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Managed Identity authentication support for Copilot CLI #2705

@knetway-us

Description

@knetway-us

Describe the feature or problem you'd like to solve

Copilot CLI BYOK is not supporting Managed Identity Auth for Azure Foundry Hosted Model.

Proposed solution

While the Copilot CLI supports API key–based access for Azure Foundry models, this approach is suboptimal due to key management overhead and associated secret‑handling risks.
Supporting managed authentication would significantly improve enterprise adoption, enabling Foundry‑hosted models to be securely accessed by other Azure resources using managed identities—eliminating the need for explicit secrets and simplifying security operations.

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