Ensures default user limits when external user is unchecked

app/models/user.rb

@@ -153,7 +153,7 @@ class User < ActiveRecord::Base
 
   after_update :update_emails_with_primary_email, if: ->(user) { user.email_changed? }
   before_save :ensure_authentication_token, :ensure_incoming_email_token
-  before_save :ensure_external_user_rights
+  before_save :ensure_user_rights_and_limits, if: ->(user) { user.external_changed? }
   after_save :ensure_namespace_correct
   after_initialize :set_projects_limit
   after_destroy :post_destroy_hook
@@ -1033,11 +1033,14 @@ class User < ActiveRecord::Base
     super
   end
 
-  def ensure_external_user_rights
-    return unless external?
-
-    self.can_create_group   = false
-    self.projects_limit     = 0
+  def ensure_user_rights_and_limits
+    if external?
+      self.can_create_group = false
+      self.projects_limit   = 0
+    else
+      self.can_create_group = true
+      self.projects_limit = current_application_settings.default_projects_limit
+    end
   end
 
   def signup_domain_valid?

changelogs/unreleased/30725-reset-user-limits-when-unchecking-external-user.yml

@@ -0,0 +1,4 @@
+---
+title: Ensures default user limits when external user is unchecked
+merge_request: 12218
+author:

spec/models/user_spec.rb

@@ -451,6 +451,38 @@ describe User, models: true do
     end
   end
 
+  describe '#ensure_user_rights_and_limits' do
+    describe 'with external user' do
+      let(:user) { create(:user, external: true) }
+
+      it 'receives callback when external changes' do
+        expect(user).to receive(:ensure_user_rights_and_limits)
+
+        user.update_attributes(external: false)
+      end
+
+      it 'ensures correct rights and limits for user' do
+        expect { user.update_attributes(external: false) }.to change { user.can_create_group }.to(true)
+          .and change { user.projects_limit }.to(current_application_settings.default_projects_limit)
+      end
+    end
+
+    describe 'without external user' do
+      let(:user) { create(:user, external: false) }
+
+      it 'receives callback when external changes' do
+        expect(user).to receive(:ensure_user_rights_and_limits)
+
+        user.update_attributes(external: true)
+      end
+
+      it 'ensures correct rights and limits for user' do
+        expect { user.update_attributes(external: true) }.to change { user.can_create_group }.to(false)
+          .and change { user.projects_limit }.to(0)
+      end
+    end
+  end
+
   describe 'rss token' do
     it 'ensures an rss token on read' do
       user = create(:user, rss_token: nil)