Dev team just released Shopify CLI 2.3.0 that should solve the reported issue (#1480)
Follow this guide to upgrade your version.
Core issue: Customer login fails when developing locally with “shopify theme serve” at http://127.0.0.1:9292, largely due to Google reCAPTCHA challenges that redirect to my-shop.myshopify.com/challenge, causing loops, 404s, or “Invalid or missing reCAPTCHA token” errors. CLI = Shopify Command Line Interface; reCAPTCHA = Google’s anti‑bot check.
Earlier update: Shopify released CLI 2.3.0, which fixed the initial non‑reCAPTCHA login issue; users confirmed success. However, with reCAPTCHA enabled, the problem persisted across versions 2.6.x, 2.7.4, 3.21.0, 3.44.1, 3.49.3, and 3.60.1.
Workarounds reported:
Shopify staff acknowledged, asked for DEBUG=1 logs, and linked upgrade guidance; GitHub issues referenced (#1992, #1636). Status: unresolved for reCAPTCHA + localhost; discussion remains open.
Dev team just released Shopify CLI 2.3.0 that should solve the reported issue (#1480)
Follow this guide to upgrade your version.