Python: [BREAKING] Observability updates (#2782)

* fixes Python: Add env_file_path parameter to setup_observability() similar to AzureOpenAIChatClient
Fixes #2186

* WIP on updates using configure_azure_monitor

* improved setup and clarity

* fixed root .env.example

* revert changes

* updated files

* updated sample

* updated zero code

* test fixes and fixed links

* fix devui

* removed planning docs

* added enable method and updated readme and samples

* clarified docstring

* add return annotation

* updated naming

* update capatilized version

* updated readme and some fixes

* updated decorator name inline with the rest

* feedback from comments addressed

python/packages/core/tests/conftest.py

@@ -10,7 +10,7 @@ from pytest import fixture
 
 
 @fixture
-def enable_otel(request: Any) -> bool:
+def enable_instrumentation(request: Any) -> bool:
     """Fixture that returns a boolean indicating if Otel is enabled."""
     return request.param if hasattr(request, "param") else True
 
@@ -22,20 +22,31 @@ def enable_sensitive_data(request: Any) -> bool:
 
 
 @fixture
-def span_exporter(monkeypatch, enable_otel: bool, enable_sensitive_data: bool) -> Generator[SpanExporter]:
+def span_exporter(monkeypatch, enable_instrumentation: bool, enable_sensitive_data: bool) -> Generator[SpanExporter]:
     """Fixture to remove environment variables for ObservabilitySettings."""
 
     env_vars = [
-        "ENABLE_OTEL",
+        "ENABLE_INSTRUMENTATION",
         "ENABLE_SENSITIVE_DATA",
-        "OTLP_ENDPOINT",
-        "APPLICATIONINSIGHTS_CONNECTION_STRING",
+        "ENABLE_CONSOLE_EXPORTERS",
+        "OTEL_EXPORTER_OTLP_ENDPOINT",
+        "OTEL_EXPORTER_OTLP_TRACES_ENDPOINT",
+        "OTEL_EXPORTER_OTLP_METRICS_ENDPOINT",
+        "OTEL_EXPORTER_OTLP_LOGS_ENDPOINT",
+        "OTEL_EXPORTER_OTLP_PROTOCOL",
+        "OTEL_EXPORTER_OTLP_HEADERS",
+        "OTEL_EXPORTER_OTLP_TRACES_HEADERS",
+        "OTEL_EXPORTER_OTLP_METRICS_HEADERS",
+        "OTEL_EXPORTER_OTLP_LOGS_HEADERS",
+        "OTEL_SERVICE_NAME",
+        "OTEL_SERVICE_VERSION",
+        "OTEL_RESOURCE_ATTRIBUTES",
     ]
 
     for key in env_vars:
         monkeypatch.delenv(key, raising=False)  # type: ignore
-    monkeypatch.setenv("ENABLE_OTEL", str(enable_otel))  # type: ignore
-    if not enable_otel:
+    monkeypatch.setenv("ENABLE_INSTRUMENTATION", str(enable_instrumentation))  # type: ignore
+    if not enable_instrumentation:
         # we overwrite sensitive data for tests
         enable_sensitive_data = False
     monkeypatch.setenv("ENABLE_SENSITIVE_DATA", str(enable_sensitive_data))  # type: ignore
@@ -51,15 +62,22 @@ def span_exporter(monkeypatch, enable_otel: bool, enable_sensitive_data: bool) -
 
     # recreate observability settings with values from above and no file.
     observability_settings = observability.ObservabilitySettings(env_file_path="test.env")
-    observability_settings._configure()  # pyright: ignore[reportPrivateUsage]
+
+    # Configure providers manually without calling _configure() to avoid OTLP imports
+    if enable_instrumentation or enable_sensitive_data:
+        from opentelemetry.sdk.trace import TracerProvider
+
+        tracer_provider = TracerProvider(resource=observability_settings._resource)
+        trace.set_tracer_provider(tracer_provider)
+
     monkeypatch.setattr(observability, "OBSERVABILITY_SETTINGS", observability_settings, raising=False)  # type: ignore
 
     with (
         patch("agent_framework.observability.OBSERVABILITY_SETTINGS", observability_settings),
-        patch("agent_framework.observability.setup_observability"),
+        patch("agent_framework.observability.configure_otel_providers"),
     ):
         exporter = InMemorySpanExporter()
-        if enable_otel or enable_sensitive_data:
+        if enable_instrumentation or enable_sensitive_data:
             tracer_provider = trace.get_tracer_provider()
             if not hasattr(tracer_provider, "add_span_processor"):
                 raise RuntimeError("Tracer provider does not support adding span processors.")