fix: clear gas sponsorship flag for hardware wallet transactions cp-7.77.0 (#29262)

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## **Description**

Hardware wallet (Ledger/QR) transactions on gas-sponsored networks (MON,
SEI) incorrectly showed "Paid by MetaMask" in the activity transaction
details. The root cause was twofold:

1. **Confirm callback gap**: The `isGasFeeSponsored` override in
`useTransactionConfirm` only ran inside `handleSmartTransaction` and
`handleGasless7702`, both of which exit early when no
`selectedGasFeeToken` is present — which is always the case for HW
wallets since gasless is not supported. The flag was never cleared on
the persisted transaction metadata.
2. **Missing UI guard**: The activity list `TransactionDetails`
component passed `isGasFeeSponsored` from stored transaction data
without checking if the account is a hardware wallet.

**Fix**: Moved the `isGasFeeSponsored` override to the top of
`onConfirm` so it runs unconditionally for every transaction, and added
an `isHardwareAccount` guard in the activity list UI (matching the
pattern already used in Bridge `TransactionDetails`).

## **Changelog**

CHANGELOG entry: Fixed "Paid by MetaMask" incorrectly showing for
hardware wallet transactions on gas-sponsored networks

## **Related issues**

Fixes: #29241

## **Manual testing steps**

```gherkin
Feature: Gas sponsorship display for hardware wallets

  Background:
    Given I am logged into MetaMask Mobile
    And I have a Ledger or QR hardware wallet connected

  Scenario: HW wallet send on MON does not show "Paid by MetaMask"
    Given I am connected to the Monad network with a hardware wallet

    When user sends MON to another address
    And user confirms the transaction on the hardware device
    And user navigates to the activity log
    And user selects the completed transaction
    Then the network fee field should show the actual gas fee amount
    And "Paid by MetaMask" should not appear

  Scenario: HW wallet send on SEI does not show "Paid by MetaMask"
    Given I am connected to the Sei network with a hardware wallet

    When user sends SEI to another address
    And user confirms the transaction on the hardware device
    And user navigates to the activity log
    And user selects the completed transaction
    Then the network fee field should show the actual gas fee amount
    And "Paid by MetaMask" should not appear

  Scenario: Non-HW wallet send on sponsored network still shows "Paid by MetaMask"
    Given I am connected to a gas-sponsored network with a software wallet
    And the transaction is eligible for gas sponsorship

    When user sends a transaction
    And user navigates to the activity log
    And user selects the completed transaction
    Then "Paid by MetaMask" should appear in the network fee field
```

## **Screenshots/Recordings**

### **Before**

N/A

### **After**

N/A

## **Pre-merge author checklist**

- [x] I've followed [MetaMask Contributor
Docs](https://github.com/MetaMask/contributor-docs) and [MetaMask Mobile
Coding
Standards](https://github.com/MetaMask/metamask-mobile/blob/main/.github/guidelines/CODING_GUIDELINES.md).
- [x] I've completed the PR template to the best of my ability
- [x] I've included tests if applicable
- [x] I've documented my code using [JSDoc](https://jsdoc.app/) format
if applicable
- [x] I've applied the right labels on the PR (see [labeling
guidelines](https://github.com/MetaMask/metamask-mobile/blob/main/.github/guidelines/LABELING_GUIDELINES.md)).
Not required for external contributors.

#### Performance checks (if applicable)

- [x] I've tested on Android
  - Ideally on a mid-range device; emulator is acceptable
- [x] I've tested with a power user scenario
- Use these [power-user
SRPs](https://consensyssoftware.atlassian.net/wiki/spaces/TL1/pages/edit-v2/401401446401?draftShareId=9d77e1e1-4bdc-4be1-9ebb-ccd916988d93)
to import wallets with many accounts and tokens
- [x] I've instrumented key operations with Sentry traces for production
performance metrics
- See [`trace()`](/app/util/trace.ts) for usage and
[`addToken`](/app/components/Views/AddAsset/components/AddCustomToken/AddCustomToken.tsx#L274)
for an example

For performance guidelines and tooling, see the [Performance
Guide](https://consensyssoftware.atlassian.net/wiki/spaces/TL1/pages/400085549067/Performance+Guide+for+Engineers).

## **Pre-merge reviewer checklist**

- [x] I've manually tested the PR (e.g. pull and build branch, run the
app, test code being changed).
- [x] I confirm that this PR addresses all acceptance criteria described
in the ticket it closes and includes the necessary testing evidence such
as recordings and or screenshots.

<!-- Generated with the help of the pr-description AI skill -->

<!-- CURSOR_SUMMARY -->
---

> [!NOTE]
> **Medium Risk**
> Touches transaction confirmation metadata and the activity
transaction-details UI; incorrect gating could hide or show sponsorship
inappropriately on supported networks, but the change is narrowly scoped
and covered by tests.
> 
> **Overview**
> Fixes incorrect "Paid by MetaMask" labeling for hardware-wallet
transactions by **clearing `isGasFeeSponsored` in
`useTransactionConfirm` whenever gasless isn’t supported**, even when no
`selectedGasFeeToken` is present.
> 
> Adds a UI guard in `TransactionDetails` to **suppress sponsored-fee
display for hardware accounts** (based on `txParams.from` +
`isHardwareAccount`), and extends unit tests to cover both the
confirmation override behavior and the hardware-wallet UI suppression.
> 
> <sup>Reviewed by [Cursor Bugbot](https://cursor.com/bugbot) for commit
60007da. Bugbot is set up for automated
code reviews on this repo. Configure
[here](https://www.cursor.com/dashboard/bugbot).</sup>
<!-- /CURSOR_SUMMARY -->

Author: dawnseeker8

app/components/UI/TransactionElement/TransactionDetails/index.js

@@ -58,6 +58,7 @@ import { AvatarAccountType } from '../../../../component-library/components/Avat
 import { WalletViewSelectorsIDs } from '../../../Views/Wallet/WalletView.testIds';
 import { TransactionType } from '@metamask/transaction-controller';
 import TagBase from '../../../../component-library/base-components/TagBase';
+import { isHardwareAccount } from '../../../../util/address';
 
 const createStyles = (colors) =>
   StyleSheet.create({
@@ -333,6 +334,10 @@ class TransactionDetails extends PureComponent {
     );
     const { updatedTransactionDetails } = this.state;
     const styles = this.getStyles();
+    const fromAddress = txParams?.from;
+    const isHardwareWallet = Boolean(
+      fromAddress && isHardwareAccount(fromAddress),
+    );
     const isBridgeTransaction =
       transactionObject?.type === TransactionType.bridge;
     const renderTxActions =
@@ -474,7 +479,9 @@ class TransactionDetails extends PureComponent {
             gasEstimationReady
             transactionType={updatedTransactionDetails.transactionType}
             chainId={chainId}
-            isGasFeeSponsored={transactionObject.isGasFeeSponsored}
+            isGasFeeSponsored={
+              transactionObject.isGasFeeSponsored && !isHardwareWallet
+            }
           />
         </View>
         {updatedTransactionDetails.hash &&

app/components/UI/TransactionElement/TransactionDetails/index.test.tsx

@@ -8,6 +8,7 @@ import renderWithProvider from '../../../../util/test/renderWithProvider';
 import { createStackNavigator } from '@react-navigation/stack';
 import { mockNetworkState } from '../../../../util/test/network';
 import type { NetworkState } from '@metamask/network-controller';
+import { isHardwareAccount } from '../../../../util/address';
 
 const Stack = createStackNavigator();
 const mockEthQuery = {
@@ -71,6 +72,11 @@ jest.mock('../../../../util/networks/global-network', () => ({
   getGlobalEthQuery: jest.fn(() => mockEthQuery),
 }));
 
+jest.mock('../../../../util/address', () => ({
+  ...jest.requireActual('../../../../util/address'),
+  isHardwareAccount: jest.fn(),
+}));
+
 jest.mock('@metamask/controller-utils', () => ({
   ...jest.requireActual('@metamask/controller-utils'),
   query: jest.fn(),
@@ -511,4 +517,19 @@ describe('TransactionDetails', () => {
 
     expect(screen.queryByText('Paid by MetaMask')).not.toBeOnTheScreen();
   });
+
+  it('does not show "Paid by MetaMask" for hardware wallet even when isGasFeeSponsored is true', () => {
+    jest.mocked(isHardwareAccount).mockReturnValue(true);
+
+    renderComponent({
+      state: initialState,
+      transactionObj: {
+        isGasFeeSponsored: true,
+        txParams: { from: '0xHardwareAddress' },
+      },
+    });
+
+    expect(screen.queryByTestId('paid-by-metamask')).not.toBeOnTheScreen();
+    expect(screen.queryByText('Paid by MetaMask')).not.toBeOnTheScreen();
+  });
 });

app/components/Views/confirmations/hooks/transactions/useTransactionConfirm.test.ts

@@ -396,6 +396,96 @@ describe('useTransactionConfirm', () => {
     );
   });
 
+  describe('isGasFeeSponsored override', () => {
+    it('clears isGasFeeSponsored when gasless is not supported', async () => {
+      useIsGaslessSupportedMock.mockReturnValue({
+        isSmartTransaction: false,
+        isSupported: false,
+        pending: false,
+      });
+
+      useTransactionMetadataRequestMock.mockReturnValue({
+        id: transactionIdMock,
+        chainId: CHAIN_ID_MOCK,
+        origin: ORIGIN_METAMASK,
+        txParams: {},
+        isGasFeeSponsored: true,
+      } as unknown as TransactionMeta);
+
+      const { result } = renderHook();
+
+      await act(async () => {
+        await result.current.onConfirm();
+      });
+
+      expect(onApprovalConfirm).toHaveBeenCalledWith(expect.anything(), {
+        txMeta: expect.objectContaining({
+          isGasFeeSponsored: false,
+        }),
+      });
+    });
+
+    it('preserves isGasFeeSponsored when gasless is supported', async () => {
+      useIsGaslessSupportedMock.mockReturnValue({
+        isSmartTransaction: true,
+        isSupported: true,
+        pending: false,
+      });
+
+      useTransactionMetadataRequestMock.mockReturnValue({
+        id: transactionIdMock,
+        chainId: CHAIN_ID_MOCK,
+        origin: ORIGIN_METAMASK,
+        txParams: {},
+        isGasFeeSponsored: true,
+      } as unknown as TransactionMeta);
+
+      const { result } = renderHook();
+
+      await act(async () => {
+        await result.current.onConfirm();
+      });
+
+      expect(onApprovalConfirm).toHaveBeenCalledWith(expect.anything(), {
+        txMeta: expect.objectContaining({
+          isGasFeeSponsored: true,
+        }),
+      });
+    });
+
+    it('clears isGasFeeSponsored even without selectedGasFeeToken', async () => {
+      useIsGaslessSupportedMock.mockReturnValue({
+        isSmartTransaction: false,
+        isSupported: false,
+        pending: false,
+      });
+
+      useSelectedGasFeeTokenMock.mockReturnValue(
+        undefined as unknown as ReturnType<typeof useSelectedGasFeeToken>,
+      );
+
+      useTransactionMetadataRequestMock.mockReturnValue({
+        id: transactionIdMock,
+        chainId: CHAIN_ID_MOCK,
+        origin: ORIGIN_METAMASK,
+        txParams: {},
+        isGasFeeSponsored: true,
+      } as unknown as TransactionMeta);
+
+      const { result } = renderHook();
+
+      await act(async () => {
+        await result.current.onConfirm();
+      });
+
+      expect(onApprovalConfirm).toHaveBeenCalledWith(expect.anything(), {
+        txMeta: expect.objectContaining({
+          isGasFeeSponsored: false,
+        }),
+      });
+    });
+  });
+
   describe('handleSmartTransaction', () => {
     beforeEach(() => {
       useGaslessSupportedSmartTransactionsMock.mockReturnValue({

app/components/Views/confirmations/hooks/transactions/useTransactionConfirm.ts

@@ -72,24 +72,8 @@ export function useTransactionConfirm() {
       updatedMetadata.txParams.maxFeePerGas = selectedGasFeeToken.maxFeePerGas;
       updatedMetadata.txParams.maxPriorityFeePerGas =
         selectedGasFeeToken.maxPriorityFeePerGas;
-
-      // If the gasless flow is not supported (e.g. stx is disabled by the user,
-      // or 7702 is not supported in the chain), we override the
-      // `isGasFeeSponsored` flag to `false` so the transaction meta object in
-      // state has the correct value for the transaction details on the activity
-      // list to not show as sponsored. One limitation on the activity list will
-      // be that pre-populated transactions on fresh installs will not show as
-      // sponsored even if they were because this is not easily observable onchain
-      // for all cases.
-      updatedMetadata.isGasFeeSponsored =
-        isGaslessSupported && transactionMetadata?.isGasFeeSponsored;
     },
-    [
-      selectedGasFeeToken,
-      isGasFeeTokenIgnoredIfBalance,
-      isGaslessSupported,
-      transactionMetadata?.isGasFeeSponsored,
-    ],
+    [selectedGasFeeToken, isGasFeeTokenIgnoredIfBalance],
   );
 
   const handleGasless7702 = useCallback(
@@ -99,15 +83,8 @@ export function useTransactionConfirm() {
       }
 
       updatedMetadata.isExternalSign = true;
-      updatedMetadata.isGasFeeSponsored =
-        isGaslessSupported && transactionMetadata?.isGasFeeSponsored;
     },
-    [
-      isGasFeeTokenIgnoredIfBalance,
-      isGaslessSupported,
-      selectedGasFeeToken,
-      transactionMetadata?.isGasFeeSponsored,
-    ],
+    [isGasFeeTokenIgnoredIfBalance, selectedGasFeeToken],
   );
 
   const onConfirm = useCallback(
@@ -121,7 +98,13 @@ export function useTransactionConfirm() {
 
       const updatedMetadata = cloneDeep(transactionMetadata);
 
-      if (isGaslessSupportedSTX && !isHardwareWallet) {
+      // Ensure the persisted `isGasFeeSponsored` flag reflects whether gasless
+      // is actually supported (e.g. HW wallets don't support gasless, so the
+      // flag must be cleared so the activity list does not show "Paid by MetaMask").
+      updatedMetadata.isGasFeeSponsored =
+        isGaslessSupported && transactionMetadata?.isGasFeeSponsored;
+
+      if (isGaslessSupportedSTX) {
         handleSmartTransaction(updatedMetadata);
       } else if (selectedGasFeeToken && !isHardwareWallet) {
         handleGasless7702(updatedMetadata);
@@ -169,6 +152,7 @@ export function useTransactionConfirm() {
       handleGasless7702,
       handleSmartTransaction,
       isFullScreenConfirmation,
+      isGaslessSupported,
       isGaslessSupportedSTX,
       navigation,
       musdConversionNavigateOnConfirm,