`find_dotenv` breaks local conversation

[xingyaoww]

Predicted Security Risk: LOW

Reasoning:
The user wants me to run the tests to make sure the changes didn't break anything. Let me
run the specific test file that was modified.

Thought:
I'll run the tests to make sure everything still works correctly.

$ cd /Users/xingyaow/Projects/All-Hands-AI/software-agent-sdk && uv run pytest 
tests/sdk/critic/api/test_template_render.py -v [timeout: 60.0s]

Tokens: ↑ input 1.37M • cache hit 93.13% •  reasoning 1.65K • ↓ output 14.48K • $ 0.9550

Error: 
Traceback (most recent call last):
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 309, in run
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 237, in step
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 131, in _execute_actions
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 463, in _execute_action_event
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in should_enable_observability
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in <genexpr>
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/utils.py", line 10, in get_env
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 411, in dotenv_values
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 322, in find_dotenv
AssertionError

The above exception was the direct cause of the following exception:

Traceback (most recent call last):
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 339, in run
openhands.sdk.conversation.exceptions.ConversationRunError: Conversation run failed for id=a600008d-2e01-48a3-be84-9062e48d917e: 

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/simple_main.py", line 54, in main
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/agent_chat.py", line 224, in run_cli_entry
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/runner.py", line 90, in process_message
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/runner.py", line 110, in _run_with_confirmation
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 341, in run
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/base.py", line 110, in _end_observability_span
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in should_enable_observability
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in <genexpr>
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/utils.py", line 10, in get_env
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 411, in dotenv_values
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 322, in find_dotenv
AssertionError
Traceback (most recent call last):
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 309, in run
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 237, in step
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 131, in _execute_actions
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/agent/agent.py", line 463, in _execute_action_event
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in should_enable_observability
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in <genexpr>
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/utils.py", line 10, in get_env
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 411, in dotenv_values
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 322, in find_dotenv
AssertionError

The above exception was the direct cause of the following exception:

Traceback (most recent call last):
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 339, in run
openhands.sdk.conversation.exceptions.ConversationRunError: Conversation run failed for id=a600008d-2e01-48a3-be84-9062e48d917e: 

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "/Users/xingyaow/.local/bin/openhands", line 10, in <module>
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/simple_main.py", line 54, in main
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/agent_chat.py", line 224, in run_cli_entry
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/runner.py", line 90, in process_message
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands_cli/runner.py", line 110, in _run_with_confirmation
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/lmnr/opentelemetry_lib/decorators/__init__.py", line 189, in wrap
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/impl/local_conversation.py", line 341, in run
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/conversation/base.py", line 110, in _end_observability_span
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in should_enable_observability
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/laminar.py", line 100, in <genexpr>
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/openhands/sdk/observability/utils.py", line 10, in get_env
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 411, in dotenv_values
  File "/Users/xingyaow/.local/share/uv/tools/openhands/lib/python3.12/site-packages/dotenv/main.py", line 322, in find_dotenv
AssertionError

[openhands-ai]

I'm on it! xingyaoww can track my progress at all-hands.dev

[openhands-ai]

✅ Issue #1325 Fixed: find_dotenv breaks local conversation

I've successfully fixed the issue and created PR #1326: #1326

Summary of Changes

Problem: The get_env() function in openhands/sdk/observability/utils.py was calling dotenv_values() without arguments, which internally calls find_dotenv(). In certain execution contexts (like local conversation), find_dotenv() would fail with an AssertionError when trying to walk up the call stack because the frame stack was exhausted.

Solution: Modified get_env() to gracefully handle exceptions from dotenv:

• Environment variables are checked first (maintaining priority)
• dotenv_values() call is wrapped in a try-except block
• Catches both AssertionError and OSError exceptions
• Returns None gracefully when dotenv fails

Files Changed:

1. ✅ Modified: openhands-sdk/openhands/sdk/observability/utils.py (8 lines changed)
2. ✅ Added: tests/sdk/observability/__init__.py
3. ✅ Added: tests/sdk/observability/test_utils.py (6 comprehensive tests)
4. ✅ Added: tests/sdk/observability/test_laminar.py (3 tests for observability function)

Testing:

• ✅ All 9 new tests pass
• ✅ All existing tests continue to pass
• ✅ Pre-commit hooks pass (ruff, pyright, pycodestyle, etc.)
• ✅ Backward compatible - maintains existing behavior

Git Activity:

• ✅ Created branch: openhands/fix-find-dotenv-assertion-error
• ✅ Committed with proper message and Co-authored-by tag
• ✅ Pushed to GitHub
• ✅ PR created and ready for review

The fix is minimal, focused, and directly addresses the root cause of the issue without any extraneous changes.

_{View full conversation}