happy-coder 0.1.10 → 0.1.11

package/dist/index.mjs

@@ -1,32 +1,32 @@
 import chalk from 'chalk';
-import { l as logger, d as backoff, R as RawJSONLinesSchema, A as ApiClient, c as configuration, e as encodeBase64, f as encodeBase64Url, g as decodeBase64, h as delay, j as encrypt, k as decrypt, b as initializeConfiguration, i as initLoggerWithGlobalConfiguration } from './types-DnQGY77F.mjs';
+import { l as logger, d as delay, e as backoff, R as RawJSONLinesSchema, A as ApiClient, c as configuration, f as encodeBase64, g as encodeBase64Url, h as decodeBase64, j as encrypt, k as decrypt, b as initializeConfiguration, i as initLoggerWithGlobalConfiguration } from './types-D39L8JSd.mjs';
 import { randomUUID, randomBytes } from 'node:crypto';
 import { query, AbortError } from '@anthropic-ai/claude-code';
 import { existsSync, readFileSync, mkdirSync, watch, rmSync } from 'node:fs';
-import os, { homedir } from 'node:os';
 import { resolve, join, dirname } from 'node:path';
+import os, { homedir } from 'node:os';
+import { access, watch as watch$1, readFile as readFile$1, stat, writeFile, readdir } from 'fs/promises';
 import { spawn } from 'node:child_process';
 import { createInterface } from 'node:readline';
-import { fileURLToPath, URL as URL$1 } from 'node:url';
-import { watch as watch$1, readFile, mkdir, writeFile as writeFile$1 } from 'node:fs/promises';
+import { fileURLToPath } from 'node:url';
+import { readFile, mkdir, writeFile as writeFile$1 } from 'node:fs/promises';
 import { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
-import { createServer, request as request$1 } from 'node:http';
+import { createServer, ServerResponse } from 'node:http';
 import { StreamableHTTPServerTransport } from '@modelcontextprotocol/sdk/server/streamableHttp.js';
 import * as z from 'zod';
 import { z as z$1 } from 'zod';
-import { request } from 'node:https';
-import net from 'node:net';
-import { exec, spawn as spawn$1, execSync } from 'child_process';
+import { spawn as spawn$1, exec, execSync } from 'child_process';
 import { promisify } from 'util';
-import { readFile as readFile$1, stat, writeFile, readdir } from 'fs/promises';
 import crypto, { createHash } from 'crypto';
-import { join as join$1 } from 'path';
+import { dirname as dirname$1, join as join$1 } from 'path';
+import { fileURLToPath as fileURLToPath$1 } from 'url';
+import httpProxy from 'http-proxy';
 import tweetnacl from 'tweetnacl';
 import axios from 'axios';
 import qrcode from 'qrcode-terminal';
 import { EventEmitter } from 'node:events';
 import { io } from 'socket.io-client';
-import { homedir as homedir$1, hostname } from 'os';
+import { hostname, homedir as homedir$1 } from 'os';
 import { existsSync as existsSync$1, readFileSync as readFileSync$1, unlinkSync, mkdirSync as mkdirSync$1, writeFileSync, chmodSync } from 'fs';
 import 'expo-server-sdk';
 
@@ -150,9 +150,13 @@ function printDivider() {
   console.log(chalk.gray("\u2550".repeat(60)));
 }
 
+function getProjectPath(workingDirectory) {
+  const projectId = resolve(workingDirectory).replace(/[\\\/\.:]/g, "-");
+  return join(homedir(), ".claude", "projects", projectId);
+}
+
 function claudeCheckSession(sessionId, path) {
-  const projectName = resolve(path).replace(/\//g, "-");
-  const projectDir = join(homedir(), ".claude", "projects", projectName);
+  const projectDir = getProjectPath(path);
   const sessionFile = join(projectDir, `${sessionId}.jsonl`);
   const sessionExists = existsSync(sessionFile);
   if (!sessionExists) {
@@ -170,11 +174,29 @@ function claudeCheckSession(sessionId, path) {
   return hasGoodMessage;
 }
 
+async function awaitFileExist(file, timeout = 1e4) {
+  const startTime = Date.now();
+  while (Date.now() - startTime < timeout) {
+    try {
+      await access(file);
+      return true;
+    } catch (e) {
+      await delay(1e3);
+    }
+  }
+  return false;
+}
+
 async function claudeRemote(opts) {
   let startFrom = opts.sessionId;
   if (opts.sessionId && !claudeCheckSession(opts.sessionId, opts.path)) {
     startFrom = null;
   }
+  if (opts.claudeEnvVars) {
+    Object.entries(opts.claudeEnvVars).forEach(([key, value]) => {
+      process.env[key] = value;
+    });
+  }
   const abortController = new AbortController();
   const sdkOptions = {
     cwd: opts.path,
@@ -184,6 +206,9 @@ async function claudeRemote(opts) {
     executable: "node",
     abortController
   };
+  if (opts.claudeArgs && opts.claudeArgs.length > 0) {
+    sdkOptions.executableArgs = [...sdkOptions.executableArgs || [], ...opts.claudeArgs];
+  }
   let aborted = false;
   let response;
   opts.abort.addEventListener("abort", () => {
@@ -221,15 +246,11 @@ async function claudeRemote(opts) {
       logger.debug(`[claudeRemote] Received message from SDK: ${message.type}`);
       formatClaudeMessage(message, opts.onAssistantResult);
       if (message.type === "system" && message.subtype === "init") {
-        const projectName = resolve(opts.path).replace(/\//g, "-");
-        const projectDir = join(homedir(), ".claude", "projects", projectName);
-        mkdirSync(projectDir, { recursive: true });
-        const watcher = watch(projectDir).on("change", (_, filename) => {
-          if (filename === `${message.session_id}.jsonl`) {
-            opts.onSessionFound(message.session_id);
-            watcher.close();
-          }
-        });
+        logger.debug(`[claudeRemote] Waiting for session file to be written to disk: ${message.session_id}`);
+        const projectDir = getProjectPath(opts.path);
+        const found = await awaitFileExist(join(projectDir, `${message.session_id}.jsonl`));
+        logger.debug(`[claudeRemote] Session file found: ${message.session_id} ${found}`);
+        opts.onSessionFound(message.session_id);
       }
     }
     logger.debug(`[claudeRemote] Finished iterating over response`);
@@ -251,10 +272,9 @@ async function claudeRemote(opts) {
   logger.debug(`[claudeRemote] Function completed`);
 }
 
-const __dirname = dirname(fileURLToPath(import.meta.url));
+const __dirname$1 = dirname(fileURLToPath(import.meta.url));
 async function claudeLocal(opts) {
-  const projectName = resolve(opts.path).replace(/\//g, "-");
-  const projectDir = join(homedir(), ".claude", "projects", projectName);
+  const projectDir = getProjectPath(opts.path);
   mkdirSync(projectDir, { recursive: true });
   const watcher = watch(projectDir);
   let resolvedSessionId = null;
@@ -288,11 +308,19 @@ async function claudeLocal(opts) {
       if (startFrom) {
         args.push("--resume", startFrom);
       }
-      const claudeCliPath = process.env.HAPPY_CLAUDE_CLI_PATH || resolve(join(__dirname, "..", "scripts", "claudeInteractiveLaunch.cjs"));
+      if (opts.claudeArgs) {
+        args.push(...opts.claudeArgs);
+      }
+      const claudeCliPath = process.env.HAPPY_CLAUDE_CLI_PATH || resolve(join(__dirname$1, "..", "scripts", "claudeInteractiveLaunch.cjs"));
+      const env = {
+        ...process.env,
+        ...opts.claudeEnvVars
+      };
       const child = spawn("node", [claudeCliPath, ...args], {
         stdio: ["inherit", "inherit", "inherit", "pipe"],
         signal: opts.abort,
-        cwd: opts.path
+        cwd: opts.path,
+        env
       });
       if (child.stdio[3]) {
         const rl = createInterface({
@@ -517,16 +545,44 @@ class InvalidateSync {
   };
 }
 
+function startFileWatcher(file, onFileChange) {
+  const abortController = new AbortController();
+  void (async () => {
+    while (true) {
+      try {
+        logger.debug(`[FILE_WATCHER] Starting watcher for ${file}`);
+        const watcher = watch$1(file, { persistent: true, signal: abortController.signal });
+        for await (const event of watcher) {
+          if (abortController.signal.aborted) {
+            return;
+          }
+          logger.debug(`[FILE_WATCHER] File changed: ${file}`);
+          onFileChange(file);
+        }
+      } catch (e) {
+        if (abortController.signal.aborted) {
+          return;
+        }
+        logger.debug(`[FILE_WATCHER] Watch error: ${e.message}, restarting watcher in a second`);
+        await delay(1e3);
+      }
+    }
+  })();
+  return () => {
+    abortController.abort();
+  };
+}
+
 function createSessionScanner(opts) {
-  const projectName = resolve(opts.workingDirectory).replace(/\//g, "-");
-  const projectDir = join(homedir(), ".claude", "projects", projectName);
+  const projectDir = getProjectPath(opts.workingDirectory);
   let finishedSessions = /* @__PURE__ */ new Set();
   let pendingSessions = /* @__PURE__ */ new Set();
   let currentSessionId = null;
-  let currentSessionWatcherAbortController = null;
+  let watchers = /* @__PURE__ */ new Map();
   let processedMessages = /* @__PURE__ */ new Set();
   let seenRemoteUserMessageCounters = /* @__PURE__ */ new Map();
   const sync = new InvalidateSync(async () => {
+    logger.debug(`[SESSION_SCANNER] Syncing...`);
     let sessions = [];
     for (let p of pendingSessions) {
       sessions.push(p);
@@ -540,11 +596,15 @@ function createSessionScanner(opts) {
       try {
         file = await readFile(expectedSessionFile, "utf-8");
       } catch (error) {
+        logger.debug(`[SESSION_SCANNER] Session file not found: ${expectedSessionFile}`);
         return;
       }
       let lines = file.split("\n");
       for (let l of lines) {
         try {
+          if (l.trim() === "") {
+            continue;
+          }
           let message = JSON.parse(l);
           let parsed = RawJSONLinesSchema.safeParse(message);
           if (!parsed.success) {
@@ -567,6 +627,7 @@ function createSessionScanner(opts) {
           }
           opts.onMessage(message);
         } catch (e) {
+          logger.debug(`[SESSION_SCANNER] Error processing message: ${e}`);
           continue;
         }
       }
@@ -580,40 +641,37 @@ function createSessionScanner(opts) {
         finishedSessions.add(p);
       }
     }
-    currentSessionWatcherAbortController?.abort();
-    currentSessionWatcherAbortController = new AbortController();
-    void (async () => {
-      if (currentSessionId) {
-        const sessionFile = join(projectDir, `${currentSessionId}.jsonl`);
-        try {
-          for await (const change of watch$1(sessionFile, { persistent: true, signal: currentSessionWatcherAbortController.signal })) {
-            await processSessionFile(currentSessionId);
-          }
-        } catch (error) {
-          if (error.name !== "AbortError") {
-            logger.debug(`[SESSION_SCANNER] Watch error: ${error.message}`);
-          }
-        }
+    for (let p of sessions) {
+      if (!watchers.has(p)) {
+        watchers.set(p, startFileWatcher(join(projectDir, `${p}.jsonl`), () => {
+          sync.invalidate();
+        }));
       }
-    })();
+    }
   });
+  sync.invalidate();
   const intervalId = setInterval(() => {
     sync.invalidate();
   }, 3e3);
   return {
-    refresh: () => sync.invalidate(),
     cleanup: () => {
       clearInterval(intervalId);
-      currentSessionWatcherAbortController?.abort();
+      for (let w of watchers.values()) {
+        w();
+      }
+      watchers.clear();
     },
     onNewSession: (sessionId) => {
       if (currentSessionId === sessionId) {
+        logger.debug(`[SESSION_SCANNER] New session: ${sessionId} is the same as the current session, skipping`);
         return;
       }
       if (finishedSessions.has(sessionId)) {
+        logger.debug(`[SESSION_SCANNER] New session: ${sessionId} is already finished, skipping`);
         return;
       }
       if (pendingSessions.has(sessionId)) {
+        logger.debug(`[SESSION_SCANNER] New session: ${sessionId} is already pending, skipping`);
         return;
       }
       if (currentSessionId) {
@@ -658,7 +716,7 @@ function sortKeys(value) {
 }
 
 async function loop(opts) {
-  let mode = opts.startingMode ?? "interactive";
+  let mode = opts.startingMode ?? "local";
   let currentMessageQueue = new MessageQueue();
   let sessionId = null;
   let onMessage = null;
@@ -682,23 +740,38 @@ async function loop(opts) {
   };
   while (true) {
     if (currentMessageQueue.size() > 0) {
-      mode = "remote";
+      if (mode !== "remote") {
+        mode = "remote";
+        if (opts.onModeChange) {
+          opts.onModeChange(mode);
+        }
+      }
       continue;
     }
-    if (mode === "interactive") {
+    if (mode === "local") {
       let abortedOutside = false;
       const interactiveAbortController = new AbortController();
       opts.session.setHandler("switch", () => {
         if (!interactiveAbortController.signal.aborted) {
           abortedOutside = true;
-          mode = "remote";
+          if (mode !== "remote") {
+            mode = "remote";
+            if (opts.onModeChange) {
+              opts.onModeChange(mode);
+            }
+          }
           interactiveAbortController.abort();
         }
       });
       onMessage = () => {
         if (!interactiveAbortController.signal.aborted) {
           abortedOutside = true;
-          mode = "remote";
+          if (mode !== "remote") {
+            mode = "remote";
+            if (opts.onModeChange) {
+              opts.onModeChange(mode);
+            }
+          }
           interactiveAbortController.abort();
         }
         onMessage = null;
@@ -707,13 +780,15 @@ async function loop(opts) {
         path: opts.path,
         sessionId,
         onSessionFound,
-        abort: interactiveAbortController.signal
+        abort: interactiveAbortController.signal,
+        claudeEnvVars: opts.claudeEnvVars,
+        claudeArgs: opts.claudeArgs
       });
       onMessage = null;
       if (!abortedOutside) {
         return;
       }
-      if (mode !== "interactive") {
+      if (mode !== "local") {
         console.log("Switching to remote mode...");
       }
     }
@@ -727,7 +802,12 @@ async function loop(opts) {
       });
       const abortHandler = () => {
         if (!remoteAbortController.signal.aborted) {
-          mode = "interactive";
+          if (mode !== "local") {
+            mode = "local";
+            if (opts.onModeChange) {
+              opts.onModeChange(mode);
+            }
+          }
           remoteAbortController.abort();
         }
         if (process.stdin.isTTY) {
@@ -751,7 +831,9 @@ async function loop(opts) {
           onSessionFound,
           messages: currentMessageQueue,
           onAssistantResult: opts.onAssistantResult,
-          interruptController: opts.interruptController
+          interruptController: opts.interruptController,
+          claudeEnvVars: opts.claudeEnvVars,
+          claudeArgs: opts.claudeArgs
         });
       } finally {
         process.stdin.off("data", abortHandler);
@@ -868,159 +950,41 @@ class InterruptController {
   }
 }
 
-var version = "0.1.10";
+var version = "0.1.11";
 var packageJson = {
 	version: version};
 
-async function startAnthropicActivityProxy(onClaudeActivity) {
-  const requestTimeouts = /* @__PURE__ */ new Map();
-  let requestCounter = 0;
-  let idleTimer = null;
-  const maxTimeBeforeIdle = 50;
-  const requestTimeout = 5 * 60 * 1e3;
-  const cleanupRequest = (requestId, reason) => {
-    const timeout = requestTimeouts.get(requestId);
-    if (timeout) {
-      clearTimeout(timeout);
-      requestTimeouts.delete(requestId);
-      logger.debug(`[AnthropicProxy #${requestId}] Cleaned up (${reason}), active requests: ${requestTimeouts.size}`);
-      claudeDidSomeWork();
-    }
-  };
-  const claudeDidSomeWork = () => {
-    if (idleTimer) clearTimeout(idleTimer);
-    if (requestTimeouts.size === 0) {
-      idleTimer = setTimeout(() => {
-        logger.debug(`[AnthropicProxy] Idle for ${maxTimeBeforeIdle}ms, active requests: ${requestTimeouts.size}`);
-        onClaudeActivity("idle");
-      }, maxTimeBeforeIdle);
-    }
-  };
-  const server = createServer((req, res) => {
-    const requestId = ++requestCounter;
-    const isAnthropicRequest = req.headers.host === "api.anthropic.com" || req.url?.includes("anthropic.com");
-    if (isAnthropicRequest) {
-      const timeout = setTimeout(() => {
-        logger.debug(`[AnthropicProxy #${requestId}] Request timeout after ${requestTimeout}ms`);
-        cleanupRequest(requestId, "timeout");
-      }, requestTimeout);
-      requestTimeouts.set(requestId, timeout);
-      onClaudeActivity("working");
-      logger.debug(`[AnthropicProxy #${requestId}] Anthropic request: ${req.method} ${req.url}, active requests: ${requestTimeouts.size}`);
-    }
-    const chunks = [];
-    req.on("data", (chunk) => {
-      chunks.push(chunk);
-      if (isAnthropicRequest) {
-        claudeDidSomeWork();
-      }
+const __dirname = dirname$1(fileURLToPath$1(import.meta.url));
+const RUNNER_PATH = join$1(__dirname, "..", "..", "scripts", "ripgrep_launcher.cjs");
+function run(args, options) {
+  return new Promise((resolve, reject) => {
+    const child = spawn$1("node", [RUNNER_PATH, JSON.stringify(args)], {
+      stdio: ["pipe", "pipe", "pipe"],
+      cwd: options?.cwd
     });
-    req.on("end", () => {
-      const body = Buffer.concat(chunks);
-      let targetUrl;
-      if (isAnthropicRequest) {
-        targetUrl = new URL$1(req.url || "/", "https://api.anthropic.com");
-      } else {
-        const protocol = req.headers["x-forwarded-proto"] || "https";
-        const host = req.headers.host || "localhost";
-        targetUrl = new URL$1(req.url || "/", `${protocol}://${host}`);
-      }
-      const options = {
-        hostname: targetUrl.hostname,
-        port: targetUrl.port || (targetUrl.protocol === "https:" ? 443 : 80),
-        path: targetUrl.pathname + targetUrl.search,
-        method: req.method,
-        headers: {
-          ...req.headers,
-          host: targetUrl.hostname
-        }
-      };
-      const requestMethod = targetUrl.protocol === "https:" ? request : request$1;
-      const proxyReq = requestMethod(options, (proxyRes) => {
-        res.writeHead(proxyRes.statusCode || 200, proxyRes.headers);
-        proxyRes.pipe(res);
-        proxyRes.on("end", () => {
-          if (isAnthropicRequest) {
-            cleanupRequest(requestId, "completed");
-          }
-        });
-      });
-      proxyReq.on("error", (error) => {
-        if (isAnthropicRequest) {
-          cleanupRequest(requestId, `error: ${error.message}`);
-        } else {
-          logger.debug(`[AnthropicProxy #${requestId}] Error:`, error.message);
-        }
-        res.writeHead(502);
-        res.end("Bad Gateway");
-      });
-      if (body.length > 0) {
-        proxyReq.write(body);
-      }
-      proxyReq.end();
+    let stdout = "";
+    let stderr = "";
+    child.stdout.on("data", (data) => {
+      stdout += data.toString();
     });
-  });
-  server.on("connect", (req, clientSocket, head) => {
-    const requestId = ++requestCounter;
-    const [hostname, port] = req.url?.split(":") || ["", "443"];
-    const isAnthropicRequest = hostname === "api.anthropic.com";
-    if (isAnthropicRequest) {
-      const timeout = setTimeout(() => {
-        logger.debug(`[AnthropicProxy #${requestId}] CONNECT timeout after ${requestTimeout}ms`);
-        cleanupRequest(requestId, "timeout");
-      }, requestTimeout);
-      requestTimeouts.set(requestId, timeout);
-      onClaudeActivity("working");
-      logger.debug(`[AnthropicProxy #${requestId}] CONNECT to api.anthropic.com, active requests: ${requestTimeouts.size}`);
-    }
-    const serverSocket = net.connect(parseInt(port) || 443, hostname, () => {
-      clientSocket.write("HTTP/1.1 200 Connection Established\r\n\r\n");
-      serverSocket.write(head);
-      serverSocket.pipe(clientSocket);
-      clientSocket.pipe(serverSocket);
+    child.stderr.on("data", (data) => {
+      stderr += data.toString();
     });
-    const cleanup = () => {
-      if (isAnthropicRequest) {
-        cleanupRequest(requestId, "CONNECT closed");
-      }
-    };
-    serverSocket.on("error", (err) => {
-      logger.debug(`[AnthropicProxy #${requestId}] CONNECT error:`, err.message);
-      clientSocket.end();
-      cleanup();
+    child.on("close", (code) => {
+      resolve({
+        exitCode: code || 0,
+        stdout,
+        stderr
+      });
     });
-    clientSocket.on("error", cleanup);
-    clientSocket.on("end", cleanup);
-    serverSocket.on("end", cleanup);
-  });
-  const url = await new Promise((resolve) => {
-    server.listen(0, "127.0.0.1", () => {
-      const addr = server.address();
-      if (addr && typeof addr === "object") {
-        resolve(`http://127.0.0.1:${addr.port}`);
-      }
+    child.on("error", (err) => {
+      reject(err);
     });
   });
-  logger.debug(`[AnthropicProxy] Started at ${url}`);
-  return {
-    url,
-    cleanup: () => {
-      if (idleTimer) clearTimeout(idleTimer);
-      for (const [requestId, timeout] of requestTimeouts) {
-        clearTimeout(timeout);
-        logger.debug(`[AnthropicProxy] Cleaning up timeout for request #${requestId}`);
-      }
-      requestTimeouts.clear();
-      if (requestTimeouts.size > 0) {
-        logger.debug(`[AnthropicProxy] Warning: ${requestTimeouts.size} active requests still pending at cleanup:`, Array.from(requestTimeouts.keys()));
-      }
-      server.close();
-    }
-  };
 }
 
 const execAsync = promisify(exec);
-function registerHandlers(session, interruptController, permissionCallbacks) {
+function registerHandlers(session, interruptController, permissionCallbacks, onSwitchRemoteRequested) {
   session.setHandler("abort", async () => {
     logger.info("Abort request - interrupting Claude");
     await interruptController.interrupt();
@@ -1240,6 +1204,121 @@ function registerHandlers(session, interruptController, permissionCallbacks) {
       return { success: false, error: error instanceof Error ? error.message : "Failed to get directory tree" };
     }
   });
+  session.setHandler("ripgrep", async (data) => {
+    logger.info("Ripgrep request with args:", data.args, "cwd:", data.cwd);
+    try {
+      const result = await run(data.args, { cwd: data.cwd });
+      return {
+        success: true,
+        exitCode: result.exitCode,
+        stdout: result.stdout,
+        stderr: result.stderr
+      };
+    } catch (error) {
+      logger.debug("Failed to run ripgrep:", error);
+      return {
+        success: false,
+        error: error instanceof Error ? error.message : "Failed to run ripgrep"
+      };
+    }
+  });
+}
+
+async function startHTTPDirectProxy(options) {
+  const proxy = httpProxy.createProxyServer({
+    target: options.target,
+    changeOrigin: true,
+    secure: false
+  });
+  proxy.on("error", (err, req, res) => {
+    logger.debug(`[HTTPProxy] Proxy error: ${err.message} for ${req.method} ${req.url}`);
+    if (res instanceof ServerResponse && !res.headersSent) {
+      res.writeHead(500, { "Content-Type": "text/plain" });
+      res.end("Proxy error");
+    }
+  });
+  proxy.on("proxyReq", (proxyReq, req, res) => {
+    if (options.onRequest) {
+      options.onRequest(req, proxyReq);
+    }
+  });
+  proxy.on("proxyRes", (proxyRes, req, res) => {
+    if (options.onResponse) {
+      options.onResponse(req, proxyRes);
+    }
+  });
+  const server = createServer((req, res) => {
+    proxy.web(req, res);
+  });
+  const url = await new Promise((resolve, reject) => {
+    server.listen(0, "127.0.0.1", () => {
+      const addr = server.address();
+      if (addr && typeof addr === "object") {
+        const proxyUrl = `http://127.0.0.1:${addr.port}`;
+        logger.debug(`[HTTPProxy] Started on ${proxyUrl} --> ${options.target}`);
+        resolve(proxyUrl);
+      } else {
+        reject(new Error("Failed to get server address"));
+      }
+    });
+  });
+  return url;
+}
+
+async function startClaudeActivityTracker(onThinking) {
+  let requestCounter = 0;
+  const activeRequests = /* @__PURE__ */ new Set();
+  let stopThinkingTimeout = null;
+  let isThinking = false;
+  const proxyUrl = await startHTTPDirectProxy({
+    target: process.env.ANTHROPIC_BASE_URL || "https://api.anthropic.com",
+    onRequest: (req, proxyReq) => {
+      if (req.method === "POST" && req.url?.startsWith("/v1/messages")) {
+        const requestId = ++requestCounter;
+        activeRequests.add(requestId);
+        req._requestId = requestId;
+        if (stopThinkingTimeout) {
+          clearTimeout(stopThinkingTimeout);
+          stopThinkingTimeout = null;
+        }
+        if (!isThinking) {
+          logger.debug(`[ClaudeActivityTracker] Thinking started`);
+          isThinking = true;
+          onThinking(true);
+        }
+      }
+    },
+    onResponse: (req, proxyRes) => {
+      if (req.method === "POST" && req.url?.startsWith("/v1/messages")) {
+        const requestId = req._requestId;
+        proxyRes.on("end", () => {
+          activeRequests.delete(requestId);
+          if (activeRequests.size === 0 && isThinking && !stopThinkingTimeout) {
+            stopThinkingTimeout = setTimeout(() => {
+              if (isThinking) {
+                isThinking = false;
+                logger.debug(`[ClaudeActivityTracker] Thinking stopped`);
+                onThinking(false);
+              }
+            }, 500);
+          }
+        });
+        proxyRes.on("error", () => {
+          activeRequests.delete(requestId);
+          if (activeRequests.size === 0 && isThinking && !stopThinkingTimeout) {
+            stopThinkingTimeout = setTimeout(() => {
+              if (isThinking) {
+                isThinking = false;
+                logger.debug(`[ClaudeActivityTracker] Thinking stopped`);
+                onThinking(false);
+              }
+            }, 500);
+          }
+        });
+      }
+    }
+  });
+  return proxyUrl;
 }
 
 async function start(credentials, options = {}) {
@@ -1253,22 +1332,15 @@ async function start(credentials, options = {}) {
   const session = api.session(response);
   const pushClient = api.push();
   let thinking = false;
+  let mode = "local";
   let pingInterval = setInterval(() => {
-    session.keepAlive(thinking);
+    session.keepAlive(thinking, mode);
   }, 2e3);
-  const antropicActivityProxy = await startAnthropicActivityProxy(
-    (activity) => {
-      const newThinking = activity === "working";
-      if (newThinking !== thinking) {
-        thinking = newThinking;
-        logger.debug(`[PING] Thinking state changed: ${thinking}`);
-        session.keepAlive(thinking);
-      }
-    }
-  );
-  process.env.HTTP_PROXY = antropicActivityProxy.url;
-  process.env.HTTPS_PROXY = antropicActivityProxy.url;
-  logger.debug(`[AnthropicProxy] Set HTTP_PROXY and HTTPS_PROXY to ${antropicActivityProxy.url}`);
+  const proxyUrl = await startClaudeActivityTracker((newThinking) => {
+    thinking = newThinking;
+    session.keepAlive(thinking, mode);
+  });
+  process.env.ANTHROPIC_BASE_URL = proxyUrl;
   const logPath = await logger.logFilePathPromise;
   logger.infoDeveloper(`Session: ${response.id}`);
   logger.infoDeveloper(`Logs: ${logPath}`);
@@ -1280,10 +1352,10 @@ async function start(credentials, options = {}) {
       requests.set(id, resolve);
     });
     let timeout = setTimeout(async () => {
-      logger.info("Permission timeout - attempting to interrupt Claude");
+      logger.debug("Permission timeout - attempting to interrupt Claude");
       const interrupted = await interruptController.interrupt();
       if (interrupted) {
-        logger.info("Claude interrupted successfully");
+        logger.debug("Claude interrupted successfully");
       }
       requests.delete(id);
       session.updateAgentState((currentState) => {
@@ -1295,7 +1367,7 @@ async function start(credentials, options = {}) {
         };
       });
     }, 1e3 * 60 * 4.5);
-    logger.info("Permission request" + id + " " + JSON.stringify(request));
+    logger.debug("Permission request" + id + " " + JSON.stringify(request));
     try {
       await pushClient.sendToAllDevices(
         "Permission Request",
@@ -1307,7 +1379,7 @@ async function start(credentials, options = {}) {
           type: "permission_request"
         }
       );
-      logger.info("Push notification sent for permission request");
+      logger.debug("Push notification sent for permission request");
     } catch (error) {
       logger.debug("Failed to send push notification:", error);
     }
@@ -1349,6 +1421,15 @@ async function start(credentials, options = {}) {
     model: options.model,
     permissionMode: options.permissionMode,
     startingMode: options.startingMode,
+    onModeChange: (newMode) => {
+      mode = newMode;
+      session.sendSessionEvent({ type: "switch", mode: newMode });
+      session.keepAlive(thinking, mode);
+      session.updateAgentState((currentState) => ({
+        ...currentState,
+        controlledByUser: newMode === "local" ? true : false
+      }));
+    },
     mcpServers: {
       "permission": {
         type: "http",
@@ -1358,13 +1439,11 @@ async function start(credentials, options = {}) {
     permissionPromptToolName: "mcp__permission__" + permissionServer.toolName,
     session,
     onAssistantResult,
-    interruptController
+    interruptController,
+    claudeEnvVars: options.claudeEnvVars,
+    claudeArgs: options.claudeArgs
   });
   clearInterval(pingInterval);
-  if (antropicActivityProxy) {
-    logger.debug("[AnthropicProxy] Shutting down thinking activity monitoring proxy");
-    antropicActivityProxy.cleanup();
-  }
   process.exit(0);
 }
 
@@ -1614,17 +1693,25 @@ class ApiDaemonSession extends EventEmitter {
   }
 }
 
-const DAEMON_PID_FILE = join$1(homedir$1(), ".happy", "daemon-pid");
 async function startDaemon() {
-  if (isDaemonRunning()) {
+  console.log("[DAEMON] Starting daemon process...");
+  if (await isDaemonRunning()) {
     console.log("Happy daemon is already running");
     process.exit(0);
   }
-  logger.info("Happy CLI daemon started successfully");
+  console.log("[DAEMON] Writing PID file with PID:", process.pid);
   writePidFile();
-  process.on("SIGINT", stopDaemon);
-  process.on("SIGTERM", stopDaemon);
-  process.on("exit", stopDaemon);
+  console.log("[DAEMON] PID file written successfully");
+  logger.info("Happy CLI daemon started successfully");
+  process.on("SIGINT", () => {
+    stopDaemon().catch(console.error);
+  });
+  process.on("SIGTERM", () => {
+    stopDaemon().catch(console.error);
+  });
+  process.on("exit", () => {
+    stopDaemon().catch(console.error);
+  });
   try {
     const settings = await readSettings() || { onboardingCompleted: false };
     if (!settings.machineId) {
@@ -1675,22 +1762,37 @@ async function startDaemon() {
     await new Promise((resolve) => setTimeout(resolve, 1e3));
   }
 }
-function isDaemonRunning() {
+async function isDaemonRunning() {
   try {
-    if (!existsSync$1(DAEMON_PID_FILE)) {
-      console.log("No PID file found");
-      return false;
-    }
-    const pid = parseInt(readFileSync$1(DAEMON_PID_FILE, "utf-8"));
-    try {
-      process.kill(pid, 0);
-      return true;
-    } catch (error) {
-      console.log("Process not running", error);
-      unlinkSync(DAEMON_PID_FILE);
-      return false;
+    console.log("[isDaemonRunning] Checking if daemon is running...");
+    if (existsSync$1(configuration.daemonPidFile)) {
+      console.log("[isDaemonRunning] PID file exists");
+      const pid = parseInt(readFileSync$1(configuration.daemonPidFile, "utf-8"));
+      console.log("[isDaemonRunning] PID from file:", pid);
+      try {
+        process.kill(pid, 0);
+        console.log("[isDaemonRunning] Process exists, checking if it's a happy daemon...");
+        const isHappyDaemon = await isProcessHappyDaemon(pid);
+        console.log("[isDaemonRunning] isHappyDaemon:", isHappyDaemon);
+        if (isHappyDaemon) {
+          return true;
+        } else {
+          console.log("[isDaemonRunning] PID is not a happy daemon, cleaning up");
+          logger.debug(`[DAEMON] PID ${pid} is not a happy daemon, cleaning up`);
+          unlinkSync(configuration.daemonPidFile);
+        }
+      } catch (error) {
+        console.log("[isDaemonRunning] Process not running, cleaning up stale PID file");
+        logger.debug("[DAEMON] Process not running, cleaning up stale PID file");
+        unlinkSync(configuration.daemonPidFile);
+      }
+    } else {
+      console.log("[isDaemonRunning] No PID file found");
     }
-  } catch {
+    return false;
+  } catch (error) {
+    console.log("[isDaemonRunning] Error:", error);
+    logger.debug("[DAEMON] Error checking daemon status", error);
     return false;
   }
 }
@@ -1699,19 +1801,54 @@ function writePidFile() {
   if (!existsSync$1(happyDir)) {
     mkdirSync$1(happyDir, { recursive: true });
   }
-  writeFileSync(DAEMON_PID_FILE, process.pid.toString());
+  try {
+    writeFileSync(configuration.daemonPidFile, process.pid.toString(), { flag: "wx" });
+  } catch (error) {
+    if (error.code === "EEXIST") {
+      logger.debug("[DAEMON] PID file already exists, another daemon may be starting");
+      throw new Error("Daemon PID file already exists");
+    }
+    throw error;
+  }
 }
-function stopDaemon() {
+async function stopDaemon() {
   try {
-    if (existsSync$1(DAEMON_PID_FILE)) {
-      logger.debug("[DAEMON] Stopping daemon");
-      process.kill(parseInt(readFileSync$1(DAEMON_PID_FILE, "utf-8")), "SIGTERM");
-      unlinkSync(DAEMON_PID_FILE);
+    if (existsSync$1(configuration.daemonPidFile)) {
+      const pid = parseInt(readFileSync$1(configuration.daemonPidFile, "utf-8"));
+      logger.debug(`[DAEMON] Stopping daemon with PID ${pid}`);
+      try {
+        process.kill(pid, "SIGTERM");
+        await new Promise((resolve) => setTimeout(resolve, 1e3));
+        try {
+          process.kill(pid, 0);
+          process.kill(pid, "SIGKILL");
+        } catch {
+        }
+      } catch (error) {
+        logger.debug("[DAEMON] Process already dead or inaccessible", error);
+      }
+      unlinkSync(configuration.daemonPidFile);
     }
   } catch (error) {
-    logger.debug("[DAEMON] Error cleaning up PID file", error);
+    logger.debug("[DAEMON] Error stopping daemon", error);
   }
 }
+async function isProcessHappyDaemon(pid) {
+  return new Promise((resolve) => {
+    const ps = spawn$1("ps", ["-p", pid.toString(), "-o", "command="]);
+    let output = "";
+    ps.stdout.on("data", (data) => {
+      output += data.toString();
+    });
+    ps.on("close", () => {
+      const isHappyDaemon = output.includes("daemon start") && (output.includes("happy") || output.includes("src/index"));
+      resolve(isHappyDaemon);
+    });
+    ps.on("error", () => {
+      resolve(false);
+    });
+  });
+}
 
 function trimIdent(text) {
   const lines = text.split("\n");
@@ -1913,7 +2050,18 @@ Currently only supported on macOS.
       } else if (arg === "--local") {
         i++;
       } else if (arg === "--happy-starting-mode") {
-        options.startingMode = z$1.enum(["interactive", "remote"]).parse(args[++i]);
+        options.startingMode = z$1.enum(["local", "remote"]).parse(args[++i]);
+      } else if (arg === "--claude-env") {
+        const envVar = args[++i];
+        const [key, value] = envVar.split("=", 2);
+        if (!key || value === void 0) {
+          console.error(chalk.red(`Invalid environment variable format: ${envVar}. Use KEY=VALUE`));
+          process.exit(1);
+        }
+        options.claudeEnvVars = { ...options.claudeEnvVars, [key]: value };
+      } else if (arg === "--claude-arg") {
+        const claudeArg = args[++i];
+        options.claudeArgs = [...options.claudeArgs || [], claudeArg];
       } else {
         console.error(chalk.red(`Unknown argument: ${arg}`));
         process.exit(1);
@@ -1926,6 +2074,7 @@ ${chalk.bold("happy")} - Claude Code session sharing
 ${chalk.bold("Usage:")}
   happy [options]
   happy logout     Logs out of your account and removes data directory
+  happy daemon     Manage the background daemon (macOS only)
 
 ${chalk.bold("Options:")}
   -h, --help              Show this help message
@@ -1933,6 +2082,14 @@ ${chalk.bold("Options:")}
   -m, --model <model>     Claude model to use (default: sonnet)
   -p, --permission-mode   Permission mode: auto, default, or plan
   --auth, --login         Force re-authentication
+  --claude-env KEY=VALUE  Set environment variable for Claude Code
+  --claude-arg ARG        Pass additional argument to Claude CLI
+
+  [Daemon Management]
+  --happy-daemon-start    Start the daemon in background
+  --happy-daemon-stop     Stop the daemon
+  --happy-daemon-install  Install daemon to run on startup
+  --happy-daemon-uninstall  Uninstall daemon from startup
 
   [Advanced]
   --local < global | local >
@@ -1946,6 +2103,10 @@ ${chalk.bold("Examples:")}
   happy -m opus           Use Claude Opus model
   happy -p plan           Use plan permission mode
   happy --auth            Force re-authentication before starting session
+  happy --claude-env KEY=VALUE
+                          Set environment variable for Claude Code
+  happy --claude-arg --option
+                          Pass argument to Claude CLI
   happy logout            Logs out of your account and removes data directory
 `);
       process.exit(0);
@@ -1962,6 +2123,7 @@ ${chalk.bold("Examples:")}
       }
       credentials = res;
     }
+    await readSettings() || { };
     try {
       await start(credentials, options);
     } catch (error) {