fix(models): restore local embedding selection

App/frontend/desktop/src/pages/api-key-page.tsx

@@ -15,6 +15,7 @@ import {
   assignCatalogPreset,
   createModelWorkspace,
   modelConfigInput,
+  setModelAssignment,
   upsertByokPreset
 } from "../state/model-workspace.js";
 import {
@@ -38,7 +39,7 @@ import {
   testModelConnection
 } from "./model-config.js";
 
-type EmbeddingMode = "custom";
+type EmbeddingMode = "local" | "custom";
 
 interface EmbeddingCustomConfig {
   model: string;
@@ -97,7 +98,10 @@ export function ApiKeyPage() {
     hasExistingApiKey: Boolean(apiKeyMasked)
   };
   const [llmValidation, setLlmValidation] = useState<ModelConfigValidationState>(initialModelForm.llmValidation);
-  const initialEmbeddingMode: EmbeddingMode = "custom";
+  const initialWorkspace = createModelWorkspace(state.modelConfig);
+  const initialEmbeddingMode: EmbeddingMode = initialWorkspace.catalog.modelAssignments.byok.embedding
+    ? "custom"
+    : "local";
   const [embeddingMode, setEmbeddingMode] = useState<EmbeddingMode>(initialEmbeddingMode);
   const [embeddingConfig, setEmbeddingConfig] = useState<EmbeddingCustomConfig>({
     model: initialModelForm.embModelId,
@@ -116,7 +120,7 @@ export function ApiKeyPage() {
   };
   const [embeddingValidation, setEmbeddingValidation] = useState<ModelConfigValidationState>(initialModelForm.embValidation);
   const canSave = canSaveModelConfig(modelFormValues, llmValidation)
-    && canSaveOptionalModelConfig(true, embeddingFormValues, embeddingValidation);
+    && canSaveOptionalModelConfig(embeddingMode === "custom", embeddingFormValues, embeddingValidation);
   const [savePending, setSavePending] = useState(false);
   const [saveError, setSaveError] = useState<string | null>(null);
   const testedKey = createModelConfigValidationKey(modelFormValues);
@@ -137,9 +141,8 @@ export function ApiKeyPage() {
     embeddingConfig.apiKey,
     embeddingConfig.apiKeyMasked
   );
-  const saveSignature = `${testedKey}\n${embeddingTestKey}`;
+  const saveSignature = `${embeddingMode}\n${testedKey}\n${embeddingTestKey}`;
   const savedCatalogSignatureRef = useRef<string | null>(null);
-  const initialWorkspace = createModelWorkspace(state.modelConfig);
   const initialAgentEndpointId = assignedCatalogEndpointId(initialWorkspace, "byok", "agent");
   const initialEmbeddingEndpointId = assignedCatalogEndpointId(initialWorkspace, "byok", "embedding");
   const savedEndpointIdentitiesRef = useRef<Partial<Record<"agent" | "embedding", SavedEndpointIdentity>>>({
@@ -211,20 +214,24 @@ export function ApiKeyPage() {
         });
         workspace = assignCatalogPreset(agent.workspace, "byok", "agent", agent.presetId);
         const savedEmbeddingIdentity = savedEndpointIdentitiesRef.current.embedding;
-        const embeddingEndpointId = savedEmbeddingIdentity?.credentialSignature === embeddingCredentialSignature
-          ? savedEmbeddingIdentity.endpointId
-          : undefined;
-        const embedding = upsertByokPreset(workspace, {
-          provider: "openai",
-          ...(embeddingEndpointId ? { endpointId: embeddingEndpointId } : {}),
-          endpoint: embeddingConfig.endpoint,
-          protocol: "openai-embeddings",
-          ...(embeddingConfig.apiKey.trim() ? { apiKey: embeddingConfig.apiKey.trim() } : {}),
-          ...(embeddingConfig.apiKeyMasked ? { apiKeyMasked: embeddingConfig.apiKeyMasked } : {}),
-          model: embeddingConfig.model,
-          capabilities: ["embedding"]
-        });
-        workspace = assignCatalogPreset(embedding.workspace, "byok", "embedding", embedding.presetId);
+        if (embeddingMode === "custom") {
+          const embeddingEndpointId = savedEmbeddingIdentity?.credentialSignature === embeddingCredentialSignature
+            ? savedEmbeddingIdentity.endpointId
+            : undefined;
+          const embedding = upsertByokPreset(workspace, {
+            provider: "openai",
+            ...(embeddingEndpointId ? { endpointId: embeddingEndpointId } : {}),
+            endpoint: embeddingConfig.endpoint,
+            protocol: "openai-embeddings",
+            ...(embeddingConfig.apiKey.trim() ? { apiKey: embeddingConfig.apiKey.trim() } : {}),
+            ...(embeddingConfig.apiKeyMasked ? { apiKeyMasked: embeddingConfig.apiKeyMasked } : {}),
+            model: embeddingConfig.model,
+            capabilities: ["embedding"]
+          });
+          workspace = assignCatalogPreset(embedding.workspace, "byok", "embedding", embedding.presetId);
+        } else {
+          workspace = setModelAssignment(workspace, "byok", "embedding", null);
+        }
         const saved = await clients.config.saveModelCatalog(modelConfigInput(workspace));
         if (!saved.catalog?.modelAssignments.byok.agent.candidates.length) {
           throw new Error("persisted BYOK Agent assignment is empty");
@@ -240,6 +247,8 @@ export function ApiKeyPage() {
             : {}),
           ...(savedEmbeddingEndpointId
             ? { embedding: { endpointId: savedEmbeddingEndpointId, credentialSignature: embeddingCredentialSignature } }
+            : embeddingMode === "local" && savedEmbeddingIdentity
+              ? { embedding: savedEmbeddingIdentity }
             : {})
         };
         savedCatalogSignatureRef.current = saveSignature;
@@ -330,10 +339,11 @@ export function ApiKeyPage() {
               onValueChange={(value) => setEmbeddingMode(value as EmbeddingMode)}
               className="select-control--subtle"
               options={[
+                { value: "local", label: t("apiKey.localEmbedding") },
                 { value: "custom", label: t("apiKey.customEmbedding") }
               ]}
             />
-            {(
+            {embeddingMode === "custom" ? (
               <>
                 <ConfigField
                   label={t("apiKey.embeddingModel")}
@@ -361,7 +371,7 @@ export function ApiKeyPage() {
                   <TestButton status={embeddingValidation.status} onClick={testEmbeddingConnection} label={t("apiKey.test")} />
                 </div>
               </>
-            )}
+            ) : null}
           </div>
         </div>
 

App/frontend/desktop/src/pages/model-workspace-section.tsx

@@ -53,6 +53,7 @@ export type ModelKind = "text" | "embedding" | "asr" | "image";
 
 const DEFAULT_TEXT_CAPABILITIES: ModelCapability[] = ["chat", "memorySummary", "memoryEvolution"];
 const MODEL_KIND_OPTIONS = ["text", "embedding", "asr", "image"] as const;
+const LOCAL_EMBEDDING_OPTION_VALUE = "builtin:local-embedding";
 
 export function modelCapabilitiesForKind(kind: ModelKind): ModelCapability[] {
   if (kind === "text") return [...DEFAULT_TEXT_CAPABILITIES];
@@ -585,7 +586,12 @@ export function ModelWorkspaceSection(props: ModelWorkspaceSectionProps) {
   }
 
   function updateAssignment(kind: ModelAssignmentKind, candidateId: string) {
-    commitWorkspace(setModelAssignment(workspace, props.mode, kind, candidateId));
+    const assignment = kind === "embedding"
+      && props.mode === "byok"
+      && candidateId === LOCAL_EMBEDDING_OPTION_VALUE
+      ? null
+      : candidateId;
+    commitWorkspace(setModelAssignment(workspace, props.mode, kind, assignment));
   }
 
   function toggleTaskCandidate(candidateId: string) {
@@ -654,7 +660,19 @@ export function ModelWorkspaceSection(props: ModelWorkspaceSectionProps) {
     candidate.source,
     candidate.provider
   ));
-  const embeddingOptions: SelectOption[] = embeddingModelOptions;
+  const embeddingOptions: SelectOption[] = props.mode === "byok"
+    ? [
+        {
+          value: LOCAL_EMBEDDING_OPTION_VALUE,
+          label: t("settings.modelWorkspace.localEmbedding"),
+          selectedLabel: t("settings.modelWorkspace.localEmbeddingShort"),
+          groupLabel: t("settings.modelWorkspace.specialBuiltins")
+        },
+        ...embeddingModelOptions
+      ]
+    : embeddingModelOptions;
+  const embeddingAssignment = space.assignments.embedding
+    ?? (props.mode === "byok" ? LOCAL_EMBEDDING_OPTION_VALUE : undefined);
   const editorExistingConnection = editor?.connectionId
     ? space.connections.find((connection) => connection.id === editor.connectionId)
     : undefined;
@@ -973,7 +991,7 @@ export function ModelWorkspaceSection(props: ModelWorkspaceSectionProps) {
             kind="embedding"
             label={t("settings.model.embeddingSearch")}
             description={t("settings.model.embeddingDesc")}
-            value={space.assignments.embedding}
+            value={embeddingAssignment}
             options={embeddingOptions}
             onChange={updateAssignment}
           />

App/frontend/desktop/src/pages/tests/api-key-page-source.test.ts

@@ -31,6 +31,11 @@ describe("ApiKeyPage source", () => {
     expect(fieldsSource).toContain("auth-code-form-input");
     expect(source).toContain("testEmbeddingConnection");
     expect(source).toContain('"embedding"');
+    expect(source).toContain('type EmbeddingMode = "local" | "custom"');
+    expect(source).toContain('{ value: "local", label: t("apiKey.localEmbedding") }');
+    expect(source).toContain('canSaveOptionalModelConfig(embeddingMode === "custom"');
+    expect(source).toContain('const saveSignature = `${embeddingMode}\\n${testedKey}\\n${embeddingTestKey}`');
+    expect(source).toContain('workspace = setModelAssignment(workspace, "byok", "embedding", null)');
     expect(source).not.toContain("testAsrConnection");
     expect(source).not.toContain("testImageGenConnection");
     expect(source).not.toContain("optionalModelMissingWarning");

App/frontend/desktop/src/pages/tests/byok-setup-save-feedback.interaction.test.tsx

@@ -77,6 +77,94 @@ describe("BYOK setup save feedback", () => {
     expect(container.querySelector('[role="alert"]')).toBeNull();
   });
 
+  it("defaults a genuinely absent BYOK embedding assignment to the local model", async () => {
+    const catalog = configuredCatalog(false);
+    catalog.modelAssignments.byok.embedding = null;
+    mocks.state = {
+      ...createInitialAppState(),
+      modelConfig: { ...savedModelConfig(catalog), embedding: null }
+    };
+    mocks.clients = createClients(vi.fn(async () => savedModelConfig(catalog)));
+
+    await render(<ApiKeyPage />);
+
+    expect(combobox("apiKey.embeddingMode").textContent).toContain("apiKey.localEmbedding");
+    expect(hasField("apiKey.embeddingModel")).toBe(false);
+    expect(hasField("apiKey.embeddingEndpoint")).toBe(false);
+    expect(hasField("apiKey.embeddingKey")).toBe(false);
+  });
+
+  it("keeps an explicit invalid BYOK embedding assignment in custom mode", async () => {
+    const catalog = configuredCatalog(false);
+    catalog.modelAssignments.byok.embedding = "missing-embedding-preset";
+    mocks.state = {
+      ...createInitialAppState(),
+      modelConfig: { ...savedModelConfig(catalog), embedding: null }
+    };
+    mocks.clients = createClients(vi.fn(async () => savedModelConfig(catalog)));
+
+    await render(<ApiKeyPage />);
+
+    expect(combobox("apiKey.embeddingMode").textContent).toContain("apiKey.customEmbedding");
+    expect(hasField("apiKey.embeddingModel")).toBe(true);
+    expect(button("apiKey.next").disabled).toBe(true);
+  });
+
+  it("saves local embedding without deleting the custom preset or account assignment", async () => {
+    const initialCatalog = catalogWithSharedEmbeddingAssignment();
+    const embeddingPresetId = initialCatalog.modelAssignments.byok.embedding;
+    const server = createCatalogServer(initialCatalog);
+    mocks.state = { ...createInitialAppState(), modelConfig: maskedSavedModelConfig(server.catalog()) };
+    mocks.clients = createClients(server.saveModelCatalog, { getModelConfig: server.getModelConfig });
+    await render(<ApiKeyPage />);
+
+    await selectOption("apiKey.embeddingMode", "apiKey.localEmbedding");
+    await click(button("apiKey.next"));
+
+    const saved = server.catalog();
+    expect(saved.modelAssignments.byok.embedding).toBeNull();
+    expect(saved.modelAssignments.account.embedding).toBe(embeddingPresetId);
+    expect(saved.providers.flatMap((provider) => provider.models).map((model) => model.presetId))
+      .toContain(embeddingPresetId);
+  });
+
+  it("reuses masked custom embedding identity after a partial local-mode save", async () => {
+    const initialCatalog = catalogWithSharedEmbeddingAssignment();
+    const initialEmbeddingEndpointId = assignedCatalogEndpointId(
+      createModelWorkspace(initialCatalog),
+      "byok",
+      "embedding"
+    );
+    const initialEmbeddingPresetId = initialCatalog.modelAssignments.byok.embedding;
+    const initialProviderCount = initialCatalog.providers.length;
+    const initialPresetCount = initialCatalog.providers.flatMap((provider) => provider.models).length;
+    const server = createCatalogServer(initialCatalog);
+    const updateSettings = vi.fn(async (settings: unknown) => settings)
+      .mockRejectedValueOnce(new Error("settings offline"));
+    mocks.state = { ...createInitialAppState(), modelConfig: maskedSavedModelConfig(server.catalog()) };
+    mocks.clients = createClients(server.saveModelCatalog, {
+      getModelConfig: server.getModelConfig,
+      updateSettings
+    });
+    await render(<ApiKeyPage />);
+
+    await selectOption("apiKey.embeddingMode", "apiKey.localEmbedding");
+    await click(button("apiKey.next"));
+    expect(server.catalog().modelAssignments.byok.embedding).toBeNull();
+
+    await selectOption("apiKey.embeddingMode", "apiKey.customEmbedding");
+    await click(button("apiKey.next"));
+
+    const restored = server.catalog();
+    expect(server.saveModelCatalog).toHaveBeenCalledTimes(2);
+    expect(assignedCatalogEndpointId(createModelWorkspace(restored), "byok", "embedding"))
+      .toBe(initialEmbeddingEndpointId);
+    expect(restored.modelAssignments.byok.embedding).toBe(initialEmbeddingPresetId);
+    expect(restored.modelAssignments.account.embedding).toBe(initialEmbeddingPresetId);
+    expect(restored.providers).toHaveLength(initialProviderCount);
+    expect(restored.providers.flatMap((provider) => provider.models)).toHaveLength(initialPresetCount);
+  });
+
   it("shows a first-step conflict, stays put, and allows a successful retry", async () => {
     const firstSave = deferred<ModelProviderConfig>();
     const saveModelCatalog = vi.fn()
@@ -119,8 +207,33 @@ describe("BYOK setup save feedback", () => {
     expect(mocks.dispatch).toHaveBeenCalledWith(appActions.navigate("/api-key-models"));
   });
 
+  it("saves the catalog again when a partial custom save is retried as local", async () => {
+    const initialCatalog = catalogWithSharedEmbeddingAssignment();
+    const server = createCatalogServer(initialCatalog);
+    const updateSettings = vi.fn(async (settings: unknown) => settings)
+      .mockRejectedValueOnce(new Error("settings offline"));
+    mocks.state = { ...createInitialAppState(), modelConfig: maskedSavedModelConfig(server.catalog()) };
+    mocks.clients = createClients(server.saveModelCatalog, {
+      getModelConfig: server.getModelConfig,
+      updateSettings
+    });
+    await render(<ApiKeyPage />);
+
+    await click(button("apiKey.next"));
+    expect(server.saveModelCatalog).toHaveBeenCalledTimes(1);
+    expect(server.catalog().modelAssignments.byok.embedding).not.toBeNull();
+
+    await selectOption("apiKey.embeddingMode", "apiKey.localEmbedding");
+    await click(button("apiKey.next"));
+
+    expect(server.saveModelCatalog).toHaveBeenCalledTimes(2);
+    expect(server.catalog().modelAssignments.byok.embedding).toBeNull();
+    expect(server.catalog().modelAssignments.account.embedding)
+      .toBe(initialCatalog.modelAssignments.account.embedding);
+  });
+
   it("reuses first-step endpoint identities when only the model changes after partial success", async () => {
-    const server = createCatalogServer();
+    const server = createCatalogServer(configuredCatalog(false));
     const updateSettings = vi.fn(async (settings: unknown) => settings)
       .mockRejectedValueOnce(new Error("settings offline"));
     mocks.state = { ...createInitialAppState(), modelConfig: savedModelConfig(server.catalog()) };
@@ -176,7 +289,7 @@ describe("BYOK setup save feedback", () => {
   });
 
   it("invalidates only the changed first-step credential identity", async () => {
-    const server = createCatalogServer();
+    const server = createCatalogServer(configuredCatalog(false));
     const updateSettings = vi.fn(async (settings: unknown) => settings)
       .mockRejectedValueOnce(new Error("settings offline"));
     mocks.state = { ...createInitialAppState(), modelConfig: savedModelConfig(server.catalog()) };
@@ -373,6 +486,31 @@ describe("BYOK setup save feedback", () => {
     return target;
   }
 
+  function combobox(labelText: string): HTMLButtonElement {
+    const label = [...container.querySelectorAll(".select-control__label")]
+      .find((candidate) => candidate.textContent === labelText);
+    const target = label?.parentElement?.querySelector('button[role="combobox"]');
+    if (!(target instanceof HTMLButtonElement)) {
+      throw new Error(`combobox not found: ${labelText}`);
+    }
+    return target;
+  }
+
+  async function selectOption(labelText: string, optionText: string) {
+    await click(combobox(labelText));
+    const target = [...container.querySelectorAll('button[role="option"]')]
+      .find((candidate) => candidate.textContent?.includes(optionText));
+    if (!(target instanceof HTMLButtonElement)) {
+      throw new Error(`option not found: ${optionText}`);
+    }
+    await click(target);
+  }
+
+  function hasField(labelText: string): boolean {
+    return [...container.querySelectorAll("label")]
+      .some((candidate) => candidate.textContent === labelText);
+  }
+
   async function changeField(labelText: string, value: string) {
     const label = [...container.querySelectorAll("label")]
       .find((candidate) => candidate.textContent === labelText);
@@ -517,6 +655,12 @@ function configuredCatalog(includeOptional = true): ModelConfigView {
   return catalogFromInput(modelConfigInput(workspace), empty, 1);
 }
 
+function catalogWithSharedEmbeddingAssignment(): ModelConfigView {
+  const catalog = configuredCatalog(false);
+  catalog.modelAssignments.account.embedding = catalog.modelAssignments.byok.embedding;
+  return catalog;
+}
+
 function endpointCount(catalog: ModelConfigView): number {
   return catalog.providers.reduce((total, provider) => total + provider.endpoints.length, 0);
 }