Problem: app hash mismatch occurs when upgrade to iavl v1.2.0

go.mod

@@ -268,8 +268,6 @@ replace (
 replace (
 	// Use cosmos keyring
 	github.com/99designs/keyring => github.com/cosmos/keyring v1.2.0
-	// FIXME: address the replacement when bump v1.2.0 to that triggers app hash mismatch in upgrade test
-	github.com/cosmos/iavl => github.com/cosmos/iavl v1.1.2
 	// dgrijalva/jwt-go is deprecated and doesn't receive security updates.
 	// TODO: remove it: https://github.com/cosmos/cosmos-sdk/issues/13134
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2

go.sum

@@ -393,8 +393,8 @@ github.com/cosmos/gogogateway v1.2.0/go.mod h1:iQpLkGWxYcnCdz5iAdLcRBSw3h7NXeOkZ
 github.com/cosmos/gogoproto v1.4.2/go.mod h1:cLxOsn1ljAHSV527CHOtaIP91kK6cCrZETRBrkzItWU=
 github.com/cosmos/gogoproto v1.7.0 h1:79USr0oyXAbxg3rspGh/m4SWNyoz/GLaAh0QlCe2fro=
 github.com/cosmos/gogoproto v1.7.0/go.mod h1:yWChEv5IUEYURQasfyBW5ffkMHR/90hiHgbNgrtp4j0=
-github.com/cosmos/iavl v1.1.2 h1:zL9FK7C4L/P4IF1Dm5fIwz0WXCnn7Bp1M2FxH0ayM7Y=
-github.com/cosmos/iavl v1.1.2/go.mod h1:jLeUvm6bGT1YutCaL2fIar/8vGUE8cPZvh/gXEWDaDM=
+github.com/cosmos/iavl v1.2.0 h1:kVxTmjTh4k0Dh1VNL046v6BXqKziqMDzxo93oh3kOfM=
+github.com/cosmos/iavl v1.2.0/go.mod h1:HidWWLVAtODJqFD6Hbne2Y0q3SdxByJepHUOeoH4LiI=
 github.com/cosmos/ibc-go/modules/apps/callbacks v0.0.0-20240913130017-6b2554360c0e h1:jMqihcJRBdpRrKGOMS1bDyyoo2JoQxv4QmMCwK3HSvI=
 github.com/cosmos/ibc-go/modules/apps/callbacks v0.0.0-20240913130017-6b2554360c0e/go.mod h1:akR14gsU5YD5S1G5I6lOI7z51OjR1vJko06Rs/3/Ym0=
 github.com/cosmos/ibc-go/modules/capability v1.0.1 h1:ibwhrpJ3SftEEZRxCRkH0fQZ9svjthrX2+oXdZvzgGI=

gomod2nix.toml

@@ -186,9 +186,8 @@ schema = 3
     version = "v1.7.0"
     hash = "sha256-ZkEUImxBBo8Q/6c7tVR0rybpLbtlplzvgfLl5xvtV00="
   [mod."github.com/cosmos/iavl"]
-    version = "v1.1.2"
-    hash = "sha256-fhh5fN1BMDxbF4PobERMQdIb9vIrxaSl0tRXas0WKmc="
-    replaced = "github.com/cosmos/iavl"
+    version = "v1.2.0"
+    hash = "sha256-NYSt6LOGyspP6eZXo9e5+2MFwyrWxD/rp2dRTtlWg2E="
   [mod."github.com/cosmos/ibc-go/modules/apps/callbacks"]
     version = "v0.0.0-20240913130017-6b2554360c0e"
     hash = "sha256-mL+g8WB+fLUlTKMnrdn8rTgw2gqXsHlky3/BTsyfek0="

memiavl/node.go

@@ -136,6 +136,21 @@ func removeRecursive(node Node, key []byte, version, cowVersion uint32) ([]byte,
 	return value, newNode.reBalance(version, cowVersion), nil
 }
 
+func mutateRecursive(node Node, version, cowVersion uint32) Node {
+	if node == nil {
+		return nil
+	}
+
+	newNode := node.Mutate(version, cowVersion)
+	if node.IsLeaf() {
+		return newNode
+	}
+
+	newNode.left = mutateRecursive(node.Left(), version, cowVersion)
+	newNode.right = mutateRecursive(node.Right(), version, cowVersion)
+	return newNode
+}
+
 // Writes the node's hash to the given `io.Writer`. This function recursively calls
 // children to update hashes.
 func writeHashBytes(node Node, w io.Writer) error {

memiavl/tree.go

@@ -172,6 +172,20 @@ func (t *Tree) RootHash() []byte {
 	return t.root.SafeHash()
 }
 
+func (t *Tree) WorkingHash() []byte {
+	if t.root == nil {
+		return emptyHash
+	}
+	version := nextVersionU32(t.version, t.initialVersion)
+	node := mutateRecursive(t.root, version, version)
+	t.root = node
+	h := sha256.New()
+	if err := writeHashBytes(node, h); err != nil {
+		panic(err)
+	}
+	return h.Sum(nil)
+}
+
 func (t *Tree) GetWithIndex(key []byte) (int64, []byte) {
 	if t.root == nil {
 		return 0, nil

store/memiavlstore/store.go

@@ -180,7 +180,7 @@ func (st *Store) Query(req *types.RequestQuery) (res *types.ResponseQuery, err e
 }
 
 func (st *Store) WorkingHash() []byte {
-	return st.tree.RootHash()
+	return st.tree.WorkingHash()
 }
 
 // Takes a MutableTree, a key, and a flag for creating existence or absence proof and returns the