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I am part of the https://coinshift.xyz engineering team and I've noticed that safes created using 1.3.0 on polygon using the createProxy method are failing on safeTransferFrom NFT transfers.

I've created a new safe here: https://polygonscan.com/tx/0x159f5aa40a0a2ec61cc23e370a7914e3757f8635e1f35422813871da465a1c04

I've then created a uniswap position using a metamask wallet and tried to transfer it us the safeTransferFrom here: https://polygonscan.com/tx/0x715befa05ce20949762e98f22baae79f68e21a36007322d5e0ca1c9d6d07633a

On trying to debug using Tenderly, I've observed the txn is failing on _checkOnERC721Received function here: https://dashboard.tenderly.co/tx/polygon/0x715befa05ce20949762e98f22baae79f68e21a36007322d5e0ca1c9d6d07633a/debugger?trace=last. When I've tried to transfer it using transferFrom instead, it went through without any issues.

Kindly help me understand why this is failing.

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The Gnosis Safe contract does not implement the IERC721Receiver interface, which must be implemented by smart contract that receives NFTs if you want to use the safeTransferFrom function.

see: https://ethereum.stackexchange.com/a/138092/92254

You might be able to fix this by adding a fallback handler that allows handling NFTs.

https://github.com/safe-global/safe-core-sdk/pull/294

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