Fix project import error occurring due to default visibility

app/services/projects/create_service.rb

@@ -19,6 +19,8 @@ module Projects
 
       @project = Project.new(params)
 
+      @project.visibility_level = @project.group.visibility_level unless @project.visibility_level_allowed_by_group?
+
       # If a project is newly created it should have shared runners settings
       # based on its group having it enabled. This is like the "default value"
       @project.shared_runners_enabled = false if !params.key?(:shared_runners_enabled) && @project.group && @project.group.shared_runners_setting != 'enabled'

changelogs/unreleased/fix-project-import-visibility-error.yml

+---
+title: Fix project import error occurring due to default visibility
+merge_request: 53827
+author: Jonas Wälter @wwwjon
+type: fixed

spec/services/projects/create_service_spec.rb

@@ -349,27 +349,38 @@ RSpec.describe Projects::CreateService, '#execute' do
   context 'default visibility level' do
     let(:group) { create(:group, :private) }
 
-    before do
-      stub_application_setting(default_project_visibility: Gitlab::VisibilityLevel::INTERNAL)
-      group.add_developer(user)
+    using RSpec::Parameterized::TableSyntax
 
-      opts.merge!(
-        visibility: 'private',
-        name: 'test',
-        namespace: group,
-        path: 'foo'
-      )
+    where(:case_name, :group_level, :project_level) do
+      [
+        ['in public group',   Gitlab::VisibilityLevel::PUBLIC,   Gitlab::VisibilityLevel::INTERNAL],
+        ['in internal group', Gitlab::VisibilityLevel::INTERNAL, Gitlab::VisibilityLevel::INTERNAL],
+        ['in private group',  Gitlab::VisibilityLevel::PRIVATE,  Gitlab::VisibilityLevel::PRIVATE]
+      ]
     end
 
-    it 'creates a private project' do
-      project = create_project(user, opts)
+    with_them do
+      before do
+        stub_application_setting(default_project_visibility: Gitlab::VisibilityLevel::INTERNAL)
+        group.add_developer(user)
+        group.update!(visibility_level: group_level)
 
-      expect(project).to respond_to(:errors)
+        opts.merge!(
+          name: 'test',
+          namespace: group,
+          path: 'foo'
+        )
+      end
 
-      expect(project.errors.any?).to be(false)
-      expect(project.visibility_level).to eq(Gitlab::VisibilityLevel::PRIVATE)
-      expect(project.saved?).to be(true)
-      expect(project.valid?).to be(true)
+      it 'creates project with correct visibility level', :aggregate_failures do
+        project = create_project(user, opts)
+
+        expect(project).to respond_to(:errors)
+        expect(project.errors).to be_blank
+        expect(project.visibility_level).to eq(project_level)
+        expect(project).to be_saved
+        expect(project).to be_valid
+      end
     end
   end