Bug: Incorrect Chain ID Displayed After Denying Network Switch in Coinbase Wallet Using WalletConnect

[ShivamKumarSa]

Description:
When using WalletConnect to connect Coinbase Wallet to our dApp, an issue arises when the default chain (e.g., 123) is set in the dApp. Here’s a step-by-step outline of the problem:

1. Initial Connection Setup:
   User clicks on the "Connect Wallet" button and selects Coinbase Wallet.
   The dApp initiates the connection and prompts the user to switch to the default chain (e.g., 123).

2. Network Switch Request:
   The Coinbase Wallet displays a network switch request.
   The user denies the network switch request, remaining on their current network (e.g., 678).

3. Observed Behavior:
   Despite the network switch request being denied, the dApp continues to function, showing a successful connection with the default chain ID (e.g., 123).
   However, the Coinbase Wallet remains connected to the original network (e.g., 678).

4. Expected Behavior:
   When the network switch request is denied, the dApp should accurately reflect the network the user is currently on. Instead of showing the default chain ID (123), it should show the actual chain ID of the connected wallet (e.g., 678).

5. Impact:
   This discrepancy leads to confusion and potential issues in the dApp’s functionality, as it relies on the correct chain ID for its operations.
   Users may experience functionality issues if the dApp operates on an incorrect assumption about the network state.

Steps to Reproduce:
Connect Coinbase Wallet to the dApp via WalletConnect.
When prompted, deny the network switch request.
Observe the chain ID displayed by the dApp and compare it to the actual chain ID of the connected wallet.

Actual Results:
The dApp shows the default chain ID (123) even though the Coinbase Wallet is connected to a different chain (678).

Expected Results:
The dApp should reflect the actual chain ID of the Coinbase Wallet (678) when the network switch request is denied.

Additional Information:
Version of WalletConnect : @web3modal/wagmi: ^5.0.7