Enable instrumentation by default

python/samples/04-hosting/foundry-hosted-agents/responses/07_observability/.env.example

@@ -1,4 +1,3 @@
 FOUNDRY_PROJECT_ENDPOINT="..."
 AZURE_AI_MODEL_DEPLOYMENT_NAME="..."
-ENABLE_INSTRUMENTATION=true
 ENABLE_SENSITIVE_DATA=true

python/samples/04-hosting/foundry-hosted-agents/responses/07_observability/README.md

@@ -16,7 +16,7 @@ The agent is hosted using the [Agent Framework](https://github.com/microsoft/age
 
 ### Instrumentation
 
-Agent Framework is [**natively instrumented**](https://learn.microsoft.com/en-us/agent-framework/agents/observability?pivots=programming-language-python) to capture diagnostics and telemetry for agent execution, but it's turned off by default. This sample demonstrates how to enable instrumentation via environment variables in `agent.manifest.yaml` and `agent.yaml`. The relevant environment variables are `ENABLE_INSTRUMENTATION` and `ENABLE_SENSITIVE_DATA`, which can be set to `true` to enable diagnostics and capture sensitive events respectively.
+Agent Framework is [**natively instrumented**](https://learn.microsoft.com/en-us/agent-framework/agents/observability?pivots=programming-language-python) to capture diagnostics and telemetry for agent execution. Instrumentation is enabled by default; set `ENABLE_INSTRUMENTATION=false` to opt out. To also capture sensitive event payloads (prompts, tool arguments, etc.) set `ENABLE_SENSITIVE_DATA=true`. This sample demonstrates how to manage these settings via environment variables in `agent.manifest.yaml` and `agent.yaml`.
 
 Foundry Hosted Agent has built-in observability thus you don't need to set up exporters manually to capture telemetry from your code. The traces, metrics, and logs generated by the agent are automatically collected and made available through Foundry's observability stack via Azure Monitor/Application Insights. The `APPLICATIONINSIGHTS_CONNECTION_STRING` environment variable is injected when the agent is deployed to Foundry, however it is still required to be set in your environment if you want to run the agent host locally and have telemetry sent to Application Insights from your local environment.
 

python/samples/04-hosting/foundry-hosted-agents/responses/07_observability/agent.manifest.yaml

@@ -17,8 +17,6 @@ template:
   environment_variables:
     - name: AZURE_AI_MODEL_DEPLOYMENT_NAME
       value: "{{AZURE_AI_MODEL_DEPLOYMENT_NAME}}"
-    - name: ENABLE_INSTRUMENTATION
-      value: true
     - name: ENABLE_SENSITIVE_DATA
       value: true
 resources:

python/samples/04-hosting/foundry-hosted-agents/responses/07_observability/agent.yaml

@@ -5,12 +5,10 @@ protocols:
   - protocol: responses
     version: 1.0.0
 resources:
-  cpu: '0.25'
-  memory: '0.5Gi'
+  cpu: "0.25"
+  memory: "0.5Gi"
 environment_variables:
   - name: AZURE_AI_MODEL_DEPLOYMENT_NAME
     value: ${AZURE_AI_MODEL_DEPLOYMENT_NAME}
-  - name: ENABLE_INSTRUMENTATION
-    value: true
   - name: ENABLE_SENSITIVE_DATA
-    value: true
+    value: true