Python: [BREAKING] Python: move Azure AI embeddings to Foundry

[Eduard van Valkenburg (eavanvalkenburg)]

Motivation and Context

This PR consolidates the Python provider surface after moving Azure AI inference embeddings into Foundry, removing the now-empty agent-framework-azure-ai package, and aligning environment variable names with the current client split. It also finishes the Azure Cosmos promotion so CosmosHistoryProvider is available from agent_framework.azure and the root samples/docs reflect the promoted import paths.

This is a breaking change because it removes the agent-framework-azure-ai package, replaces the old Azure AI inference embedding class names and import paths with Foundry equivalents, and renames the affected OpenAI/Azure OpenAI/Foundry environment variables.

Description

• move the Azure AI inference embedding client implementation and tests into agent-framework-foundry as FoundryEmbeddingClient and RawFoundryEmbeddingClient
• remove the agent-framework-azure-ai package, its embedding-only tests/assets, and the obsolete Azure AI-specific workflow wiring
• rename OpenAI/Azure OpenAI model environment variables to the *_CHAT_MODEL / *_CHAT_COMPLETION_MODEL scheme and rename Foundry embedding configuration to FOUNDRY_MODELS_*
• update Python samples, READMEs, .env.example, package-management docs, and CI workflows to use the new names and locations
• promote agent-framework-azure-cosmos into the agent_framework.azure namespace, add it to agent-framework-core[all], move the Cosmos history provider sample into the root samples/ tree, and add namespace coverage

Fixes: #5003

Contribution Checklist

• The code builds clean without any errors or warnings
• The PR follows the Contribution Guidelines
• All unit tests pass, and I have added new tests where possible
• Is this a breaking change? If yes, add "[BREAKING]" prefix to the title of the PR.

[Copilot]

Pull request overview

This PR consolidates the Python provider surface by moving the Azure AI inference embeddings implementation into the Foundry package, removing the now-empty agent-framework-azure-ai package, promoting Cosmos history provider imports via agent_framework.azure, and aligning model-related environment variables to the new *_CHAT_MODEL / *_CHAT_COMPLETION_MODEL scheme.

Changes:

• Migrate Azure AI inference embeddings into agent-framework-foundry (FoundryEmbeddingClient / RawFoundryEmbeddingClient) and update associated tests/docs/samples.
• Remove the agent-framework-azure-ai package and update repo config (workspace deps, lockfile, CI workflows) accordingly.
• Promote CosmosHistoryProvider through agent_framework.azure and relocate/update the Cosmos history provider sample + namespace coverage.

Reviewed changes

Copilot reviewed 67 out of 72 changed files in this pull request and generated no comments.

Show a summary per file

File	Description
python/uv.lock	Removes agent-framework-azure-ai from the workspace lock; adds Foundry embedding dependency (azure-ai-inference) and includes azure-cosmos in all.
python/pyproject.toml	Drops agent-framework-azure-ai from workspace sources and type-check environments.
python/README.md	Updates top-level Python README links to point to Foundry instead of the removed Azure AI package.
python/.env.example	Renames/expands env var examples for Foundry embeddings and OpenAI/Azure OpenAI model selection.
python/samples/README.md	Updates provider/env var matrix to reflect Foundry embeddings and new model env var naming.
python/samples/05-end-to-end/m365-agent/README.md	Updates required OpenAI model env var naming for the sample.
python/samples/05-end-to-end/m365-agent/.env.example	Updates OpenAI model env var naming for the sample.
python/samples/02-agents/observability/.env.example	Updates OpenAI model env var naming.
python/samples/02-agents/middleware/README.md	Updates OpenAI model env var naming referenced by the sample.
python/samples/02-agents/mcp/README.md	Updates OpenAI model env var naming referenced by the sample.
python/samples/02-agents/embeddings/openai_embeddings_on_azure.py	Adds a new Azure OpenAI embeddings sample using OpenAIEmbeddingClient.
python/samples/02-agents/embeddings/foundry_embeddings.py	Updates embedding sample to use agent-framework-foundry and FoundryEmbeddingClient.
python/samples/02-agents/devui/workflow_with_agents/workflow.py	Updates Azure OpenAI model env var lookup for the DevUI workflow sample.
python/samples/02-agents/devui/workflow_with_agents/.env.example	Updates Azure OpenAI model env var naming for the DevUI workflow sample.
python/samples/02-agents/devui/README.md	Updates required env var naming for DevUI samples.
python/samples/02-agents/devui/.env.example	Updates Azure OpenAI model env var naming for DevUI.
python/samples/02-agents/chat_client/README.md	Updates the OpenAI env var descriptions for responses vs chat-completions clients.
python/samples/02-agents/conversations/README.md	Adds Cosmos history provider sample entry + prerequisites.
python/samples/02-agents/conversations/cosmos_history_provider.py	Switches import to agent_framework.azure.CosmosHistoryProvider and updates sample structure/text.
python/packages/openai/agent_framework_openai/_shared.py	Renames model setting fields/env var mappings (responses → chat_model, chat completion → chat_completion_model).
python/packages/openai/agent_framework_openai/_chat_client.py	Updates env var documentation and model resolution fields for OpenAIChatClient (Responses).
python/packages/openai/agent_framework_openai/_chat_completion_client.py	Updates env var documentation and model resolution fields for OpenAIChatCompletionClient.
python/packages/openai/README.md	Updates documented env vars and lookup order to the new naming.
python/packages/openai/tests/openai/conftest.py	Updates test env fixtures for the new env var names and semantics.
python/packages/openai/tests/openai/test_openai_chat_client.py	Updates env var preference test for OpenAIChatClient.
python/packages/openai/tests/openai/test_openai_chat_client_azure.py	Updates Azure env var usage for OpenAIChatClient tests.
python/packages/openai/tests/openai/test_openai_chat_completion_client.py	Updates env var preference test for OpenAIChatCompletionClient.
python/packages/openai/tests/openai/test_openai_chat_completion_client_azure.py	Updates Azure env var usage for OpenAIChatCompletionClient tests.
python/packages/foundry/pyproject.toml	Adds azure-ai-inference dependency now that embeddings live in Foundry.
python/packages/foundry/README.md	Updates package description to include embedding integrations.
python/packages/foundry/agent_framework_foundry/_embedding_client.py	Introduces Foundry embedding clients/options/settings and new env var names.
python/packages/foundry/agent_framework_foundry/init.py	Exports new embedding client symbols from agent_framework_foundry.
python/packages/foundry/tests/foundry/test_foundry_embedding_client.py	Migrates embedding tests from agent_framework_azure_ai types to Foundry equivalents.
python/packages/core/pyproject.toml	Updates core[all] to include agent-framework-azure-cosmos and drop agent-framework-azure-ai.
python/packages/core/README.md	Updates example env vars (removes OPENAI_RESPONSES_MODEL, adds OPENAI_CHAT_COMPLETION_MODEL).
python/packages/core/agent_framework/azure/init.py	Promotes CosmosHistoryProvider and removes azure-ai embedding symbols from the azure namespace.
python/packages/core/agent_framework/azure/init.pyi	Updates azure namespace type stubs to match the new exported surface.
python/packages/core/agent_framework/foundry/init.py	Adds lazy exports for Foundry embedding client symbols.
python/packages/core/agent_framework/foundry/init.pyi	Updates Foundry namespace type stubs to include embedding symbols.
python/packages/core/agent_framework/microsoft/init.py	Removes Foundry Local symbols from the agent_framework.microsoft namespace.
python/packages/core/agent_framework/microsoft/init.pyi	Updates agent_framework.microsoft stubs to match the removed Foundry Local exports.
python/packages/core/tests/core/test_azure_namespace.py	Adds coverage asserting agent_framework.azure exposes CosmosHistoryProvider.
python/packages/azure-cosmos/README.md	Updates docs to prefer from agent_framework.azure import CosmosHistoryProvider and points to root samples.
python/packages/azure-cosmos/AGENTS.md	Updates usage/import-path guidance to include agent_framework.azure promotion.
python/packages/azure-cosmos/samples/README.md	Removes package-local samples README (sample moved to root samples).
python/packages/azure-cosmos/samples/init.py	Removes package-local samples package marker.
python/packages/azure-ai/tests/conftest.py	Removes tests as part of deleting the agent-framework-azure-ai package.
python/packages/azure-ai/tests/azure_openai/test_entra_id_authentication.py	Removes tests as part of deleting the agent-framework-azure-ai package.
python/packages/azure-ai/README.md	Deletes package docs along with removing agent-framework-azure-ai.
python/packages/azure-ai/pyproject.toml	Deletes the agent-framework-azure-ai package manifest.
python/packages/azure-ai/LICENSE	Deletes package-level license file along with the removed package.
python/packages/azure-ai/AGENTS.md	Deletes package-level agent docs along with the removed package.
python/packages/azure-ai/agent_framework_azure_ai/_shared.py	Deletes AzureAISettings and related helpers from the removed package.
python/packages/azure-ai/agent_framework_azure_ai/_entra_id_authentication.py	Deletes Entra token-provider helper from the removed package.
python/packages/azure-ai/agent_framework_azure_ai/init.py	Deletes package exports along with the removed package.
python/packages/lab/gaia/samples/openai_agent.py	Updates OpenAI model env var naming in lab sample docs.
python/packages/devui/dev.md	Updates env var naming in DevUI developer docs.
python/packages/devui/frontend/src/components/layout/deployment-modal.tsx	Updates example env vars in the deployment modal template snippets.
python/packages/devui/agent_framework_devui/ui/assets/index.js	Updates the built frontend asset to match the updated env var snippet.
python/CODING_STANDARD.md	Updates repo structure/docs to reference foundry/ instead of azure-ai/.
python/AGENTS.md	Updates package listing to reference Foundry and promoted Cosmos integration.
python/.github/skills/python-testing/SKILL.md	Updates CI/test documentation to refer to Foundry integration instead of Azure AI.
python/.github/skills/python-package-management/SKILL.md	Updates package management documentation to reference Foundry package location.
docs/features/vector-stores-and-embeddings/README.md	Updates embedding roadmap text to refer to Foundry package location.
docs/decisions/0021-provider-leading-clients.md	Updates env-var naming examples to the new scheme.
.github/workflows/python-sample-validation.yml	Updates workflow env var wiring to the new model env var names.
.github/workflows/python-merge-tests.yml	Renames path filters/job gating from azure-ai to foundry and updates env var wiring; removes azure-ai samples test step.
.github/workflows/python-integration-tests.yml	Updates integration workflow env vars and adds Foundry embedding env vars.
.github/ISSUE_TEMPLATE/python-issue.yml	Updates issue template placeholder to reference Foundry package instead of Azure AI.

[Mark Wallace (markwallace-microsoft)]

Python Test Coverage Report •

File	Stmts	Miss	Cover	Missing
packages/foundry/agent_framework_foundry
_embedding_client.py	113	12	89%	152, 167–170, 174, 178, 228, 238, 249, 258, 284
packages/openai/agent_framework_openai
_chat_client.py	855	127	85%	520–523, 527–528, 533–534, 544–545, 552, 567–573, 594, 602, 625, 743, 842, 901, 903, 905, 907, 973, 987, 1067, 1077, 1082, 1125, 1202, 1232, 1289, 1382, 1387, 1391–1393, 1397–1398, 1464, 1493, 1499, 1509, 1515, 1520, 1526, 1531–1532, 1593, 1615–1616, 1631–1632, 1650–1651, 1692–1695, 1857, 1895–1896, 1912, 1914, 1992–2000, 2122, 2157, 2172, 2192–2202, 2215, 2226–2230, 2244, 2258–2269, 2278, 2310–2313, 2321–2322, 2324–2326, 2340–2342, 2352–2353, 2359, 2374
_chat_completion_client.py	356	28	92%	428, 524–525, 529, 666, 749–756, 758–761, 771, 849, 851, 868, 889, 917, 930, 954, 974, 1014, 1289
_shared.py	135	14	89%	239–241, 253, 263, 271, 275, 281, 300–301, 320, 339–340, 342
TOTAL	27038	3186	88%

Python Unit Test Overview

Tests	Skipped	Failures	Errors	Time
5370	20 💤	0 ❌	0 🔥	1m 25s ⏱️