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[Due for payment 2026-08-07] Session not re-authenticated after short-lived token transition from OldDot to New Expensify — user stuck loading with repeated 407s #96848

Description

@melvin-bot

Problem

After a user transitions from OldDot (Classic) to New Expensify via a short-lived token (the /transition?...&shortLivedAuthToken=... flow), the resulting session is not re-authenticated when its authToken later expires. Instead of transparently re-authenticating, the app fires a continuous stream of 407 responses (expired/invalid authToken) and the user is left stuck on an endless loading state (observed on the Reports page and Inbox).

This is not SAML/SSO related and does not involve Copilot — it's a plain short-lived-token transition session.

What happens

  1. User transitions from OldDot to New Expensify via a short-lived auth token (/transition?...&shortLivedAuthToken=...). This initial load works.
  2. User closes the app and re-opens it later.
  3. The authToken has expired. Every subsequent request returns 407.
  4. The Reauthentication middleware does not successfully re-authenticate, so the 407s repeat indefinitely and the UI never finishes loading.

Expected

When the authToken expires, the Reauthentication middleware should transparently obtain a fresh authToken and recover, rather than looping on 407s and leaving the user stuck loading.

Notes / evidence

Platform

Web (New Expensify)

Reported in Slack.

Issue OwnerCurrent Issue Owner: @eVoloshchak

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