Public Preview: Code-first observability for Foundry Agents in VS Code

Microsoft Foundry brings code-first observability to agent developers in public preview, delivered as an observe skill inside the Foundry Plugin for VS Code Copilot Chat. Developers run the full evaluation-driven optimization loop from the editor through natural language commands. The skill orchestrates Foundry MCP tools to auto-generate context-specific evaluators and starter datasets from the agent definition, run batch evaluations, download and cluster failures by root cause, propose prompt improvements, deploy new agent versions, and compare versions side by side. Developers stay in their coding environment instead of jumping to the portal, which shortens the agent development loop and lowers the barrier to consistent observability.

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