[Python][azure-ai-agentserver-agentframework==1.0.0b7] ServiceInitializationError: Azure credential is required when project_client is not provided

[swatDong]

• Package Name: azure-ai-agentserver-agentframework
• Package Version: 1.0.0b7
• Operating System: Windows
• Python Version: 3.14.2

Describe the bug
When using azure-ai-agentserver-agentframework==1.0.0b7 with agent-framework-azure-ai==1.0.0b260107, it throws error on startup.

Task exception was never retrieved
future: <Task finished name='Task-2' coro=<AgentFrameworkCBAgent.setup_tracing_with_azure_ai_client.<locals>.setup_async() done, defined at <my-workspace>\.venv\Lib\site-packages\azure\ai\agentserver\agentframework\agent_framework.py:190> exception=ServiceInitializationError('Azure credential is required when project_client is not provided.')>
Traceback (most recent call last):
  File "<my-workspace>\.venv\Lib\site-packages\azure\ai\agentserver\agentframework\agent_framework.py", line 191, in setup_async
    async with AzureAIClient(
               ~~~~~~~~~~~~~^
        project_endpoint=project_endpoint, async_credential=self.credentials
        ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
        ) as agent_client:
        ^
  File "<my-workspace>\.venv\Lib\site-packages\agent_framework_azure_ai\_client.py", line 140, in __init__
    raise ServiceInitializationError("Azure credential is required when project_client is not provided.")
agent_framework.exceptions.ServiceInitializationError: Azure credential is required when project_client is not provided.

To Reproduce
Steps to reproduce the behavior:

1. Run agent framework agent as server via await from_agent_framework(agent).run_async()

agent=... # create agent using agent framework `AzureAIClient`
server=from_agent_framework(agent, credentials, ...)
await server.run_async()

Expected behavior
No startup error.

Additional context
It seems azure-ai-agentserver-agentframework is still using AzureAIClient(async_credential, ...), while agent-framework-azure-ai has updated to AzureAIClient(credential, ...).

Any plan or update on new version of azure-ai-agentserver-agentframework?

[github-actions]

Thanks for the feedback! We are routing this to the appropriate team for follow-up. cc @dargilco @glharper @howieleung @nick863 @trangevi @trrwilson.