Python: Add Microsoft OpenTelemetry Distro sample

[TaoChenOSU]

Motivation and Context

Description

Contribution Checklist

• The code builds clean without any errors or warnings
• The PR follows the Contribution Guidelines
• All unit tests pass, and I have added new tests where possible
• Is this a breaking change? If yes, add "[BREAKING]" prefix to the title of the PR.

[Copilot]

Pull request overview

Note

Copilot was unable to run its full agentic suite in this review.

Adds a new Python sample demonstrating how to enable telemetry for an Agent Framework agent using the Microsoft OpenTelemetry Distro and Azure Monitor.

Changes:

• Adds a new observability sample that configures the Microsoft OpenTelemetry Distro.
• Demonstrates tracing a simple weather agent conversation and printing the active trace ID.
• Shows a tool-backed streaming agent workflow using FoundryChatClient and AzureCliCredential.

[github-actions]

Automated Code Review

Reviewers: 4 | Confidence: 78%

✓ Correctness

The new sample follows the same structural pattern as the existing agent_observability.py sample (calling the setup function inside main() after imports). The Agent Framework's observability uses the standard OpenTelemetry API proxy pattern (get_tracer() delegates to whatever TracerProvider is currently set), so import ordering relative to use_microsoft_opentelemetry is not a correctness issue for framework-generated spans. The existing unresolved comments about Azure Monitor configuration documentation remain relevant. No new correctness bugs found beyond those already flagged.

✓ Security Reliability

This new sample demonstrates using the Microsoft OpenTelemetry Distro for observability. The existing review comments already cover the primary reliability concerns (import ordering for auto-instrumentation and missing Azure Monitor configuration documentation). After investigating the Agent Framework's observability internals (observability.py:1256 gates telemetry behind OBSERVABILITY_SETTINGS.ENABLED, which defaults to False at line 680), I noted that the sample relies on use_microsoft_opentelemetry to automatically enable framework instrumentation per its inline comment. No additional security vulnerabilities (no secrets, no injection risks, no unsafe deserialization, no resource leaks) were identified beyond what existing comments address.

✓ Test Coverage

This PR adds a new observability sample using Microsoft OpenTelemetry Distro. No tests accompany it, which is consistent with the existing pattern for 02-agents samples (only getting_started samples have tests). However, there are no integration or unit tests anywhere in the project validating the observability module's behavior (get_tracer, tracing instrumentation), meaning this new integration path with the Microsoft distro is completely untested. The sample itself is straightforward and follows the structure of the existing agent_observability.py sample.

✗ Design Approach

The new sample picks the wrong observability layer for the behavior it is trying to demonstrate. It configures the Microsoft OpenTelemetry distro, but never enables Agent Framework's own instrumentation switch, so the Agent/Foundry spans this sample is supposed to showcase will be skipped. The repo also already has a Foundry-specific configure_azure_monitor() helper that retrieves the Application Insights connection string and enables instrumentation in one place, which is a better fit for this scenario than a lower-level distro call.

Suggestions

• For a Foundry-based sample, prefer await client.configure_azure_monitor(...) instead of wiring Azure Monitor through the distro directly. The implementation in _chat_client.py:261-314 both retrieves the project connection string and enables Agent Framework instrumentation in one call, which is the documented Foundry path in the README.

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Automated review by TaoChenOSU's agents

[eavanvalkenburg]

looks nice! Just the header that tells the user/uv which package to install and README update, and probably good to note how to setup sensitive data as well (if desired) (through env)

[eavanvalkenburg]

needs the script dependency install header