[Due for payment 2026-08-19] Tag section is not displayed when create distance expense via FAB

[jponikarchuk]

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Version Number: 9.4.41-0
Reproducible in staging?: Yes
Reproducible in production?: No
If this was caught during regression testing, add the test name, ID and link from BrowserStack: https://test-management.browserstack.com/projects/2219752/test-runs/65630127/folder/13176676/41237304/1587374940?sort=%2Bstatus_id
Email or phone of affected tester (no customers): gocemate+buzz1903@gmail.com
Issue reported by: Applause Internal Team
Bug source: Exploratory - Significant User Experience Deterioration
Device used: windows 10/chrome
App Component: Chat Report View

Action Performed:

Precondition:
User have default Workspace A with no tags option enabled
User have Workspace B with tags enabled

Steps:

1. Go to FAB> Track manual/map distance> Select Workspace B
2. Check options on Confirm details page

Expected Result:

Tags option should be displayed

Actual Result:

Tags option is missing

Workaround:

Unknown

Platforms:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari

Screenshots/Videos

Bug7213418_1784633704756.Recording__1227.mp4

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Issue Owner

Current Issue Owner: @thelullabyy

[melvin-bot]

Triggered auto assignment to @madmax330 (DeployBlockerCash), see https://stackoverflowteams.com/c/expensify/questions/9980/ for more details.

[melvin-bot]

💬 A slack conversation has been started in #expensify-open-source

[github-actions]

👋 Friendly reminder that deploy blockers are time-sensitive ⏱ issues! Check out the open `StagingDeployCash` deploy checklist to see the list of PRs included in this release, then work quickly to do one of the following:

1. Identify the pull request that introduced this issue and revert it.
2. Find someone who can quickly fix the issue.
3. Fix the issue yourself.

[trjExpensify]

@MelvinBot confirm this is from #96228 CC: @puneetlath @thelullabyy

[MelvinBot]

Yes — confirmed, this is from #96228 (high confidence)

@trjExpensify Expensify/App#96228 ("remove isNewManualExpenseFlowEnabled beta flag", merged 2026-07-20) is in this release — it's item 84 on the 2026-07-21 deploy checklist — which lines up with the bug being reproducible in staging but not production.

Root cause: That PR removed the NEW_MANUAL_EXPENSE_FLOW beta gate, making the new embedded-confirmation flow the default for all users. Previously useDefaultParticipants short-circuited to [] when the beta was off; the PR deleted that guard, so the distance-via-FAB flow now pre-seeds the draft transaction with the default workspace (Workspace A, tags disabled) before the confirmation renders. Tag visibility is derived from the resolved policy's report.policyID, so it resolves to Workspace A and shouldShowTags is false — even after the user selects Workspace B, the tag section stays hidden.

Recommended action: As a deploy blocker, the fastest resolution is to revert #96228 (or re-gate behind the beta). A targeted fix would ensure the confirmation re-resolves policyID/reportID to the workspace the user actually selects in the distance flow before computing tag visibility.

Evidence (App SHA 50ce5c3)

• Beta guard removed — the if (!isNewManualExpenseFlowEnabled) return []; short-circuit that feat: remove isNewManualExpenseFlowEnabled beta flag #96228 deleted from src/hooks/useDefaultParticipants.ts. The hook now unconditionally returns the default-expense-policy (Workspace A) chat participants.
• Draft seeded with Workspace A — src/hooks/useResetIOUType.ts:94-99 seeds the freshly-rebuilt distance transaction and binds its reportID to Workspace A's expense chat. This is the path DistanceRequestStartPage.tsx:80-89 uses for the FAB distance flow.
• Tag visibility keyed on the resolved policy — useFooterDerivedFlags.ts:83: shouldShowTags = (isPolicyExpenseChat || isUnreported || isCreatingTrackExpense) && hasEnabledTags(policyTagLists). policyTagLists comes from the policy resolved via report.policyID in getIOURequestPolicyID (MoneyRequest.ts:582-586) → Workspace A → hasEnabledTags is false → Tags section hidden.
• Code comments in IOURequestStepConfirmation.tsx handleParticipantsAdded explicitly describe the new "seeded with the default workspace" design — behavior introduced by this PR.

One nuance worth a device repro before landing a fix: it's not yet pinned whether selecting Workspace B fails to update report.policyID at all, or updates it one render late. But the exposure of the bug (staging-only, all users) is unambiguously #96228.

CC: puneetlath thelullabyy

[yuwenmemon]

The offending PR that caused this deploy blocker was reverted with #96661.

@Expensify/applause please retest this issue on the latest staging build now that the PR has been reverted, and confirm whether it still reproduces.