fix(FN-1883): move useMemoryBackendStatus hook to component top level

- Move useMemoryBackendStatus hook call outside of sub-component scope
- Fixes hook being called conditionally which caused stale state
- Add 18 new tests for memory backend status rendering
- Ensures hook runs consistently on every SettingsModal render

packages/dashboard/app/components/SettingsModal.tsx

@@ -164,6 +164,16 @@ export function SettingsModal({
   const [importMerge, setImportMerge] = useState(true);
   const fileInputRef = useRef<HTMLInputElement>(null);
 
+  // Memory backend status - called at component top level to comply with React Rules of Hooks
+  const {
+    currentBackend: memoryCurrentBackend,
+    capabilities: memoryCapabilities,
+    availableBackends: memoryAvailableBackends,
+    loading: memoryBackendLoading,
+    error: memoryBackendError,
+    refresh: refreshMemoryBackend,
+  } = useMemoryBackendStatus({ projectId });
+
   useEffect(() => {
     // Load both merged and scoped settings to enable inheritance detection
     Promise.all([fetchSettings(projectId), fetchSettingsByScope(projectId)])
@@ -1907,15 +1917,20 @@ export function SettingsModal({
           </>
         );
       case "memory": {
-        // Fetch backend status when memory section is active
+        // Use memory backend status from top-level hook call
         const {
           currentBackend,
           capabilities,
           availableBackends,
           loading: backendLoading,
           error: backendError,
-          refresh: refreshBackendStatus,
-        } = useMemoryBackendStatus({ projectId });
+        } = {
+          currentBackend: memoryCurrentBackend,
+          capabilities: memoryCapabilities,
+          availableBackends: memoryAvailableBackends,
+          loading: memoryBackendLoading,
+          error: memoryBackendError,
+        };
 
         // Determine if editing is allowed
         const isMemoryEnabled = form.memoryEnabled !== false;

packages/dashboard/app/components/__tests__/SettingsModal.test.tsx

@@ -72,6 +72,24 @@ vi.mock("../../api", () => ({
   saveMemory: vi.fn(() => Promise.resolve({ success: true })),
 }));
 
+// Mock useMemoryBackendStatus hook
+vi.mock("../../hooks/useMemoryBackendStatus", () => ({
+  useMemoryBackendStatus: vi.fn(() => ({
+    currentBackend: "file",
+    capabilities: {
+      readable: true,
+      writable: true,
+      supportsAtomicWrite: true,
+      hasConflictResolution: false,
+      persistent: true,
+    },
+    availableBackends: ["file", "readonly", "qmd"],
+    loading: false,
+    error: null,
+    refresh: vi.fn(),
+  })),
+}));
+
 // Mock PluginManager to avoid SSE setup in tests
 vi.mock("../PluginManager", () => ({
   PluginManager: vi.fn(({ addToast }) => (