[Joan Bency (JoanBency)]

Migrate Claude Python Sample to Observability SDK and Remove Configuration Flags

Summary

Migrates Claude Python sample to use Observability SDK directly (matching OpenAI Python sample) and addresses previous PR feedback by removing hardcoded auth handler names and configuration flags.

**Key Changes

Removed:**

❌ ENABLE_OBSERVABILITY and USE_AGENTIC_AUTH environment variable flags
❌ observability_helpers.py file (replaced by direct SDK usage)
❌ OBSERVABILITY_AVAILABLE and NOTIFICATIONS_AVAILABLE optional import flags
❌ Hardcoded "AGENTIC" auth handler strings
❌ Manual InvokeAgentScope and InferenceScope creation

Added:

✅ _setup_observability() method with configure() pattern (like OpenAI sample)
✅ token_resolver() method for Agent 365 Observability exporter
✅ self.auth_handler_name as configurable property
✅ BaggageBuilder context in message handlers
✅ auth_handler_name parameter to agent methods

Updated:

Method signatures: process_user_message() and handle_agent_notification_activity() now accept auth_handler_name
Dependencies: Added microsoft_agents_a365_tooling for MCP support
.env.template: Simplified observability configuration

Addresses PR Feedback

✅ Removed USE_AGENTIC_AUTH env var - auth type determined by SDK config
✅ No hardcoded auth handler names - uses configurable property
✅ Notifications always imported (not optional)
✅ Auth handler ID properly passed to exchange_token()

Breaking Changes

ENABLE_OBSERVABILITY and USE_AGENTIC_AUTH env vars no longer used
process_user_message() and handle_agent_notification_activity() signatures changed
observability_helpers.py removed

Testing

Test with agentic auth, bearer token, and client credentials
Verify observability traces generated correctly
Test notifications (email, Word @mentions)
Test with Agents Playground and Teams

[Copilot]

Pull request overview

This PR migrates the Claude Python sample to use the Agent 365 Observability SDK directly (matching the OpenAI Python sample pattern) and removes configuration complexity by eliminating environment variable flags like ENABLE_OBSERVABILITY and USE_AGENTIC_AUTH. The migration simplifies the codebase by removing the observability_helpers.py abstraction layer and adopting a direct SDK configuration approach.

Changes:

• Removed observability_helpers.py and optional observability import patterns, replacing them with direct SDK usage via configure() method
• Added auth_handler_name parameter to agent methods (process_user_message and handle_agent_notification_activity) to eliminate hardcoded auth handler strings
• Integrated optional MCP tooling support with graceful fallback for enterprise M365 tool integration
• Updated dependencies to include microsoft_agents_a365_tooling and reorganized package specifications in pyproject.toml
• Simplified .env.template by removing ENABLE_OBSERVABILITY and USE_AGENTIC_AUTH flags
• Added BaggageBuilder context propagation in message handlers for proper observability tracing

Reviewed changes

Copilot reviewed 5 out of 5 changed files in this pull request and generated 3 comments.

Show a summary per file

File	Description
pyproject.toml	Updated project description, added authors section, and reorganized dependencies to include MCP tooling and observability packages
observability_helpers.py	Deleted entire helper file as observability now uses SDK directly
host_agent_server.py	Added auth_handler_name property, integrated BaggageBuilder context in message handler, updated token caching to use auth handler name, and removed conditional observability configuration
agent.py	Added _setup_observability() and token_resolver() methods, integrated optional MCP tooling, updated method signatures to accept auth_handler_name, removed manual scope creation code
.env.template	Removed ENABLE_OBSERVABILITY and USE_AGENTIC_AUTH flags, updated observability configuration comments

[Joan Bency (JoanBency)]

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[Rahul Devikar (rahuldevikar761)]

Looks good. Seems Julio has already looked at it from Obs point of view. Thanks for updating the Sample

[Nikhil Navakiran (nikhilNava)]

Please consider fixing these in a follow up PR