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Custom models on Copilot Chat from Azure are not using Entra ID #339055

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Description

@alexmanie

Description

When configuring BYOK to Copilot Chat models list, using Microsoft Foundry models, I'm willing to use Entra ID to authenticate against the model. But seems the inference engine is trying to use some type of key instead.
When configuring the provider, it explicitely says: leave key empty to use Entra ID.

Issue Details

Item Value
Issue Category Bug
Target Visual Studio Code
VS Code Version Code 1.139.1 (04c0d99, 2026-09-25T03:40:57Z)
OS Version Windows_NT x64 10.0.26200
System Info
Item Value
VS Code Version Code 1.139.1 (04c0d99, 2026-09-25T03:40:57Z)
OS Version Windows_NT x64 10.0.26200
CPUs 13th Gen Intel(R) Core(TM) i7-13800H (20 x 2918)
GPU Status 2d_canvas: enabled
GPU0: VENDOR= 0x8086, DEVICE=0xa7a0 [Intel(R) Iris(R) Xe Graphics], DRIVER_VENDOR=Intel, DRIVER_VERSION=32.0.101.6737 ACTIVE
GPU1: VENDOR= 0x10de, DEVICE=0x28a1 [NVIDIA GeForce RTX 4050 Laptop GPU], DRIVER_VERSION=32.0.15.9155
GPU2: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.9278
Machine model name:
Machine model version:
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
skia_graphite: disabled_off
trees_in_viz: disabled_off
video_decode: enabled
video_encode: enabled
webgl: enabled
webgpu: enabled
webnn: disabled_off
Load (avg)
Memory (System) 31.83GB (4.64GB free)
Process Argv . --crash-reporter-id c624d3cf-760a-42e1-9117-0715a8e35211
Screen Reader no
VM 0%
User Agent Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Code/1.139.1 Chrome/150.0.7871.250 Electron/43.6.0 Safari/537.36
Installation pure true
Extensions (40)
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GitHub Copilot modernization vscjava.migrate-java-to-azure vscjava 1.24.0

Theme extensions: 10

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