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Python: [BREAKING] Migrate Foundry Local integration to SDK 2.1 - #9322

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bmehta001 wants to merge 16 commits into
microsoft:mainfrom
bmehta001:fix-foundry-local-sdk-compatibility
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bmehta001 wants to merge 16 commits into
microsoft:mainfrom
bmehta001:fix-foundry-local-sdk-compatibility

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@bmehta001 bmehta001 commented Oct 12, 2026 •

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Motivation & Context

The Foundry Local integration still uses SDK 0.5.1. This updates it to work with SDK 2.1.

Description & Review Guide

  • What are the major changes? Updates SDK setup and model loading, adds support for SDK-registered local models, and keeps the existing chat, streaming, and tool support.
  • What is the impact of these changes? Requires Python 3.11-3.14 and SDK 2.1 or later, below 3.0. Older SDK versions are no longer supported. prepare_model=False still loads the configured model on the first request, including streaming; manual loading is not required.
  • What do you want reviewers to focus on? Model setup, loading on first use, and cleanup when setup fails.

Image support has not been verified. Audio and embeddings are outside this PR.

Related Issue

Fixes #9321.

Original report: microsoft/homebrew-foundrylocal#31.

This remains a draft pending maintainer agreement and human review.

AI Assistance

  • No material AI assistance was used.
  • This is an AI-assisted contribution. Human review is pending.

AI assistance details: GitHub Copilot helped with the code, tests, documentation, and this description.

Contribution Checklist

  • The code builds clean without any errors or warnings
  • All unit tests pass, and I have added new tests where possible
  • The PR follows the Contribution Guidelines
  • This PR links to an agreed issue with no competing open PR, or the Related Issue section documents a trivial-change or repository-automation exception.
  • This is not a breaking change. If it is a breaking change, add the breaking change label (or add "[BREAKING]" to the title prefix, before or after any language prefix) -- a workflow keeps the label and title prefix in sync automatically.

Use the in-process SDK singleton and catalog model APIs with the existing OpenAI transport. Require Python 3.11 and document the breaking migration.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Copilot-Session: d8ebdb3c-28b8-4fa1-830d-3fa7d6333d9e
Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Copilot-Session: d8ebdb3c-28b8-4fa1-830d-3fa7d6333d9e
Copilot AI balanced review requested due to automatic review settings October 12, 2026 22:36
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@agent-framework-automation agent-framework-automation Bot added documentation Usage: [Issues, PRs], Target: documentation in the code base and learn docs python Usage: [Issues, PRs], Target: Python breaking change Usage: [PRs], Target: all PRs that introduce changes that are not backward compatible labels Oct 12, 2026
Follow the existing OpenAI test pattern so transport coverage works with both OpenAI 2.x and locked OpenAI 3.x/httpx2.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Copilot-Session: d8ebdb3c-28b8-4fa1-830d-3fa7d6333d9e
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🟡 Changes recommended

Python 3.15 compatibility declarations and CI gating are inconsistent, and singleton construction has a concurrency race.

5 open findings
What changed in this PR

Migrates the Python Foundry Local integration to SDK 2.1, addressing #9321 while retaining Agent Framework’s OpenAI transport.

Changes:

  • Adopts the SDK singleton, catalog/model lifecycle, and built-in web service.
  • Raises support to Python 3.11+ and updates dependencies and CI.
  • Expands migration documentation and regression tests.
File Description
.github/​workflows/​python-tests.yml Updates Python-version exclusions.
python/​packages/​core/​pyproject.toml Gates the Foundry Local extra.
python/​packages/​foundry_local/​AGENTS.md Updates package guidance.
python/​packages/​foundry_local/​README.md Documents usage and migration.
python/​packages/​foundry_local/​agent_framework_foundry_local/​_foundry_local_client.py Implements SDK 2.1 integration.
python/​packages/​foundry_local/​pyproject.toml Updates Python and SDK requirements.
python/​packages/​foundry_local/​tests/​conftest.py Adds SDK-aware fixtures.
python/​packages/​foundry_local/​tests/​test_foundry_local_client.py Expands lifecycle and transport tests.
python/​samples/​02-agents/​providers/​foundry/​foundry_local_agent.py Updates sample APIs and cleanup.
python/​uv.lock Resolves SDK 2.1 dependencies.

🧠 Review effort: Balanced


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Comment thread .github/workflows/python-tests.yml Outdated
Comment thread python/packages/core/pyproject.toml Outdated
Comment thread python/packages/foundry_local/pyproject.toml Outdated
Comment thread python/packages/foundry_local/README.md Outdated
SDK 2.1 pins ONNX Runtime 1.30.0, which has no Python 3.15 wheels. Exclude Foundry Local from the 3.15 workspace job and align package and extra metadata with Python 3.11-3.14.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Copilot-Session: d8ebdb3c-28b8-4fa1-830d-3fa7d6333d9e
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bmehta001 deployed to github-app-auth October 12, 2026 22:44 — with GitHub Actions Active
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Hold the adapter setup lock through singleton initialization, web-service startup, model preparation, and failure rollback. Add concurrent success/failure regressions and keep invalid-input and transport tests compatible with all CI type checkers.

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Copilot-Session: d8ebdb3c-28b8-4fa1-830d-3fa7d6333d9e
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bmehta001 deployed to github-app-auth October 12, 2026 23:47 — with GitHub Actions Active
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Avoid passing an unspecialized generic constructor to Executor.submit, and isolate the concurrency regressions from real HTTP client initialization.

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bmehta001 deployed to github-app-auth October 13, 2026 00:02 — with GitHub Actions Active
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Normalize native token limits and response schemas, preserve required tool invocation before structured replies, expose download controls, and roll back services started during failed client setup. Expand transport and agent regressions and document public-catalog-only scope.

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The Foundry Local checks passed. The first full matrix failed in the existing declarative MCP approval/checkpoint regression and cancelled other matrix rows. GitHub requires repository-admin rights for a rerun, so trigger a fresh check run without changing unrelated code.

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Hi Eduard van Valkenburg (@eavanvalkenburg) , Thank you for the review. I have updated the PR accordingly and also with some new features available in the latest SDK for Foundry Local.

Keep current release versions alongside the SDK 2.1 Python support window.

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Defer configured-model download and load to the async provider boundary when prepare_model=False. Reuse loaded variants, serialize native preparation without blocking the event loop, preserve download controls, and leave request overrides caller-prepared.

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bmehta001 python/packages/foundry_local/pyproject.toml still permits agent-framework-openai>=1.6.0, but this migration's structured-output path in _foundry_local_client.py only unwraps an already-normalized json_schema envelope. Older allowed OpenAI adapter versions pass raw schema dictionaries through unchanged, so a dependency set that satisfies this package's metadata can send an invalid response_format to Foundry Local. Please either raise the agent-framework-openai lower bound for agent-framework-foundry-local only to the first version that normalizes raw schemas, or normalize raw schema dictionaries inside FoundryLocalClient, with minimum-bound coverage. No repository-wide or cross-package floor change is requested.

Keep dependency floors unchanged and cover raw schemas, schema references, and named envelopes for streaming and non-streaming requests.

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Eduard van Valkenburg (@eavanvalkenburg) Thanks for the comment. I have updated the PR to support raw JSON schema as well.

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.NET: Python: [Bug]: Foundry Local integration excludes current SDK versions

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