fix(#5605): .env file loaded after settings are parsed (#6494)

packages/cli/src/config/settings.ts

@@ -70,6 +70,43 @@ export interface SettingsFile {
   settings: Settings;
   path: string;
 }
+
+function mergeSettings(
+  system: Settings,
+  user: Settings,
+  workspace: Settings,
+): Settings {
+  // folderTrust is not supported at workspace level.
+  // eslint-disable-next-line @typescript-eslint/no-unused-vars
+  const { folderTrust, ...workspaceWithoutFolderTrust } = workspace;
+
+  return {
+    ...user,
+    ...workspaceWithoutFolderTrust,
+    ...system,
+    customThemes: {
+      ...(user.customThemes || {}),
+      ...(workspace.customThemes || {}),
+      ...(system.customThemes || {}),
+    },
+    mcpServers: {
+      ...(user.mcpServers || {}),
+      ...(workspace.mcpServers || {}),
+      ...(system.mcpServers || {}),
+    },
+    includeDirectories: [
+      ...(system.includeDirectories || []),
+      ...(user.includeDirectories || []),
+      ...(workspace.includeDirectories || []),
+    ],
+    chatCompression: {
+      ...(system.chatCompression || {}),
+      ...(user.chatCompression || {}),
+      ...(workspace.chatCompression || {}),
+    },
+  };
+}
+
 export class LoadedSettings {
   constructor(
     system: SettingsFile,
@@ -96,39 +133,11 @@ export class LoadedSettings {
   }
 
   private computeMergedSettings(): Settings {
-    const system = this.system.settings;
-    const user = this.user.settings;
-    const workspace = this.workspace.settings;
-
-    // folderTrust is not supported at workspace level.
-    // eslint-disable-next-line @typescript-eslint/no-unused-vars
-    const { folderTrust, ...workspaceWithoutFolderTrust } = workspace;
-
-    return {
-      ...user,
-      ...workspaceWithoutFolderTrust,
-      ...system,
-      customThemes: {
-        ...(user.customThemes || {}),
-        ...(workspace.customThemes || {}),
-        ...(system.customThemes || {}),
-      },
-      mcpServers: {
-        ...(user.mcpServers || {}),
-        ...(workspace.mcpServers || {}),
-        ...(system.mcpServers || {}),
-      },
-      includeDirectories: [
-        ...(system.includeDirectories || []),
-        ...(user.includeDirectories || []),
-        ...(workspace.includeDirectories || []),
-      ],
-      chatCompression: {
-        ...(system.chatCompression || {}),
-        ...(user.chatCompression || {}),
-        ...(workspace.chatCompression || {}),
-      },
-    };
+    return mergeSettings(
+      this.system.settings,
+      this.user.settings,
+      this.workspace.settings,
+    );
   }
 
   forScope(scope: SettingScope): SettingsFile {
@@ -339,10 +348,7 @@ export function loadSettings(workspaceDir: string): LoadedSettings {
   try {
     if (fs.existsSync(systemSettingsPath)) {
       const systemContent = fs.readFileSync(systemSettingsPath, 'utf-8');
-      const parsedSystemSettings = JSON.parse(
-        stripJsonComments(systemContent),
-      ) as Settings;
-      systemSettings = resolveEnvVarsInObject(parsedSystemSettings);
+      systemSettings = JSON.parse(stripJsonComments(systemContent)) as Settings;
     }
   } catch (error: unknown) {
     settingsErrors.push({
@@ -355,10 +361,7 @@ export function loadSettings(workspaceDir: string): LoadedSettings {
   try {
     if (fs.existsSync(USER_SETTINGS_PATH)) {
       const userContent = fs.readFileSync(USER_SETTINGS_PATH, 'utf-8');
-      const parsedUserSettings = JSON.parse(
-        stripJsonComments(userContent),
-      ) as Settings;
-      userSettings = resolveEnvVarsInObject(parsedUserSettings);
+      userSettings = JSON.parse(stripJsonComments(userContent)) as Settings;
       // Support legacy theme names
       if (userSettings.theme && userSettings.theme === 'VS') {
         userSettings.theme = DefaultLight.name;
@@ -378,10 +381,9 @@ export function loadSettings(workspaceDir: string): LoadedSettings {
     try {
       if (fs.existsSync(workspaceSettingsPath)) {
         const projectContent = fs.readFileSync(workspaceSettingsPath, 'utf-8');
-        const parsedWorkspaceSettings = JSON.parse(
+        workspaceSettings = JSON.parse(
           stripJsonComments(projectContent),
         ) as Settings;
-        workspaceSettings = resolveEnvVarsInObject(parsedWorkspaceSettings);
         if (workspaceSettings.theme && workspaceSettings.theme === 'VS') {
           workspaceSettings.theme = DefaultLight.name;
         } else if (
@@ -399,6 +401,22 @@ export function loadSettings(workspaceDir: string): LoadedSettings {
     }
   }
 
+  // Create a temporary merged settings object to pass to loadEnvironment.
+  const tempMergedSettings = mergeSettings(
+    systemSettings,
+    userSettings,
+    workspaceSettings,
+  );
+
+  // loadEnviroment depends on settings so we have to create a temp version of
+  // the settings to avoid a cycle
+  loadEnvironment(tempMergedSettings);
+
+  // Now that the environment is loaded, resolve variables in the settings.
+  systemSettings = resolveEnvVarsInObject(systemSettings);
+  userSettings = resolveEnvVarsInObject(userSettings);
+  workspaceSettings = resolveEnvVarsInObject(workspaceSettings);
+
   // Create LoadedSettings first
   const loadedSettings = new LoadedSettings(
     {
@@ -429,9 +447,6 @@ export function loadSettings(workspaceDir: string): LoadedSettings {
     delete loadedSettings.merged.chatCompression;
   }
 
-  // Load environment with merged settings
-  loadEnvironment(loadedSettings.merged);
-
   return loadedSettings;
 }