Python: updated integration tests and guidance (#4181)

* updated integration tests and guidance

* fixed merge test

* updated integration tests

* fix: remove duplicate --dist loadfile flag from pytest-xdist config

Only one --dist mode can be active at a time; the second value silently
overrides the first. Keep --dist worksteal (dynamic load balancing) and
remove the redundant --dist loadfile from all workflow files and
pyproject.toml configs.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* docs: add keep-in-sync notes for merge and integration test workflows

Both python-merge-tests.yml and python-integration-tests.yml share the
same parallel job structure. Added sync reminders in workflow file
comments, the python-testing SKILL.md, and CODING_STANDARD.md.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* refactor: remove RUN_INTEGRATION_TESTS flag

Integration test gating now uses two mechanisms:
- `@pytest.mark.integration` for test selection via `-m` filtering
- `skip_if_*_disabled` for credential/service availability checks

The RUN_INTEGRATION_TESTS env var was redundant since the marker handles
selection and the skip decorators already check for actual credentials.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* fix: sync missing env vars from merge-tests to integration-tests

Add OPENAI_EMBEDDINGS_MODEL_ID and AZURE_OPENAI_EMBEDDING_DEPLOYMENT_NAME
to python-integration-tests.yml to match python-merge-tests.yml.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* fix: remove remaining RUN_INTEGRATION_TESTS from embedding tests and docs

Missed test_openai_embedding_client.py and vector-stores README in the
earlier cleanup.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* set functions tests to 3.10

---------

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

.github/workflows/python-integration-tests.yml

@@ -1,6 +1,10 @@
 #
 # Dedicated Python integration tests workflow, called from the manual integration test orchestrator.
-# Runs all tests (unit + integration).
+# Runs all tests (unit + integration) split into parallel jobs by provider.
+#
+# NOTE: This workflow and python-merge-tests.yml share the same set of parallel
+# test jobs. Keep them in sync — when adding, removing, or modifying a job here,
+# apply the same change to python-merge-tests.yml.
 #
 
 name: python-integration-tests
@@ -19,11 +23,149 @@ permissions:
 
 env:
   UV_CACHE_DIR: /tmp/.uv-cache
-  RUN_INTEGRATION_TESTS: "true"
+  UV_PYTHON: "3.13"
 
 jobs:
-  python-tests-core:
-    name: Python Integration Tests - Core
+  # Unit tests: all non-integration tests across all packages
+  python-tests-unit:
+    name: Python Integration Tests - Unit
+    runs-on: ubuntu-latest
+    environment: integration
+    timeout-minutes: 60
+    defaults:
+      run:
+        working-directory: python
+    steps:
+      - uses: actions/checkout@v6
+        with:
+          ref: ${{ inputs.checkout-ref }}
+          persist-credentials: false
+      - name: Set up python and install the project
+        id: python-setup
+        uses: ./.github/actions/python-setup
+        with:
+          python-version: ${{ env.UV_PYTHON }}
+          os: ${{ runner.os }}
+      - name: Test with pytest (unit tests only)
+        run: >
+          uv run poe all-tests
+          -m "not integration"
+          -n logical --dist worksteal
+          --timeout=120 --session-timeout=900 --timeout_method thread
+          --retries 2 --retry-delay 5
+
+  # OpenAI integration tests
+  python-tests-openai:
+    name: Python Integration Tests - OpenAI
+    runs-on: ubuntu-latest
+    environment: integration
+    timeout-minutes: 60
+    env:
+      OPENAI_CHAT_MODEL_ID: ${{ vars.OPENAI__CHATMODELID }}
+      OPENAI_RESPONSES_MODEL_ID: ${{ vars.OPENAI__RESPONSESMODELID }}
+      OPENAI_EMBEDDINGS_MODEL_ID: ${{ vars.OPENAI_EMBEDDING_MODEL_ID }}
+      OPENAI_API_KEY: ${{ secrets.OPENAI__APIKEY }}
+    defaults:
+      run:
+        working-directory: python
+    steps:
+      - uses: actions/checkout@v6
+        with:
+          ref: ${{ inputs.checkout-ref }}
+          persist-credentials: false
+      - name: Set up python and install the project
+        id: python-setup
+        uses: ./.github/actions/python-setup
+        with:
+          python-version: ${{ env.UV_PYTHON }}
+          os: ${{ runner.os }}
+      - name: Test with pytest (OpenAI integration)
+        run: >
+          uv run pytest --import-mode=importlib
+          packages/core/tests/openai
+          -m integration
+          -n logical --dist worksteal
+          --timeout=120 --session-timeout=900 --timeout_method thread
+          --retries 2 --retry-delay 5
+
+  # Azure OpenAI integration tests
+  python-tests-azure-openai:
+    name: Python Integration Tests - Azure OpenAI
+    runs-on: ubuntu-latest
+    environment: integration
+    timeout-minutes: 60
+    env:
+      AZURE_OPENAI_CHAT_DEPLOYMENT_NAME: ${{ vars.AZUREOPENAI__CHATDEPLOYMENTNAME }}
+      AZURE_OPENAI_RESPONSES_DEPLOYMENT_NAME: ${{ vars.AZUREOPENAI__RESPONSESDEPLOYMENTNAME }}
+      AZURE_OPENAI_EMBEDDING_DEPLOYMENT_NAME: ${{ vars.AZUREOPENAI__EMBEDDINGDEPLOYMENTNAME }}
+      AZURE_OPENAI_ENDPOINT: ${{ vars.AZUREOPENAI__ENDPOINT }}
+    defaults:
+      run:
+        working-directory: python
+    steps:
+      - uses: actions/checkout@v6
+        with:
+          ref: ${{ inputs.checkout-ref }}
+          persist-credentials: false
+      - name: Set up python and install the project
+        id: python-setup
+        uses: ./.github/actions/python-setup
+        with:
+          python-version: ${{ env.UV_PYTHON }}
+          os: ${{ runner.os }}
+      - name: Azure CLI Login
+        uses: azure/login@v2
+        with:
+          client-id: ${{ secrets.AZURE_CLIENT_ID }}
+          tenant-id: ${{ secrets.AZURE_TENANT_ID }}
+          subscription-id: ${{ secrets.AZURE_SUBSCRIPTION_ID }}
+      - name: Test with pytest (Azure OpenAI integration)
+        run: >
+          uv run pytest --import-mode=importlib
+          packages/core/tests/azure
+          -m integration
+          -n logical --dist worksteal
+          --timeout=120 --session-timeout=900 --timeout_method thread
+          --retries 2 --retry-delay 5
+
+  # Misc integration tests (Anthropic, Ollama, MCP)
+  python-tests-misc-integration:
+    name: Python Integration Tests - Misc
+    runs-on: ubuntu-latest
+    environment: integration
+    timeout-minutes: 60
+    env:
+      ANTHROPIC_API_KEY: ${{ secrets.ANTHROPIC_API_KEY }}
+      ANTHROPIC_CHAT_MODEL_ID: ${{ vars.ANTHROPIC_CHAT_MODEL_ID }}
+      LOCAL_MCP_URL: ${{ vars.LOCAL_MCP__URL }}
+    defaults:
+      run:
+        working-directory: python
+    steps:
+      - uses: actions/checkout@v6
+        with:
+          ref: ${{ inputs.checkout-ref }}
+          persist-credentials: false
+      - name: Set up python and install the project
+        id: python-setup
+        uses: ./.github/actions/python-setup
+        with:
+          python-version: ${{ env.UV_PYTHON }}
+          os: ${{ runner.os }}
+      - name: Test with pytest (Anthropic, Ollama, MCP integration)
+        run: >
+          uv run pytest --import-mode=importlib
+          packages/anthropic/tests
+          packages/ollama/tests
+          packages/core/tests/core/test_mcp.py
+          -m integration
+          -n logical --dist worksteal
+          --timeout=120 --session-timeout=900 --timeout_method thread
+          --retries 2 --retry-delay 5
+
+  # Azure Functions + Durable Task integration tests
+  python-tests-functions:
+    name: Python Integration Tests - Functions
     runs-on: ubuntu-latest
     environment: integration
     timeout-minutes: 60
@@ -32,12 +174,9 @@ jobs:
       OPENAI_CHAT_MODEL_ID: ${{ vars.OPENAI__CHATMODELID }}
       OPENAI_RESPONSES_MODEL_ID: ${{ vars.OPENAI__RESPONSESMODELID }}
       OPENAI_API_KEY: ${{ secrets.OPENAI__APIKEY }}
-      ANTHROPIC_API_KEY: ${{ secrets.ANTHROPIC_API_KEY }}
-      ANTHROPIC_CHAT_MODEL_ID: ${{ vars.ANTHROPIC_CHAT_MODEL_ID }}
       AZURE_OPENAI_CHAT_DEPLOYMENT_NAME: ${{ vars.AZUREOPENAI__CHATDEPLOYMENTNAME }}
       AZURE_OPENAI_RESPONSES_DEPLOYMENT_NAME: ${{ vars.AZUREOPENAI__RESPONSESDEPLOYMENTNAME }}
       AZURE_OPENAI_ENDPOINT: ${{ vars.AZUREOPENAI__ENDPOINT }}
-      LOCAL_MCP_URL: ${{ vars.LOCAL_MCP__URL }}
       FUNCTIONS_WORKER_RUNTIME: "python"
       DURABLE_TASK_SCHEDULER_CONNECTION_STRING: "Endpoint=http://localhost:8080;TaskHub=default;Authentication=None"
       AzureWebJobsStorage: "UseDevelopmentStorage=true"
@@ -49,37 +188,38 @@ jobs:
         with:
           ref: ${{ inputs.checkout-ref }}
           persist-credentials: false
-
       - name: Set up python and install the project
         id: python-setup
         uses: ./.github/actions/python-setup
         with:
-          python-version: "3.10"
+          python-version: ${{ env.UV_PYTHON }}
           os: ${{ runner.os }}
-        env:
-          UV_CACHE_DIR: /tmp/.uv-cache
-
       - name: Azure CLI Login
         uses: azure/login@v2
         with:
           client-id: ${{ secrets.AZURE_CLIENT_ID }}
           tenant-id: ${{ secrets.AZURE_TENANT_ID }}
           subscription-id: ${{ secrets.AZURE_SUBSCRIPTION_ID }}
-
       - name: Set up Azure Functions Integration Test Emulators
         uses: ./.github/actions/azure-functions-integration-setup
         id: azure-functions-setup
+      - name: Test with pytest (Functions + Durable Task integration)
+        run: >
+          uv run pytest --import-mode=importlib
+          packages/azurefunctions/tests/integration_tests
+          packages/durabletask/tests/integration_tests
+          -m integration
+          -n logical --dist worksteal
+          --timeout=120 --session-timeout=900 --timeout_method thread
+          --retries 2 --retry-delay 5
 
-      - name: Test with pytest
-        run: uv run poe all-tests -n logical --dist loadfile --dist worksteal --timeout=120 --session-timeout=900 --timeout_method thread --retries 2 --retry-delay 5
-
+  # Azure AI integration tests
   python-tests-azure-ai:
     name: Python Integration Tests - Azure AI
     runs-on: ubuntu-latest
     environment: integration
     timeout-minutes: 60
     env:
-      UV_PYTHON: "3.10"
       AZURE_AI_PROJECT_ENDPOINT: ${{ secrets.AZUREAI__ENDPOINT }}
       AZURE_AI_MODEL_DEPLOYMENT_NAME: ${{ vars.AZUREAI__DEPLOYMENTNAME }}
       LOCAL_MCP_URL: ${{ vars.LOCAL_MCP__URL }}
@@ -91,33 +231,32 @@ jobs:
         with:
           ref: ${{ inputs.checkout-ref }}
           persist-credentials: false
-
       - name: Set up python and install the project
         id: python-setup
         uses: ./.github/actions/python-setup
         with:
-          python-version: "3.10"
+          python-version: ${{ env.UV_PYTHON }}
           os: ${{ runner.os }}
-        env:
-          UV_CACHE_DIR: /tmp/.uv-cache
-
       - name: Azure CLI Login
         uses: azure/login@v2
         with:
           client-id: ${{ secrets.AZURE_CLIENT_ID }}
           tenant-id: ${{ secrets.AZURE_TENANT_ID }}
           subscription-id: ${{ secrets.AZURE_SUBSCRIPTION_ID }}
-
       - name: Test with pytest
         timeout-minutes: 15
-        run: uv run --directory packages/azure-ai poe integration-tests -n logical --dist loadfile --dist worksteal --timeout=120 --session-timeout=900 --timeout_method thread --retries 2 --retry-delay 5
+        run: uv run --directory packages/azure-ai poe integration-tests -n logical --dist worksteal --timeout=120 --session-timeout=900 --timeout_method thread --retries 2 --retry-delay 5
 
   python-integration-tests-check:
     if: always()
     runs-on: ubuntu-latest
     needs:
       [
-        python-tests-core,
+        python-tests-unit,
+        python-tests-openai,
+        python-tests-azure-openai,
+        python-tests-misc-integration,
+        python-tests-functions,
         python-tests-azure-ai
       ]
     steps: