fix(web): resolve Privy wallet payment selection

.agent/context/20260913T-privy-wallet-payment-hang.md

@@ -0,0 +1,49 @@
+# Privy wallet payment hang — 2026-09-13
+
+## Goal
+
+Make the OneShot user-wallet payment flow work for Privy-authenticated users and for EVM wallets connected through Privy, including Arc Testnet transactions.
+
+## Acceptance criteria
+
+- A Privy login for a user without a linked wallet creates an embedded Ethereum wallet.
+- A connected MetaMask or other EVM wallet is selected even when Privy has no active-wallet value.
+- Arc Testnet remains the selected chain (`5042002`) and the ERC-20 USDC transfer path is unchanged.
+- Existing payment safety invariants remain intact: one intent, replay-safe attempts, and at most one committed settlement.
+- Web tests and type checks pass, or pre-existing failures are documented.
+
+## Evidence and diagnosis
+
+- The quote request succeeds; the indefinite spinner starts in `JobWorkspace.start()` while resolving the user wallet.
+- `apps/web/src/auth/privy-session.tsx` configured `embeddedWallets.ethereum.createOnLogin` as `off`. With no external wallet in an incognito session, `connectWallet({ reset: true })` can remain pending on the wallet picker.
+- The wallet fallback only searched for `walletClientType === 'privy'`, so it could miss a connected MetaMask/Rainbow/Coinbase EVM wallet returned by `useWallets()`.
+- The public site bundle and the repository default use Privy app ID `cmtqbf5zo013w0cky3r0jqjca`, while the dashboard policy URL supplied by the user is app `cmtvo63u300640cjwcbyyonv3`. These are different Privy apps; the policy must be created in the app actually used by the deployed frontend/backend, or the app IDs must be aligned before deployment.
+- The current Privy wallet policy allows `eth_sendTransaction` on Arc Testnet chain ID `5042002`; the Arc Testnet wallet was funded successfully, so the observed issue is in wallet selection/configuration rather than the faucet balance.
+
+## Change scope
+
+- Update Privy embedded-wallet creation to `users-without-wallets`.
+- Restrict the Privy wallet picker to Ethereum wallets.
+- Select the first connected Ethereum wallet as a safe fallback when there is no active wallet.
+- Keep the existing transaction encoding, prepare/submit endpoints, receipt verification, and idempotency logic unchanged.
+
+## Non-goals
+
+- No production deployment.
+- No testnet transaction approval from the browser.
+- No change to backend settlement or Arc USDC contract handling.
+
+## Verification plan
+
+- Focused `apps/web` Privy session tests.
+- Web typecheck, lint, and build.
+- Re-run the web test suite and record any unrelated baseline failures.
+
+## Verification results
+
+- Focused Privy session tests: 7 passed.
+- Full web test suite: 16 files and 88 tests passed.
+- Web typecheck: passed.
+- Web lint: passed.
+- Web production build: passed; Vite emitted only the existing large-chunk warning.
+- `git diff --check`: passed.

apps/web/src/auth/privy-session.tsx

@@ -5,7 +5,7 @@ import {
   usePrivy,
   useWallets,
 } from '@privy-io/react-auth';
-import type { BaseConnectedWalletType, ConnectedWallet } from '@privy-io/react-auth';
+import type { BaseConnectedWalletType } from '@privy-io/react-auth';
 import { defineChain } from 'viem';
 import { useEffect, useRef, useState, type ReactNode } from 'react';
 import type { OperatorSession, OperatorSessionStatus, UserWalletSession } from './session.js';
@@ -30,13 +30,14 @@ export function PrivyOperatorProvider(props: {
       appId={props.appId}
       config={{
         loginMethods: ['email', 'wallet'],
-        embeddedWallets: { ethereum: { createOnLogin: 'off' } },
+        embeddedWallets: { ethereum: { createOnLogin: 'users-without-wallets' } },
         defaultChain: ARC_TESTNET,
         supportedChains: [ARC_TESTNET],
         appearance: {
           theme: '#0a0a0a',
           accentColor: '#00dc5f',
           walletList: ['detected_ethereum_wallets', 'wallet_connect'],
+          walletChainType: 'ethereum-only',
         },
       }}
     >
@@ -96,10 +97,8 @@ function transferData(recipient: string, amountAtomic: string): `0x${string}` {
 }
 
 type EthereumWallet = Extract<BaseConnectedWalletType, { readonly type: 'ethereum' }>;
-function isPrivyEthereumWallet(
-  value: BaseConnectedWalletType | undefined,
-): value is ConnectedWallet {
-  return value?.type === 'ethereum' && value.walletClientType === 'privy';
+function isEthereumWallet(value: BaseConnectedWalletType | undefined): value is EthereumWallet {
+  return value?.type === 'ethereum';
 }
 
 export function usePrivyUserWallet(): UserWalletSession {
@@ -115,7 +114,7 @@ export function usePrivyUserWallet(): UserWalletSession {
     activeWallet?.type === 'ethereum'
       ? activeWallet
       : walletsReady
-        ? wallets.find((candidate) => isPrivyEthereumWallet(candidate))
+        ? wallets.find((candidate) => isEthereumWallet(candidate))
         : undefined;
 
   async function selectWallet(): Promise<EthereumWallet | undefined> {

apps/web/test/privy-session.test.tsx

@@ -99,19 +99,20 @@ describe('usePrivyOperatorSession — native Privy login', () => {
     expect(mocks.getAccessToken).toHaveBeenCalledOnce();
   });
 
-  it('keeps automatic wallet creation off and configures Arc Testnet', () => {
+  it('creates an embedded wallet for users without one and configures Arc Testnet', () => {
     render(
       <PrivyOperatorProvider appId="test-app">
         <div />
       </PrivyOperatorProvider>,
     );
 
     expect(mocks.providerConfig).toMatchObject({
-      embeddedWallets: { ethereum: { createOnLogin: 'off' } },
+      embeddedWallets: { ethereum: { createOnLogin: 'users-without-wallets' } },
       defaultChain: { id: 5042002 },
       supportedChains: [{ id: 5042002 }],
       appearance: {
         walletList: ['detected_ethereum_wallets', 'wallet_connect'],
+        walletChainType: 'ethereum-only',
       },
     });
   });
@@ -139,7 +140,27 @@ describe('usePrivyOperatorSession — native Privy login', () => {
     );
     expect(privy.request).not.toHaveBeenCalled();
 
-    expect(first.request).not.toHaveBeenCalled();
+  });
+
+  it('uses the first connected Ethereum wallet when Privy has no active wallet', async () => {
+    const metamask = ethereumWallet('metamask', '0x1111111111111111111111111111111111111111');
+    mocks.wallets = [metamask.wallet];
+
+    const { result } = renderHook(() => usePrivyUserWallet());
+    expect(result.current.address).toBe(metamask.wallet.address);
+    expect(mocks.active.connect).not.toHaveBeenCalled();
+
+    await result.current.sendTransfer({
+      chain_id: 5042002,
+      token_contract: '0x3600000000000000000000000000000000000000',
+      payer_wallet: metamask.wallet.address,
+      recipient: '0x3333333333333333333333333333333333333333',
+      amount_atomic: '10000',
+    });
+
+    expect(metamask.request).toHaveBeenCalledWith(
+      expect.objectContaining({ method: 'eth_sendTransaction' }),
+    );
   });
 
   it('opens the Privy wallet picker when no wallet is active', async () => {
@@ -163,12 +184,6 @@ describe('usePrivyOperatorSession — native Privy login', () => {
       expect.objectContaining({ method: 'eth_sendTransaction' }),
     );
 
-    expect(typedData.types?.EIP712Domain).toEqual([
-      { name: 'name', type: 'string' },
-      { name: 'version', type: 'string' },
-      { name: 'chainId', type: 'uint256' },
-      { name: 'verifyingContract', type: 'address' },
-    ]);
   });
 
   it('forgets a picker wallet when the signed-in Privy user changes', async () => {