Create changelog for 1.23.11

cli/azd/CHANGELOG.md

@@ -1,15 +1,27 @@
 # Release History
 
-## 1.24.0-beta.1 (Unreleased)
+## 1.23.11 (2026-03-20)
 
 ### Features Added
 
-### Breaking Changes
+- [[#7045]](https://github.com/Azure/azure-dev/pull/7045) Add `--timeout` flag to `azd deploy` and a `deployTimeout` service configuration field in `azure.yaml` for user-configurable deployment timeouts (CLI flag > `azure.yaml` > default 1200 seconds). Thanks @spboyer for the contribution!
+- [[#7162]](https://github.com/Azure/azure-dev/pull/7162) Add git dirty working directory check when running `azd init` with "Set up with GitHub Copilot (Preview)", prompting for confirmation before modifying uncommitted changes, and add upfront MCP server tool consent prompt.
+- [[#7172]](https://github.com/Azure/azure-dev/pull/7172) Add `CopilotService` gRPC service to the extension framework, enabling extensions to programmatically interact with GitHub Copilot agent capabilities (initialize sessions, send messages, retrieve usage metrics and file changes).
+- [[#7194]](https://github.com/Azure/azure-dev/pull/7194) Rebrand `azd init` agent experience to "Set up with GitHub Copilot (Preview)" with improved prompt quality and system message guidance.
+- [[#7216]](https://github.com/Azure/azure-dev/pull/7216) Improve AI-assisted error troubleshooting with a multi-step flow: select a troubleshooting category (explain, guidance, troubleshoot, or skip), optionally allow the agent to apply a fix, and retry the failed command.
 
 ### Bugs Fixed
 
+- [[#7035]](https://github.com/Azure/azure-dev/pull/7035) Fix default environment variables leaking into extension processes when a different environment is specified with `-e`.
+- [[#7171]](https://github.com/Azure/azure-dev/pull/7171) Fix "context cancelled" errors when retrying `azd` commands after GitHub Copilot agent troubleshooting, by rebuilding the cobra command tree on each workflow re-execution.
+- [[#7174]](https://github.com/Azure/azure-dev/pull/7174) Fix preflight role assignment permission check producing false-positive warnings for B2B/guest users by resolving the principal ID against the resource tenant, and fix per-role RBAC evaluation to match Azure semantics.
+- [[#7175]](https://github.com/Azure/azure-dev/pull/7175) Fix security issues: path traversal in extensions and templates, WebSocket origin validation, JWT hardening, and sensitive data redaction. Thanks @jongio for the contribution!
+- [[#7193]](https://github.com/Azure/azure-dev/pull/7193) Fix extension `PromptSubscription` not masking subscription IDs when `AZD_DEMO_MODE` is enabled.
+
 ### Other Changes
 
+- [[#7199]](https://github.com/Azure/azure-dev/pull/7199) Add telemetry instrumentation for Copilot agent flows, including session, initialization, usage metrics, and consent fields.
+
 ## 1.23.10 (2026-03-16)
 
 ### Bugs Fixed

cli/version.txt

@@ -1 +1 @@
-1.24.0-beta.1
+1.23.11