Hey @edmond
Sorry for not getting into implementing this. We had a major shift implementation strategy of wagmi, because of which I had to stop working on that particular idea.
With the latest Web3Auth v10, we have launched a first class support for wagmi within the SDK itself and you not requiring to configure anything externally. All our examples are updated to use wagmi by default and you can follow the approach we have taken over there.
Please read through our documentation regarding the same: React Hooks for Ethereum (via Wagmi) | Documentation | Web3Auth