From 07210ae24ca78f88c2b9fa51af20f4e312465092 Mon Sep 17 00:00:00 2001
From: Neil <4138956+nwparker@users.noreply.github.com>
Date: Wed, 13 May 2026 16:18:22 -0700
Subject: [PATCH] Fix floating terminal default migration (#1767)

* Fix floating terminal default migration

* Add floating terminal icon context menu
---
 src/main/persistence.test.ts                  | 37 +++++++
 src/main/persistence.ts                       | 10 ++
 .../FloatingTerminalIconContextMenu.tsx       | 97 +++++++++++++++++++
 .../FloatingTerminalPanel.tsx                 | 53 +++++-----
 .../src/components/status-bar/StatusBar.tsx   | 62 ++++++------
 src/shared/constants.ts                       |  1 +
 src/shared/types.ts                           | 10 +-
 7 files changed, 214 insertions(+), 56 deletions(-)
 create mode 100644 src/renderer/src/components/floating-terminal/FloatingTerminalIconContextMenu.tsx

diff --git a/src/main/persistence.test.ts b/src/main/persistence.test.ts
index c5d63e31f3c..694618151eb 100644
--- a/src/main/persistence.test.ts
+++ b/src/main/persistence.test.ts
@@ -91,6 +91,8 @@ describe('Store', () => {
     expect(settings.rightSidebarOpenByDefault).toBe(true)
     expect(settings.showTasksButton).toBe(true)
     expect(settings.experimentalActivity).toBe(true)
+    expect(settings.floatingTerminalEnabled).toBe(true)
+    expect(settings.floatingTerminalDefaultedForAllUsers).toBe(true)
     expect(settings.notifications.customSoundPath).toBeNull()
   })
 
@@ -166,6 +168,41 @@ describe('Store', () => {
     expect(store.getRepos()).toHaveLength(1)
   })
 
+  it('migrates the legacy floating terminal disabled default to enabled', async () => {
+    writeDataFile({
+      schemaVersion: 1,
+      repos: [],
+      worktreeMeta: {},
+      settings: { floatingTerminalEnabled: false },
+      ui: {},
+      githubCache: { pr: {}, issue: {} },
+      workspaceSession: {}
+    })
+
+    const store = await createStore()
+    expect(store.getSettings().floatingTerminalEnabled).toBe(true)
+    expect(store.getSettings().floatingTerminalDefaultedForAllUsers).toBe(true)
+  })
+
+  it('preserves a post-migration floating terminal opt-out', async () => {
+    writeDataFile({
+      schemaVersion: 1,
+      repos: [],
+      worktreeMeta: {},
+      settings: {
+        floatingTerminalEnabled: false,
+        floatingTerminalDefaultedForAllUsers: true
+      },
+      ui: {},
+      githubCache: { pr: {}, issue: {} },
+      workspaceSession: {}
+    })
+
+    const store = await createStore()
+    expect(store.getSettings().floatingTerminalEnabled).toBe(false)
+    expect(store.getSettings().floatingTerminalDefaultedForAllUsers).toBe(true)
+  })
+
   it('preserves custom notification sound paths from persisted settings', async () => {
     writeDataFile({
       schemaVersion: 1,
diff --git a/src/main/persistence.ts b/src/main/persistence.ts
index a458838faac..c1fd20d941e 100644
--- a/src/main/persistence.ts
+++ b/src/main/persistence.ts
@@ -277,6 +277,14 @@ export class Store {
           : rawOptionAsAlt === undefined || rawOptionAsAlt === 'true'
             ? 'auto'
             : rawOptionAsAlt
+        const floatingTerminalDefaultedForAllUsers =
+          parsed.settings?.floatingTerminalDefaultedForAllUsers === true
+        // Why: early floating-terminal builds persisted the old off-by-default
+        // value into user profiles. Flip only unmigrated profiles so a later
+        // deliberate opt-out still survives reload.
+        const migratedFloatingTerminalEnabled = floatingTerminalDefaultedForAllUsers
+          ? (parsed.settings?.floatingTerminalEnabled ?? true)
+          : true
         result = {
           ...defaults,
           ...parsed,
@@ -293,6 +301,8 @@ export class Store {
             experimentalActivity: true,
             terminalMacOptionAsAlt: migratedOptionAsAlt,
             terminalMacOptionAsAltMigrated: true,
+            floatingTerminalEnabled: migratedFloatingTerminalEnabled,
+            floatingTerminalDefaultedForAllUsers: true,
             notifications: {
               ...getDefaultNotificationSettings(),
               ...parsed.settings?.notifications
diff --git a/src/renderer/src/components/floating-terminal/FloatingTerminalIconContextMenu.tsx b/src/renderer/src/components/floating-terminal/FloatingTerminalIconContextMenu.tsx
new file mode 100644
index 00000000000..891164f51f7
--- /dev/null
+++ b/src/renderer/src/components/floating-terminal/FloatingTerminalIconContextMenu.tsx
@@ -0,0 +1,97 @@
+import { useMemo, useState } from 'react'
+import { EyeOff, PanelBottom, PanelTop } from 'lucide-react'
+import {
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuItem,
+  DropdownMenuSeparator,
+  DropdownMenuTrigger
+} from '@/components/ui/dropdown-menu'
+import { useAppStore } from '@/store'
+import type { FloatingTerminalTriggerLocation } from '../../../../shared/types'
+
+type FloatingTerminalIconContextMenuProps = {
+  children: React.ReactNode
+  currentLocation: FloatingTerminalTriggerLocation
+  className?: string
+}
+
+export function FloatingTerminalIconContextMenu({
+  children,
+  currentLocation,
+  className
+}: FloatingTerminalIconContextMenuProps): React.JSX.Element {
+  const updateSettings = useAppStore((s) => s.updateSettings)
+  const [open, setOpen] = useState(false)
+  const [menuPoint, setMenuPoint] = useState({ x: 0, y: 0 })
+
+  const moveAction = useMemo(() => {
+    if (currentLocation === 'floating-button') {
+      return {
+        icon: <PanelBottom className="size-3.5" />,
+        label: 'Move to Status Bar',
+        location: 'status-bar' as const
+      }
+    }
+    return {
+      icon: <PanelTop className="size-3.5" />,
+      label: 'Move to Floating Button',
+      location: 'floating-button' as const
+    }
+  }, [currentLocation])
+
+  return (
+    <>
+      <span
+        className={className}
+        data-floating-terminal-toggle
+        onContextMenuCapture={(event) => {
+          // Why: workspace cards use DropdownMenu anchored at the cursor for
+          // right-click menus; match that style instead of Radix ContextMenu.
+          event.preventDefault()
+          event.stopPropagation()
+          setMenuPoint({ x: event.clientX, y: event.clientY })
+          setOpen(false)
+          window.requestAnimationFrame(() => setOpen(true))
+        }}
+        onContextMenu={(event) => {
+          event.preventDefault()
+          event.stopPropagation()
+        }}
+      >
+        {children}
+      </span>
+      <DropdownMenu open={open} onOpenChange={setOpen} modal={false}>
+        <DropdownMenuTrigger asChild>
+          <button
+            aria-hidden
+            tabIndex={-1}
+            className="pointer-events-none fixed size-px opacity-0"
+            style={{ left: menuPoint.x, top: menuPoint.y }}
+          />
+        </DropdownMenuTrigger>
+        <DropdownMenuContent className="w-52" sideOffset={0} align="start">
+          <DropdownMenuItem
+            className="whitespace-nowrap"
+            onSelect={() => {
+              void updateSettings({ floatingTerminalTriggerLocation: moveAction.location })
+            }}
+          >
+            {moveAction.icon}
+            {moveAction.label}
+          </DropdownMenuItem>
+          <DropdownMenuSeparator />
+          <DropdownMenuItem
+            className="whitespace-nowrap"
+            onSelect={() => {
+              void updateSettings({ floatingTerminalEnabled: false })
+            }}
+          >
+            <EyeOff className="size-3.5" />
+            Hide
+          </DropdownMenuItem>
+        </DropdownMenuContent>
+      </DropdownMenu>
+    </>
+  )
+}
diff --git a/src/renderer/src/components/floating-terminal/FloatingTerminalPanel.tsx b/src/renderer/src/components/floating-terminal/FloatingTerminalPanel.tsx
index a376fb43cdb..cf8d5ec7c0b 100644
--- a/src/renderer/src/components/floating-terminal/FloatingTerminalPanel.tsx
+++ b/src/renderer/src/components/floating-terminal/FloatingTerminalPanel.tsx
@@ -1,5 +1,5 @@
 import { useCallback, useEffect, useMemo, useRef, useState } from 'react'
-import { Maximize2, Minimize2, TerminalSquare, X } from 'lucide-react'
+import { Maximize2, Minimize2, Minus, TerminalSquare } from 'lucide-react'
 import TabBar from '@/components/tab-bar/TabBar'
 import TerminalPane from '@/components/terminal-pane/TerminalPane'
 import { Button } from '@/components/ui/button'
@@ -15,6 +15,7 @@ import {
   getMaximizedFloatingTerminalBounds,
   type FloatingTerminalPanelBounds
 } from './floating-terminal-panel-bounds'
+import { FloatingTerminalIconContextMenu } from './FloatingTerminalIconContextMenu'
 const EMPTY_TERMINAL_TABS: TerminalTab[] = []
 
 type FloatingTerminalPanelProps = {
@@ -32,26 +33,30 @@ export function FloatingTerminalToggleButton({
   const shortcutLabel =
     typeof navigator !== 'undefined' && navigator.userAgent.includes('Mac') ? '⌘⌥T' : 'Ctrl+Alt+T'
   return (
-    <Tooltip>
-      <TooltipTrigger asChild>
-        <Button
-          type="button"
-          variant="outline"
-          size="icon-sm"
-          className="fixed bottom-8 right-3 z-40 bg-card/95 shadow-xs"
-          data-floating-terminal-toggle
-          aria-label={open ? 'Hide floating terminal' : 'Show floating terminal'}
-          aria-pressed={open}
-          onClick={onToggle}
-        >
-          <TerminalSquare className="size-3.5" />
-        </Button>
-      </TooltipTrigger>
-      <TooltipContent
-        side="left"
-        sideOffset={6}
-      >{`${open ? 'Hide' : 'Show'} floating terminal (${shortcutLabel})`}</TooltipContent>
-    </Tooltip>
+    <FloatingTerminalIconContextMenu
+      currentLocation="floating-button"
+      className="fixed bottom-8 right-3 z-40"
+    >
+      <Tooltip>
+        <TooltipTrigger asChild>
+          <Button
+            type="button"
+            variant="outline"
+            size="icon-sm"
+            className="bg-card/95 shadow-xs"
+            aria-label={open ? 'Minimize floating terminal' : 'Show floating terminal'}
+            aria-pressed={open}
+            onClick={onToggle}
+          >
+            <TerminalSquare className="size-3.5" />
+          </Button>
+        </TooltipTrigger>
+        <TooltipContent
+          side="left"
+          sideOffset={6}
+        >{`${open ? 'Minimize' : 'Show'} floating terminal (${shortcutLabel})`}</TooltipContent>
+      </Tooltip>
+    </FloatingTerminalIconContextMenu>
   )
 }
 
@@ -312,14 +317,14 @@ export function FloatingTerminalPanel({
                   type="button"
                   variant="ghost"
                   size="icon-xs"
-                  aria-label="Hide floating terminal"
+                  aria-label="Minimize floating terminal"
                   onClick={() => onOpenChange(false)}
                 >
-                  <X className="size-3.5" />
+                  <Minus className="size-3.5" />
                 </Button>
               </TooltipTrigger>
               <TooltipContent side="bottom" sideOffset={6}>
-                Hide floating terminal
+                Minimize
               </TooltipContent>
             </Tooltip>
           </div>
diff --git a/src/renderer/src/components/status-bar/StatusBar.tsx b/src/renderer/src/components/status-bar/StatusBar.tsx
index 0ab5a0ae844..d33152a00ec 100644
--- a/src/renderer/src/components/status-bar/StatusBar.tsx
+++ b/src/renderer/src/components/status-bar/StatusBar.tsx
@@ -37,6 +37,7 @@ import { ResourceUsageStatusSegment } from './ResourceUsageStatusSegment'
 import { isStatusBarItemAvailable } from './status-bar-agent-gating'
 import { PetStatusSegment } from './PetStatusSegment'
 import { TOGGLE_FLOATING_TERMINAL_EVENT } from '@/lib/floating-terminal'
+import { FloatingTerminalIconContextMenu } from '@/components/floating-terminal/FloatingTerminalIconContextMenu'
 
 type StatusBarProps = {
   floatingTerminalOpen: boolean
@@ -827,13 +828,19 @@ function StatusBarInner({ floatingTerminalOpen }: StatusBarProps): React.JSX.Ele
 
   const compact = containerWidth < 900
   const iconOnly = containerWidth < 500
-  const floatingTerminalActionLabel = floatingTerminalOpen ? 'Hide Terminal' : 'Show Terminal'
+  const floatingTerminalActionLabel = floatingTerminalOpen ? 'Minimize Terminal' : 'Show Terminal'
 
   return (
     <div
       ref={containerRefCallback}
       className="flex items-center h-6 min-h-[24px] px-3 gap-4 border-t border-border bg-[var(--bg-titlebar,var(--card))] text-xs select-none shrink-0 relative"
       onContextMenuCapture={(event) => {
+        if (
+          event.target instanceof Element &&
+          event.target.closest('[data-floating-terminal-toggle]')
+        ) {
+          return
+        }
         // Why: mirror the right-click pattern used across the app
         // (WorktreeContextMenu, TerminalContextMenu, tab bar) — dispatch the
         // global close event so peer menus dismiss, then place a hidden
@@ -893,36 +900,33 @@ function StatusBarInner({ floatingTerminalOpen }: StatusBarProps): React.JSX.Ele
       <div className="flex items-center gap-3">
         <UpdateStatusSegment compact={compact} iconOnly={iconOnly} />
         {petEnabled && <PetStatusSegment />}
-        {showFloatingTerminalToggle && (
-          <Tooltip>
-            <TooltipTrigger asChild>
-              <button
-                type="button"
-                className="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-muted-foreground transition-colors hover:bg-accent hover:text-foreground"
-                aria-label={floatingTerminalActionLabel}
-                onClick={() => {
-                  window.dispatchEvent(new CustomEvent(TOGGLE_FLOATING_TERMINAL_EVENT))
-                }}
-              >
-                <TerminalSquare className="size-3.5" />
-                {!iconOnly && (
-                  <span className="inline-block w-[86px] whitespace-nowrap text-left">
-                    {floatingTerminalActionLabel}
-                  </span>
-                )}
-              </button>
-            </TooltipTrigger>
-            <TooltipContent side="top" sideOffset={6}>
-              {floatingTerminalActionLabel} (
-              {typeof navigator !== 'undefined' && navigator.userAgent.includes('Mac')
-                ? '⌘⌥T'
-                : 'Ctrl+Alt+T'}
-              )
-            </TooltipContent>
-          </Tooltip>
-        )}
         {showResourceUsage && <ResourceUsageStatusSegment compact={compact} iconOnly={iconOnly} />}
         {showSsh && <SshStatusSegment compact={compact} iconOnly={iconOnly} />}
+        {showFloatingTerminalToggle && (
+          <FloatingTerminalIconContextMenu currentLocation="status-bar" className="relative">
+            <Tooltip>
+              <TooltipTrigger asChild>
+                <button
+                  type="button"
+                  className="inline-flex size-5 items-center justify-center rounded text-muted-foreground transition-colors hover:bg-accent hover:text-foreground"
+                  aria-label={floatingTerminalActionLabel}
+                  onClick={() => {
+                    window.dispatchEvent(new CustomEvent(TOGGLE_FLOATING_TERMINAL_EVENT))
+                  }}
+                >
+                  <TerminalSquare className="size-3.5" />
+                </button>
+              </TooltipTrigger>
+              <TooltipContent side="top" sideOffset={6}>
+                {floatingTerminalActionLabel} (
+                {typeof navigator !== 'undefined' && navigator.userAgent.includes('Mac')
+                  ? '⌘⌥T'
+                  : 'Ctrl+Alt+T'}
+                )
+              </TooltipContent>
+            </Tooltip>
+          </FloatingTerminalIconContextMenu>
+        )}
       </div>
 
       <DropdownMenu open={menuOpen} onOpenChange={setMenuOpen} modal={false}>
diff --git a/src/shared/constants.ts b/src/shared/constants.ts
index c1a1d85bf0c..f0a0b4eb2e5 100644
--- a/src/shared/constants.ts
+++ b/src/shared/constants.ts
@@ -203,6 +203,7 @@ export function getDefaultSettings(homedir: string): GlobalSettings {
     showTitlebarAppName: true,
     showTasksButton: true,
     floatingTerminalEnabled: true,
+    floatingTerminalDefaultedForAllUsers: true,
     floatingTerminalCwd: '~',
     floatingTerminalTriggerLocation: 'floating-button',
     notifications: getDefaultNotificationSettings(),
diff --git a/src/shared/types.ts b/src/shared/types.ts
index b382ce7df95..b1e4860c2f2 100644
--- a/src/shared/types.ts
+++ b/src/shared/types.ts
@@ -1187,14 +1187,18 @@ export type GlobalSettings = {
    *  left sidebar free of its button entirely. Hiding the button here also
    *  removes it from keyboard navigation. */
   showTasksButton: boolean
-  /** Why: Floating Terminal is a global terminal surface. Keep it opt-in until
-   *  users explicitly want a global shell outside repo/worktree context. */
+  /** Why: Floating Terminal is the default global shell surface so users can
+   *  reach a terminal outside repo/worktree context immediately. */
   floatingTerminalEnabled: boolean
+  /** One-shot migration flag for the default-on rollout. Before this field
+   *  landed, the floating terminal defaulted off and many profiles persisted
+   *  that inherited false. Once migrated, an explicit off choice sticks. */
+  floatingTerminalDefaultedForAllUsers?: boolean
   /** Where new Floating Terminal tabs start. Defaults to '~' so the visible
    *  setting matches the shell-oriented directory users expect. */
   floatingTerminalCwd: string
   /** Where the Floating Terminal toggle is shown. Defaults to the floating
-   *  button for discoverability after the user opts into the feature. */
+   *  button for discoverability. */
   floatingTerminalTriggerLocation: FloatingTerminalTriggerLocation
   diffDefaultView: 'inline' | 'side-by-side'
   notifications: NotificationSettings