Python: [Bug]: `server_error` on `client.agents.create_version()` for hosted agent — SDK v2.1.0 / agent-framework 1.2.2

[mitokic]

Description

Calling AIProjectClient.agents.create_version() to deploy a hosted agent consistently returns an HTTP 500 server_error with no actionable details. The error persists across retries and different SDK configurations. The container image is valid, pushed to ACR, and the agent previously deployed successfully on the older SDK stack.

Code Sample

from azure.identity import DefaultAzureCredential
from azure.ai.projects import AIProjectClient
from azure.ai.projects.models import (
    HostedAgentDefinition,
    ProtocolVersionRecord,
    AgentProtocol,
)

client = AIProjectClient(
    endpoint="<FOUNDRY_PROJECT_ENDPOINT>",
    credential=DefaultAzureCredential(),
    allow_preview=True,
)

agent = client.agents.create_version(
    agent_name="agent-name",
    definition=HostedAgentDefinition(
        container_protocol_versions=[
            ProtocolVersionRecord(
                protocol=AgentProtocol.RESPONSES,
                version="1.0.0",
            )
        ],
        cpu="1",
        memory="2Gi",
        image="<ACR>.azurecr.io/<IMAGE>:<TAG>",
        environment_variables={...},  # 16 env vars
        tools=[
            {
                "type": "mcp",
                "server_label": "WorkIQUser",
                "project_connection_id": "<MCP_CONNECTION_ID>",
            }
        ],
    ),
)

Error Messages / Stack Traces

HttpResponseError: (server_error) An error occurred while processing your request.
You can retry your request, or contact us if the error persists.
Code: server_error

Package Versions

SDK: azure-ai-projects==2.1.0, agent-framework==1.2.2, agent-framework-foundry-hosting==1.0.0a260429

Python Version

Python 3.12

Additional Context

No response

[ashishmundra4001]

Just a thought - Foundry Hosted Agents Public Preview is just rolling out - Hope your region is here in the list - https://learn.microsoft.com/en-us/azure/foundry/agents/concepts/hosted-agents#limits-pricing-and-availability-preview

[mitokic]

I'm on version 70 of my hosted agent in Foundry. So going from deploying versions no prob to now being blocked completely in the new package version is a big bummer....

[TaoChenOSU]

Hi @mitokic,

This is interesting. Are you trying to deploy a hosted agent via client.agents.create_version?

The normal path to deploy a hosted MAF agent is documented here: https://github.com/microsoft-foundry/foundry-samples/tree/main/samples/python/hosted-agents/agent-framework

[TaoChenOSU]

It's possible according to this doc: https://learn.microsoft.com/en-us/azure/foundry/agents/how-to/deploy-hosted-agent?view=foundry&tabs=bash#deploy-using-the-python-sdk. However, this is not related to Agent Framework. Please reach out to the Azure SDK team: https://github.com/Azure/azure-sdk-for-python/tree/main