From 5c2cadb2deefec393daf0c8aef83e825cd511d49 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 09:26:15 -0800
Subject: [PATCH 1/8] move caphost creation in a postprovision hook due to
 idempotency pb

---
 azure.yaml                     | 42 ++++++++++++++++++++++++----------
 infra/core/ai/ai-project.bicep | 10 --------
 infra/main.bicep               |  2 +-
 infra/main.parameters.json     |  2 +-
 4 files changed, 32 insertions(+), 24 deletions(-)

diff --git a/azure.yaml b/azure.yaml
index 3f7faf1..f68e495 100644
--- a/azure.yaml
+++ b/azure.yaml
@@ -1,12 +1,30 @@
-# yaml-language-server: $schema=https://raw.githubusercontent.com/Azure/azure-dev/main/schemas/v1.0/azure.yaml.json
-name: ai-foundry-starter-basic
-
-infra:
-  provider: bicep
-  path: ./infra
-
-requiredVersions:
-  extensions:
-    # the azd ai agent extension is required for this template
-    "azure.ai.agents": ">=0.1.0-preview"
-
+# yaml-language-server: $schema=https://raw.githubusercontent.com/Azure/azure-dev/main/schemas/v1.0/azure.yaml.json
+
+# Azure Developer CLI (azd) configuration for the Forge project
+# This file defines how azd provisions and deploys Azure infrastructure and services.
+# Learn more: https://learn.microsoft.com/azure/developer/azure-developer-cli/
+
+# Project identifier used across Azure resources
+name: azd-ai-starter-basic
+
+# Infrastructure provisioning configuration
+infra:
+    provider: bicep
+    path: ./infra
+    module: main
+
+# Hooks to run custom scripts after provisioning infrastructure
+hooks:
+    postprovision:
+        # NOTE: because caphost creation is not idempotent, we cannot run this in bicep directly
+        windows:
+            shell: pwsh
+            run: infra/scripts/create_capability_host.ps1
+        posix:
+            shell: sh
+            run: infra/scripts/create_capability_host.sh
+
+# Recommended extensions for this project
+requiredVersions:
+    extensions:
+        azure.ai.agents: '>=0.1.3-preview'
diff --git a/infra/core/ai/ai-project.bicep b/infra/core/ai/ai-project.bicep
index d0e8753..d041168 100644
--- a/infra/core/ai/ai-project.bicep
+++ b/infra/core/ai/ai-project.bicep
@@ -121,16 +121,6 @@ resource aiAccount 'Microsoft.CognitiveServices/accounts@2025-06-01' = {
       seqDeployments
     ]
   }
-
-  resource aiFoundryAccountCapabilityHost 'capabilityHosts@2025-10-01-preview' = if (enableHostedAgents) {
-    name: 'agents'
-    properties: {
-      capabilityHostKind: 'Agents'
-      // IMPORTANT: this is required to enable hosted agents deployment
-      // if no BYO Net is provided
-      enablePublicHostingEnvironment: true
-    }
-  }
 }
 
 
diff --git a/infra/main.bicep b/infra/main.bicep
index 3675047..7312683 100644
--- a/infra/main.bicep
+++ b/infra/main.bicep
@@ -79,7 +79,7 @@ var aiProjectConnections = json(aiProjectConnectionsJson)
 var aiProjectDependentResources = json(aiProjectDependentResourcesJson)
 
 @description('Enable hosted agent deployment')
-param enableHostedAgents bool
+param enableHostedAgents bool = true
 
 @description('Enable monitoring for the AI project')
 param enableMonitoring bool = true
diff --git a/infra/main.parameters.json b/infra/main.parameters.json
index 323829e..b1bcbc7 100644
--- a/infra/main.parameters.json
+++ b/infra/main.parameters.json
@@ -39,7 +39,7 @@
         "value": "${ENABLE_MONITORING=true}"
       },
       "enableHostedAgents": {
-        "value": "${ENABLE_HOSTED_AGENTS=false}"
+        "value": "${ENABLE_HOSTED_AGENTS=true}"
       }
     }
 }

From 5f9d73477c0203a2f27fbe635a6bfbc305cb48b9 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 09:29:16 -0800
Subject: [PATCH 2/8] do not enable by default

---
 infra/main.bicep           | 2 +-
 infra/main.parameters.json | 2 +-
 2 files changed, 2 insertions(+), 2 deletions(-)

diff --git a/infra/main.bicep b/infra/main.bicep
index 7312683..9daa637 100644
--- a/infra/main.bicep
+++ b/infra/main.bicep
@@ -79,7 +79,7 @@ var aiProjectConnections = json(aiProjectConnectionsJson)
 var aiProjectDependentResources = json(aiProjectDependentResourcesJson)
 
 @description('Enable hosted agent deployment')
-param enableHostedAgents bool = true
+param enableHostedAgents bool = false
 
 @description('Enable monitoring for the AI project')
 param enableMonitoring bool = true
diff --git a/infra/main.parameters.json b/infra/main.parameters.json
index b1bcbc7..323829e 100644
--- a/infra/main.parameters.json
+++ b/infra/main.parameters.json
@@ -39,7 +39,7 @@
         "value": "${ENABLE_MONITORING=true}"
       },
       "enableHostedAgents": {
-        "value": "${ENABLE_HOSTED_AGENTS=true}"
+        "value": "${ENABLE_HOSTED_AGENTS=false}"
       }
     }
 }

From c9e8bc1335135dd35de0bf8e62fddfc39ddebae9 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 09:37:49 -0800
Subject: [PATCH 3/8] fix path

---
 azure.yaml | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/azure.yaml b/azure.yaml
index f68e495..b399bde 100644
--- a/azure.yaml
+++ b/azure.yaml
@@ -19,10 +19,10 @@ hooks:
         # NOTE: because caphost creation is not idempotent, we cannot run this in bicep directly
         windows:
             shell: pwsh
-            run: infra/scripts/create_capability_host.ps1
+            run: scripts/create_capability_host.ps1
         posix:
             shell: sh
-            run: infra/scripts/create_capability_host.sh
+            run: scripts/create_capability_host.sh
 
 # Recommended extensions for this project
 requiredVersions:

From 40916fc199dccff08b96f3cac95a86303eaed1fa Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 09:48:33 -0800
Subject: [PATCH 4/8] Add scripts

---
 scripts/create_capability_host.ps1 | 112 +++++++++++++++++++++++++++++
 scripts/create_capability_host.sh  | 108 ++++++++++++++++++++++++++++
 2 files changed, 220 insertions(+)
 create mode 100644 scripts/create_capability_host.ps1
 create mode 100644 scripts/create_capability_host.sh

diff --git a/scripts/create_capability_host.ps1 b/scripts/create_capability_host.ps1
new file mode 100644
index 0000000..b6d2cb5
--- /dev/null
+++ b/scripts/create_capability_host.ps1
@@ -0,0 +1,112 @@
+#!/usr/bin/env pwsh
+
+# Script to create an Azure AI Foundry capability host using the REST API
+# This script checks if the capability host exists before attempting to create it
+
+$ErrorActionPreference = "Stop"
+
+# Load environment variables from azd
+if (-not $env:AZURE_SUBSCRIPTION_ID) {
+    Write-Error "AZURE_SUBSCRIPTION_ID not set. Please run 'azd env refresh' first."
+    exit 1
+}
+
+if (-not $env:AZURE_RESOURCE_GROUP) {
+    Write-Error "AZURE_RESOURCE_GROUP not set. Please run 'azd env refresh' first."
+    exit 1
+}
+
+if (-not $env:AZURE_AI_ACCOUNT_NAME) {
+    Write-Error "AZURE_AI_ACCOUNT_NAME not set. Please run 'azd env refresh' first."
+    exit 1
+}
+
+$subscriptionId = $env:AZURE_SUBSCRIPTION_ID
+$resourceGroup = $env:AZURE_RESOURCE_GROUP
+$accountName = $env:AZURE_AI_ACCOUNT_NAME
+$capabilityHostName = "agents"
+$apiVersion = "2025-10-01-preview"
+
+# Get Azure access token
+Write-Host "Getting Azure access token..." -ForegroundColor Cyan
+try {
+    $tokenResponse = azd auth token --output json --scope https://management.azure.com/.default | ConvertFrom-Json
+    $accessToken = $tokenResponse.token
+    if (-not $accessToken) {
+        throw "Failed to get access token"
+    }
+}
+catch {
+    Write-Error "Failed to get access token. Please run 'azd auth login' first."
+    exit 1
+}
+
+# Check if capability host already exists
+Write-Host "Checking if capability host '$capabilityHostName' already exists..." -ForegroundColor Cyan
+$checkUrl = "https://management.azure.com/subscriptions/${subscriptionId}/resourceGroups/${resourceGroup}/providers/Microsoft.CognitiveServices/accounts/${accountName}/capabilityHosts/${capabilityHostName}?api-version=${apiVersion}"
+
+Write-Host "Debug - Check URL: $checkUrl" -ForegroundColor Gray
+
+$headers = @{
+    "Authorization" = "Bearer $accessToken"
+    "Content-Type"  = "application/json"
+}
+
+try {
+    $existingHost = Invoke-RestMethod -Uri $checkUrl -Method Get -Headers $headers
+    if ($existingHost) {
+        Write-Host "✓ Capability host '$capabilityHostName' already exists. Skipping creation." -ForegroundColor Green
+        exit 0
+    }
+}
+catch {
+    $statusCode = $_.Exception.Response.StatusCode.value__
+    if ($statusCode -eq 404) {
+        # 404 means it doesn't exist, continue with creation
+        Write-Host "Capability host does not exist. Creating..." -ForegroundColor Cyan
+    }
+    else {
+        Write-Error "Error checking for existing capability host (HTTP $statusCode): $($_.ErrorDetails.Message)"
+        exit 1
+    }
+}
+
+# Construct the REST API URL
+$url = "https://management.azure.com/subscriptions/${subscriptionId}/resourceGroups/${resourceGroup}/providers/Microsoft.CognitiveServices/accounts/${accountName}/capabilityHosts/${capabilityHostName}?api-version=${apiVersion}"
+
+# Construct the request body
+# For hosted agents without BYONET, enablePublicHostingEnvironment is required
+$requestBody = @{
+    properties = @{
+        capabilityHostKind = "Agents"
+        enablePublicHostingEnvironment = $true
+    }
+} | ConvertTo-Json -Depth 10
+
+Write-Host "Creating capability host '$capabilityHostName'..." -ForegroundColor Cyan
+Write-Host "URL: $url" -ForegroundColor Gray
+
+# Make the REST API call
+try {
+    $response = Invoke-RestMethod -Uri $url -Method Put -Headers $headers -Body $requestBody
+    
+    Write-Host "✓ Successfully created capability host '$capabilityHostName'" -ForegroundColor Green
+    Write-Host "Response:" -ForegroundColor Gray
+    $response | ConvertTo-Json -Depth 10 | Write-Host
+    
+    # Check provisioning state
+    $provisioningState = $response.properties.provisioningState
+    if ($provisioningState -in @("Creating", "Updating")) {
+        Write-Host ""
+        Write-Warning "Capability host is being provisioned (state: $provisioningState)"
+        Write-Host "This may take a few minutes. Check the Azure portal for status." -ForegroundColor Yellow
+    }
+}
+catch {
+    Write-Host "✗ Failed to create capability host" -ForegroundColor Red
+    Write-Host "Error: $_" -ForegroundColor Red
+    if ($_.ErrorDetails.Message) {
+        Write-Host "Details: $($_.ErrorDetails.Message)" -ForegroundColor Red
+    }
+    exit 1
+}
diff --git a/scripts/create_capability_host.sh b/scripts/create_capability_host.sh
new file mode 100644
index 0000000..7f3fe03
--- /dev/null
+++ b/scripts/create_capability_host.sh
@@ -0,0 +1,108 @@
+#!/bin/bash
+
+# Script to create an Azure AI Foundry capability host using the REST API
+# This script checks if the capability host exists before attempting to create it
+
+set -e
+
+# Load environment variables from azd
+if [ -z "$AZURE_SUBSCRIPTION_ID" ]; then
+    echo "Error: AZURE_SUBSCRIPTION_ID not set. Please run 'azd env refresh' first."
+    exit 1
+fi
+
+if [ -z "$AZURE_RESOURCE_GROUP" ]; then
+    echo "Error: AZURE_RESOURCE_GROUP not set. Please run 'azd env refresh' first."
+    exit 1
+fi
+
+if [ -z "$AZURE_AI_ACCOUNT_NAME" ]; then
+    echo "Error: AZURE_AI_ACCOUNT_NAME not set. Please run 'azd env refresh' first."
+    exit 1
+fi
+
+SUBSCRIPTION_ID="${AZURE_SUBSCRIPTION_ID}"
+RESOURCE_GROUP="${AZURE_RESOURCE_GROUP}"
+ACCOUNT_NAME="${AZURE_AI_ACCOUNT_NAME}"
+CAPABILITY_HOST_NAME="agents"
+API_VERSION="2025-10-01-preview"
+
+# Get Azure access token
+echo "Getting Azure access token..."
+TOKEN_JSON=$(azd auth token --output json --scope https://management.azure.com/.default)
+ACCESS_TOKEN=$(echo "$TOKEN_JSON" | jq -r '.token')
+
+if [ -z "$ACCESS_TOKEN" ] || [ "$ACCESS_TOKEN" = "null" ]; then
+    echo "Error: Failed to get access token. Please run 'azd auth login' first."
+    exit 1
+fi
+
+# Check if capability host already exists
+echo "Checking if capability host '$CAPABILITY_HOST_NAME' already exists..."
+CHECK_URL="https://management.azure.com/subscriptions/${SUBSCRIPTION_ID}/resourceGroups/${RESOURCE_GROUP}/providers/Microsoft.CognitiveServices/accounts/${ACCOUNT_NAME}/capabilityHosts/${CAPABILITY_HOST_NAME}?api-version=${API_VERSION}"
+
+echo "Debug - Check URL: $CHECK_URL"
+
+HTTP_CODE=$(curl -s -o /dev/null -w "%{http_code}" \
+    -X GET \
+    -H "Authorization: Bearer ${ACCESS_TOKEN}" \
+    -H "Content-Type: application/json" \
+    "${CHECK_URL}")
+
+if [ "$HTTP_CODE" = "200" ]; then
+    echo "✓ Capability host '$CAPABILITY_HOST_NAME' already exists. Skipping creation."
+    exit 0
+fi
+
+echo "Capability host does not exist. Creating..."
+
+# Construct the REST API URL
+URL="https://management.azure.com/subscriptions/${SUBSCRIPTION_ID}/resourceGroups/${RESOURCE_GROUP}/providers/Microsoft.CognitiveServices/accounts/${ACCOUNT_NAME}/capabilityHosts/${CAPABILITY_HOST_NAME}?api-version=${API_VERSION}"
+
+# Construct the request body
+# For hosted agents without BYONET, enablePublicHostingEnvironment is required
+REQUEST_BODY=$(cat <<EOF
+{
+  "properties": {
+    "capabilityHostKind": "Agents",
+    "enablePublicHostingEnvironment": true
+  }
+}
+EOF
+)
+
+echo "Creating capability host '$CAPABILITY_HOST_NAME'..."
+echo "URL: $URL"
+
+# Make the REST API call
+RESPONSE=$(curl -s -w "\n%{http_code}" \
+    -X PUT \
+    -H "Authorization: Bearer ${ACCESS_TOKEN}" \
+    -H "Content-Type: application/json" \
+    -d "${REQUEST_BODY}" \
+    "${URL}")
+
+# Extract HTTP status code (last line) and response body (everything else)
+HTTP_STATUS=$(echo "$RESPONSE" | tail -n1)
+RESPONSE_BODY=$(echo "$RESPONSE" | sed '$d')
+
+echo "HTTP Status: $HTTP_STATUS"
+
+if [ "$HTTP_STATUS" = "200" ] || [ "$HTTP_STATUS" = "201" ]; then
+    echo "✓ Successfully created capability host '$CAPABILITY_HOST_NAME'"
+    echo "Response:"
+    echo "$RESPONSE_BODY" | jq '.' 2>/dev/null || echo "$RESPONSE_BODY"
+    
+    # Check provisioning state
+    PROVISIONING_STATE=$(echo "$RESPONSE_BODY" | jq -r '.properties.provisioningState' 2>/dev/null)
+    if [ "$PROVISIONING_STATE" = "Creating" ] || [ "$PROVISIONING_STATE" = "Updating" ]; then
+        echo ""
+        echo "⚠ Capability host is being provisioned (state: $PROVISIONING_STATE)"
+        echo "This may take a few minutes. Check the Azure portal for status."
+    fi
+else
+    echo "✗ Failed to create capability host"
+    echo "Response:"
+    echo "$RESPONSE_BODY" | jq '.' 2>/dev/null || echo "$RESPONSE_BODY"
+    exit 1
+fi

From 226aefc123665a77432d07493a5bc4787f77b5a8 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 09:58:24 -0800
Subject: [PATCH 5/8] fix path

---
 azure.yaml | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/azure.yaml b/azure.yaml
index b399bde..b1d1c8e 100644
--- a/azure.yaml
+++ b/azure.yaml
@@ -19,10 +19,10 @@ hooks:
         # NOTE: because caphost creation is not idempotent, we cannot run this in bicep directly
         windows:
             shell: pwsh
-            run: scripts/create_capability_host.ps1
+            run: ./scripts/create_capability_host.ps1
         posix:
             shell: sh
-            run: scripts/create_capability_host.sh
+            run: ./scripts/create_capability_host.sh
 
 # Recommended extensions for this project
 requiredVersions:

From 7f18fe708594f3fa841c37cf94f0cb2f806b1b81 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 10:15:46 -0800
Subject: [PATCH 6/8] add interactive mode

---
 azure.yaml | 2 ++
 1 file changed, 2 insertions(+)

diff --git a/azure.yaml b/azure.yaml
index b1d1c8e..561ae47 100644
--- a/azure.yaml
+++ b/azure.yaml
@@ -20,9 +20,11 @@ hooks:
         windows:
             shell: pwsh
             run: ./scripts/create_capability_host.ps1
+            interactive: true
         posix:
             shell: sh
             run: ./scripts/create_capability_host.sh
+            interactive: true
 
 # Recommended extensions for this project
 requiredVersions:

From 7c02ff1b78b58646b71cb99fe36c2c4b36b3cfbb Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 10:24:32 -0800
Subject: [PATCH 7/8] add sh to resolve pperms denied

---
 azure.yaml | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/azure.yaml b/azure.yaml
index 561ae47..4f14378 100644
--- a/azure.yaml
+++ b/azure.yaml
@@ -23,7 +23,7 @@ hooks:
             interactive: true
         posix:
             shell: sh
-            run: ./scripts/create_capability_host.sh
+            run: sh ./scripts/create_capability_host.sh
             interactive: true
 
 # Recommended extensions for this project

From 27fadbc3a607424b4b8c92dfa6096619131d66b6 Mon Sep 17 00:00:00 2001
From: Jeff Omhover <jeomhove@microsoft.com>
Date: Fri, 12 Dec 2025 10:59:07 -0800
Subject: [PATCH 8/8] wait for caphost success

---
 scripts/create_capability_host.ps1 | 44 ++++++++++++++++++++-----
 scripts/create_capability_host.sh  | 52 +++++++++++++++++++++++++-----
 2 files changed, 80 insertions(+), 16 deletions(-)

diff --git a/scripts/create_capability_host.ps1 b/scripts/create_capability_host.ps1
index b6d2cb5..13e5790 100644
--- a/scripts/create_capability_host.ps1
+++ b/scripts/create_capability_host.ps1
@@ -90,16 +90,44 @@ Write-Host "URL: $url" -ForegroundColor Gray
 try {
     $response = Invoke-RestMethod -Uri $url -Method Put -Headers $headers -Body $requestBody
     
-    Write-Host "✓ Successfully created capability host '$capabilityHostName'" -ForegroundColor Green
-    Write-Host "Response:" -ForegroundColor Gray
-    $response | ConvertTo-Json -Depth 10 | Write-Host
+    Write-Host "✓ Capability host creation request submitted" -ForegroundColor Green
     
-    # Check provisioning state
+    # Poll for provisioning completion
     $provisioningState = $response.properties.provisioningState
-    if ($provisioningState -in @("Creating", "Updating")) {
-        Write-Host ""
-        Write-Warning "Capability host is being provisioned (state: $provisioningState)"
-        Write-Host "This may take a few minutes. Check the Azure portal for status." -ForegroundColor Yellow
+    $maxAttempts = 60  # 5 minutes max (5 second intervals)
+    $attempt = 0
+    
+    while ($provisioningState -in @("Creating", "Updating") -and $attempt -lt $maxAttempts) {
+        $attempt++
+        Write-Host "Waiting for provisioning to complete (state: $provisioningState, attempt $attempt/$maxAttempts)..." -ForegroundColor Yellow
+        Start-Sleep -Seconds 5
+        
+        try {
+            $statusResponse = Invoke-RestMethod -Uri $url -Method Get -Headers $headers
+            $provisioningState = $statusResponse.properties.provisioningState
+        }
+        catch {
+            Write-Warning "Failed to check status: $_"
+            break
+        }
+    }
+    
+    # Check final state
+    if ($provisioningState -eq "Succeeded") {
+        Write-Host "✓ Successfully created capability host '$capabilityHostName'" -ForegroundColor Green
+        Write-Host "Provisioning state: $provisioningState" -ForegroundColor Green
+    }
+    elseif ($provisioningState -eq "Failed") {
+        Write-Error "Capability host provisioning failed"
+        exit 1
+    }
+    elseif ($provisioningState -eq "Canceled") {
+        Write-Error "Capability host provisioning was canceled"
+        exit 1
+    }
+    else {
+        Write-Warning "Capability host is still provisioning (state: $provisioningState)"
+        Write-Host "Check the Azure portal for status." -ForegroundColor Yellow
     }
 }
 catch {
diff --git a/scripts/create_capability_host.sh b/scripts/create_capability_host.sh
index 7f3fe03..30ad206 100644
--- a/scripts/create_capability_host.sh
+++ b/scripts/create_capability_host.sh
@@ -89,16 +89,52 @@ RESPONSE_BODY=$(echo "$RESPONSE" | sed '$d')
 echo "HTTP Status: $HTTP_STATUS"
 
 if [ "$HTTP_STATUS" = "200" ] || [ "$HTTP_STATUS" = "201" ]; then
-    echo "✓ Successfully created capability host '$CAPABILITY_HOST_NAME'"
-    echo "Response:"
-    echo "$RESPONSE_BODY" | jq '.' 2>/dev/null || echo "$RESPONSE_BODY"
+    echo "✓ Capability host creation request submitted"
     
-    # Check provisioning state
+    # Poll for provisioning completion
     PROVISIONING_STATE=$(echo "$RESPONSE_BODY" | jq -r '.properties.provisioningState' 2>/dev/null)
-    if [ "$PROVISIONING_STATE" = "Creating" ] || [ "$PROVISIONING_STATE" = "Updating" ]; then
-        echo ""
-        echo "⚠ Capability host is being provisioned (state: $PROVISIONING_STATE)"
-        echo "This may take a few minutes. Check the Azure portal for status."
+    MAX_ATTEMPTS=60  # 5 minutes max (5 second intervals)
+    ATTEMPT=0
+    
+    while [ "$PROVISIONING_STATE" = "Creating" ] || [ "$PROVISIONING_STATE" = "Updating" ]; do
+        if [ $ATTEMPT -ge $MAX_ATTEMPTS ]; then
+            echo "⚠ Timeout waiting for provisioning to complete (state: $PROVISIONING_STATE)"
+            echo "Check the Azure portal for status."
+            break
+        fi
+        
+        ATTEMPT=$((ATTEMPT + 1))
+        echo "Waiting for provisioning to complete (state: $PROVISIONING_STATE, attempt $ATTEMPT/$MAX_ATTEMPTS)..."
+        sleep 5
+        
+        # Check current status
+        STATUS_RESPONSE=$(curl -s \
+            -X GET \
+            -H "Authorization: Bearer ${ACCESS_TOKEN}" \
+            -H "Content-Type: application/json" \
+            "${URL}")
+        
+        PROVISIONING_STATE=$(echo "$STATUS_RESPONSE" | jq -r '.properties.provisioningState' 2>/dev/null)
+        
+        if [ -z "$PROVISIONING_STATE" ] || [ "$PROVISIONING_STATE" = "null" ]; then
+            echo "⚠ Failed to check provisioning status"
+            break
+        fi
+    done
+    
+    # Check final state
+    if [ "$PROVISIONING_STATE" = "Succeeded" ]; then
+        echo "✓ Successfully created capability host '$CAPABILITY_HOST_NAME'"
+        echo "Provisioning state: $PROVISIONING_STATE"
+    elif [ "$PROVISIONING_STATE" = "Failed" ]; then
+        echo "✗ Capability host provisioning failed"
+        exit 1
+    elif [ "$PROVISIONING_STATE" = "Canceled" ]; then
+        echo "✗ Capability host provisioning was canceled"
+        exit 1
+    else
+        echo "⚠ Capability host is still provisioning (state: $PROVISIONING_STATE)"
+        echo "Check the Azure portal for status."
     fi
 else
     echo "✗ Failed to create capability host"