Microsoft Agent 365: Simplified Agent 365 CLI setup experience

What and why

We have simplified the setup experience for Agent 365 by introducing a Microsoft-managed Agent 365 CLI enterprise application for eligible tenants. This change removes the need for administrators to create and maintain a tenant-owned client application when setting up Agent 365 CLI. The update streamlines deployment and lifecycle management while continuing to respect existing security controls such as Conditional Access policies and Security Defaults.

Rollout schedule

• General Availability (Worldwide): This experience is available now.

Impact on your organization

Who is affected

• Administrators and developers who deploy or manage Agent 365 CLI.
• Organizations onboarding new Agent 365 agents using Agent 365 CLI.

Platforms and services

• Microsoft Entra ID
• Agent 365 CLI

What will happen

• A Microsoft-managed Agent 365 CLI enterprise application will be made available to eligible tenants.
• New Agent 365 CLI setups will no longer require administrators to create and maintain a tenant-owned client application.
• Existing configurations that explicitly use a customer-owned application will continue to work and are not required to change.
• Administrators may see a new enterprise application named Agent 365 CLI in Microsoft Entra.
• Agent 365 CLI will continue to use delegated access and operate with the signed-in user's privileges.
• Conditional Access policies and Security Defaults will continue to be enforced.

Action required and recommendations

No action is required for existing configurations. We recommend that you:

• Update to the latest supported Agent 365 CLI version before using the simplified setup experience.
• Review updated authentication guidance if your organization restricts device-code authentication, especially for Windows Subsystem for Linux (WSL), macOS, and Linux environments.

Compliance considerations

No compliance considerations identified. Review as appropriate for your organization.