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Azure Resources Sign In not Working #1373

@Madison-Pavelich-Evolve

Description

Issue:
After the Azure Resources extension updated to v0.12.0 (released 2/12/2026), signing in to Azure via the "Sign in to Azure..." button in the Resources section no longer works. The browser popup opens and authentication completes successfully, but VS Code does not recognize the sign-in. The "Sign in to Azure..." button remains as if no sign-in occurred. Clicking it again does nothing, since the browser session is already authenticated, but deployment of functions is unavailable.

Environment
OS: Windows 11
VS Code version: 1.109.4
Azure Resources extension version: 0.12.0

Attempted Fixes (Did Not Resolve):
Waiting for the session to expire (1 hour) and signing in again.
Restarting the computer.
Removing Azure-related credentials from Windows Credential Manager, then closing and reopening VS Code.

Resolution:
Rolling back to the previous version of the Azure Resources extension (pre-0.12.0) via Extensions → Gear icon → "Install Another Version..." immediately resolved the issue. Upon refreshing, the Azure sign-in was recognized and all resources were visible as expected. No other changes were made, confirming the issue was introduced in v0.12.0.

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