test: add unit tests for env refresh with extension failure handling

Add tests that verify:
1. TestEnvRefreshAction_SucceedsWhenProjectInitFails: env refresh
   succeeds even when projectManager.Initialize() fails (the key fix
   for #7195)
2. TestEnvRefreshAction_RaisesServiceEventsOnSuccess: when project
   initialization succeeds, service events are still raised

Agent-Logs-Url: https://github.com/Azure/azure-dev/sessions/ec998279-c8d0-4ad1-98d3-830624a06afd

Co-authored-by: therealjohn <1501196+therealjohn@users.noreply.github.com>

Author: Copilot

cli/azd/cmd/env_refresh_test.go

@@ -0,0 +1,252 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package cmd
+
+import (
+	"bytes"
+	"context"
+	"fmt"
+	"path/filepath"
+	"testing"
+
+	"github.com/azure/azure-dev/cli/azd/pkg/alpha"
+	"github.com/azure/azure-dev/cli/azd/pkg/cloud"
+	"github.com/azure/azure-dev/cli/azd/pkg/config"
+	"github.com/azure/azure-dev/cli/azd/pkg/environment"
+	"github.com/azure/azure-dev/cli/azd/pkg/ext"
+	"github.com/azure/azure-dev/cli/azd/pkg/infra/provisioning"
+	"github.com/azure/azure-dev/cli/azd/pkg/ioc"
+	"github.com/azure/azure-dev/cli/azd/pkg/output"
+	"github.com/azure/azure-dev/cli/azd/pkg/project"
+	"github.com/azure/azure-dev/cli/azd/test/mocks/mockenv"
+	"github.com/azure/azure-dev/cli/azd/test/mocks/mockinput"
+	"github.com/stretchr/testify/mock"
+	"github.com/stretchr/testify/require"
+)
+
+// mockEnvRefreshProvider implements provisioning.Provider for env refresh testing.
+type mockEnvRefreshProvider struct{}
+
+func (p *mockEnvRefreshProvider) Name() string { return "test" }
+
+func (p *mockEnvRefreshProvider) Initialize(
+	_ context.Context, _ string, _ provisioning.Options,
+) error {
+	return nil
+}
+
+func (p *mockEnvRefreshProvider) State(
+	_ context.Context, _ *provisioning.StateOptions,
+) (*provisioning.StateResult, error) {
+	return &provisioning.StateResult{
+		State: &provisioning.State{
+			Outputs: map[string]provisioning.OutputParameter{
+				"WEBSITE_URL": {Type: "string", Value: "https://example.com"},
+			},
+			Resources: []provisioning.Resource{},
+		},
+	}, nil
+}
+
+func (p *mockEnvRefreshProvider) Deploy(
+	_ context.Context,
+) (*provisioning.DeployResult, error) {
+	return nil, nil
+}
+
+func (p *mockEnvRefreshProvider) Preview(
+	_ context.Context,
+) (*provisioning.DeployPreviewResult, error) {
+	return nil, nil
+}
+
+func (p *mockEnvRefreshProvider) Destroy(
+	_ context.Context, _ provisioning.DestroyOptions,
+) (*provisioning.DestroyResult, error) {
+	return nil, nil
+}
+
+func (p *mockEnvRefreshProvider) EnsureEnv(_ context.Context) error {
+	return nil
+}
+
+func (p *mockEnvRefreshProvider) Parameters(
+	_ context.Context,
+) ([]provisioning.Parameter, error) {
+	return nil, nil
+}
+
+func (p *mockEnvRefreshProvider) PlannedOutputs(
+	_ context.Context,
+) ([]provisioning.PlannedOutput, error) {
+	return nil, nil
+}
+
+// TestEnvRefreshAction_SucceedsWhenProjectInitFails verifies that env refresh
+// completes successfully even when projectManager.Initialize() returns an
+// error. This is the key fix for issue #7195 where projects using the
+// azure.ai.agent extension would fail because the extension's service target
+// initialization could not complete during env refresh.
+func TestEnvRefreshAction_SucceedsWhenProjectInitFails(t *testing.T) {
+	t.Parallel()
+
+	projectDir := t.TempDir()
+
+	// Register mock provider in IoC
+	container := ioc.NewNestedContainer(nil)
+	ioc.RegisterNamedInstance[provisioning.Provider](
+		container, string(provisioning.Test), &mockEnvRefreshProvider{},
+	)
+
+	env := environment.NewWithValues("test-env", map[string]string{
+		"AZURE_SUBSCRIPTION_ID": "00000000-0000-0000-0000-000000000000",
+		"AZURE_LOCATION":        "eastus2",
+	})
+
+	envManager := &mockenv.MockEnvManager{}
+	envManager.On("Save", mock.Anything, mock.Anything, mock.Anything).
+		Return(nil)
+	envManager.On("EnvPath", mock.Anything).
+		Return(filepath.Join(projectDir, ".azure", "test-env", ".env"))
+
+	console := mockinput.NewMockConsole()
+
+	provisionMgr := provisioning.NewManager(
+		container,
+		func() (provisioning.ProviderKind, error) {
+			return provisioning.Test, nil
+		},
+		envManager,
+		env,
+		console,
+		alpha.NewFeaturesManagerWithConfig(config.NewEmptyConfig()),
+		nil,
+		cloud.AzurePublic(),
+	)
+
+	// Project manager that fails on Initialize (simulating extension failure)
+	pm := &mockProjectManager{}
+	pm.On("Initialize", mock.Anything, mock.Anything).
+		Return(fmt.Errorf("extension service target initialization failed"))
+
+	projectConfig := &project.ProjectConfig{
+		Name: "test-project",
+		Path: projectDir,
+		Infra: provisioning.Options{
+			Provider: provisioning.Test,
+			Path:     "infra",
+			Module:   "main",
+		},
+	}
+
+	action := &envRefreshAction{
+		provisionManager:    provisionMgr,
+		projectConfig:       projectConfig,
+		projectManager:      pm,
+		env:                 env,
+		envManager:          envManager,
+		flags:               &envRefreshFlags{},
+		console:             console,
+		formatter:           &output.NoneFormatter{},
+		writer:              &bytes.Buffer{},
+		importManager:       project.NewImportManager(nil),
+		alphaFeatureManager: alpha.NewFeaturesManagerWithConfig(config.NewEmptyConfig()),
+	}
+
+	result, err := action.Run(t.Context())
+
+	// env refresh should succeed even though project init failed
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.Equal(t, "Environment refresh completed", result.Message.Header)
+
+	// Verify that the environment was updated with deployment outputs
+	require.Equal(t, "https://example.com", env.Getenv("WEBSITE_URL"))
+}
+
+// TestEnvRefreshAction_RaisesServiceEventsOnSuccess verifies that when
+// project initialization succeeds, ServiceEventEnvUpdated events are raised
+// for each service.
+func TestEnvRefreshAction_RaisesServiceEventsOnSuccess(t *testing.T) {
+	t.Parallel()
+
+	projectDir := t.TempDir()
+
+	// Register mock provider in IoC
+	container := ioc.NewNestedContainer(nil)
+	ioc.RegisterNamedInstance[provisioning.Provider](
+		container, string(provisioning.Test), &mockEnvRefreshProvider{},
+	)
+
+	env := environment.NewWithValues("test-env", map[string]string{
+		"AZURE_SUBSCRIPTION_ID": "00000000-0000-0000-0000-000000000000",
+		"AZURE_LOCATION":        "eastus2",
+	})
+
+	envManager := &mockenv.MockEnvManager{}
+	envManager.On("Save", mock.Anything, mock.Anything, mock.Anything).
+		Return(nil)
+	envManager.On("EnvPath", mock.Anything).
+		Return(filepath.Join(projectDir, ".azure", "test-env", ".env"))
+
+	console := mockinput.NewMockConsole()
+
+	provisionMgr := provisioning.NewManager(
+		container,
+		func() (provisioning.ProviderKind, error) {
+			return provisioning.Test, nil
+		},
+		envManager,
+		env,
+		console,
+		alpha.NewFeaturesManagerWithConfig(config.NewEmptyConfig()),
+		nil,
+		cloud.AzurePublic(),
+	)
+
+	// Project manager that succeeds
+	pm := &mockProjectManager{}
+	pm.On("Initialize", mock.Anything, mock.Anything).Return(nil)
+
+	projectConfig := &project.ProjectConfig{
+		Name: "test-project",
+		Path: projectDir,
+		Infra: provisioning.Options{
+			Provider: provisioning.Test,
+			Path:     "infra",
+			Module:   "main",
+		},
+		Services: map[string]*project.ServiceConfig{
+			"web": {
+				Name: "web",
+				EventDispatcher: ext.NewEventDispatcher[project.ServiceLifecycleEventArgs](
+					project.ServiceEvents...,
+				),
+			},
+		},
+	}
+
+	action := &envRefreshAction{
+		provisionManager:    provisionMgr,
+		projectConfig:       projectConfig,
+		projectManager:      pm,
+		env:                 env,
+		envManager:          envManager,
+		flags:               &envRefreshFlags{},
+		console:             console,
+		formatter:           &output.NoneFormatter{},
+		writer:              &bytes.Buffer{},
+		importManager:       project.NewImportManager(nil),
+		alphaFeatureManager: alpha.NewFeaturesManagerWithConfig(config.NewEmptyConfig()),
+	}
+
+	result, err := action.Run(t.Context())
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.Equal(t, "Environment refresh completed", result.Message.Header)
+
+	// Verify that project initialization was called
+	pm.AssertCalled(t, "Initialize", mock.Anything, mock.Anything)
+}