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Improve azd extension experience with a first-run install + run workflow #5752

Description

@rajeshkamal5050

Currently using an azd extension is a multi-step process i.e., find the extension, install it, then run the command. This makes extensions hard to discover and use, which could push us towards bundling them by default which is something we want to avoid.

Instead we can optimize it. If a user runs a command for an uninstalled extension (like azd ai agents init ), azd should ask them if they want to install it. If they say yes, it installs the extension and immediately runs the command.

Current flow:

  1. azd extension list (querying available extensions)
  2. azd extension install microsoft.ai.agents (installing it)
  3. azd ai agents init (executing it)

Proposed new flow:

  1. azd ai agents init (install and execute it)

This approach simplifies the user experience keeping installations intentional and avoids a bloating users environment.

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