2 files changed, 175 insertions, 22 deletions

diff --git a/packages/core/src/code_assist/setup.test.ts b/packages/core/src/code_assist/setup.test.ts
index c1260e3f..cba051dd 100644
--- a/packages/core/src/code_assist/setup.test.ts
+++ b/packages/core/src/code_assist/setup.test.ts
@@ -16,9 +16,17 @@ const mockPaidTier: GeminiUserTier = {
   id: UserTierId.STANDARD,
   name: 'paid',
   description: 'Paid tier',
+  isDefault: true,
 };
 
-describe('setupUser', () => {
+const mockFreeTier: GeminiUserTier = {
+  id: UserTierId.FREE,
+  name: 'free',
+  description: 'Free tier',
+  isDefault: true,
+};
+
+describe('setupUser for existing user', () => {
   let mockLoad: ReturnType<typeof vi.fn>;
   let mockOnboardUser: ReturnType<typeof vi.fn>;
 
@@ -42,7 +50,7 @@ describe('setupUser', () => {
     );
   });
 
-  it('should use GOOGLE_CLOUD_PROJECT when set', async () => {
+  it('should use GOOGLE_CLOUD_PROJECT when set and project from server is undefined', async () => {
     process.env.GOOGLE_CLOUD_PROJECT = 'test-project';
     mockLoad.mockResolvedValue({
       currentTier: mockPaidTier,
@@ -57,8 +65,8 @@ describe('setupUser', () => {
     );
   });
 
-  it('should treat empty GOOGLE_CLOUD_PROJECT as undefined and use project from server', async () => {
-    process.env.GOOGLE_CLOUD_PROJECT = '';
+  it('should ignore GOOGLE_CLOUD_PROJECT when project from server is set', async () => {
+    process.env.GOOGLE_CLOUD_PROJECT = 'test-project';
     mockLoad.mockResolvedValue({
       cloudaicompanionProject: 'server-project',
       currentTier: mockPaidTier,
@@ -66,7 +74,7 @@ describe('setupUser', () => {
     const projectId = await setupUser({} as OAuth2Client);
     expect(CodeAssistServer).toHaveBeenCalledWith(
       {},
-      undefined,
+      'test-project',
       {},
       '',
       undefined,
@@ -89,3 +97,119 @@ describe('setupUser', () => {
     );
   });
 });
+
+describe('setupUser for new user', () => {
+  let mockLoad: ReturnType<typeof vi.fn>;
+  let mockOnboardUser: ReturnType<typeof vi.fn>;
+
+  beforeEach(() => {
+    vi.resetAllMocks();
+    mockLoad = vi.fn();
+    mockOnboardUser = vi.fn().mockResolvedValue({
+      done: true,
+      response: {
+        cloudaicompanionProject: {
+          id: 'server-project',
+        },
+      },
+    });
+    vi.mocked(CodeAssistServer).mockImplementation(
+      () =>
+        ({
+          loadCodeAssist: mockLoad,
+          onboardUser: mockOnboardUser,
+        }) as unknown as CodeAssistServer,
+    );
+  });
+
+  it('should use GOOGLE_CLOUD_PROJECT when set and onboard a new paid user', async () => {
+    process.env.GOOGLE_CLOUD_PROJECT = 'test-project';
+    mockLoad.mockResolvedValue({
+      allowedTiers: [mockPaidTier],
+    });
+    const userData = await setupUser({} as OAuth2Client);
+    expect(CodeAssistServer).toHaveBeenCalledWith(
+      {},
+      'test-project',
+      {},
+      '',
+      undefined,
+    );
+    expect(mockLoad).toHaveBeenCalled();
+    expect(mockOnboardUser).toHaveBeenCalledWith({
+      tierId: 'standard-tier',
+      cloudaicompanionProject: 'test-project',
+      metadata: {
+        ideType: 'IDE_UNSPECIFIED',
+        platform: 'PLATFORM_UNSPECIFIED',
+        pluginType: 'GEMINI',
+        duetProject: 'test-project',
+      },
+    });
+    expect(userData).toEqual({
+      projectId: 'server-project',
+      userTier: 'standard-tier',
+    });
+  });
+
+  it('should onboard a new free user when GOOGLE_CLOUD_PROJECT is not set', async () => {
+    delete process.env.GOOGLE_CLOUD_PROJECT;
+    mockLoad.mockResolvedValue({
+      allowedTiers: [mockFreeTier],
+    });
+    const userData = await setupUser({} as OAuth2Client);
+    expect(CodeAssistServer).toHaveBeenCalledWith(
+      {},
+      undefined,
+      {},
+      '',
+      undefined,
+    );
+    expect(mockLoad).toHaveBeenCalled();
+    expect(mockOnboardUser).toHaveBeenCalledWith({
+      tierId: 'free-tier',
+      cloudaicompanionProject: undefined,
+      metadata: {
+        ideType: 'IDE_UNSPECIFIED',
+        platform: 'PLATFORM_UNSPECIFIED',
+        pluginType: 'GEMINI',
+      },
+    });
+    expect(userData).toEqual({
+      projectId: 'server-project',
+      userTier: 'free-tier',
+    });
+  });
+
+  it('should use GOOGLE_CLOUD_PROJECT when onboard response has no project ID', async () => {
+    process.env.GOOGLE_CLOUD_PROJECT = 'test-project';
+    mockLoad.mockResolvedValue({
+      allowedTiers: [mockPaidTier],
+    });
+    mockOnboardUser.mockResolvedValue({
+      done: true,
+      response: {
+        cloudaicompanionProject: undefined,
+      },
+    });
+    const userData = await setupUser({} as OAuth2Client);
+    expect(userData).toEqual({
+      projectId: 'test-project',
+      userTier: 'standard-tier',
+    });
+  });
+
+  it('should throw ProjectIdRequiredError when no project ID is available', async () => {
+    delete process.env.GOOGLE_CLOUD_PROJECT;
+    mockLoad.mockResolvedValue({
+      allowedTiers: [mockPaidTier],
+    });
+    mockOnboardUser.mockResolvedValue({
+      done: true,
+      response: {},
+    });
+    await expect(setupUser({} as OAuth2Client)).rejects.toThrow(
+      ProjectIdRequiredError,
+    );
+  });
+});
diff --git a/packages/core/src/code_assist/setup.ts b/packages/core/src/code_assist/setup.ts
index 02c9406c..2e460c98 100644
--- a/packages/core/src/code_assist/setup.ts
+++ b/packages/core/src/code_assist/setup.ts
@@ -33,32 +33,58 @@ export interface UserData {
  * @returns the user's actual project id
  */
 export async function setupUser(client: OAuth2Client): Promise<UserData> {
-  let projectId = process.env.GOOGLE_CLOUD_PROJECT || undefined;
+  const projectId = process.env.GOOGLE_CLOUD_PROJECT || undefined;
   const caServer = new CodeAssistServer(client, projectId, {}, '', undefined);
-
-  const clientMetadata: ClientMetadata = {
+  const coreClientMetadata: ClientMetadata = {
     ideType: 'IDE_UNSPECIFIED',
     platform: 'PLATFORM_UNSPECIFIED',
     pluginType: 'GEMINI',
-    duetProject: projectId,
   };
 
   const loadRes = await caServer.loadCodeAssist({
     cloudaicompanionProject: projectId,
-    metadata: clientMetadata,
+    metadata: {
+      ...coreClientMetadata,
+      duetProject: projectId,
+    },
   });
 
-  if (!projectId && loadRes.cloudaicompanionProject) {
-    projectId = loadRes.cloudaicompanionProject;
+  if (loadRes.currentTier) {
+    if (!loadRes.cloudaicompanionProject) {
+      if (projectId) {
+        return {
+          projectId,
+          userTier: loadRes.currentTier.id,
+        };
+      }
+      throw new ProjectIdRequiredError();
+    }
+    return {
+      projectId: loadRes.cloudaicompanionProject,
+      userTier: loadRes.currentTier.id,
+    };
   }
 
   const tier = getOnboardTier(loadRes);
 
-  const onboardReq: OnboardUserRequest = {
-    tierId: tier.id,
-    cloudaicompanionProject: projectId,
-    metadata: clientMetadata,
-  };
+  let onboardReq: OnboardUserRequest;
+  if (tier.id === UserTierId.FREE) {
+    // The free tier uses a managed google cloud project. Setting a project in the `onboardUser` request causes a `Precondition Failed` error.
+    onboardReq = {
+      tierId: tier.id,
+      cloudaicompanionProject: undefined,
+      metadata: coreClientMetadata,
+    };
+  } else {
+    onboardReq = {
+      tierId: tier.id,
+      cloudaicompanionProject: projectId,
+      metadata: {
+        ...coreClientMetadata,
+        duetProject: projectId,
+      },
+    };
+  }
 
   // Poll onboardUser until long running operation is complete.
   let lroRes = await caServer.onboardUser(onboardReq);
@@ -67,20 +93,23 @@ export async function setupUser(client: OAuth2Client): Promise<UserData> {
     lroRes = await caServer.onboardUser(onboardReq);
   }
 
-  if (!lroRes.response?.cloudaicompanionProject?.id && !projectId) {
+  if (!lroRes.response?.cloudaicompanionProject?.id) {
+    if (projectId) {
+      return {
+        projectId,
+        userTier: tier.id,
+      };
+    }
     throw new ProjectIdRequiredError();
   }
 
   return {
-    projectId: lroRes.response?.cloudaicompanionProject?.id || projectId!,
+    projectId: lroRes.response.cloudaicompanionProject.id,
     userTier: tier.id,
   };
 }
 
 function getOnboardTier(res: LoadCodeAssistResponse): GeminiUserTier {
-  if (res.currentTier) {
-    return res.currentTier;
-  }
   for (const tier of res.allowedTiers || []) {
     if (tier.isDefault) {
       return tier;