[PM-30908]Correct Premium subscription status handling (#6877)

* Implement the correct changes

* failing test has been removed

* Add unit testing and logs

* Resolve the pr comment on missed requirements

* fix the lint error

* resolve the build lint

* Fix the failing test

* Fix the failing test

* Add the IncompleteExpired status

* resolve the lint error

* Fix the build lint error

* Implement the IncompleteExpired flow

src/Core/Billing/Payment/Commands/UpdatePaymentMethodCommand.cs

@@ -3,6 +3,7 @@ using Bit.Core.Billing.Commands;
 using Bit.Core.Billing.Constants;
 using Bit.Core.Billing.Payment.Models;
 using Bit.Core.Billing.Services;
+using Bit.Core.Billing.Subscriptions.Models;
 using Bit.Core.Entities;
 using Bit.Core.Services;
 using Bit.Core.Settings;
@@ -143,6 +144,24 @@ public class UpdatePaymentMethodCommand(
             await stripeAdapter.UpdateCustomerAsync(customer.Id, new CustomerUpdateOptions { Metadata = metadata });
         }
 
+        // If the subscriber has an incomplete subscription, pay the invoice with the new PayPal payment method
+        if (!string.IsNullOrEmpty(subscriber.GatewaySubscriptionId))
+        {
+            var subscription = await stripeAdapter.GetSubscriptionAsync(subscriber.GatewaySubscriptionId);
+
+            if (subscription.Status == StripeConstants.SubscriptionStatus.Incomplete)
+            {
+                var invoice = await stripeAdapter.UpdateInvoiceAsync(subscription.LatestInvoiceId,
+                    new InvoiceUpdateOptions
+                    {
+                        AutoAdvance = false,
+                        Expand = ["customer"]
+                    });
+
+                await braintreeService.PayInvoice(new UserId(subscriber.Id), invoice);
+            }
+        }
+
         var payPalAccount = braintreeCustomer.DefaultPaymentMethod as PayPalAccount;
 
         return MaskedPaymentMethod.From(payPalAccount!);

src/Core/Billing/Premium/Commands/CreatePremiumCloudHostedSubscriptionCommand.cs

@@ -72,7 +72,13 @@ public class CreatePremiumCloudHostedSubscriptionCommand(
         BillingAddress billingAddress,
         short additionalStorageGb) => HandleAsync<None>(async () =>
     {
-        if (user.Premium)
+        // A "terminal" subscription is one that has ended and cannot be renewed/reactivated.
+        // These are: 'canceled' (user canceled) and 'incomplete_expired' (payment failed and time expired).
+        // We allow users with terminal subscriptions to create a new subscription even if user.Premium is still true,
+        // enabling the resubscribe workflow without requiring Premium status to be cleared first.
+        var hasTerminalSubscription = await HasTerminalSubscriptionAsync(user);
+
+        if (user.Premium && !hasTerminalSubscription)
         {
             return new BadRequest("Already a premium user.");
         }
@@ -98,8 +104,11 @@ public class CreatePremiumCloudHostedSubscriptionCommand(
          * purchased account credit but chose to use a tokenizable payment method to pay for the subscription. In this case,
          * we need to add the payment method to their customer first. If the incoming payment method is account credit,
          * we can just go straight to fetching the customer since there's no payment method to apply.
+         *
+         * Additionally, if this is a resubscribe scenario with a tokenized payment method, we should update the payment method
+         * to ensure the new payment method is used instead of the old one.
          */
-        else if (paymentMethod.IsTokenized && !await hasPaymentMethodQuery.Run(user))
+        else if (paymentMethod.IsTokenized && (!await hasPaymentMethodQuery.Run(user) || hasTerminalSubscription))
         {
             await updatePaymentMethodCommand.Run(user, paymentMethod.AsTokenized, billingAddress);
             customer = await subscriberService.GetCustomerOrThrow(user, new CustomerGetOptions { Expand = _expand });
@@ -122,7 +131,7 @@ public class CreatePremiumCloudHostedSubscriptionCommand(
                     case { Type: TokenizablePaymentMethodType.PayPal }
                         when subscription.Status == SubscriptionStatus.Incomplete:
                     case { Type: not TokenizablePaymentMethodType.PayPal }
-                        when subscription.Status == SubscriptionStatus.Active:
+                        when subscription.Status is SubscriptionStatus.Active or SubscriptionStatus.Incomplete:
                         {
                             user.Premium = true;
                             user.PremiumExpirationDate = subscription.GetCurrentPeriodEnd();
@@ -369,4 +378,28 @@ public class CreatePremiumCloudHostedSubscriptionCommand(
 
         return subscription;
     }
+
+    private async Task<bool> HasTerminalSubscriptionAsync(User user)
+    {
+        if (string.IsNullOrEmpty(user.GatewaySubscriptionId))
+        {
+            return false;
+        }
+
+        try
+        {
+            var existingSubscription = await stripeAdapter.GetSubscriptionAsync(user.GatewaySubscriptionId);
+            return existingSubscription.Status is
+                SubscriptionStatus.Canceled or
+                SubscriptionStatus.IncompleteExpired;
+        }
+        catch (Exception ex)
+        {
+            // Subscription doesn't exist in Stripe or can't be fetched (e.g., network issues, invalid ID)
+            // Log the issue but proceed with subscription creation to avoid blocking legitimate resubscribe attempts
+            _logger.LogWarning(ex, "Unable to fetch existing subscription {SubscriptionId} for user {UserId}. Proceeding with subscription creation",
+                user.GatewaySubscriptionId, user.Id);
+            return false;
+        }
+    }
 }

src/Core/Billing/Subscriptions/Queries/GetBitwardenSubscriptionQuery.cs

@@ -31,7 +31,7 @@ public interface IGetBitwardenSubscriptionQuery
     /// Currently only supports <see cref="User"/> subscribers. Future versions will support all
     /// <see cref="ISubscriber"/> types (User and Organization).
     /// </remarks>
-    Task<BitwardenSubscription> Run(User user);
+    Task<BitwardenSubscription?> Run(User user);
 }
 
 public class GetBitwardenSubscriptionQuery(
@@ -39,8 +39,13 @@ public class GetBitwardenSubscriptionQuery(
     IPricingClient pricingClient,
     IStripeAdapter stripeAdapter) : IGetBitwardenSubscriptionQuery
 {
-    public async Task<BitwardenSubscription> Run(User user)
+    public async Task<BitwardenSubscription?> Run(User user)
     {
+        if (string.IsNullOrEmpty(user.GatewaySubscriptionId))
+        {
+            return null;
+        }
+
         var subscription = await stripeAdapter.GetSubscriptionAsync(user.GatewaySubscriptionId, new SubscriptionGetOptions
         {
             Expand =