[AdityaRaj212]

📋 Summary of Changes

1. Turso / Libsql Connection Stability & Self-Healing (src/lib/db.ts):
   • Fixed globalDbUrl caching so connection instances are properly reused across requests instead of repeatedly destroyed and re-opened.
   • Added handleWalConflict() to safely close dangling handles, unlink conflicted/diverged local replica files, pull a clean replica from Turso, and auto-retry write queries.
2. Local Auth Cookie Support (src/app/api/auth/otp/verify/route.ts):
   • Conditioned secure: true on cookies so localhost (127.0.0.1 / localhost) does not reject session cookies over http://.
3. React Rules of Hooks Fix on Reports Page (src/app/reports/page.tsx):
   • Replaced conditional useMemo at line 539 (which was invoked after early returns on loading and error states) with direct calculation. All hooks in ReportsPage now execute unconditionally at top-level.

🎯 Target Branch Verification

• This PR targets the staging branch (Direct PRs to main are reserved exclusively for staging-to-main production releases).

🔍 Context & Motivation

• Resolves WalConflict errors during OTP send/writes on embedded replica.
• Resolves console error React has detected a change in the order of Hooks called by ReportsPage and runtime error Rendered more hooks than during the previous render.

✅ Verification & Quality Checklist

• Typecheck: npx tsc --noEmit passes with 0 errors.
• Test Suite: npm test passes 70/70 tests.
• Production Build: npm run build succeeds cleanly.
• Deterministic Financial Math: Verified.
• Security & Authorization: Validated session tokens and cookie flags.
• Design Aesthetics & Theming: Preserved theme consistency.

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Project	Deployment	Actions	Updated
bagstack	Ready	Preview	Oct 2, 2026 4:48pm UTC

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