The client application xxx is missing service principal in the tenant yyy

[ArunkumarTMEYGDS]

Describe the bug
We created a sample Teams Agent app using M365 Agents Toolkit from template path
M365 Toolkit -> Create a New Agent/App -> Teams Agents and Apps -> General Teams Agent

We have Custom upload enabled with Copilot license. We have created a simple test Azure OpenAI Agent and used its key, end point and deployment name to create a sample solution to test it and it gave the below error while debugging in Teams in Egde.

The client application xxx is missing service principal in the tenant yyy

To Reproduce
Steps to reproduce the behavior:

1. Install M365 Agents Tookit in VS Code
2. Create a simple test Azure OpenAI Agent
3. Create a sample template using M365 Toolkit -> Create a New Agent/App -> Teams Agents and Apps -> General Teams Agent
4. Provide Key, endpoint URL and deployment name.
5. Run the solution for debugging in Teams in Egde
   Expected behavior
   A clear and concise description of what you expected to happen.

Screenshots

VS Code Extension Information (please complete the following information):

• OS: Windows 11
• Version: 23H2

CLI Information (please complete the following information):

• OS: Windows 11
• Version: 23H2

Additional context
M365 Agents Toolkit version: 6.4.1
Node version: 18.17.1
VS Code Version: 1.106.1
Azure Open AI GPT Model: gpt-4o-mini

[m365-agent-toolkit-assistant]

👋 Hi @ArunkumarTMEYGDS,

Thank you for reporting this issue! We want to let you know that:

⏱️ Our team will personally review your issue
🎯 You can expect a response within 2 business days

✨ This is an AI-generated initial response
🤖 AI-Generated Preliminary Analysis:

This error—"The client application xxx is missing service principal in the tenant yyy"—means your Azure AD application does not have a corresponding service principal in your tenant, preventing proper authentication when using the Teams Agent app with Azure OpenAI.

Actionable steps:

1. Grant Admin Consent:

   • Go to Azure Portal → Azure Active Directory → App Registrations.
   • Find your app registration (Azure OpenAI Agent).
   • In API Permissions, click Grant admin consent for [your tenant].
   • If you don’t see your app in Enterprise Applications, an admin must consent to the app or access it once.

2. Verify Service Principal Creation:

   • In Azure AD → Enterprise Applications, confirm your client app appears.
   • If missing, the admin should log in through the app or manually create the principal (How-to).

3. Check Credentials:

   • Validate Client ID, Secret, and Tenant ID in your configuration.

4. Restart Debug Session:

   • After fixing, rerun your solution in Teams.

References:

• Teams AI Issue #2463
• Service Principal Docs

Let me know if you need detailed steps for manual service principal creation or consent URL!

✨We'd love your feedback! Please take a moment to fill out our survey.

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Note: This is an automated first response generated by AI. A human team member will review your issue and provide a more detailed response soon. We appreciate your patience!

[HuihuiWu-Microsoft]

@ArunkumarTMEYGDS Are you able to reproduce the issue? Seems that service principal is not generated for the app. Can you help confirm following generateServicePrincipal parameter exists in your m365agents.local.yml file?

[simontfoil]

I have exactly the same issue and I can confirm that generateServicePrincipal is set to true in the m365agents.local.yml file

[HuihuiWu-Microsoft]

@simontfoil Can you help confirm whether it's reproducible? And if yes, could you attache the correlation id in logs?