Updating/adding copilot-setup-steps.yaml to enable the Copilot coding agent to access Azure

[robpitcher]

Update copilot-setup-steps.yml to use a federated credential to access Azure resources.

Final steps

NOTE: one final step, and you're ready to use the Copilot coding agent with Azure!

After this pull request merges, you'll need to update the Copilot coding agent's MCP settings (link) with
the following JSON to activate the Azure MCP server:

{
    "mcpServers": {
        "Azure": {
            "type": "local",
            "command": "npx",
            "args": [
                "-y",
                "@azure/mcp@latest",
                "server",
                "start"
            ],
            "tools": [
                "*"
            ]
        }
    }
}

Extending the managed identity's roles and scopes

By default, the identity is configured with the Reader role, on the resource group you created/selected. You can expand the role and scope for the identity, to fit better with your needs:

Some further instructions on how to assign roles:

• Using the Azure portal to assign roles
• Using the Azure CLI to assign roles
• Azure built-in roles

Resources

• coding-agent readme: (link)

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