From 46870f941138e974f99cbb88351546b0fe75650c Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Fri, 5 Dec 2025 23:21:31 +0000
Subject: [PATCH 1/6] Initial plan


From 82819f317a38ffcde04acc230b3e3843b88377fc Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Fri, 5 Dec 2025 23:30:53 +0000
Subject: [PATCH 2/6] Enable observability by default with console logging

Co-authored-by: nikhilNava <211831449+nikhilNava@users.noreply.github.com>
---
 .../src/ObservabilityBuilder.ts               |  21 +++
 .../src/tracing/exporter/utils.ts             |  12 +-
 .../src/tracing/util.ts                       |  53 ++++++--
 .../core/observabilityBuilder-options.test.ts |  17 ++-
 tests/observability/core/util.test.ts         | 123 ++++++++++++++++++
 5 files changed, 211 insertions(+), 15 deletions(-)
 create mode 100644 tests/observability/core/util.test.ts

diff --git a/packages/agents-a365-observability/src/ObservabilityBuilder.ts b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
index 08d23cce..09a7b22e 100644
--- a/packages/agents-a365-observability/src/ObservabilityBuilder.ts
+++ b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
@@ -13,6 +13,7 @@ import { resourceFromAttributes } from '@opentelemetry/resources';
 import { ATTR_SERVICE_NAME } from '@opentelemetry/semantic-conventions';
 import { trace } from '@opentelemetry/api';
 import { ClusterCategory } from '@microsoft/agents-a365-runtime';
+import { OpenTelemetryConstants } from './tracing/constants';
 /**
  * Configuration options for Agent 365 Observability Builder
  */
@@ -91,6 +92,20 @@ export class ObservabilityBuilder {
   }
 
   private createBatchProcessor(): BatchSpanProcessor {
+    // Check if we should use Agent365Exporter:
+    // 1. tokenResolver is explicitly provided via withTokenResolver, OR
+    // 2. tokenResolver is provided via exporterOptions, OR
+    // 3. ENABLE_A365_OBSERVABILITY_EXPORTER is explicitly enabled (for backward compatibility)
+    const hasTokenResolver = this.options.tokenResolver || this.options.exporterOptions?.tokenResolver;
+    const isExporterExplicitlyEnabled = isAgent365ExporterEnabled() && 
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
+    
+    // If no token resolver and exporter is not explicitly enabled, use console exporter
+    if (!hasTokenResolver && !isExporterExplicitlyEnabled) {
+      return new BatchSpanProcessor(new ConsoleSpanExporter());
+    }
+
+    // If explicitly disabled via env var, use console exporter
     if (!isAgent365ExporterEnabled()) {
       return new BatchSpanProcessor(new ConsoleSpanExporter());
     }
@@ -103,6 +118,12 @@ export class ObservabilityBuilder {
     if (this.options.tokenResolver) {
       opts.tokenResolver = this.options.tokenResolver;
     }
+    
+    // If we still don't have a token resolver at this point, use console exporter
+    if (!opts.tokenResolver) {
+      return new BatchSpanProcessor(new ConsoleSpanExporter());
+    }
+    
     return new BatchSpanProcessor(new Agent365Exporter(opts), {
       maxQueueSize: opts.maxQueueSize,
       scheduledDelayMillis: opts.scheduledDelayMilliseconds,
diff --git a/packages/agents-a365-observability/src/tracing/exporter/utils.ts b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
index 1a63dfc1..b2741c39 100644
--- a/packages/agents-a365-observability/src/tracing/exporter/utils.ts
+++ b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
@@ -110,11 +110,19 @@ export function partitionByIdentity(
 
 /**
  * Check if Agent 365 exporter is enabled via environment variable
+ * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
  */
 export function isAgent365ExporterEnabled(): boolean {
   const a365Env = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER]?.toLowerCase() || '';
-  const validValues = ['true', '1', 'yes', 'on'];
-  const enabled: boolean = validValues.includes(a365Env);
+  
+  // If not set, default to enabled (true)
+  if (!a365Env) {
+    logger.info('[Agent365Exporter] Agent 365 exporter enabled: true (default)');
+    return true;
+  }
+
+  const disabledValues = ['false', '0', 'no', 'off'];
+  const enabled: boolean = !disabledValues.includes(a365Env);
   logger.info(`[Agent365Exporter] Agent 365 exporter enabled: ${enabled}`);
   return enabled;
 }
diff --git a/packages/agents-a365-observability/src/tracing/util.ts b/packages/agents-a365-observability/src/tracing/util.ts
index e8568fed..8059abab 100644
--- a/packages/agents-a365-observability/src/tracing/util.ts
+++ b/packages/agents-a365-observability/src/tracing/util.ts
@@ -7,31 +7,62 @@ import { OpenTelemetryConstants } from './constants';
 import { ClusterCategory } from '@microsoft/agents-a365-runtime';
 /**
  * Check if exporter is enabled via environment variables
+ * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
  */
 export const isAgent365ExporterEnabled: () => boolean = (): boolean => {
   const enableA365Exporter = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER]?.toLowerCase();
 
-  return (
-    enableA365Exporter === 'true' ||
-    enableA365Exporter === '1' ||
-    enableA365Exporter === 'yes' ||
-    enableA365Exporter === 'on'
+  // If not set, default to enabled (true)
+  if (!enableA365Exporter) {
+    return true;
+  }
+
+  // Only return false if explicitly disabled
+  return !(
+    enableA365Exporter === 'false' ||
+    enableA365Exporter === '0' ||
+    enableA365Exporter === 'no' ||
+    enableA365Exporter === 'off'
   );
 };
 
 /**
    * Gets the enable telemetry configuration value
+   * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
    */
 export const isAgent365TelemetryEnabled: () => boolean = (): boolean => {
   const enableObservability = process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY]?.toLowerCase();
   const enableA365 = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY]?.toLowerCase();
 
-  return (
-    enableObservability === 'true' ||
-    enableObservability === '1' ||
-    enableA365 === 'true' ||
-    enableA365 === '1'
-  );
+  // If neither is set, default to enabled (true)
+  if (!enableObservability && !enableA365) {
+    return true;
+  }
+
+  // Check if explicitly disabled
+  const isObservabilityDisabled = 
+    enableObservability === 'false' ||
+    enableObservability === '0' ||
+    enableObservability === 'no' ||
+    enableObservability === 'off';
+
+  const isA365Disabled = 
+    enableA365 === 'false' ||
+    enableA365 === '0' ||
+    enableA365 === 'no' ||
+    enableA365 === 'off';
+
+  // If either is explicitly set and not disabled, return true
+  // If both are explicitly set, both must not be disabled
+  if (enableObservability && enableA365) {
+    return !isObservabilityDisabled && !isA365Disabled;
+  } else if (enableObservability) {
+    return !isObservabilityDisabled;
+  } else if (enableA365) {
+    return !isA365Disabled;
+  }
+
+  return true;
 };
 
 /**
diff --git a/tests/observability/core/observabilityBuilder-options.test.ts b/tests/observability/core/observabilityBuilder-options.test.ts
index 1da05640..199f277f 100644
--- a/tests/observability/core/observabilityBuilder-options.test.ts
+++ b/tests/observability/core/observabilityBuilder-options.test.ts
@@ -66,12 +66,25 @@ describe('ObservabilityBuilder exporterOptions merging', () => {
 
   it('defaults to prod clusterCategory when none provided', () => {
     const builder = new ObservabilityBuilder()
-      .withExporterOptions({ maxQueueSize: 15 }); // no cluster category passed
+      .withExporterOptions({ maxQueueSize: 15 }) // no cluster category passed
+      .withTokenResolver(() => 'test-token'); // Add token resolver so Agent365Exporter is used
 
     builder.build();
     const captured: any = (global as any).__capturedExporterOptions;
     expect(captured.clusterCategory).toBe('prod');
     expect(captured.maxQueueSize).toBe(15);
     expect(captured.scheduledDelayMilliseconds).toBe(5000); // default value
-  });  
+  });
+
+  it('uses ConsoleSpanExporter when no tokenResolver is provided', () => {
+    const builder = new ObservabilityBuilder()
+      .withExporterOptions({ maxQueueSize: 15 }); // no token resolver
+
+    const built = builder.build();
+    expect(built).toBe(true);
+
+    // Since no tokenResolver was provided, Agent365Exporter should NOT be created
+    const captured: any = (global as any).__capturedExporterOptions;
+    expect(captured).toBeUndefined();
+  });
 });
diff --git a/tests/observability/core/util.test.ts b/tests/observability/core/util.test.ts
new file mode 100644
index 00000000..869766ea
--- /dev/null
+++ b/tests/observability/core/util.test.ts
@@ -0,0 +1,123 @@
+// ------------------------------------------------------------------------------
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+// ------------------------------------------------------------------------------
+
+import { isAgent365TelemetryEnabled, isAgent365ExporterEnabled } from '@microsoft/agents-a365-observability/src/tracing/util';
+import { OpenTelemetryConstants } from '@microsoft/agents-a365-observability/src/tracing/constants';
+
+describe('Observability Utility Functions', () => {
+  describe('isAgent365TelemetryEnabled', () => {
+    beforeEach(() => {
+      // Clear all relevant environment variables before each test
+      delete process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY];
+      delete process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY];
+    });
+
+    it('should return true by default when no environment variables are set', () => {
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+
+    it('should return false when ENABLE_OBSERVABILITY is explicitly set to false', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'false';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return false when ENABLE_OBSERVABILITY is set to 0', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = '0';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return false when ENABLE_OBSERVABILITY is set to no', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'no';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return false when ENABLE_OBSERVABILITY is set to off', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'off';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return true when ENABLE_OBSERVABILITY is set to true', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'true';
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+
+    it('should return true when ENABLE_OBSERVABILITY is set to 1', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = '1';
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+
+    it('should return false when ENABLE_A365_OBSERVABILITY is explicitly set to false', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY] = 'false';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return true when ENABLE_A365_OBSERVABILITY is set to true', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY] = 'true';
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+
+    it('should return false when both are explicitly disabled', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'false';
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY] = 'false';
+      expect(isAgent365TelemetryEnabled()).toBe(false);
+    });
+
+    it('should return true when ENABLE_OBSERVABILITY is enabled and ENABLE_A365_OBSERVABILITY is not set', () => {
+      process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY] = 'true';
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+
+    it('should return true when ENABLE_A365_OBSERVABILITY is enabled and ENABLE_OBSERVABILITY is not set', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY] = 'true';
+      expect(isAgent365TelemetryEnabled()).toBe(true);
+    });
+  });
+
+  describe('isAgent365ExporterEnabled', () => {
+    beforeEach(() => {
+      // Clear environment variable before each test
+      delete process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
+    });
+
+    it('should return true by default when environment variable is not set', () => {
+      expect(isAgent365ExporterEnabled()).toBe(true);
+    });
+
+    it('should return false when explicitly set to false', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'false';
+      expect(isAgent365ExporterEnabled()).toBe(false);
+    });
+
+    it('should return false when set to 0', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = '0';
+      expect(isAgent365ExporterEnabled()).toBe(false);
+    });
+
+    it('should return false when set to no', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'no';
+      expect(isAgent365ExporterEnabled()).toBe(false);
+    });
+
+    it('should return false when set to off', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'off';
+      expect(isAgent365ExporterEnabled()).toBe(false);
+    });
+
+    it('should return true when set to true', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'true';
+      expect(isAgent365ExporterEnabled()).toBe(true);
+    });
+
+    it('should return true when set to 1', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = '1';
+      expect(isAgent365ExporterEnabled()).toBe(true);
+    });
+
+    it('should return true when set to any other value', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'yes';
+      expect(isAgent365ExporterEnabled()).toBe(true);
+    });
+  });
+});

From 8be131b8862082c58a56365faecdda5fb7622ce1 Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Fri, 5 Dec 2025 23:37:54 +0000
Subject: [PATCH 3/6] Address code review feedback - refactor duplicate logic

Co-authored-by: nikhilNava <211831449+nikhilNava@users.noreply.github.com>
---
 .../src/ObservabilityBuilder.ts               | 26 ++++--------
 .../src/tracing/util.ts                       | 41 ++++++++++---------
 2 files changed, 29 insertions(+), 38 deletions(-)

diff --git a/packages/agents-a365-observability/src/ObservabilityBuilder.ts b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
index 09a7b22e..754dfa0a 100644
--- a/packages/agents-a365-observability/src/ObservabilityBuilder.ts
+++ b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
@@ -13,7 +13,6 @@ import { resourceFromAttributes } from '@opentelemetry/resources';
 import { ATTR_SERVICE_NAME } from '@opentelemetry/semantic-conventions';
 import { trace } from '@opentelemetry/api';
 import { ClusterCategory } from '@microsoft/agents-a365-runtime';
-import { OpenTelemetryConstants } from './tracing/constants';
 /**
  * Configuration options for Agent 365 Observability Builder
  */
@@ -92,24 +91,20 @@ export class ObservabilityBuilder {
   }
 
   private createBatchProcessor(): BatchSpanProcessor {
-    // Check if we should use Agent365Exporter:
-    // 1. tokenResolver is explicitly provided via withTokenResolver, OR
-    // 2. tokenResolver is provided via exporterOptions, OR
-    // 3. ENABLE_A365_OBSERVABILITY_EXPORTER is explicitly enabled (for backward compatibility)
-    const hasTokenResolver = this.options.tokenResolver || this.options.exporterOptions?.tokenResolver;
-    const isExporterExplicitlyEnabled = isAgent365ExporterEnabled() && 
-      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
-    
-    // If no token resolver and exporter is not explicitly enabled, use console exporter
-    if (!hasTokenResolver && !isExporterExplicitlyEnabled) {
+    // If explicitly disabled via env var, use console exporter
+    if (!isAgent365ExporterEnabled()) {
       return new BatchSpanProcessor(new ConsoleSpanExporter());
     }
 
-    // If explicitly disabled via env var, use console exporter
-    if (!isAgent365ExporterEnabled()) {
+    // Check if we have a token resolver (needed for Agent365Exporter)
+    const hasTokenResolver = this.options.tokenResolver || this.options.exporterOptions?.tokenResolver;
+    
+    // If no token resolver is provided, use console exporter
+    if (!hasTokenResolver) {
       return new BatchSpanProcessor(new ConsoleSpanExporter());
     }
 
+    // Use Agent365Exporter when token resolver is available
     const opts = new Agent365ExporterOptions();
     if (this.options.exporterOptions) {
       Object.assign(opts, this.options.exporterOptions);
@@ -119,11 +114,6 @@ export class ObservabilityBuilder {
       opts.tokenResolver = this.options.tokenResolver;
     }
     
-    // If we still don't have a token resolver at this point, use console exporter
-    if (!opts.tokenResolver) {
-      return new BatchSpanProcessor(new ConsoleSpanExporter());
-    }
-    
     return new BatchSpanProcessor(new Agent365Exporter(opts), {
       maxQueueSize: opts.maxQueueSize,
       scheduledDelayMillis: opts.scheduledDelayMilliseconds,
diff --git a/packages/agents-a365-observability/src/tracing/util.ts b/packages/agents-a365-observability/src/tracing/util.ts
index 8059abab..830db1f5 100644
--- a/packages/agents-a365-observability/src/tracing/util.ts
+++ b/packages/agents-a365-observability/src/tracing/util.ts
@@ -5,12 +5,27 @@
 
 import { OpenTelemetryConstants } from './constants';
 import { ClusterCategory } from '@microsoft/agents-a365-runtime';
+
+/**
+ * Helper function to check if a value is explicitly disabled
+ */
+const isExplicitlyDisabled = (value: string | undefined): boolean => {
+  if (!value) return false;
+  const lowerValue = value.toLowerCase();
+  return (
+    lowerValue === 'false' ||
+    lowerValue === '0' ||
+    lowerValue === 'no' ||
+    lowerValue === 'off'
+  );
+};
+
 /**
  * Check if exporter is enabled via environment variables
  * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
  */
 export const isAgent365ExporterEnabled: () => boolean = (): boolean => {
-  const enableA365Exporter = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER]?.toLowerCase();
+  const enableA365Exporter = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
 
   // If not set, default to enabled (true)
   if (!enableA365Exporter) {
@@ -18,12 +33,7 @@ export const isAgent365ExporterEnabled: () => boolean = (): boolean => {
   }
 
   // Only return false if explicitly disabled
-  return !(
-    enableA365Exporter === 'false' ||
-    enableA365Exporter === '0' ||
-    enableA365Exporter === 'no' ||
-    enableA365Exporter === 'off'
-  );
+  return !isExplicitlyDisabled(enableA365Exporter);
 };
 
 /**
@@ -31,8 +41,8 @@ export const isAgent365ExporterEnabled: () => boolean = (): boolean => {
    * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
    */
 export const isAgent365TelemetryEnabled: () => boolean = (): boolean => {
-  const enableObservability = process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY]?.toLowerCase();
-  const enableA365 = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY]?.toLowerCase();
+  const enableObservability = process.env[OpenTelemetryConstants.ENABLE_OBSERVABILITY];
+  const enableA365 = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY];
 
   // If neither is set, default to enabled (true)
   if (!enableObservability && !enableA365) {
@@ -40,17 +50,8 @@ export const isAgent365TelemetryEnabled: () => boolean = (): boolean => {
   }
 
   // Check if explicitly disabled
-  const isObservabilityDisabled = 
-    enableObservability === 'false' ||
-    enableObservability === '0' ||
-    enableObservability === 'no' ||
-    enableObservability === 'off';
-
-  const isA365Disabled = 
-    enableA365 === 'false' ||
-    enableA365 === '0' ||
-    enableA365 === 'no' ||
-    enableA365 === 'off';
+  const isObservabilityDisabled = isExplicitlyDisabled(enableObservability);
+  const isA365Disabled = isExplicitlyDisabled(enableA365);
 
   // If either is explicitly set and not disabled, return true
   // If both are explicitly set, both must not be disabled

From 99042d0399dcb0f548a6098cee8341d9eeb5c5ea Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Fri, 5 Dec 2025 23:40:42 +0000
Subject: [PATCH 4/6] Further refactor to eliminate code duplication and
 simplify logic

Co-authored-by: nikhilNava <211831449+nikhilNava@users.noreply.github.com>
---
 .../src/tracing/exporter/utils.ts             | 19 +++++++---------
 .../src/tracing/util.ts                       | 22 ++++++-------------
 2 files changed, 15 insertions(+), 26 deletions(-)

diff --git a/packages/agents-a365-observability/src/tracing/exporter/utils.ts b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
index b2741c39..667d60fb 100644
--- a/packages/agents-a365-observability/src/tracing/exporter/utils.ts
+++ b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
@@ -6,6 +6,7 @@ import { ReadableSpan } from '@opentelemetry/sdk-trace-base';
 import { SpanKind, SpanStatusCode } from '@opentelemetry/api';
 import { OpenTelemetryConstants } from '../constants';
 import logger from '../../utils/logging';
+import { isAgent365ExporterEnabled as isExporterEnabled } from '../util';
 
 /**
  * Convert trace ID to hex string format
@@ -111,19 +112,15 @@ export function partitionByIdentity(
 /**
  * Check if Agent 365 exporter is enabled via environment variable
  * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
+ * This wrapper adds logging for debugging purposes
  */
 export function isAgent365ExporterEnabled(): boolean {
-  const a365Env = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER]?.toLowerCase() || '';
-  
-  // If not set, default to enabled (true)
-  if (!a365Env) {
-    logger.info('[Agent365Exporter] Agent 365 exporter enabled: true (default)');
-    return true;
-  }
-
-  const disabledValues = ['false', '0', 'no', 'off'];
-  const enabled: boolean = !disabledValues.includes(a365Env);
-  logger.info(`[Agent365Exporter] Agent 365 exporter enabled: ${enabled}`);
+  const enabled = isExporterEnabled();
+  const envVar = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
+  const message = envVar 
+    ? `[Agent365Exporter] Agent 365 exporter enabled: ${enabled} (env var: ${envVar})`
+    : '[Agent365Exporter] Agent 365 exporter enabled: true (default)';
+  logger.info(message);
   return enabled;
 }
 
diff --git a/packages/agents-a365-observability/src/tracing/util.ts b/packages/agents-a365-observability/src/tracing/util.ts
index 830db1f5..2e361573 100644
--- a/packages/agents-a365-observability/src/tracing/util.ts
+++ b/packages/agents-a365-observability/src/tracing/util.ts
@@ -49,21 +49,13 @@ export const isAgent365TelemetryEnabled: () => boolean = (): boolean => {
     return true;
   }
 
-  // Check if explicitly disabled
-  const isObservabilityDisabled = isExplicitlyDisabled(enableObservability);
-  const isA365Disabled = isExplicitlyDisabled(enableA365);
-
-  // If either is explicitly set and not disabled, return true
-  // If both are explicitly set, both must not be disabled
-  if (enableObservability && enableA365) {
-    return !isObservabilityDisabled && !isA365Disabled;
-  } else if (enableObservability) {
-    return !isObservabilityDisabled;
-  } else if (enableA365) {
-    return !isA365Disabled;
-  }
-
-  return true;
+  // If both are set, both must not be disabled
+  // If only one is set, it must not be disabled
+  return enableObservability && enableA365
+    ? !isExplicitlyDisabled(enableObservability) && !isExplicitlyDisabled(enableA365)
+    : enableObservability
+      ? !isExplicitlyDisabled(enableObservability)
+      : !isExplicitlyDisabled(enableA365);
 };
 
 /**

From fee7e8e92c59408bd51ba86966e2cf69b40040a1 Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Sat, 6 Dec 2025 00:15:57 +0000
Subject: [PATCH 5/6] Remove outdated env var references from comments and
 tests

Co-authored-by: nikhilNava <211831449+nikhilNava@users.noreply.github.com>
---
 .../src/tracing/exporter/Agent365ExporterOptions.ts        | 4 ++--
 .../core/observabilityBuilder-options.test.ts              | 7 +------
 2 files changed, 3 insertions(+), 8 deletions(-)

diff --git a/packages/agents-a365-observability/src/tracing/exporter/Agent365ExporterOptions.ts b/packages/agents-a365-observability/src/tracing/exporter/Agent365ExporterOptions.ts
index 547b4e47..9b5db4c0 100644
--- a/packages/agents-a365-observability/src/tracing/exporter/Agent365ExporterOptions.ts
+++ b/packages/agents-a365-observability/src/tracing/exporter/Agent365ExporterOptions.ts
@@ -29,8 +29,8 @@ export class Agent365ExporterOptions {
   /** Environment / cluster category (e.g. "preprod", "prod"). */
   public clusterCategory: ClusterCategory | string = 'prod';
 
-  /** Optional delegate to resolve auth token used by exporter */
-  public tokenResolver?: TokenResolver; // Optional if ENABLE_A365_OBSERVABILITY_EXPORTER is false
+  /** Optional delegate to resolve auth token used by exporter. Required to send telemetry to Agent365 service; if not provided, telemetry is logged to console. */
+  public tokenResolver?: TokenResolver;
 
   /** Maximum span queue size before new spans are dropped. */
   public maxQueueSize: number = 2048;
diff --git a/tests/observability/core/observabilityBuilder-options.test.ts b/tests/observability/core/observabilityBuilder-options.test.ts
index 199f277f..2ed5d136 100644
--- a/tests/observability/core/observabilityBuilder-options.test.ts
+++ b/tests/observability/core/observabilityBuilder-options.test.ts
@@ -24,16 +24,11 @@ jest.mock('@microsoft/agents-a365-observability/src/tracing/exporter/Agent365Exp
 
 describe('ObservabilityBuilder exporterOptions merging', () => {
   beforeEach(() => {
-    // Ensure exporter is enabled so BatchSpanProcessor is created with Agent365Exporter
-    process.env.ENABLE_A365_OBSERVABILITY_EXPORTER = 'true';
+    // Clean up any captured options from previous tests
     delete (global as any).__capturedExporterOptions;
     delete (global as any).__capturedExporterOptionsCallCount;
   });
 
-  afterEach(() => {
-    delete process.env.ENABLE_A365_OBSERVABILITY_EXPORTER;
-  });
-
   it('applies provided exporterOptions and allows builder overrides to take precedence', () => {
     const builder = new ObservabilityBuilder()
       .withExporterOptions({

From 988da1852baf3a1ca2af98ecf52043254594eb35 Mon Sep 17 00:00:00 2001
From: "copilot-swe-agent[bot]" <198982749+Copilot@users.noreply.github.com>
Date: Sat, 6 Dec 2025 00:22:32 +0000
Subject: [PATCH 6/6] Revert ENABLE_A365_OBSERVABILITY_EXPORTER to require
 explicit enabling

Co-authored-by: nikhilNava <211831449+nikhilNava@users.noreply.github.com>
---
 .../src/ObservabilityBuilder.ts               | 48 +++++++++----------
 .../src/tracing/exporter/utils.ts             |  4 +-
 .../src/tracing/util.ts                       | 17 ++++---
 .../core/observabilityBuilder-options.test.ts | 24 ++++++++++
 tests/observability/core/util.test.ts         | 11 +++--
 5 files changed, 65 insertions(+), 39 deletions(-)

diff --git a/packages/agents-a365-observability/src/ObservabilityBuilder.ts b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
index 754dfa0a..1c1604f9 100644
--- a/packages/agents-a365-observability/src/ObservabilityBuilder.ts
+++ b/packages/agents-a365-observability/src/ObservabilityBuilder.ts
@@ -91,35 +91,33 @@ export class ObservabilityBuilder {
   }
 
   private createBatchProcessor(): BatchSpanProcessor {
-    // If explicitly disabled via env var, use console exporter
-    if (!isAgent365ExporterEnabled()) {
-      return new BatchSpanProcessor(new ConsoleSpanExporter());
-    }
-
-    // Check if we have a token resolver (needed for Agent365Exporter)
+    // To send telemetry to Agent365 service, BOTH conditions must be met:
+    // 1. ENABLE_A365_OBSERVABILITY_EXPORTER=true must be explicitly set
+    // 2. A tokenResolver must be provided
+    const isExporterEnabled = isAgent365ExporterEnabled();
     const hasTokenResolver = this.options.tokenResolver || this.options.exporterOptions?.tokenResolver;
     
-    // If no token resolver is provided, use console exporter
-    if (!hasTokenResolver) {
-      return new BatchSpanProcessor(new ConsoleSpanExporter());
-    }
-
-    // Use Agent365Exporter when token resolver is available
-    const opts = new Agent365ExporterOptions();
-    if (this.options.exporterOptions) {
-      Object.assign(opts, this.options.exporterOptions);
-    }
-    opts.clusterCategory = this.options.clusterCategory || opts.clusterCategory || 'prod';
-    if (this.options.tokenResolver) {
-      opts.tokenResolver = this.options.tokenResolver;
+    // Use Agent365Exporter only if both exporter is enabled AND token resolver is available
+    if (isExporterEnabled && hasTokenResolver) {
+      const opts = new Agent365ExporterOptions();
+      if (this.options.exporterOptions) {
+        Object.assign(opts, this.options.exporterOptions);
+      }
+      opts.clusterCategory = this.options.clusterCategory || opts.clusterCategory || 'prod';
+      if (this.options.tokenResolver) {
+        opts.tokenResolver = this.options.tokenResolver;
+      }
+      
+      return new BatchSpanProcessor(new Agent365Exporter(opts), {
+        maxQueueSize: opts.maxQueueSize,
+        scheduledDelayMillis: opts.scheduledDelayMilliseconds,
+        exportTimeoutMillis: opts.exporterTimeoutMilliseconds,
+        maxExportBatchSize: opts.maxExportBatchSize
+      });
     }
     
-    return new BatchSpanProcessor(new Agent365Exporter(opts), {
-      maxQueueSize: opts.maxQueueSize,
-      scheduledDelayMillis: opts.scheduledDelayMilliseconds,
-      exportTimeoutMillis: opts.exporterTimeoutMilliseconds,
-      maxExportBatchSize: opts.maxExportBatchSize
-    });
+    // Default: use console exporter (for local development and when service export is not configured)
+    return new BatchSpanProcessor(new ConsoleSpanExporter());
   }
 
   private createResource() {
diff --git a/packages/agents-a365-observability/src/tracing/exporter/utils.ts b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
index 667d60fb..40c0fcc6 100644
--- a/packages/agents-a365-observability/src/tracing/exporter/utils.ts
+++ b/packages/agents-a365-observability/src/tracing/exporter/utils.ts
@@ -111,7 +111,7 @@ export function partitionByIdentity(
 
 /**
  * Check if Agent 365 exporter is enabled via environment variable
- * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
+ * Requires explicit enabling by setting to 'true', '1', 'yes', or 'on'
  * This wrapper adds logging for debugging purposes
  */
 export function isAgent365ExporterEnabled(): boolean {
@@ -119,7 +119,7 @@ export function isAgent365ExporterEnabled(): boolean {
   const envVar = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
   const message = envVar 
     ? `[Agent365Exporter] Agent 365 exporter enabled: ${enabled} (env var: ${envVar})`
-    : '[Agent365Exporter] Agent 365 exporter enabled: true (default)';
+    : '[Agent365Exporter] Agent 365 exporter enabled: false (not set, requires explicit enabling)';
   logger.info(message);
   return enabled;
 }
diff --git a/packages/agents-a365-observability/src/tracing/util.ts b/packages/agents-a365-observability/src/tracing/util.ts
index 2e361573..afe02cee 100644
--- a/packages/agents-a365-observability/src/tracing/util.ts
+++ b/packages/agents-a365-observability/src/tracing/util.ts
@@ -22,18 +22,17 @@ const isExplicitlyDisabled = (value: string | undefined): boolean => {
 
 /**
  * Check if exporter is enabled via environment variables
- * Enabled by default, can be disabled by setting to 'false', '0', 'no', or 'off'
+ * Requires explicit enabling by setting to 'true', '1', 'yes', or 'on'
  */
 export const isAgent365ExporterEnabled: () => boolean = (): boolean => {
-  const enableA365Exporter = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
+  const enableA365Exporter = process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER]?.toLowerCase();
 
-  // If not set, default to enabled (true)
-  if (!enableA365Exporter) {
-    return true;
-  }
-
-  // Only return false if explicitly disabled
-  return !isExplicitlyDisabled(enableA365Exporter);
+  return (
+    enableA365Exporter === 'true' ||
+    enableA365Exporter === '1' ||
+    enableA365Exporter === 'yes' ||
+    enableA365Exporter === 'on'
+  );
 };
 
 /**
diff --git a/tests/observability/core/observabilityBuilder-options.test.ts b/tests/observability/core/observabilityBuilder-options.test.ts
index 2ed5d136..6b1e69b7 100644
--- a/tests/observability/core/observabilityBuilder-options.test.ts
+++ b/tests/observability/core/observabilityBuilder-options.test.ts
@@ -29,7 +29,15 @@ describe('ObservabilityBuilder exporterOptions merging', () => {
     delete (global as any).__capturedExporterOptionsCallCount;
   });
 
+  afterEach(() => {
+    // Clean up environment variable after each test
+    delete process.env.ENABLE_A365_OBSERVABILITY_EXPORTER;
+  });
+
   it('applies provided exporterOptions and allows builder overrides to take precedence', () => {
+    // Enable Agent365 exporter to test the exporter options
+    process.env.ENABLE_A365_OBSERVABILITY_EXPORTER = 'true';
+
     const builder = new ObservabilityBuilder()
       .withExporterOptions({
         maxQueueSize: 10,
@@ -60,6 +68,9 @@ describe('ObservabilityBuilder exporterOptions merging', () => {
   });
 
   it('defaults to prod clusterCategory when none provided', () => {
+    // Enable Agent365 exporter to test the exporter options
+    process.env.ENABLE_A365_OBSERVABILITY_EXPORTER = 'true';
+
     const builder = new ObservabilityBuilder()
       .withExporterOptions({ maxQueueSize: 15 }) // no cluster category passed
       .withTokenResolver(() => 'test-token'); // Add token resolver so Agent365Exporter is used
@@ -82,4 +93,17 @@ describe('ObservabilityBuilder exporterOptions merging', () => {
     const captured: any = (global as any).__capturedExporterOptions;
     expect(captured).toBeUndefined();
   });
+
+  it('uses ConsoleSpanExporter when ENABLE_A365_OBSERVABILITY_EXPORTER is not set', () => {
+    // Even with tokenResolver, if env var is not set, should use ConsoleSpanExporter
+    const builder = new ObservabilityBuilder()
+      .withTokenResolver(() => 'test-token');
+
+    const built = builder.build();
+    expect(built).toBe(true);
+
+    // Since ENABLE_A365_OBSERVABILITY_EXPORTER is not set, Agent365Exporter should NOT be created
+    const captured: any = (global as any).__capturedExporterOptions;
+    expect(captured).toBeUndefined();
+  });
 });
diff --git a/tests/observability/core/util.test.ts b/tests/observability/core/util.test.ts
index 869766ea..c4521b14 100644
--- a/tests/observability/core/util.test.ts
+++ b/tests/observability/core/util.test.ts
@@ -81,8 +81,8 @@ describe('Observability Utility Functions', () => {
       delete process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER];
     });
 
-    it('should return true by default when environment variable is not set', () => {
-      expect(isAgent365ExporterEnabled()).toBe(true);
+    it('should return false by default when environment variable is not set', () => {
+      expect(isAgent365ExporterEnabled()).toBe(false);
     });
 
     it('should return false when explicitly set to false', () => {
@@ -115,9 +115,14 @@ describe('Observability Utility Functions', () => {
       expect(isAgent365ExporterEnabled()).toBe(true);
     });
 
-    it('should return true when set to any other value', () => {
+    it('should return true when set to yes', () => {
       process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'yes';
       expect(isAgent365ExporterEnabled()).toBe(true);
     });
+
+    it('should return true when set to on', () => {
+      process.env[OpenTelemetryConstants.ENABLE_A365_OBSERVABILITY_EXPORTER] = 'on';
+      expect(isAgent365ExporterEnabled()).toBe(true);
+    });
   });
 });