MCP TypeScript SDK v2 can't OAuth to Hosted MCP: /oauth2/authorize returns an iss that doesn't match the discovered authorization server #453

# repro.js
import { Client, StreamableHTTPClientTransport, UnauthorizedError } from '@modelcontextprotocol/client';
import { createServer } from 'node:http';

const SERVER_URL = 'https://mcp.monday.com/mcp';
const REDIRECT_URL = 'http://localhost:8899/callback';

let resolveCallback;
const callback = new Promise(resolve => {
    resolveCallback = resolve;
});

const server = createServer((req, res) => {
    const url = new URL(req.url, REDIRECT_URL);
    if (url.pathname !== '/callback') {
        res.writeHead(404).end();
        return;
    }
    res.end('Return to the terminal.');
    resolveCallback(url.searchParams);
}).listen(8899);

let clientInformation;
let tokens;
let codeVerifier;
let discoveryState;

const authProvider = {
    redirectUrl: REDIRECT_URL,
    clientMetadata: {
        client_name: 'iss-mismatch-repro',
        redirect_uris: [REDIRECT_URL],
        grant_types: ['authorization_code', 'refresh_token'],
        response_types: ['code'],
        token_endpoint_auth_method: 'client_secret_post'
    },
    clientInformation: () => clientInformation,
    saveClientInformation: info => void (clientInformation = info),
    tokens: () => tokens,
    saveTokens: t => void (tokens = t),
    codeVerifier: () => codeVerifier,
    saveCodeVerifier: v => void (codeVerifier = v),
    discoveryState: () => discoveryState,
    saveDiscoveryState: s => void (discoveryState = s),
    redirectToAuthorization: url => console.log('\nOpen this URL to authorize:\n\n' + url.href + '\n')
};

const connect = () => new StreamableHTTPClientTransport(new URL(SERVER_URL), { authProvider });
const client = new Client({ name: 'iss-mismatch-repro', version: '0.0.0' });
const transport = connect();

try {
    await client.connect(transport);
} catch (error) {
    if (!UnauthorizedError.isInstance(error)) throw error;
}

await transport.finishAuth(await callback);
server.close();
await client.connect(connect());