Remove Onyx.connect() usage for ONYXKEYS.COLLECTION.POLICY_TAGS from src/libs/actions/IOU/index.ts in splitBill, splitBillAndOpenReport, createDistanceRequest

[jakubstec]

Explanation of Change

This PR is the last part of a refactor to remove Onyx.connect for the keys: ONYXKEYS.COLLECTION.POLICY_TAGS from the src/libs/actions/IOU/index.ts file and replace it with useOnyx.

It removes the deprecated buildParticipantsPolicyTags() function from src/libs/actions/IOU/index.ts and threads an explicit participantsPolicyTags parameter through the Duplicate.ts call sites (createExpenseByType, duplicateExpenseTransaction, duplicateReport, bulkDuplicateExpenses, bulkDuplicateReports) as well as handleMoneyRequestStepDistanceNavigation. Call sites in useExpenseActions, useBulkDuplicateAction, and the distance-request navigation hooks now resolve participants via getMoneyRequestParticipantsFromReport() and derive participantsPolicyTags using the useParticipantsPolicyTags hook / getPolicyTagsSelector helper instead of reading from the global allPolicyTags collection.

Fixed Issues

$ #72721
PROPOSAL:

Tests

1.splitBill

• Go to a Spend, then Expenses and select any expense with policy tag.
• Tap Split, confirm split and verify that split expenses are created with the correct policy tag applied.

2. createDistanceRequest

• Go to a workspace chat (or workspace report) where distance/mileage tracking and tags are enabled.

• Tap + -> Track/Submit distance, add a route/waypoints, then confirm the request.

• Verify the distance expense is created with the correct policy tag applied.

• Verify that no errors appear in the JS console

Offline tests

N/A

QA Steps

Same as tests.

• Verify that no errors appear in the JS console

PR Author Checklist

• I linked the correct issue in the ### Fixed Issues section above
• I wrote clear testing steps that cover the changes made in this PR
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Screenshots/Videos

MacOS: Chrome / Safari

Screen.Recording.2026-07-09.at.09.21.42.mov

Screen.Recording.2026-07-09.at.08.36.58.mov

[jakubstec]

@codex review

[melvin-bot]

@parasharrajat Please copy/paste the Reviewer Checklist from here into a new comment on this PR and complete it. If you have the K2 extension, you can simply click: [this button]

[chatgpt-codex-connector]

Codex Review: Didn't find any major issues. What shall we delve into next?

Reviewed commit: 559450e35b

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[jakubstec]

all comments addressed

[jakubstec]

@codex review

[chatgpt-codex-connector]

Codex Review: Didn't find any major issues. Chef's kiss.

Reviewed commit: 2457baa2e0

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[codecov]

Codecov Report

❌ Looks like you've decreased code coverage for some files. Please write tests to increase, or at least maintain, the existing level of code coverage. See our documentation here for how to interpret this table.

Files with missing lines	Coverage Δ
src/hooks/useBulkDuplicateAction.ts	100.00% <100.00%> (ø)
src/hooks/useMoneyRequestParticipantsPolicyTags.ts	100.00% <100.00%> (ø)
src/hooks/useParticipantsPolicyTags.ts	90.90% <ø> (+9.09%)	⬆️
src/libs/actions/IOU/Duplicate.ts	91.76% <100.00%> (+0.05%)	⬆️
src/libs/actions/IOU/index.ts	100.00% <ø> (+1.01%)	⬆️
...stance/handleMoneyRequestStepDistanceNavigation.ts	82.60% <ø> (-0.19%)	⬇️
...RequestStepDistance/hooks/useDistanceNavigation.ts	90.47% <100.00%> (+0.47%)	⬆️
...RequestStepDistance/hooks/useOdometerNavigation.ts	100.00% <100.00%> (ø)
...st/step/IOURequestStepDistanceGPS/index.native.tsx	0.00% <0.00%> (ø)
.../iou/request/step/IOURequestStepDistanceManual.tsx	0.00% <0.00%> (ø)
... and 2 more
... and 7 files with indirect coverage changes

[jakubstec]

@parasharrajat ready for review!