fix: unify project path so path is always the local filesystem path

Cloud projects with bisync had a split-brain problem: `path` held a cloud
slug while the actual local directory lived in `local_sync_path`. This caused
`bm status` and file sync to fail for bisync'd cloud projects.

Changes:
- Config migration promotes `local_sync_path` → `path` for entries where
  `path` is a non-absolute cloud slug
- `ensure_project_paths_exists` skips cloud-only projects with slug paths
- `initialize_file_sync` and watch service now keep cloud projects that have
  an absolute local path (bisync copy) instead of skipping all cloud projects
- `sync-setup` and `project add --cloud --local-path` set both `path` and
  `local_sync_path` to the local directory
- `sync-setup` creates the project in the local DB for immediate MCP use
- `_get_sync_project` falls back from `local_sync_path` to `path`
- Config load errors now show user-friendly messages instead of stack traces

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Signed-off-by: phernandez <paul@basicmachines.co>

tests/sync/test_watch_service_reload.py

@@ -144,23 +144,19 @@ async def test_run_reloads_projects_each_cycle(monkeypatch, tmp_path):
 
 
 @pytest.mark.asyncio
-async def test_run_filters_cloud_projects_each_cycle(monkeypatch, tmp_path):
+async def test_run_filters_cloud_only_projects_each_cycle(monkeypatch, tmp_path):
+    """Cloud-only projects (slug path, no local directory) are filtered out."""
     config = BasicMemoryConfig(
         watch_project_reload_interval=1,
         projects={
             "local-project": {"path": str(tmp_path / "local"), "mode": "local"},
-            "cloud-project": {"path": str(tmp_path / "cloud"), "mode": "cloud"},
+            "cloud-only": {"path": "cloud-slug", "mode": "cloud"},
         },
     )
     repo = _Repo(
         projects_return=[
             Project(id=1, name="local-project", path=str(tmp_path / "local"), permalink="local"),
-            Project(
-                id=2,
-                name="cloud-project",
-                path=str(tmp_path / "cloud"),
-                permalink="cloud",
-            ),
+            Project(id=2, name="cloud-only", path="cloud-slug", permalink="cloud-only"),
         ]
     )
     watch_service = WatchService(config, repo, quiet=True)
@@ -183,6 +179,47 @@ async def test_run_filters_cloud_projects_each_cycle(monkeypatch, tmp_path):
     assert seen_project_names == [["local-project"]]
 
 
+@pytest.mark.asyncio
+async def test_run_keeps_cloud_projects_with_local_bisync(monkeypatch, tmp_path):
+    """Cloud projects with an absolute path (local bisync copy) are kept for watching."""
+    config = BasicMemoryConfig(
+        watch_project_reload_interval=1,
+        projects={
+            "local-project": {"path": str(tmp_path / "local"), "mode": "local"},
+            "cloud-bisync": {"path": str(tmp_path / "cloud"), "mode": "cloud"},
+        },
+    )
+    repo = _Repo(
+        projects_return=[
+            Project(id=1, name="local-project", path=str(tmp_path / "local"), permalink="local"),
+            Project(
+                id=2,
+                name="cloud-bisync",
+                path=str(tmp_path / "cloud"),
+                permalink="cloud-bisync",
+            ),
+        ]
+    )
+    watch_service = WatchService(config, repo, quiet=True)
+
+    seen_project_names: list[list[str]] = []
+
+    async def watch_cycle_stub(projects, stop_event):
+        seen_project_names.append([p.name for p in projects])
+        watch_service.state.running = False
+        stop_event.set()
+
+    async def fake_write_status():
+        return None
+
+    monkeypatch.setattr(watch_service, "_watch_projects_cycle", watch_cycle_stub)
+    monkeypatch.setattr(watch_service, "write_status", fake_write_status)
+
+    await watch_service.run()
+
+    assert seen_project_names == [["local-project", "cloud-bisync"]]
+
+
 @pytest.mark.asyncio
 async def test_run_continues_after_cycle_error(monkeypatch, tmp_path):
     config = BasicMemoryConfig()

tests/test_config.py

@@ -1112,3 +1112,68 @@ class TestProjectMode:
                 loaded.projects["research"].workspace_id == "11111111-1111-1111-1111-111111111111"
             )
             assert loaded.projects["main"].workspace_id is None
+
+
+class TestLocalSyncPathMigration:
+    """Test migration that promotes local_sync_path into path for cloud projects."""
+
+    def test_migrate_promotes_local_sync_path_to_path(self):
+        """When path is a cloud slug and local_sync_path is set, path becomes local_sync_path."""
+        data = {
+            "projects": {
+                "specs": {
+                    "path": "specs",
+                    "mode": "cloud",
+                    "local_sync_path": "/Users/test/Documents/specs",
+                }
+            }
+        }
+        result = BasicMemoryConfig.migrate_legacy_projects(data)
+        assert result["projects"]["specs"]["path"] == "/Users/test/Documents/specs"
+
+    def test_migrate_does_not_overwrite_absolute_path(self):
+        """When path is already absolute, migration should not change it."""
+        data = {
+            "projects": {
+                "specs": {
+                    "path": "/Users/test/Documents/specs",
+                    "mode": "cloud",
+                    "local_sync_path": "/Users/test/Documents/specs",
+                }
+            }
+        }
+        result = BasicMemoryConfig.migrate_legacy_projects(data)
+        assert result["projects"]["specs"]["path"] == "/Users/test/Documents/specs"
+
+    def test_migrate_skips_entries_without_local_sync_path(self):
+        """Entries without local_sync_path should not be modified."""
+        data = {
+            "projects": {
+                "cloud-only": {
+                    "path": "cloud-only",
+                    "mode": "cloud",
+                }
+            }
+        }
+        result = BasicMemoryConfig.migrate_legacy_projects(data)
+        assert result["projects"]["cloud-only"]["path"] == "cloud-only"
+
+    def test_migrate_handles_mixed_projects(self, tmp_path):
+        """Migration handles a mix of local, cloud-only, and cloud-with-bisync projects."""
+        local_path = str(tmp_path / "local")
+        bisync_path = str(tmp_path / "bisync")
+        data = {
+            "projects": {
+                "local-proj": {"path": local_path, "mode": "local"},
+                "cloud-only": {"path": "cloud-only", "mode": "cloud"},
+                "cloud-bisync": {
+                    "path": "cloud-bisync",
+                    "mode": "cloud",
+                    "local_sync_path": bisync_path,
+                },
+            }
+        }
+        result = BasicMemoryConfig.migrate_legacy_projects(data)
+        assert result["projects"]["local-proj"]["path"] == local_path
+        assert result["projects"]["cloud-only"]["path"] == "cloud-only"
+        assert result["projects"]["cloud-bisync"]["path"] == bisync_path