Clean up "no project" error message for agent operations

[Copilot]

When attempting agent operations without an initialized project, users saw raw gRPC error details wrapped in multiple context layers:

Error: failed to add agent to azure.yaml: adding agent service to project: rpc error: code = Unknown desc = no project exists; to create a new project, run azd init

Changes

gRPC Service (internal/grpcserver/project_service.go)

• Map azdcontext.ErrNoProject to codes.FailedPrecondition with clean message
• Apply to Get() and AddService() methods via mapProjectError() helper

Extension (extensions/azure.ai.agents/internal/cmd/)

• Detect FailedPrecondition status and return message directly
• Preserve wrapping for other error types to maintain debug context

Tests (internal/grpcserver/project_service_test.go)

• Verify status code and message format for no-project scenarios

Result

Error: No azd project found. Run 'azd init' to initialize your project.

Non-precondition errors retain their full context (e.g., failed to add agent to azure.yaml: failed to marshal agent config).

Warning

Firewall rules blocked me from connecting to one or more addresses (expand for details)

I tried to connect to the following addresses, but was blocked by firewall rules:

• aka.ms
  • Triggering command: ./azd ./azd version --64 x_amd64/vet -I g/azdo/azdo.go g/azdo/build_pol-ifaceassert x_amd64/vet -pthread zd/pkg/ai -fmessage-length-bool x_amd64/vet -o 1.76.0/balancer/-errorsas om/pkg/browser@v-ifaceassert x_amd64/vet -p zd/pkg/sqldb -lang=go1.23 x_amd64/vet (dns block)
  • Triggering command: /home/REDACTED/work/azure-dev/azure-dev/cli/azd/azd /home/REDACTED/work/azure-dev/azure-dev/cli/azd/azd version --64 x_amd64/vet -qui�� _.a uthored-by: hemarina <104857065+hemarina@users.noreply.github.com> x_amd64/vet /tmp/go-build180/opt/hostedtoolcache/go/1.25.6/x64/pkg/tool/linux_amd64/vet zd/pkg/tools/bic-atomic x86_64-linux-gnu-bool x_amd64/vet -o 1.76.0/internal/-errorsas -trimpath x_amd64/vet -p g/grpc/encoding -lang=go1.25 x_amd64/vet (dns block)

If you need me to access, download, or install something from one of these locations, you can either:

• Configure Actions setup steps to set up my environment, which run before the firewall is enabled
• Add the appropriate URLs or hosts to the custom allowlist in this repository's Copilot coding agent settings (admins only)

Original prompt

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This section details on the original issue you should resolve

<issue_title>Improve error message</issue_title>
<issue_description>If a developer hasn't initialized the project yet and they try to add an agent, they get this message:

Error: failed to add agent to azure.yaml: adding agent service to project: rpc error: code = Unknown desc = no project exists; to create a new project, run azd init

Could we tidy it up to say something like:

Error: No azd project found. Run 'azd init' to initialize your project before adding agents.

cc: @SophCarp @ccbarragan </issue_description>

Comments on the Issue (you are @copilot in this section)

@JeffreyCA "Error: failed to add agent to azure.yaml: adding agent service to project:" is part of the extension implementation and can be changed independently.

Maybe it makes sense to look into removing the "rpc error: code = Unknown desc =" part?</comment_new>
<comment_new>@kristenwomack
Yes, I think this makes sense to remove the "rpc error" because that exposes inner information that isn't as relevant to the end user of the extension.

cc: @@jfomhover

@vhvb1989 Should we start having one label per extension? Or is `ai` currently covering the agents extension?

• Fixes Improve error message #5834

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