Intermittent "Project not found" error causing Agent creation failure in Azure AI Foundry

[Abdul-Microsoft]

We are facing an intermittent "Project not found" issue in Azure AI Foundry after a new deployment. Agent creation is failing because both the backend API and the Foundry portal return the same error, and it is also visible in the foundry portal. This issue started after a new deployment, and after a few hours it automatically starts working again without any changes from our side. We have been observing this behavior continuously since yesterday. We also tried deploying Foundry in multiple regions, but the issue still occurs for new deployment, so it does not appear to be region related. Sharing here the error screenshot.

New AI Foundry Portal

Old AI Foundry Portal

[nathan-sumit]

Hi, we are also experiencing this same issue.

We’re seeing the same behavior where a newly created Foundry project exists in ARM, but agents/data-plane calls fail with:

• 404 NotFound
• Project not found

What we observed:

• Fresh deployments via azd up (new environment names, new RG/account/project) complete infra provisioning successfully.

• ARM resource shows project provisioningState: Succeeded.

• Foundry portal Agents page fails with:

  • Error loading your agents. Project not found
  • Request ID: 585473c1-d080-4b81-b2b3-0634b7d56bf6

• CLI agent calls fail the same way:

  • az cognitiveservices agent list --account-name --project-name
  • Result: (NotFound) Project not found

• This reproduces across fresh environments (not only reused names).

Environment details:

• Region tested: eastus
• azd: 1.23.6
• azure.ai.agents extension: 0.1.10-preview