fix: dev to main - Refactor credential retrieval logic for environment compatibility

[Akhileswara-Microsoft]

Purpose

This pull request updates the logic for obtaining Azure credentials in the image_service.py file to better distinguish between development and production environments. The main change is to select the appropriate credential type based on the APP_ENV environment variable.

Credential selection logic:

• Updated the _get_credential function to check the APP_ENV environment variable and use DefaultAzureCredential in development environments and ManagedIdentityCredential with the configured client ID otherwise. This ensures the correct authentication method is used depending on the deployment context.
• Imported the os module to support reading environment variables.

Does this introduce a breaking change?

• Yes
• No

Golden Path Validation

• I have tested the primary workflows (the "golden path") to ensure they function correctly without errors.

Deployment Validation

• I have validated the deployment process successfully and all services are running as expected with this change.

Other Information

This pull request updates the logic for obtaining Azure credentials in the image_service.py service. The main change is to select credentials based on the current environment, improving local development experience and deployment flexibility.

Credential selection improvements:

• Updated the _get_credential function to check the APP_ENV environment variable and use DefaultAzureCredential with require_envvar=True in development environments, while continuing to use ManagedIdentityCredential with the configured client ID in other environments.
• Imported the os module to support reading environment variables in the credential selection logic.

[github-actions]

Coverage Report •

File	Stmts	Miss	Cover	Missing
TOTAL	3824	552	85%

report-only-changed-files is enabled. No files were changed during this commit :)

Tests	Skipped	Failures	Errors	Time
834	0 💤	0 ❌	0 🔥	9.726s ⏱️

[Copilot]

Pull request overview

This PR refactors Azure credential selection in the MCP server’s image generation service to choose credentials based on APP_ENV, improving alignment between local development and deployed environments.

Changes:

• Add os import to read APP_ENV.
• Update _get_credential() to use DefaultAzureCredential when APP_ENV=dev, otherwise use ManagedIdentityCredential with the configured client ID.

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[Copilot]

Pull request overview

Copilot reviewed 6 out of 10 changed files in this pull request and generated 1 comment.

Files not reviewed (1)

• src/App/package-lock.json: Generated file

Suppressed comments (1)

src/mcp_server/pyproject.toml:23

• The PR description focuses on refactoring Azure credential selection in image_service.py, but this PR also changes a large set of dependency versions across multiple Python projects and the frontend (FastAPI/Uvicorn/Pydantic/OpenAI, React Router/Vite/Vitest, etc.). This increases review and rollout risk; please either split the dependency upgrades into a separate PR with rationale/validation, or update the PR description to explicitly cover these changes and testing performed.

  "fastmcp==3.2.0",
  "fastapi==0.136.1",
  "uvicorn[standard]==0.35.0",
  "python-dotenv==1.1.1",
  "azure-identity==1.25.3",
  "pydantic==2.13.4",