Expense - Missing Remove from report option for non-reimbursable expense in retracted report

[lanitochka17]

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Version Number: 9.3.61-0
Reproducible in staging?: Yes
Reproducible in production?: No
If this was caught during regression testing, add the test name, ID and link from BrowserStack: #84832
Email or phone of affected tester (no customers): osijdnosijdosjdoij@gmail.com
Issue reported by: Applause Internal Team
Bug source: Exploratory - Significant User Experience Deterioration
Device used: Mac 26.2 / Chrome
App Component: Money Requests

Action Performed:

Precondition:

• Set Submission to Instantly.
• Disable Approvals and Payments.

1. Go to staging.new.expensify.com
2. Go to workspace chat.
3. Create a non-reimbursable expense.
4. Open the report.
5. Click More > Retract.
6. Click Report field.

Expected Result:

Remove from report option should be shown.

Actual Result:

Remove from report option is missing.

Workaround:

Unknown

Platforms:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari

Screenshots/Videos

Bug7134850_1776773903169.5.mp4

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[melvin-bot]

You have been assigned to this deploy blocker because you recently merged this PR: #84832

[melvin-bot]

💬 A slack conversation has been started in #expensify-open-source

[github-actions]

👋 Friendly reminder that deploy blockers are time-sensitive ⏱ issues! Check out the open `StagingDeployCash` deploy checklist to see the list of PRs included in this release, then work quickly to do one of the following:

1. Identify the pull request that introduced this issue and revert it.
2. Find someone who can quickly fix the issue.
3. Fix the issue yourself.

[OSBotify]

Investigation Summary

Classification: Frontend bug
Causing PR: #84832 - "Fix: Filter ineligible reports in useOutstandingReports hook" by @abzokhattab (High confidence)
Related Issues: #70423 (the issue PR #84832 was meant to fix)

Recommendation: REVERT

PR #84832 introduced a regression where filtering all reports as ineligible causes the "Remove from report" option to be hidden. Reverting is the cleanest fix since the change is contained to useOutstandingReports.ts.

Assigned: @abzokhattab (PR author), @joekaufmanexpensify, @grgia, @huult (approving reviewers) from highest-confidence causing PR only
Labels: DeployBlockerCash kept (Frontend bug — App PR caused the issue). No label changes made.

Detailed Analysis

Evidence

• The melvin-bot assigned the issue directly to PR Fix: Filter ineligible reports in useOutstandingReports hook #84832 at the time of filing, and the PR is confirmed in the StagingDeployCash checklist for version 9.3.61-0.
• PR Fix: Filter ineligible reports in useOutstandingReports hook #84832 modifies src/hooks/useOutstandingReports.ts to filter out reports using isReportIneligibleForMoveExpenses. When the workspace has Instant Submit enabled, Approvals disabled, and Payments disabled, a retracted non-reimbursable expense report is considered ineligible, causing useOutstandingReports to return an empty array.
• The bug is only reproducible on staging (not production), which is consistent with a recently merged staging-only PR.

Verification

• The affected file is src/hooks/useOutstandingReports.ts — directly modified by PR Fix: Filter ineligible reports in useOutstandingReports hook #84832.
• The consuming component src/pages/iou/request/step/IOURequestEditReportCommon.tsx (line 270) has logic: if (outstandingReports.length === 0 || shouldShowNotFoundPageFromProps) { return true; } for shouldShowNotFoundPage. When outstandingReports is empty (due to the new filter), shouldShowNotFoundPage becomes true, and StepScreenWrapper renders a "Not Found" page instead of the report selection list.
• The "Remove from report" option is rendered as listFooterContent of the SelectionList (lines 311-319 of IOURequestEditReportCommon.tsx), which is never rendered when the "Not Found" page is shown — even though shouldShowRemoveFromReport (lines 118-123) would otherwise be true.

Root Cause

isReportIneligibleForMoveExpenses in ReportUtils.ts (line 2788) returns true for non-draft reports in workspaces with Instant Submit + Submit & Close + only non-reimbursable transactions. After Retract, the report is not in draft state (isDraftReport returns false), so the filter removes it. With no eligible outstanding reports, outstandingReports.length === 0, which triggers the "Not Found" page branch in IOURequestEditReportCommon, hiding the entire list including the "Remove from report" footer option. The fix should either: (a) not show the "Not Found" page when shouldShowRemoveFromReport is true, or (b) ensure the filtering logic correctly handles retracted reports. However, the safest immediate action is to revert PR #84832.