CM-61568: Fix sensitive path skipping content scan and directory hand…

cycode/cli/apps/ai_guardrails/scan/handlers.py

@@ -116,7 +116,8 @@ def handle_before_read_file(ctx: typer.Context, payload: AIHookPayload, policy:
 
     try:
         # Check path-based denylist first
-        if is_denied_path(file_path, policy):
+        is_sensitive_path = is_denied_path(file_path, policy)
+        if is_sensitive_path:
             block_reason = BlockReason.SENSITIVE_PATH
             if mode == PolicyMode.BLOCK and action == PolicyMode.BLOCK:
                 outcome = AIHookOutcome.BLOCKED
@@ -125,13 +126,21 @@ def handle_before_read_file(ctx: typer.Context, payload: AIHookPayload, policy:
                     user_message,
                     'This file path is classified as sensitive; do not read/send it to the model.',
                 )
-            # Warn mode - ask user for permission
+            # Warn mode - if content scan is enabled, emit a separate event for the
+            # sensitive path so the finally block can independently track the scan result.
+            # If content scan is disabled, a single event (from finally) is enough.
             outcome = AIHookOutcome.WARNED
-            user_message = f'Cycode flagged {file_path} as sensitive. Allow reading?'
-            return response_builder.ask_permission(
-                user_message,
-                'This file path is classified as sensitive; proceed with caution.',
-            )
+            if get_policy_value(file_read_config, 'scan_content', default=True):
+                ai_client.create_event(
+                    payload,
+                    AiHookEventType.FILE_READ,
+                    outcome,
+                    block_reason=BlockReason.SENSITIVE_PATH,
+                    file_path=payload.file_path,
+                )
+                # Reset for the content scan result tracked by the finally block
+                block_reason = None
+                outcome = AIHookOutcome.ALLOWED
 
         # Scan file content if enabled
         if get_policy_value(file_read_config, 'scan_content', default=True):
@@ -152,7 +161,14 @@ def handle_before_read_file(ctx: typer.Context, payload: AIHookPayload, policy:
                     user_message,
                     'Possible secrets detected; proceed with caution.',
                 )
-            return response_builder.allow_permission()
+
+        # If path was sensitive but content scan found no secrets (or scan disabled), still warn
+        if is_sensitive_path:
+            user_message = f'Cycode flagged {file_path} as sensitive. Allow reading?'
+            return response_builder.ask_permission(
+                user_message,
+                'This file path is classified as sensitive; proceed with caution.',
+            )
 
         return response_builder.allow_permission()
     except Exception as e:
@@ -342,7 +358,7 @@ def _scan_path_for_secrets(ctx: typer.Context, file_path: str, policy: dict) ->
     Returns tuple of (violation_summary, scan_id) if secrets found, (None, scan_id) if clean.
     Raises exception on error or timeout.
     """
-    if not file_path or not os.path.exists(file_path):
+    if not file_path or not os.path.isfile(file_path):
         return None, None
 
     max_bytes = get_policy_value(policy, 'secrets', 'max_bytes', default=200000)

tests/cli/commands/ai_guardrails/scan/test_handlers.py

@@ -263,6 +263,109 @@ def test_handle_before_read_file_scan_disabled(
     mock_scan.assert_not_called()
 
 
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers.is_denied_path')
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers._scan_path_for_secrets')
+def test_handle_before_read_file_sensitive_path_warn_mode_scans_content(
+    mock_scan: MagicMock, mock_is_denied: MagicMock, mock_ctx: MagicMock, default_policy: dict[str, Any]
+) -> None:
+    """Test that sensitive path in warn mode still scans file content and emits two events."""
+    mock_is_denied.return_value = True
+    mock_scan.return_value = (None, 'scan-id-123')
+    default_policy['mode'] = 'warn'
+    payload = AIHookPayload(
+        event_name='file_read',
+        ide_provider='cursor',
+        file_path='/path/to/.env',
+    )
+
+    result = handle_before_read_file(mock_ctx, payload, default_policy)
+
+    # Content was scanned even though path is sensitive
+    mock_scan.assert_called_once()
+    # Still warns about sensitive path since no secrets found
+    assert result['permission'] == 'ask'
+    assert '.env' in result['user_message']
+
+    # Two events: sensitive path warn + content scan result (allowed, no secrets found)
+    assert mock_ctx.obj['ai_security_client'].create_event.call_count == 2
+    first_event = mock_ctx.obj['ai_security_client'].create_event.call_args_list[0]
+    assert first_event.args[2] == AIHookOutcome.WARNED
+    assert first_event.kwargs['block_reason'] == BlockReason.SENSITIVE_PATH
+    second_event = mock_ctx.obj['ai_security_client'].create_event.call_args_list[1]
+    assert second_event.args[2] == AIHookOutcome.ALLOWED
+    assert second_event.kwargs['block_reason'] is None
+
+
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers.is_denied_path')
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers._scan_path_for_secrets')
+def test_handle_before_read_file_sensitive_path_warn_mode_with_secrets(
+    mock_scan: MagicMock, mock_is_denied: MagicMock, mock_ctx: MagicMock, default_policy: dict[str, Any]
+) -> None:
+    """Test that sensitive path in warn mode reports secrets and emits two events."""
+    mock_is_denied.return_value = True
+    mock_scan.return_value = ('Found 1 secret: API key', 'scan-id-456')
+    default_policy['mode'] = 'warn'
+    payload = AIHookPayload(
+        event_name='file_read',
+        ide_provider='cursor',
+        file_path='/path/to/.env',
+    )
+
+    result = handle_before_read_file(mock_ctx, payload, default_policy)
+
+    mock_scan.assert_called_once()
+    assert result['permission'] == 'ask'
+    assert 'Found 1 secret: API key' in result['user_message']
+
+    # Two events: sensitive path warn + secrets warn
+    assert mock_ctx.obj['ai_security_client'].create_event.call_count == 2
+    first_event = mock_ctx.obj['ai_security_client'].create_event.call_args_list[0]
+    assert first_event.args[2] == AIHookOutcome.WARNED
+    assert first_event.kwargs['block_reason'] == BlockReason.SENSITIVE_PATH
+    second_event = mock_ctx.obj['ai_security_client'].create_event.call_args_list[1]
+    assert second_event.args[2] == AIHookOutcome.WARNED
+    assert second_event.kwargs['block_reason'] == BlockReason.SECRETS_IN_FILE
+
+
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers.is_denied_path')
+@patch('cycode.cli.apps.ai_guardrails.scan.handlers._scan_path_for_secrets')
+def test_handle_before_read_file_sensitive_path_scan_disabled_warns(
+    mock_scan: MagicMock, mock_is_denied: MagicMock, mock_ctx: MagicMock, default_policy: dict[str, Any]
+) -> None:
+    """Test that sensitive path in warn mode with scan disabled emits a single event."""
+    mock_is_denied.return_value = True
+    default_policy['mode'] = 'warn'
+    default_policy['file_read']['scan_content'] = False
+    payload = AIHookPayload(
+        event_name='file_read',
+        ide_provider='cursor',
+        file_path='/path/to/.env',
+    )
+
+    result = handle_before_read_file(mock_ctx, payload, default_policy)
+
+    mock_scan.assert_not_called()
+    assert result['permission'] == 'ask'
+    assert '.env' in result['user_message']
+
+    # Single event: sensitive path warn (no separate scan event when scan is disabled)
+    mock_ctx.obj['ai_security_client'].create_event.assert_called_once()
+    call_args = mock_ctx.obj['ai_security_client'].create_event.call_args
+    assert call_args.args[2] == AIHookOutcome.WARNED
+    assert call_args.kwargs['block_reason'] == BlockReason.SENSITIVE_PATH
+
+
+def test_scan_path_for_secrets_directory(mock_ctx: MagicMock, default_policy: dict[str, Any], fs: Any) -> None:
+    """Test that _scan_path_for_secrets returns (None, None) for directories."""
+    from cycode.cli.apps.ai_guardrails.scan.handlers import _scan_path_for_secrets
+
+    fs.create_dir('/path/to/some_directory')
+
+    result = _scan_path_for_secrets(mock_ctx, '/path/to/some_directory', default_policy)
+
+    assert result == (None, None)
+
+
 # Tests for handle_before_mcp_execution