Azure · Copilot · Mar 27, 2026
@@ -5,7 +5,6 @@ go 1.26.0
 require (
 	github.com/Azure/azure-sdk-for-go/sdk/azcore v1.21.0
 	github.com/Azure/azure-sdk-for-go/sdk/azidentity v1.13.1
-	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appcontainers/armappcontainers v1.1.0
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/authorization/armauthorization/v3 v3.0.0-beta.2
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/cognitiveservices/armcognitiveservices/v2 v2.0.0
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.2.0

@@ -11,8 +11,6 @@ github.com/Azure/azure-sdk-for-go/sdk/azidentity/cache v0.3.2 h1:yz1bePFlP5Vws5+
 github.com/Azure/azure-sdk-for-go/sdk/azidentity/cache v0.3.2/go.mod h1:Pa9ZNPuoNu/GztvBSKk9J1cDJW6vk/n0zLtV4mgd8N8=
 github.com/Azure/azure-sdk-for-go/sdk/internal v1.11.2 h1:9iefClla7iYpfYWdzPCRDozdmndjTm8DXdpCzPajMgA=
 github.com/Azure/azure-sdk-for-go/sdk/internal v1.11.2/go.mod h1:XtLgD3ZD34DAaVIIAyG3objl5DynM3CQ/vMcbBNJZGI=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appcontainers/armappcontainers v1.1.0 h1:fdAOz6TFldGDoEcRa975i5L5QvWU8ptut+SJAIfuWUY=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appcontainers/armappcontainers v1.1.0/go.mod h1:qV+BWew22CAalRTwJEAHs+aSLP49k/csNlspqhMIDRU=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appservice/armappservice/v2 v2.3.0 h1:JI8PcWOImyvIUEZ0Bbmfe05FOlWkMi2KhjG+cAKaUms=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appservice/armappservice/v2 v2.3.0/go.mod h1:nJLFPGJkyKfDDyJiPuHIXsCi/gpJkm07EvRgiX7SGlI=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/authorization/armauthorization/v2 v2.2.0 h1:Hp+EScFOu9HeCbeW8WU2yQPJd4gGwhMgKxWe+G6jNzw=

@@ -45,7 +45,6 @@ type initFlags struct {
 	model             string
 	manifestPointer   string
 	src               string
-	host              string
 	env               string
 }
 
@@ -79,7 +78,6 @@ type GitHubUrlInfo struct {
 }
 
 const AiAgentHost = "azure.ai.agent"
-const ContainerAppHost = "containerapp"
 
 // checkAiModelServiceAvailable is a temporary check to ensure the azd host supports
 // required gRPC services. Remove once azd core enforces requiredAzdVersion.
@@ -354,9 +352,6 @@ func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "",
 		"Directory to download the agent definition to (defaults to 'src/<agent-id>')")
 
-	cmd.Flags().StringVarP(&flags.host, "host", "", "",
-		"For container based agents, can override the default host to target a container app instead. Accepted values: 'containerapp'")
-
 	cmd.Flags().StringVarP(&flags.env, "environment", "e", "", "The name of the azd environment to use.")
 
 	return cmd
@@ -384,14 +379,6 @@ func (a *InitAction) Run(ctx context.Context) error {
 		isValidURL := false
 		isValidFile := false
 
-		if a.flags.host != "" && a.flags.host != "containerapp" {
-			return exterrors.Validation(
-				exterrors.CodeUnsupportedHost,
-				fmt.Sprintf("unsupported host value: '%s' is not supported", a.flags.host),
-				"use '--host containerapp' or omit '--host'",
-			)
-		}
-
 		if _, err := url.ParseRequestURI(a.flags.manifestPointer); err == nil {
 			isValidURL = true
 		} else if _, fileErr := os.Stat(a.flags.manifestPointer); fileErr == nil {
@@ -424,7 +411,7 @@ func (a *InitAction) Run(ctx context.Context) error {
 		}
 
 		// Add the agent to the azd project (azure.yaml) services
-		if err := a.addToProject(ctx, targetDir, agentManifest, a.flags.host); err != nil {
+		if err := a.addToProject(ctx, targetDir, agentManifest); err != nil {
 			return fmt.Errorf("failed to add agent to azure.yaml: %w", err)
 		}
 
@@ -1083,7 +1070,7 @@ func writeAgentDefinitionFile(targetDir string, agentManifest *agent_yaml.AgentM
 	return nil
 }
 
-func (a *InitAction) addToProject(ctx context.Context, targetDir string, agentManifest *agent_yaml.AgentManifest, host string) error {
+func (a *InitAction) addToProject(ctx context.Context, targetDir string, agentManifest *agent_yaml.AgentManifest) error {
 	// Convert the template to bytes
 	templateBytes, err := json.Marshal(agentManifest.Template)
 	if err != nil {
@@ -1108,15 +1095,6 @@ func (a *InitAction) addToProject(ctx context.Context, targetDir string, agentMa
 		return fmt.Errorf("failed to unmarshal JSON to AgentDefinition: %w", err)
 	}
 
-	var serviceHost string
-
-	switch host {
-	case "containerapp":
-		serviceHost = ContainerAppHost
-	default:
-		serviceHost = AiAgentHost
-	}
-
 	var agentConfig = project.ServiceTargetAgentConfig{}
 
 	resourceDetails := []project.Resource{}
@@ -1178,7 +1156,7 @@ func (a *InitAction) addToProject(ctx context.Context, targetDir string, agentMa
 	serviceConfig := &azdext.ServiceConfig{
 		Name:         strings.ReplaceAll(agentDef.Name, " ", ""),
 		RelativePath: targetDir,
-		Host:         serviceHost,
+		Host:         AiAgentHost,
 		Language:     "docker",
 		Config:       agentConfigStruct,
 	}

@@ -39,20 +39,19 @@ func newListenCommand() *cobra.Command {
 			}
 			defer azdClient.Close()
 
-			projectParser := &project.FoundryParser{AzdClient: azdClient}
 			// IMPORTANT: service target name here must match the name used in the extension manifest.
 			host := azdext.NewExtensionHost(azdClient).
 				WithServiceTarget(AiAgentHost, func() azdext.ServiceTargetProvider {
 					return project.NewAgentServiceTargetProvider(azdClient)
 				}).
 				WithProjectEventHandler("preprovision", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return preprovisionHandler(ctx, azdClient, projectParser, args)
+					return preprovisionHandler(ctx, azdClient, args)
 				}).
 				WithProjectEventHandler("predeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return predeployHandler(ctx, azdClient, projectParser, args)
+					return predeployHandler(ctx, azdClient, args)
 				}).
 				WithProjectEventHandler("postdeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return postdeployHandler(ctx, projectParser, args)
+					return postdeployHandler(ctx, azdClient, args)
 				})
 
 			// Start listening for events
@@ -66,11 +65,7 @@ func newListenCommand() *cobra.Command {
 	}
 }
 
-func preprovisionHandler(ctx context.Context, azdClient *azdext.AzdClient, projectParser *project.FoundryParser, args *azdext.ProjectEventArgs) error {
-	if err := projectParser.SetIdentity(ctx, args); err != nil {
-		return fmt.Errorf("failed to set identity: %w", err)
-	}
-
+func preprovisionHandler(ctx context.Context, azdClient *azdext.AzdClient, args *azdext.ProjectEventArgs) error {
 	for _, svc := range args.Project.Services {
 		switch svc.Host {
 		case AiAgentHost:
@@ -80,21 +75,13 @@ func preprovisionHandler(ctx context.Context, azdClient *azdext.AzdClient, proje
 			if err := envUpdate(ctx, azdClient, args.Project, svc); err != nil {
 				return fmt.Errorf("failed to update environment for service %q: %w", svc.Name, err)
 			}
-		case ContainerAppHost:
-			if err := containerAgentHandling(ctx, azdClient, args.Project, svc); err != nil {
-				return fmt.Errorf("failed to handle container agent for service %q: %w", svc.Name, err)
-			}
 		}
 	}
 
 	return nil
 }
 
-func predeployHandler(ctx context.Context, azdClient *azdext.AzdClient, projectParser *project.FoundryParser, args *azdext.ProjectEventArgs) error {
-	if err := projectParser.SetIdentity(ctx, args); err != nil {
-		return fmt.Errorf("failed to set identity: %w", err)
-	}
-
+func predeployHandler(ctx context.Context, azdClient *azdext.AzdClient, args *azdext.ProjectEventArgs) error {
 	for _, svc := range args.Project.Services {
 		switch svc.Host {
 		case AiAgentHost:
@@ -110,14 +97,21 @@ func predeployHandler(ctx context.Context, azdClient *azdext.AzdClient, projectP
 	return nil
 }
 
-func postdeployHandler(ctx context.Context, projectParser *project.FoundryParser, args *azdext.ProjectEventArgs) error {
-	if err := projectParser.CoboPostDeploy(ctx, args); err != nil {
-		return err
+func postdeployHandler(ctx context.Context, azdClient *azdext.AzdClient, args *azdext.ProjectEventArgs) error {
+	hasAgent := false
+	for _, svc := range args.Project.Services {
+		if svc.Host == AiAgentHost {
+			hasAgent = true
+			break
+		}
+	}
+	if !hasAgent {
+		return nil
 	}
 
 	// Ensure agent identity RBAC is configured when vnext is enabled.
 	// Runs post-deploy because the platform provisions the identity during agent deployment.
-	if err := projectParser.EnsureAgentIdentityRBAC(ctx); err != nil {
+	if err := project.EnsureAgentIdentityRBAC(ctx, azdClient); err != nil {
 		return fmt.Errorf("agent identity RBAC setup failed: %w", err)
 	}
 
@@ -233,35 +227,6 @@ func resourcesEnvUpdate(ctx context.Context, resources []project.Resource, azdCl
 	return setEnvVar(ctx, azdClient, envName, "AI_PROJECT_DEPENDENT_RESOURCES", escapedJsonString)
 }
 
-func containerAgentHandling(ctx context.Context, azdClient *azdext.AzdClient, project *azdext.ProjectConfig, svc *azdext.ServiceConfig) error {
-	servicePath := svc.RelativePath
-	fullPath := filepath.Join(project.Path, servicePath)
-	agentYamlPath := filepath.Join(fullPath, "agent.yaml")
-
-	//nolint:gosec // agentYamlPath is resolved from project/service paths in current workspace
-	data, err := os.ReadFile(agentYamlPath)
-	if err != nil {
-		return nil
-	}
-
-	var agentDef agent_yaml.AgentDefinition
-	if err := yaml.Unmarshal(data, &agentDef); err != nil {
-		return fmt.Errorf("YAML content is not valid: %w", err)
-	}
-
-	// If there is an agent.yaml in the project, and it can be properly parsed into an agent definition, add the env var to enable container agents
-	currentEnvResponse, err := azdClient.Environment().GetCurrent(ctx, &azdext.EmptyRequest{})
-	if err != nil {
-		return err
-	}
-
-	if err := setEnvVar(ctx, azdClient, currentEnvResponse.Environment.Name, "ENABLE_CONTAINER_AGENTS", "true"); err != nil {
-		return err
-	}
-
-	return nil
-}
-
 func setEnvVar(ctx context.Context, azdClient *azdext.AzdClient, envName string, key string, value string) error {
 	_, err := azdClient.Environment().SetValue(ctx, &azdext.SetEnvRequest{
 		EnvName: envName,

@@ -21,7 +21,6 @@ const (
 	CodeInvalidServiceConfig      = "invalid_service_config"
 	CodeInvalidAgentRequest       = "invalid_agent_request"
 	CodeInvalidSessionId          = "invalid_session_id"
-	CodeUnsupportedHost           = "unsupported_host"
 	CodeUnsupportedAgentKind      = "unsupported_agent_kind"
 	CodeMissingAgentKind          = "missing_agent_kind"
 	CodeAgentDefinitionNotFound   = "agent_definition_not_found"

@@ -105,8 +105,8 @@ func agentIdentityDisplayName(accountName, projectName string) string {
 //
 // The platform provisions the agent identity automatically when an agent is deployed.
 // This function assumes the identity already exists and assigns permissions to it.
-func (p *FoundryParser) EnsureAgentIdentityRBAC(ctx context.Context) error {
-	azdEnvClient := p.AzdClient.Environment()
+func EnsureAgentIdentityRBAC(ctx context.Context, azdClient *azdext.AzdClient) error {
+	azdEnvClient := azdClient.Environment()
 	cEnvResponse, err := azdEnvClient.GetCurrent(ctx, &azdext.EmptyRequest{})
 	if err != nil {
 		return fmt.Errorf("failed to get current environment: %w", err)
@@ -137,7 +137,7 @@ func (p *FoundryParser) EnsureAgentIdentityRBAC(ctx context.Context) error {
 	}
 
 	// Get tenant ID and create credential
-	tenantResponse, err := p.AzdClient.Account().LookupTenant(ctx, &azdext.LookupTenantRequest{
+	tenantResponse, err := azdClient.Account().LookupTenant(ctx, &azdext.LookupTenantRequest{
 		SubscriptionId: info.SubscriptionID,
 	})
 	if err != nil {