fix(cli): global hooks must use project-relative policy dir (#104)

Global init (claude/cursor/factory) generated hook commands with
--policy-dir pointing at the global config root, e.g.
  cupcake eval --harness claude --policy-dir ~/Library/Application Support/cupcake

eval treats --policy-dir as the *project* root. ProjectPaths::resolve_with_config
only recognizes a path that is .cupcake or contains .cupcake/, so the global
root fell into the legacy branch and resolved a bogus project dir
(<root>/../.cupcake/policies/<harness>). Result: project-local policies were
never read, and pre-fix the nonexistent path aborted eval with exit code 1.

The global config is auto-discovered by the engine independently of
--policy-dir. Global hooks should evaluate the project at the harness working
directory just like project hooks, so emit the same project-relative path
(/.cupcake for claude, .cupcake for cursor, $FACTORY_PROJECT_DIR/.cupcake
for factory) instead of the global root.

Depends on the missing-project-policies-dir fix: under the global hook a
project without a local .cupcake now resolves to a (correct) nonexistent
project path and proceeds with global policies only.

Update the global-init assertion and the Cursor harness CLAUDE.md doc to
match. Existing global hooks need 'cupcake init --global' re-run.

Verified: init --global --harness claude now emits
--policy-dir $CLAUDE_PROJECT_DIR/.cupcake.

Author: PunkDevRobot

cupcake-cli/src/CLAUDE.md

@@ -38,20 +38,22 @@ Creates hooks at `.cursor/hooks.json` (project-level) with **relative policy pat
 
 ### `cupcake init --global --harness cursor` (Global Init)
 
-Creates hooks at `~/.cursor/hooks.json` (user-level) with **absolute policy paths**:
+Creates hooks at `~/.cursor/hooks.json` (user-level) with the **same project-relative policy path** as project init:
 
 ```json
 {
   "version": 1,
   "hooks": {
     "beforeShellExecution": [{
-      "command": "cupcake eval --harness cursor --policy-dir /Users/alice/.config/cupcake"
+      "command": "cupcake eval --harness cursor --policy-dir .cupcake"
     }],
     ...
   }
 }
 ```
 
+The global hook fires in every workspace and evaluates that workspace's `.cupcake` (or none). The org-wide global config is auto-discovered by the engine independently of `--policy-dir`, so the hook must NOT point at the global config root — doing so mis-resolved project paths and skipped local policies (issue #104 follow-up).
+
 **Use case**: Organization-wide policies that apply to all Cursor workspaces.
 
 ## Implementation Details
@@ -81,16 +83,10 @@ fn settings_path(&self, global: bool) -> PathBuf {
 #### `CursorHarness::generate_hooks()`
 
 ```rust
-fn generate_hooks(&self, policy_dir: &Path, global: bool) -> Result<Value> {
-    let policy_path = if global {
-        // Global config - use absolute path
-        let abs_path = fs::canonicalize(policy_dir)
-            .unwrap_or_else(|_| policy_dir.to_path_buf());
-        abs_path.display().to_string()
-    } else {
-        // Project config - use relative path from workspace root
-        ".cupcake".to_string()
-    };
+fn generate_hooks(&self, _policy_dir: &Path, _global: bool) -> Result<Value> {
+    // Project and global hooks both evaluate the workspace .cupcake;
+    // the global config is auto-discovered by the engine independently.
+    let policy_path = ".cupcake".to_string();
 
     Ok(json!({
         "version": 1,
@@ -126,7 +122,8 @@ cupcake init --global --harness cursor
 # Verify hooks created at user location
 cat ~/.cursor/hooks.json
 
-# Should show absolute path: --policy-dir /Users/alice/.config/cupcake
+# Should show project-relative path: --policy-dir .cupcake
+# (global config is auto-discovered by the engine, not via --policy-dir)
 ```
 
 ## Comparison with Claude Code
@@ -137,12 +134,12 @@ cat ~/.cursor/hooks.json
 | **User hooks**            | `~/.claude/settings.json` ✅   | `~/.cursor/hooks.json` ✅    |
 | **Hook location choice**  | Respects `--global` flag       | Respects `--global` flag     |
 | **Policy path (project)** | `$CLAUDE_PROJECT_DIR/.cupcake` | `.cupcake` (relative)        |
-| **Policy path (global)**  | Absolute path                  | Absolute path                |
+| **Policy path (global)**  | `$CLAUDE_PROJECT_DIR/.cupcake`  | `.cupcake` (relative)        |
 | **Process cwd**           | Project root (via env var)     | Workspace root (direct)      |
 
 ## Key Takeaways
 
 1. **Cursor supports both project and user-level hooks** - stored at `.cursor/hooks.json` and `~/.cursor/hooks.json`
 2. **Project init creates project-level hooks** - `.cursor/hooks.json` with relative policy paths
-3. **Global init creates user-level hooks** - `~/.cursor/hooks.json` with absolute policy paths
+3. **Global init creates user-level hooks** - `~/.cursor/hooks.json` with the same project-relative policy path as project init; the global config is auto-discovered by the engine, not passed via `--policy-dir`
 4. **Cursor spawns hooks with cwd=workspace root** - enabling relative path resolution

cupcake-cli/src/harness_config.rs

@@ -61,17 +61,14 @@ impl HarnessConfig for ClaudeHarness {
         }
     }
 
-    fn generate_hooks(&self, policy_dir: &Path, global: bool) -> Result<Value> {
-        // Determine the policy path to use in commands
-        let policy_path = if global {
-            // Global config - use absolute path
-            let abs_path =
-                fs::canonicalize(policy_dir).unwrap_or_else(|_| policy_dir.to_path_buf());
-            abs_path.display().to_string()
-        } else {
-            // Project config - use environment variable for portability
-            "$CLAUDE_PROJECT_DIR/.cupcake".to_string()
-        };
+    fn generate_hooks(&self, _policy_dir: &Path, _global: bool) -> Result<Value> {
+        // Both project and global installs evaluate the project at the harness's
+        // working directory; org-wide global policies are auto-discovered by the
+        // engine independently of --policy-dir. Pointing global hooks at the global
+        // config root mis-resolved project paths and skipped local policies
+        // (issue #104 follow-up), so global and project hooks use the same
+        // project-relative path.
+        let policy_path = "$CLAUDE_PROJECT_DIR/.cupcake".to_string();
 
         Ok(json!({
             "hooks": {
@@ -132,17 +129,12 @@ impl HarnessConfig for CursorHarness {
         }
     }
 
-    fn generate_hooks(&self, policy_dir: &Path, global: bool) -> Result<Value> {
-        // Determine the policy path to use in commands
-        let policy_path = if global {
-            // Global config - use absolute path
-            let abs_path =
-                fs::canonicalize(policy_dir).unwrap_or_else(|_| policy_dir.to_path_buf());
-            abs_path.display().to_string()
-        } else {
-            // Project config - use relative path from workspace root
-            ".cupcake".to_string()
-        };
+    fn generate_hooks(&self, _policy_dir: &Path, _global: bool) -> Result<Value> {
+        // Both project and global installs evaluate the project at Cursor's
+        // workspace root (cwd); org-wide global policies are auto-discovered by
+        // the engine independently of --policy-dir. See the Claude impl and
+        // issue #104 follow-up for why global no longer uses the config root.
+        let policy_path = ".cupcake".to_string();
 
         // Cursor's hook configuration format - official hooks.json structure
         // Reference: https://cursor.com/docs/agent/hooks.md
@@ -194,17 +186,12 @@ impl HarnessConfig for FactoryHarness {
         }
     }
 
-    fn generate_hooks(&self, policy_dir: &Path, global: bool) -> Result<Value> {
-        // Determine the policy path to use in commands
-        let policy_path = if global {
-            // Global config - use absolute path
-            let abs_path =
-                fs::canonicalize(policy_dir).unwrap_or_else(|_| policy_dir.to_path_buf());
-            abs_path.display().to_string()
-        } else {
-            // Project config - use environment variable for portability
-            "\"$FACTORY_PROJECT_DIR\"/.cupcake".to_string()
-        };
+    fn generate_hooks(&self, _policy_dir: &Path, _global: bool) -> Result<Value> {
+        // Both project and global installs evaluate the project at Factory's
+        // working directory; org-wide global policies are auto-discovered by the
+        // engine independently of --policy-dir. See the Claude impl and issue
+        // #104 follow-up for why global no longer uses the config root.
+        let policy_path = "\"$FACTORY_PROJECT_DIR\"/.cupcake".to_string();
 
         Ok(json!({
             "hooks": {

cupcake-cli/tests/harness_integration_test.rs

@@ -211,13 +211,16 @@ fn test_init_global_with_claude_harness() {
             let settings_content = fs::read_to_string(&global_settings).unwrap();
             let settings: Value = serde_json::from_str(&settings_content).unwrap();
 
-            // Global should use absolute paths, not $CLAUDE_PROJECT_DIR
+            // Global hooks evaluate the project at the harness working directory
+            // and rely on the engine's independent auto-discovery of the global
+            // config; they use the same project-relative path as project hooks
+            // (issue #104 follow-up). They must NOT point at the global config root.
             let command = settings["hooks"]["PreToolUse"][0]["hooks"][0]["command"]
                 .as_str()
                 .unwrap();
             assert!(
-                !command.contains("$CLAUDE_PROJECT_DIR"),
-                "Global config should use absolute paths"
+                command.contains("$CLAUDE_PROJECT_DIR/.cupcake"),
+                "Global config should use the project-relative policy dir, got: {command}"
             );
         }
     }