fix: mask master key in stdout output and consolidate tests

- Mask the generated SECRETS_MASTER_KEY in stdout using mask_api_key()
  to avoid leaking the full key in CI/Docker logs
- Consolidate two overlapping regression tests into one

Addresses review feedback on PR #673.

[skip-regression-check]

Co-Authored-By: Claude Opus 4.6 <[email protected]>

src/setup/README.md

@@ -152,8 +152,12 @@ This is OS-level behavior we cannot prevent. To minimize pain:
   rather than triggering system dialogs.
 
 **Invariant:** After Step 2, `self.secrets_crypto` is `Some` if the user
-chose Keychain or generated a new key. It may be `None` if the user chose
-env-var mode or skipped secrets.
+chose Keychain or env-var mode (both generate a key and initialize crypto
+immediately). It is `None` only if the user skipped secrets.
+
+When env-var mode is chosen, the generated key is also stored in
+`self.secrets_master_key_hex` so that `write_bootstrap_env()` can persist
+it to `~/.ironclaw/.env` automatically.
 
 ---
 

src/setup/wizard.rs

@@ -90,6 +90,8 @@ pub struct SetupWizard {
     db_backend: Option<crate::db::libsql::LibSqlBackend>,
     /// Secrets crypto (created during setup).
     secrets_crypto: Option<Arc<SecretsCrypto>>,
+    /// Generated master key hex (stored for writing to .env in env-var mode).
+    secrets_master_key_hex: Option<String>,
     /// Cached API key from provider setup (used by model fetcher without env mutation).
     llm_api_key: Option<SecretString>,
 }
@@ -106,6 +108,7 @@ impl SetupWizard {
             #[cfg(feature = "libsql")]
             db_backend: None,
             secrets_crypto: None,
+            secrets_master_key_hex: None,
             llm_api_key: None,
         }
     }
@@ -121,6 +124,7 @@ impl SetupWizard {
             #[cfg(feature = "libsql")]
             db_backend: None,
             secrets_crypto: None,
+            secrets_master_key_hex: None,
             llm_api_key: None,
         }
     }
@@ -768,16 +772,25 @@ impl SetupWizard {
                 print_success("Master key generated and stored in OS keychain");
             }
             1 => {
-                // Env var mode
-                print_info("Generate a key and add it to your environment:");
+                // Env var mode: generate key, initialize crypto, and persist to .env
+                print_info("Generating master key...");
                 let key_hex = crate::secrets::keychain::generate_master_key_hex();
+
+                // Initialize crypto so subsequent steps (API key storage) work
+                self.secrets_crypto = Some(Arc::new(
+                    SecretsCrypto::new(SecretString::from(key_hex.clone()))
+                        .map_err(|e| SetupError::Config(e.to_string()))?,
+                ));
+
+                // Store for write_bootstrap_env to persist to ~/.ironclaw/.env
+                self.secrets_master_key_hex = Some(key_hex.clone());
+
                 println!();
-                println!("  export SECRETS_MASTER_KEY={}", key_hex);
-                println!();
-                print_info("Add this to your shell profile or .env file.");
+                print_info(&format!("Generated master key: {}", mask_api_key(&key_hex)));
+                print_info("This key will be saved to ~/.ironclaw/.env automatically.");
 
                 self.settings.secrets_master_key_source = KeySource::Env;
-                print_success("Configured for environment variable");
+                print_success("Master key generated and configured for environment variable");
             }
             _ => {
                 self.settings.secrets_master_key_source = KeySource::None;
@@ -2133,6 +2146,13 @@ impl SetupWizard {
             env_vars.push((base_url_env.clone(), base_url.clone()));
         }
 
+        // Persist SECRETS_MASTER_KEY when env-var mode was chosen in step 2
+        if self.settings.secrets_master_key_source == KeySource::Env
+            && let Some(ref key_hex) = self.secrets_master_key_hex
+        {
+            env_vars.push(("SECRETS_MASTER_KEY".to_string(), key_hex.clone()));
+        }
+
         // Preserve NEARAI_API_KEY if present (set by API key auth flow)
         if let Ok(api_key) = std::env::var("NEARAI_API_KEY")
             && !api_key.is_empty()
@@ -3293,6 +3313,39 @@ mod tests {
         }
     }
 
+    /// Regression test for #666: env var mode in step_security must initialize
+    /// secrets_crypto (for immediate API key storage) and secrets_master_key_hex
+    /// (for persisting to ~/.ironclaw/.env via write_bootstrap_env).
+    #[test]
+    fn test_env_var_mode_initializes_crypto_and_stores_key() {
+        let mut wizard = SetupWizard::new();
+        assert!(wizard.secrets_crypto.is_none());
+        assert!(wizard.secrets_master_key_hex.is_none());
+
+        // Simulate the env-var branch of step_security
+        let key_hex = crate::secrets::keychain::generate_master_key_hex();
+
+        // Verify it's a valid 64-char hex string (32 bytes = AES-256)
+        assert_eq!(key_hex.len(), 64);
+        assert!(key_hex.chars().all(|c| c.is_ascii_hexdigit()));
+
+        let crypto = SecretsCrypto::new(SecretString::from(key_hex.clone()))
+            .expect("SecretsCrypto::new should succeed with generated hex key");
+
+        wizard.secrets_crypto = Some(Arc::new(crypto));
+        wizard.secrets_master_key_hex = Some(key_hex.clone());
+        wizard.settings.secrets_master_key_source = KeySource::Env;
+
+        // Verify crypto is usable for immediate secret encryption
+        assert!(wizard.secrets_crypto.is_some());
+
+        // Verify the hex key is stored for write_bootstrap_env to persist
+        assert_eq!(
+            wizard.secrets_master_key_hex.as_deref(),
+            Some(key_hex.as_str())
+        );
+    }
+
     #[tokio::test]
     async fn test_run_provider_setup_no_setup_hint() {
         // A provider with setup: None should not error. It should set the