Point CLI auth failures at PASEO_PASSWORD instead of daemon start (#5310)

A password-protected daemon that rejects the CLI is running, so the
start hint was the wrong remedy for AUTH_REQUIRED and AUTH_FAILED.

Fixes #4508

Co-authored-by: paseo-bot[bot] <266920839+paseo-bot[bot]@users.noreply.github.com>

packages/cli/src/utils/client.ts

@@ -52,13 +52,20 @@ export function buildDaemonConnectionCommandError(options: ConnectOptions & { er
   return {
     code,
     message: `Cannot connect to daemon at ${describeDaemonTarget(options.target)}: ${message}`,
-    details:
-      options.target.kind === "instance"
-        ? `Start with: paseo daemon start --home ${JSON.stringify(options.target.home)}`
-        : "Check the selected endpoint and credentials. SSH transport does not install or start the daemon.",
+    details: describeConnectionRemedy(code, options.target),
   };
 }
 
+function describeConnectionRemedy(code: string, target: DaemonTarget): string {
+  if (code === "AUTH_REQUIRED")
+    return "The daemon requires a password. Set PASEO_PASSWORD and retry.";
+  if (code === "AUTH_FAILED")
+    return "The daemon rejected the password. Check PASEO_PASSWORD and retry.";
+  if (target.kind === "instance")
+    return `Start with: paseo daemon start --home ${JSON.stringify(target.home)}`;
+  return "Check the selected endpoint and credentials. SSH transport does not install or start the daemon.";
+}
+
 export function normalizeDaemonHost(raw: string): string | null {
   const trimmed = raw.trim();
   if (!trimmed) {

packages/cli/tests/41-daemon-auth-command-errors.test.ts

@@ -0,0 +1,51 @@
+#!/usr/bin/env npx tsx
+
+import assert from "node:assert";
+import { runLocalPaseo } from "./helpers/local-cli.ts";
+import { startTestDaemon } from "./helpers/test-daemon.ts";
+
+console.log("=== Daemon Auth Command Errors ===\n");
+
+const daemon = await startTestDaemon({
+  env: { PASEO_PASSWORD: "shared-secret" },
+});
+
+async function lsError(password: string) {
+  const result = await runLocalPaseo(["ls", "--json"], {
+    PASEO_HOME: daemon.paseoHome,
+    PASEO_HOST: "",
+    PASEO_PASSWORD: password,
+  });
+  assert.notStrictEqual(result.exitCode, 0, "ls should fail without a valid password");
+  return JSON.parse(result.stderr).error as {
+    code: string;
+    message: string;
+    details: string;
+  };
+}
+
+try {
+  {
+    console.log("Test 1: missing password asks for PASEO_PASSWORD, not a daemon start");
+    const error = await lsError("");
+    assert.strictEqual(error.code, "AUTH_REQUIRED");
+    assert.match(error.message, /Password required/);
+    assert.match(error.details, /PASEO_PASSWORD/);
+    assert.doesNotMatch(error.details, /daemon start/);
+    console.log("✓ missing password points at PASEO_PASSWORD\n");
+  }
+
+  {
+    console.log("Test 2: wrong password asks for PASEO_PASSWORD, not a daemon start");
+    const error = await lsError("wrong-secret");
+    assert.strictEqual(error.code, "AUTH_FAILED");
+    assert.match(error.message, /Incorrect password/);
+    assert.match(error.details, /PASEO_PASSWORD/);
+    assert.doesNotMatch(error.details, /daemon start/);
+    console.log("✓ wrong password points at PASEO_PASSWORD\n");
+  }
+} finally {
+  await daemon.stop();
+}
+
+console.log("=== Daemon Auth Command Errors Tests Passed ===");