User setting
+    });
   });
 
   describe('loadEnvironment', () => {
     function setup({
       isFolderTrustEnabled = true,
-      isWorkspaceTrustedValue = true,
+      isWorkspaceTrustedValue = true as boolean | undefined,
     }) {
       delete process.env['TESTTEST']; // reset
-      const geminiEnvPath = path.resolve(path.join(GEMINI_DIR, '.env'));
+      const geminiEnvPath = path.resolve(
+        path.join(MOCK_WORKSPACE_DIR, GEMINI_DIR, '.env'),
+      );
 
-      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
         isTrusted: isWorkspaceTrustedValue,
         source: 'file',
       });
-      (mockFsExistsSync as Mock).mockImplementation((p: fs.PathLike) =>
-        [USER_SETTINGS_PATH, geminiEnvPath].includes(p.toString()),
-      );
+      (mockFsExistsSync as Mock).mockImplementation((p: fs.PathLike) => {
+        const normalizedP = path.resolve(p.toString());
+        return [path.resolve(USER_SETTINGS_PATH), geminiEnvPath].includes(
+          normalizedP,
+        );
+      });
       const userSettingsContent: Settings = {
         ui: {
           theme: 'dark',
@@ -1698,9 +1736,10 @@ describe('Settings Loading and Merging', () => {
       };
       (fs.readFileSync as Mock).mockImplementation(
         (p: fs.PathOrFileDescriptor) => {
-          if (p === USER_SETTINGS_PATH)
+          const normalizedP = path.resolve(p.toString());
+          if (normalizedP === path.resolve(USER_SETTINGS_PATH))
             return JSON.stringify(userSettingsContent);
-          if (p === geminiEnvPath) return 'TESTTEST=1234';
+          if (normalizedP === geminiEnvPath) return 'TESTTEST=1234';
           return '{}';
         },
       );
@@ -1708,14 +1747,34 @@ describe('Settings Loading and Merging', () => {
 
     it('sets environment variables from .env files', () => {
       setup({ isFolderTrustEnabled: false, isWorkspaceTrustedValue: true });
-      loadEnvironment(loadSettings(MOCK_WORKSPACE_DIR).merged);
+      const settings = {
+        security: { folderTrust: { enabled: false } },
+      } as Settings;
+      loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
 
       expect(process.env['TESTTEST']).toEqual('1234');
     });
 
     it('does not load env files from untrusted spaces', () => {
       setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: false });
-      loadEnvironment(loadSettings(MOCK_WORKSPACE_DIR).merged);
+      const settings = {
+        security: { folderTrust: { enabled: true } },
+      } as Settings;
+      loadEnvironment(settings, MOCK_WORKSPACE_DIR, isWorkspaceTrusted);
+
+      expect(process.env['TESTTEST']).not.toEqual('1234');
+    });
+
+    it('does not load env files when trust is undefined', () => {
+      delete process.env['TESTTEST'];
+      // isWorkspaceTrusted returns {isTrusted: undefined} for matched rules with no trust value, or no matching rules.
+      setup({ isFolderTrustEnabled: true, isWorkspaceTrustedValue: undefined });
+      const settings = {
+        security: { folderTrust: { enabled: true } },
+      } as Settings;
+
+      const mockTrustFn = vi.fn().mockReturnValue({ isTrusted: undefined });
+      loadEnvironment(settings, MOCK_WORKSPACE_DIR, mockTrustFn);
 
       expect(process.env['TESTTEST']).not.toEqual('1234');
     });
@@ -1731,7 +1790,7 @@ describe('Settings Loading and Merging', () => {
       mockFsExistsSync.mockReturnValue(true);
       mockFsReadFileSync = vi.mocked(fs.readFileSync);
       mockFsReadFileSync.mockReturnValue('{}');
-      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      vi.spyOn(trustedFolders, 'isWorkspaceTrusted').mockReturnValue({
         isTrusted: true,
         source: undefined,
       });

packages/cli/src/config/settings.ts

@@ -50,7 +50,9 @@ import {
   formatValidationError,
 } from './settings-validation.js';
 
-function getMergeStrategyForPath(path: string[]): MergeStrategy | undefined {
+export function getMergeStrategyForPath(
+  path: string[],
+): MergeStrategy | undefined {
   let current: SettingDefinition | undefined = undefined;
   let currentSchema: SettingsSchema | undefined = getSettingsSchema();
   let parent: SettingDefinition | undefined = undefined;
@@ -432,10 +434,15 @@ export function setUpCloudShellEnvironment(envFilePath: string | null): void {
   }
 }
 
-export function loadEnvironment(settings: Settings): void {
-  const envFilePath = findEnvFile(process.cwd());
+export function loadEnvironment(
+  settings: Settings,
+  workspaceDir: string,
+  isWorkspaceTrustedFn = isWorkspaceTrusted,
+): void {
+  const envFilePath = findEnvFile(workspaceDir);
+  const trustResult = isWorkspaceTrustedFn(settings, workspaceDir);
 
-  if (!isWorkspaceTrusted(settings).isTrusted) {
+  if (trustResult.isTrusted !== true) {
     return;
   }
 
@@ -600,7 +607,8 @@ export function loadSettings(
     userSettings,
   );
   const isTrusted =
-    isWorkspaceTrusted(initialTrustCheckSettings as Settings).isTrusted ?? true;
+    isWorkspaceTrusted(initialTrustCheckSettings as Settings, workspaceDir)
+      .isTrusted ?? false;
 
   // Create a temporary merged settings object to pass to loadEnvironment.
   const tempMergedSettings = mergeSettings(
@@ -613,7 +621,7 @@ export function loadSettings(
 
   // loadEnvironment depends on settings so we have to create a temp version of
   // the settings to avoid a cycle
-  loadEnvironment(tempMergedSettings);
+  loadEnvironment(tempMergedSettings, workspaceDir);
 
   // Check for any fatal errors before proceeding
   const fatalErrors = settingsErrors.filter((e) => e.severity === 'error');

packages/cli/src/config/trustedFolders.test.ts

@@ -326,6 +326,19 @@ describe('isWorkspaceTrusted', () => {
     });
   });
 
+  it('should use workspaceDir instead of process.cwd() when provided', () => {
+    mockCwd = '/home/user/untrusted';
+    const workspaceDir = '/home/user/projectA';
+    mockRules['/home/user/projectA'] = TrustLevel.TRUST_FOLDER;
+    mockRules['/home/user/untrusted'] = TrustLevel.DO_NOT_TRUST;
+
+    // process.cwd() is untrusted, but workspaceDir is trusted
+    expect(isWorkspaceTrusted(mockSettings, workspaceDir)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
+  });
+
   it('should handle path normalization', () => {
     mockCwd = '/home/user/projectA';
     mockRules[`/home/user/../user/${path.basename('/home/user/projectA')}`] =

packages/cli/src/config/trustedFolders.ts

@@ -227,6 +227,7 @@ export function isFolderTrustEnabled(settings: Settings): boolean {
 }
 
 function getWorkspaceTrustFromLocalConfig(
+  workspaceDir: string,
   trustConfig?: Record<string, TrustLevel>,
 ): TrustResult {
   const folders = loadTrustedFolders();
@@ -241,7 +242,7 @@ function getWorkspaceTrustFromLocalConfig(
     );
   }
 
-  const isTrusted = folders.isPathTrusted(process.cwd(), configToUse);
+  const isTrusted = folders.isPathTrusted(workspaceDir, configToUse);
   return {
     isTrusted,
     source: isTrusted !== undefined ? 'file' : undefined,
@@ -250,6 +251,7 @@ function getWorkspaceTrustFromLocalConfig(
 
 export function isWorkspaceTrusted(
   settings: Settings,
+  workspaceDir: string = process.cwd(),
   trustConfig?: Record<string, TrustLevel>,
 ): TrustResult {
   if (!isFolderTrustEnabled(settings)) {
@@ -262,5 +264,5 @@ export function isWorkspaceTrusted(
   }
 
   // Fall back to the local user configuration
-  return getWorkspaceTrustFromLocalConfig(trustConfig);
+  return getWorkspaceTrustFromLocalConfig(workspaceDir, trustConfig);
 }