The desktop embedded server called createServer WITHOUT an authStorage, so GET /api/auth/status
returned 500 "Authentication is not configured". The dashboard's first-run onboarding hook
(useAuthOnboarding -> fetchAuthStatus) catches that failure silently and never opens the model
onboarding wizard — so the desktop skipped straight to project creation with no AI/GitHub setup,
regardless of onboarding-completion flags (which is why clearing them did nothing). Providers also
couldn't be authenticated at all.
Wire createFusionAuthStorage() (the same storage the CLI dashboard/serve commands use) into both the
primary (local-runtime) and legacy (local-server) desktop server paths. Verified against a clean
embedded server: /api/auth/status now returns 200 with the provider list instead of 500. (Full
API-key provider wrapping stays CLI-only for now; OAuth + CLI providers are available on desktop.)
Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
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