Hide the encryption badge when key storage is set up on the server

The settings badge was shown for every unknown backup state, so a session
whose key backup lives on the server but has not been reported by the SDK
kept a red dot next to Encryption while the Encryption screen itself
showed nothing to do.

Resolve an unknown backup state the way the Encryption screen already
does, by asking whether a backup exists on the server, and only badge the
entry when there is none.

libraries/indicator/impl/src/main/kotlin/io/element/android/libraries/indicator/impl/DefaultIndicatorService.kt

@@ -9,11 +9,14 @@
 package io.element.android.libraries.indicator.impl
 
 import androidx.compose.runtime.Composable
+import androidx.compose.runtime.LaunchedEffect
 import androidx.compose.runtime.State
 import androidx.compose.runtime.collectAsState
 import androidx.compose.runtime.derivedStateOf
 import androidx.compose.runtime.getValue
+import androidx.compose.runtime.mutableStateOf
 import androidx.compose.runtime.remember
+import androidx.compose.runtime.setValue
 import dev.zacsweers.metro.ContributesBinding
 import io.element.android.libraries.di.SessionScope
 import io.element.android.libraries.indicator.api.IndicatorService
@@ -43,12 +46,17 @@ class DefaultIndicatorService(
     override fun showSettingChatBackupIndicator(): State<Boolean> {
         val backupState by encryptionService.backupStateStateFlow.collectAsState()
         val recoveryState by encryptionService.recoveryStateStateFlow.collectAsState()
+        var doesBackupExistOnServer by remember { mutableStateOf<Boolean?>(null) }
+
+        LaunchedEffect(backupState) {
+            if (backupState == BackupState.UNKNOWN) {
+                doesBackupExistOnServer = encryptionService.doesBackupExistOnServer().getOrNull()
+            }
+        }
 
         return remember {
             derivedStateOf {
-                val showForBackup = backupState in listOf(
+                val showForBackup = backupState == BackupState.UNKNOWN && doesBackupExistOnServer != true
-                    BackupState.UNKNOWN,
-                )
                 val showForRecovery = recoveryState in listOf(
                     RecoveryState.DISABLED,
                     RecoveryState.INCOMPLETE,

libraries/indicator/impl/src/test/kotlin/io/element/android/libraries/indicator/impl/DefaultIndicatorServiceTest.kt

@@ -42,8 +42,10 @@ class DefaultIndicatorServiceTest {
     }
 
     @Test
-    fun `test - showSettingChatBackupIndicator is true when BackupState is UNKNOWN`() = runTest {
+    fun `test - showSettingChatBackupIndicator is true when BackupState is UNKNOWN and no backup exists on the server`() = runTest {
-        val encryptionService = FakeEncryptionService()
+        val encryptionService = FakeEncryptionService().apply {
+            givenDoesBackupExistOnServerResult(Result.success(false))
+        }
         val sessionVerificationService = FakeSessionVerificationService()
         val sut = DefaultIndicatorService(
             sessionVerificationService = sessionVerificationService,
@@ -61,6 +63,24 @@ class DefaultIndicatorServiceTest {
         }
     }
 
+    @Test
+    fun `test - showSettingChatBackupIndicator is false when BackupState is UNKNOWN but a backup exists on the server`() = runTest {
+        val encryptionService = FakeEncryptionService().apply {
+            givenDoesBackupExistOnServerResult(Result.success(true))
+        }
+        val sessionVerificationService = FakeSessionVerificationService()
+        val sut = DefaultIndicatorService(
+            sessionVerificationService = sessionVerificationService,
+            encryptionService = encryptionService,
+        )
+        moleculeFlow(RecompositionMode.Immediate) {
+            sut.showSettingChatBackupIndicator().value
+        }.test {
+            assertThat(awaitItem()).isTrue()
+            assertThat(awaitItem()).isFalse()
+        }
+    }
+
     @Test
     fun `test - showSettingChatBackupIndicator is true when recoveryState is DISABLED`() = runTest {
         val encryptionService = FakeEncryptionService()