Summary
- Microsoft is simplifying Agent 365 CLI setup by providing a Microsoft-managed enterprise application for eligible tenants.
- Administrators no longer need to create and maintain a tenant-owned client application for new Agent 365 CLI deployments.
- Existing deployments that use a customer-owned application will continue to work and do not need to be changed.
- Conditional Access policies and Security Defaults still apply, and admins may see a new enterprise app named Agent 365 CLI in Microsoft Entra.
- Update to the latest supported Agent 365 CLI version and review device-code authentication guidance if your organization restricts that flow.
Microsoft has introduced a streamlined setup experience for the Agent 365 command line tool by using a managed enterprise application that removes the need for tenant owned client apps. This change is rolling out now worldwide and existing configurations will continue to function without modification. Administrators should update to the latest tool version and review current authentication guidance for device code sign ins.
Administrator impact: Administrators deploying new tool instances will no longer need to create tenant owned client applications.
End user impact: No direct end user impact is expected.
Score rationale: This update introduces a new enterprise application and simplifies deployment for administrators with no immediate action needed for existing setups.
Install and Use the Agent 365 CLI
Agent 365 CLI setup is simplified with a Microsoft-managed enterprise application, removing the need for tenant-owned client apps. Existing setups remain unchanged. The update respects security controls, requires no action for current users, and recommends updating to the latest CLI version and reviewing authentication guidance.
Primary Service: Entra
Admin Impact: Low
User Impact: Low
Release Start: 01 Sept 2026
Release End: 01 Sept 2026
Published: 23 Sept 2026
Expires: 2 Oct 2026
Last updated: 23 Sept 2026
Services: Entra, M365
Category: Plan for change
Tags: Admin Action, Feature Update, New Feature, User Adoption
History
9/22/2026 Item Added to Message Center
Microsoft Message
We have simplified the setup experience for Agent 365 by introducing a Microsoft-managed Agent 365 CLI enterprise application for eligible tenants. This change removes the need for administrators to create and maintain a tenant-owned client application when setting up Agent 365 CLI. The update streamlines deployment and lifecycle management while continuing to respect existing security controls such as Conditional Access policies and Security Defaults.
Rollout schedule
General Availability (Worldwide): This experience is available now.
Impact on your organization
Who is affected
- Administrators and developers who deploy or manage Agent 365 CLI.
- Organizations onboarding new Agent 365 agents using Agent 365 CLI.
Platforms and services
- Microsoft Entra ID
- Agent 365 CLI
What will happen
- A Microsoft-managed Agent 365 CLI enterprise application will be made available to eligible tenants.
- New Agent 365 CLI setups will no longer require administrators to create and maintain a tenant-owned client application.
- Existing configurations that explicitly use a customer-owned application will continue to work and are not required to change.
- Administrators may see a new enterprise application named Agent 365 CLI in Microsoft Entra.
- Agent 365 CLI will continue to use delegated access and operate with the signed-in user’s privileges.
- Conditional Access policies and Security Defaults will continue to be enforced.
Action required and recommendations
No action is required for existing configurations. We recommend that you:
- Update to the latest supported Agent 365 CLI version before using the simplified setup experience.
- Review updated authentication guidance if your organization restricts device-code authentication, especially for Windows Subsystem for Linux (WSL), macOS, and Linux environments.
Learn more
- Install and Use the Agent 365 CLI | Microsoft Learn
Compliance considerations
No compliance considerations identified. Review as appropriate for your organization.