python/google-adk: Migrate to Microsoft OpenTelemetry Distro, GA SDK 1.0.0, and align docs with production

[Yogeshp-MSFT]

Summary

Upgrades the Google ADK sample agent to the Microsoft OpenTelemetry Distro (microsoft-opentelemetry),
bumps all A365 SDK packages to GA 1.0.0, removes otel version pinning workarounds, and aligns all
documentation with the current codebase and production webapp configuration.

Code changes

agent.py

• Migrated BaggageBuilder import from microsoft_agents_a365.observability.core.middleware.baggage_builder
  to microsoft.opentelemetry.a365.core (new distro path)
• Fixed observability identity: changed from agentic_user_id to agentic_app_id for agent_id in
  baggage — the observability backend requires agent_id on the route, token azp, and span
  gen_ai.agent.id to all match the app instance ID
• Added diagnostic logging for observability identity source (activity vs env fallback)

main.py

• Replaced standalone configure() from microsoft_agents_a365.observability.core.config with
  use_microsoft_opentelemetry() from the new microsoft.opentelemetry distro
• The distro handles FIC token resolution automatically via A365_AGENT_APP_INSTANCE_ID /
  A365_AGENTIC_USER_ID env vars and CONNECTIONS__SERVICE_CONNECTION__SETTINGS__*

hosting.py

• Added AGENT_LIFECYCLE notification handler — lifecycle notifications (onboarding, etc.) don't
  support replies; previously caused errors when the agent tried to reply

pyproject.toml

• Bumped google-adk from >=1.18.0 to >=1.32.0,<2 (1.32+ lifted the otel<1.39 constraint)
• Bumped A365 SDK packages from >= 0.1.0 to >= 1.0.0 (GA release)
• Removed all override-dependencies for otel version pinning — no longer needed with google-adk 1.32+

Documentation changes

.env.template

• Added Vertex AI configuration section (GOOGLE_APPLICATION_CREDENTIALS, GOOGLE_CLOUD_PROJECT,
  GOOGLE_CLOUD_LOCATION) with inline docs for both Vertex AI and public Gemini API modes
• Added A365_AGENT_APP_INSTANCE_ID and A365_AGENTIC_USER_ID platform fallback vars
• Added full A365 Observability Exporter configuration block (AGENT365OBSERVABILITY__* vars)
• Added AGENT_ID, ALT_BLUEPRINT_NAME, ENABLE_KAIRO_EXPORTER, PYTHON_ENVIRONMENT
• Fixed GOOGLE_GENAI_USE_VERTEXAI — removed duplicate declaration, defaults to FALSE for Quick Start

README.md

• Updated CLI commands to use --agent-name and --aiteammate flags (current CLI syntax)
• Fixed CONNECTIONS__SERVICE_CONNECTION__SETTINGS__SCOPES value from <blueprintId>/.default to
  correct 5a807f24-c9de-44ee-a3a7-329e88a00ffc/.default (Messaging Bot API)
• Fixed AGENTIC_APP_ID source — was incorrectly listed as blueprint ID; now correctly documents it
  as the agent instance app ID from Copilot instance creation
• Rewrote "Create agent instance" step to describe actual Copilot-based flow (not Teams App Store)
• Rewrote "Update AGENTIC_USER_ID" step — values come from Entra ID after instance creation, not from
  a365.generated.config.json (which is often null for --aiteammate agents)
• Added all production env vars to both config tables: AGENT365OBSERVABILITY__*,
  A365_AGENT_APP_INSTANCE_ID, A365_AGENTIC_USER_ID, ENABLE_KAIRO_EXPORTER, PYTHON_ENVIRONMENT,
  GOOGLE_CLOUD_*, GOOGLE_APPLICATION_CREDENTIALS, CONNECTIONSMAP__*, SCM_DO_BUILD_DURING_DEPLOYMENT
• Added note clarifying AGENTIC_* env vars are fallbacks — production gets identity per-message
  via activity.recipient

AGENT-CODE-WALKTHROUGH.md

• Step 1: Updated BaggageBuilder import path to microsoft.opentelemetry.a365.core
• Step 2: Updated default model from gemini-2.0-flash to gemini-2.5-flash
• Step 3: Replaced old configure() with use_microsoft_opentelemetry() and updated explanation
• Step 5: Fixed observability scope to use agentic_app_id instead of agentic_user_id
• Step 7: Updated main.py code block from configure()/run_http_app() to
  use_microsoft_opentelemetry()/start_server()

docs/design.md (full rewrite — was completely outdated)

• Architecture diagram: start_with_generic_host.py/GenericAgentHost → main.py/MyAgent/hosting.py
• Added all four key components with descriptions
• Code samples: old google.generativeai API → current google.adk.agents.Agent/Runner pattern
• Config section: matches actual production webapp env vars
• Dependencies: matches current pyproject.toml (GA 1.0.0 packages)
• Message flow: updated to include JWT validation, typing indicators, baggage, cleanup
• Run command: uv run python start_with_generic_host.py → python main.py

Testing

• Verified deploy.zip contents match current working code (all 7 files identical)
• Production webapp env vars cross-referenced against .env.template and README config tables
• Local dev (Playground) and production (Azure App Service) configurations both documented

[Yogeshp-MSFT]

Hi @biswapm can you review this pr?

[Copilot]

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[Copilot]

Pull request overview

Copilot reviewed 9 out of 9 changed files in this pull request and generated 4 comments.

Comments suppressed due to low confidence (1)

python/google-adk/sample-agent/pyproject.toml:17

• main.py and agent.py now import from microsoft.opentelemetry, but pyproject.toml does not list microsoft-opentelemetry as an explicit dependency. If it isn't a guaranteed transitive dependency of the listed packages, installs via pip install . / uv sync can fail at runtime with ModuleNotFoundError. Add microsoft-opentelemetry to [project].dependencies (with an appropriate version constraint consistent with the sample).

    # Google ADK -- official package (1.32+ lifted the otel<1.39 constraint)
    "google-adk>=1.32.0,<2",

    # Microsoft Agents SDK - Official packages for hosting and integration
    "microsoft-agents-hosting-aiohttp",
    "microsoft-agents-hosting-core",
    "microsoft-agents-authentication-msal",
    "microsoft-agents-activity",

[Yogeshp-MSFT]

Hi @biswapm @microsoft/agent365-approvers can you review this pr?