Microsoft Foundry agents remain disabled after re-enabling their Agent Identity in Entra ID

Alejandro Taborda Chinea 0 Reputation points
2026-10-29T22:42:05.0766667+00:00

Hello,

We are experiencing a reproducible issue with Microsoft Foundry agents that remain permanently disabled after their Microsoft Entra Agent Identity has been re-enabled.

Issue description

We have reproduced this behavior with four different agents created in the same Microsoft Foundry project.

The following sequence consistently produces the issue:

  1. Create a new agent in Microsoft Foundry and verify that it works correctly in Playground.

Disable its associated Agent Identity in Microsoft Entra ID, or block the agent from the Microsoft 365 admin center.

Foundry correctly prevents execution and returns the error AgentIdentityDisabled.

Re-enable the Agent Identity in Entra ID, or unblock the agent in Microsoft 365.

Microsoft Graph confirms that the Agent Identity is enabled (accountEnabled: true).

However, Foundry continues to show the agent as Disabled and rejects all new requests with AgentIdentityDisabled.

The issue persists for several hours, well beyond the expected propagation delay.

Technical findings

We queried the Microsoft Foundry Agents REST API and obtained the following state:

{
  "configuration_state": "enabled",
  "state": "disabled",
  "state_source": "agent_instance_identity",
  "instance_identity": {
    "status": "disabled"
  },
  "blueprint": {
    "status": "active"
  }
}

We also verified the Agent Identity directly through Microsoft Graph:

{
  "accountEnabled": true,
  "disabledByMicrosoftStatus": null
}

Each affected agent has its own Agent Identity and Blueprint.

Troubleshooting already performed

Confirmed that Agent Identities are enabled in Microsoft Entra ID.

Confirmed that Blueprints remain active.

Confirmed that Microsoft 365 displays the affected agents as Available.

Attempted to re-enable the agents from the Foundry portal.

Attempted to re-enable agents through the Foundry REST API.

Tested a complete Disable → Enable cycle through the Foundry API.

None of these actions restored the affected agents.

Important comparison: When we disable an agent directly from Foundry without disabling its Agent Identity in Entra, the agent can be re-enabled successfully. The problem only appears when the Agent Identity itself has been disabled and subsequently re-enabled.

Questions

Is this a known issue affecting Agent Identity state synchronization between Microsoft Entra ID and Microsoft Foundry?

Why does Foundry continue to report instance_identity.status = disabled when Microsoft Graph confirms accountEnabled = true?

Is there a supported procedure or API to force Foundry to refresh or reconcile the Agent Identity state?

How can we recover the existing affected agents without deleting or recreating them?

This behavior is particularly concerning for enterprise environments where disabling an Agent Identity may be used as an emergency security control. The blocking operation works, but the recovery operHello,

We are experiencing a reproducible issue with Microsoft Foundry agents that remain permanently disabled after their Microsoft Entra Agent Identity has been re-enabled.

Issue description

We have reproduced this behavior with four different agents created in the same Microsoft Foundry project.

The following sequence consistently produces the issue:

Create a new agent in Microsoft Foundry and verify that it works correctly in Playground.

Disable its associated Agent Identity in Microsoft Entra ID, or block the agent from the Microsoft 365 admin center.

Foundry correctly prevents execution and returns the error AgentIdentityDisabled.

Re-enable the Agent Identity in Entra ID, or unblock the agent in Microsoft 365.

Microsoft Graph confirms that the Agent Identity is enabled (accountEnabled: true).

However, Foundry continues to show the agent as Disabled and rejects all new requests with AgentIdentityDisabled.

The issue persists for several hours, well beyond the expected propagation delay.

Technical findings

We queried the Microsoft Foundry Agents REST API and obtained the following state:

{
  "configuration_state": "enabled",
  "state": "disabled",
  "state_source": "agent_instance_identity",
  "instance_identity": {
    "status": "disabled"
  },
  "blueprint": {
    "status": "active"
  }
}

We also verified the Agent Identity directly through Microsoft Graph:

{
  "accountEnabled": true,
  "disabledByMicrosoftStatus": null
}

Each affected agent has its own Agent Identity and Blueprint.

Troubleshooting already performed

Confirmed that Agent Identities are enabled in Microsoft Entra ID.

Confirmed that Blueprints remain active.

Confirmed that Microsoft 365 displays the affected agents as Available.

Attempted to re-enable the agents from the Foundry portal.

Attempted to re-enable agents through the Foundry REST API.

Tested a complete Disable → Enable cycle through the Foundry API.

None of these actions restored the affected agents.

Important comparison: When we disable an agent directly from Foundry without disabling its Agent Identity in Entra, the agent can be re-enabled successfully. The problem only appears when the Agent Identity itself has been disabled and subsequently re-enabled.

Questions

Is this a known issue affecting Agent Identity state synchronization between Microsoft Entra ID and Microsoft Foundry?

Why does Foundry continue to report instance_identity.status = disabled when Microsoft Graph confirms accountEnabled = true?

Is there a supported procedure or API to force Foundry to refresh or reconcile the Agent Identity state?

How can we recover the existing affected agents without deleting or recreating them?

Thank you for your assistance.

Microsoft Foundry
Microsoft Foundry

A unified Azure platform for creating and managing AI models, agents, and applications with built‑in enterprise security, monitoring, and governance


1 answer

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  1. Hemant Bharadwaj 355 Reputation points Microsoft Employee
    2026-11-02T15:59:45.3566667+00:00

    Likely cause/summary: based on your payload (state_source: agent_instance_identity while Entra shows accountEnabled: true), Foundry runtime is likely holding a stale or inconsistent identity state for those agent instances, not a simple propagation delay.

    1. Confirm scope of inconsistency (control vs runtime).
      • Control plane/API: identity appears enabled.
      • Runtime plane: agent still reports disabled and rejects execution.
      • Your data already shows this split, which is important for escalation.
    2. Capture reproducible evidence per agent before further toggles.
      • Agent resource ID / project ID
      • UTC timestamps for disable -> enable -> failed invoke
      • Full error payload (AgentIdentityDisabled)
      • API response showing configuration_state, state, state_source, instance_identity.status
    3. Perform one clean recovery cycle per affected agent (single attempt each).
      • Re-enable identity in Entra and wait a fixed window.
      • Trigger a fresh invocation from Playground/API.
      • If still disabled, avoid repeated rapid toggling (it can make timeline analysis harder).
    4. If all affected agents in the same project stay disabled, test isolation.
      • Create one new agent in the same project and one in a separate project (same tenant/subscription) to determine if the issue is project-scoped or broader.
    5. Open a support case with the captured evidence.

    Helpful product references:

    Confirmed facts from your post:

    • You reproduced the issue on multiple agents.
    • Entra reports enabled identity, but Foundry runtime remains disabled.
    • Disable/enable cycles and API attempts did not recover affected agents.

    Possible cause (not yet confirmed): backend runtime state desynchronization for agent_instance_identity.

    Validation checks after remediation:

    • state=enabled and instance_identity.status=enabled in Foundry API.
    • Playground/API invocations succeed without AgentIdentityDisabled.
    • No reversion to disabled state over multiple runs.

    “If you find this answer helpful, please upvote it. If this resolves your issue, please mark it as the accepted answer so that it can help others in the community.”

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