fix: Ledger create canister with --next-to transferring funds too early

CHANGELOG.md

@@ -27,6 +27,10 @@ It is possible to override this in `.ic-assets.json` like this:
 }
 ```
 
+### fix: Transferring funds too early in `dfx ledger create-canister` with --next-to
+
+When creating a canister with `dfx ledger create-canister --next-to` on a canister that does not exist (e.g., aaaaa-aa), then the funds are first transferred away from the users account, but the call then fails to create the new canister, and the funds are not returned to the user's account.
+
 ## Dependencies
 
 ### Updated to [agent-rs 0.35.0](https://github.com/dfinity/agent-rs/blob/main/CHANGELOG.md#0350---2024-05-10)

e2e/tests-dfx/ledger.bash

@@ -210,6 +210,10 @@ tc_to_num() {
   assert_match "Refunded at block height"
   assert_match "with message: Subnet $SUBNET_ID does not exist"
 
+  CANISTER_ID="aaaaa-aa"
+  assert_command dfx ledger create-canister --amount=100 --next-to "$CANISTER_ID" "$(dfx identity get-principal)"
+  assert_match "unable to determine subnet: Canister is not assigned to any subnet"
+
   # Transaction Deduplication
   t=$(current_time_nanoseconds)
 

src/dfx/src/commands/ledger/create_canister.rs

@@ -73,6 +73,11 @@ pub async fn exec(env: &dyn Environment, opts: CreateCanisterOpts) -> DfxResult
 
     fetch_root_key_if_needed(env).await?;
 
+    let subnet_selection = opts
+        .subnet_selection
+        .into_subnet_selection_type(env)
+        .await?;
+
     let height = transfer_cmc(
         agent,
         env.get_logger(),
@@ -86,10 +91,6 @@ pub async fn exec(env: &dyn Environment, opts: CreateCanisterOpts) -> DfxResult
     .await?;
     println!("Using transfer at block height {height}");
 
-    let subnet_selection = opts
-        .subnet_selection
-        .into_subnet_selection_type(env)
-        .await?;
     let result = notify_create(agent, controller, height, subnet_selection).await;
 
     match result {