galaxy/specs/APP-4427/PRODUCT.md

Handoff Environment Selection: PWD-Based Overlap at Activation

Linear: APP-4427

Summary

When a user enters & handoff compose mode or uses /handoff, auto-select the cloud environment that matches the repo they're currently working in — at activation time, not after pressing Enter. This replaces the current two-layer system where the environment visibly shifts after the handoff is dispatched.

Figma: none provided

Behavior

1. When the user types & or runs /handoff (no query), the system checks the terminal's current working directory for a git repo (walk up to .git, read origin remote URL, parse <owner>/<repo>).

2. If a git repo is found and at least one cloud environment's github_repos contains that repo, select the environment with the most overlap (breaking ties by most-recently-used). The user can still override this from the environment dropdown.

3. If no git repo is found, or no environment matches the repo, fall back to the existing default: saved last_selected_environment_id setting, then most-recently-used environment.

4. The environment chip in the footer reflects the selected environment immediately (or near-immediately after the async git check completes).

5. When the user presses Enter, the compose state's current selected_environment_id is passed directly to the new cloud pane. The environment does not change during the transition from compose mode to the cloud pane.

6. For /handoff query (auto-submit path), the environment is None (compose state isn't active), so the cloud pane falls back to its own default selection.

7. The pwd-based check uses the same find_git_root / git_origin_url / parse_github_repo / pick_handoff_overlap_env utilities as the existing touched-workspace pipeline — just scoped to a single directory instead of the full conversation history.

8. The async git check should complete quickly (single local git command with the existing 5-second timeout). If the check hasn't completed when the user presses Enter, the current selection (from the fallback defaults) is used.