Refactor: Simplify Add Password flow

src/pages/AuthCallback.tsx

@@ -36,6 +36,25 @@ export default function AuthCallback() {
         const urlParams = new URLSearchParams(window.location.search);
         const action = urlParams.get('action');
 
+        if (action === 'password-setup-direct') {
+          console.log('[AuthCallback] Processing password-setup-direct action (direct reset flow)');
+          
+          // User set password via Supabase's hosted page
+          // Email identity is already created automatically
+          
+          toast({
+            title: "Password Set Successfully!",
+            description: "Your email identity has been created. You can now sign in with your email and password.",
+          });
+          
+          // Redirect to auth page for sign-in
+          setTimeout(() => {
+            navigate('/auth');
+          }, 1500);
+          
+          return;
+        }
+
         if (action === 'password-setup') {
           console.log('[AuthCallback] Processing password-setup action');