From bb1254a9e26030cc6196cf94506dc637a2046e45 Mon Sep 17 00:00:00 2001
From: Gabrielle Poncey <gabrielle.poncey@pgedge.com>
Date: Tue, 1 Sep 2026 06:29:17 -0700
Subject: [PATCH] fix: instance health reflects in db state

Updated storedToDtabase to inspect the database's instance and update the database to degraded if instance states indicate this is appropriate. Delete database modified to check "from" state via the stored state rather than etcd to prevent mismatch.

PLAT-333
---
 .../internal/api/apiv1/post_init_handlers.go  |  6 ++-
 server/internal/database/database.go          | 21 +++++++-
 server/internal/database/database_test.go     | 54 +++++++++++++++++++
 3 files changed, 78 insertions(+), 3 deletions(-)
 create mode 100644 server/internal/database/database_test.go

diff --git a/server/internal/api/apiv1/post_init_handlers.go b/server/internal/api/apiv1/post_init_handlers.go
index 59d01858..caa8491c 100644
--- a/server/internal/api/apiv1/post_init_handlers.go
+++ b/server/internal/api/apiv1/post_init_handlers.go
@@ -475,7 +475,11 @@ func (s *PostInitHandlers) DeleteDatabase(ctx context.Context, req *api.DeleteDa
 		return nil, ErrDatabaseNotModifiable
 	}
 
-	prevState := db.State
+	// Use the raw stored state as the guard for this transition.
+	prevState, err := s.dbSvc.GetStoredDatabaseState(ctx, db.DatabaseID)
+	if err != nil {
+		return nil, apiErr(err)
+	}
 	err = s.dbSvc.UpdateDatabaseState(ctx, db.DatabaseID, prevState, database.DatabaseStateDeleting)
 	if err != nil {
 		return nil, apiErr(err)
diff --git a/server/internal/database/database.go b/server/internal/database/database.go
index d550fde8..51f79f89 100644
--- a/server/internal/database/database.go
+++ b/server/internal/database/database.go
@@ -71,13 +71,31 @@ func databaseToStored(d *Database) *StoredDatabase {
 	}
 }
 
+var degradedInstanceStates = ds.NewSet(
+	InstanceStateDegraded,
+	InstanceStateFailed,
+	InstanceStateUnknown,
+	InstanceStateStopped,
+)
+
 func storedToDatabase(d *StoredDatabase, storedSpec *StoredSpec, instances []*Instance, serviceInstances []*ServiceInstance) *Database {
+	state := d.State
+
+	if state == DatabaseStateAvailable {
+		for _, instance := range instances {
+			if degradedInstanceStates.Has(instance.State) {
+				state = DatabaseStateDegraded
+				break
+			}
+		}
+	}
+
 	return &Database{
 		DatabaseID:       d.DatabaseID,
 		TenantID:         d.TenantID,
 		CreatedAt:        d.CreatedAt,
 		UpdatedAt:        d.UpdatedAt,
-		State:            d.State,
+		State:            state,
 		Spec:             storedSpec.Spec,
 		Instances:        instances,
 		ServiceInstances: serviceInstances,
@@ -95,7 +113,6 @@ func storedToDatabases(storedDbs []*StoredDatabase, storedSpecs []*StoredSpec, a
 	for _, instance := range allInstances {
 		instancesByID[instance.DatabaseID] = append(instancesByID[instance.DatabaseID], instance)
 	}
-
 	serviceInstancesByID := make(map[string][]*ServiceInstance, len(allServiceInstances))
 	for _, serviceInstance := range allServiceInstances {
 		serviceInstancesByID[serviceInstance.DatabaseID] = append(serviceInstancesByID[serviceInstance.DatabaseID], serviceInstance)
diff --git a/server/internal/database/database_test.go b/server/internal/database/database_test.go
new file mode 100644
index 00000000..f3c6e677
--- /dev/null
+++ b/server/internal/database/database_test.go
@@ -0,0 +1,54 @@
+package database
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+)
+
+func TestStoredToDatabaseDegradesWhenInstanceUnavailable(t *testing.T) {
+	tests := []struct {
+		name          string
+		instanceState InstanceState
+		wantState     DatabaseState
+	}{
+		{"available instance keeps database available", InstanceStateAvailable, DatabaseStateAvailable},
+		{"degraded instance degrades database", InstanceStateDegraded, DatabaseStateDegraded},
+		{"failed instance degrades database", InstanceStateFailed, DatabaseStateDegraded},
+		{"unknown instance degrades database", InstanceStateUnknown, DatabaseStateDegraded},
+		{"stopped instance degrades database", InstanceStateStopped, DatabaseStateDegraded},
+		{"creating instance does not degrade database", InstanceStateCreating, DatabaseStateAvailable},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			stored := &StoredDatabase{
+				DatabaseID: "db1",
+				State:      DatabaseStateAvailable,
+			}
+			storedSpec := &StoredSpec{}
+			instances := []*Instance{
+				{InstanceID: "i1", DatabaseID: "db1", State: tt.instanceState},
+			}
+
+			db := storedToDatabase(stored, storedSpec, instances, nil)
+
+			assert.Equal(t, tt.wantState, db.State)
+		})
+	}
+}
+
+func TestStoredToDatabaseDoesNotDegradeNonAvailableDatabase(t *testing.T) {
+	stored := &StoredDatabase{
+		DatabaseID: "db1",
+		State:      DatabaseStateCreating,
+	}
+	storedSpec := &StoredSpec{}
+	instances := []*Instance{
+		{InstanceID: "i1", DatabaseID: "db1", State: InstanceStateFailed},
+	}
+
+	db := storedToDatabase(stored, storedSpec, instances, nil)
+
+	assert.Equal(t, DatabaseStateCreating, db.State)
+}