[azure-ai-agentserver-responses] exceptions getting masked as generic "internal server error"

[antriksh30]

When a hosted agent's LLM call returns HTTP 429 (rate limit exceeded), the error is caught by the generic _HandlerError handler in _endpoint_handler.py and replaced with a hardcoded {"error":{"message":"internal server error","type":"server_error","code":"server_error"}} response. The original error details (429 status, retry-after headers, rate limit message) are completely discarded — only logged to container stderr, which most users never see.

Observed on: 2026-06-12T07:24:32Z, session 93e0a28c2603bb3e3ab60431a3972efe360a8fcb62e90200c4fec93967d6b5c, eastus2, agent browser-automation-agent-sample-foundry:1

Telemetry evidence:
Span in aoaiagents1.westus.kusto.windows.net / prod database, trace ID 3fa039b49b814a369d928eb9b97773a5:

KQL Query:

Span
| where TIMESTAMP between (datetime(2026-06-12T07:24:30Z) .. datetime(2026-06-12T07:24:35Z))
| where env_dt_traceId == "3fa039b49b814a369d928eb9b97773a5"
| project TIMESTAMP, name, ['http.response.status_code'], success, statusMessage
| order by TIMESTAMP asc

Output:

6/12/2026, 7:24:32.605 AM	EnableRequestBufferingAttribute	true		
6/12/2026, 7:24:32.652 AM	rate_limit_request	true		
6/12/2026, 7:24:32.654 AM	xapi.api_method._validate_query_params	true		
6/12/2026, 7:24:32.654 AM	xapi.api_method._validate_path_params	true		
6/12/2026, 7:24:32.655 AM	read_body	true		
6/12/2026, 7:24:32.656 AM	xapi.utils.json_utils.parse_json	true		
6/12/2026, 7:24:32.665 AM	parse_function	true		
6/12/2026, 7:24:32.668 AM	parse_function	true		
6/12/2026, 7:24:32.67 AM	parse_function	true		
6/12/2026, 7:24:32.673 AM	parse_function	true		
6/12/2026, 7:24:32.675 AM	parse_function	true		
6/12/2026, 7:24:32.677 AM	parse_function	true		
6/12/2026, 7:24:32.679 AM	xapi.api_method._validate	true		
6/12/2026, 7:24:32.679 AM	xapi.api_method._validate_body	true		
6/12/2026, 7:24:32.679 AM	validate_body_param	true		
6/12/2026, 7:24:32.693 AM	responsesapi.response_creator_service.ensure_options	true		
6/12/2026, 7:24:32.715 AM	responsesapi.response_creator_service.hydrate_model_info	true		
6/12/2026, 7:24:32.72 AM	rate_limit_tool_call	true		
6/12/2026, 7:24:32.734 AM	get_item	true		
6/12/2026, 7:24:32.734 AM	POST	true		
6/12/2026, 7:24:32.744 AM	get_item	true		
6/12/2026, 7:24:32.744 AM	POST	true		
6/12/2026, 7:24:32.756 AM	POST	true		
6/12/2026, 7:24:32.757 AM	get_item	true		
6/12/2026, 7:24:32.769 AM	POST	true		
6/12/2026, 7:24:32.77 AM	get_item	true		
6/12/2026, 7:24:32.786 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:32.788 AM	GET dbs/agents/colls/run-state-v1/docs/fc_6a2bb4144b488196828d16db7459156a	false		404
6/12/2026, 7:24:32.788 AM	GET dbs/agents/colls/run-state-v1/docs/fc_6a2bb420a8e08196a654b3fac45a4ac2	false		404
6/12/2026, 7:24:32.788 AM	GET dbs/agents/colls/run-state-v1/docs/fc_6a2bb426d2388196a32b2685f5061066	false		404
6/12/2026, 7:24:32.789 AM	GET dbs/agents/colls/run-state-v1/docs/fc_6a2bb41a649c8196baad5b9e3c6b7e9e	false		404
6/12/2026, 7:24:32.79 AM	Controller.StorageController.RetrieveItemsBatchAsync	true		
6/12/2026, 7:24:32.791 AM	POST agents/v2.0/subscriptions/{subscription}/resourceGroups/{resourceGroup}/providers/Microsoft.MachineLearningServices/workspaces/{workspace}/entities/items/batch	true		200
6/12/2026, 7:24:32.793 AM	responses_common.services.msft_sediment_hydration_service.hydrate_items	true		
6/12/2026, 7:24:32.793 AM	POST	true		
6/12/2026, 7:24:32.794 AM	build_items	true		
6/12/2026, 7:24:32.816 AM	conversation_context	true		
6/12/2026, 7:24:32.817 AM	responsesapi.response_creator_service.context	true		
6/12/2026, 7:24:32.817 AM	_hydrate_files	true		
6/12/2026, 7:24:32.818 AM	responsesapi.response_creator_service.previous_response_hydration_service	true		
6/12/2026, 7:24:32.826 AM	responsesapi.response_creator_service.create_response	true		
6/12/2026, 7:24:32.826 AM	responsesapi.response_creator_service.enrich_response_tools	true		
6/12/2026, 7:24:32.827 AM	get_hydrated_model_info_config	true		
6/12/2026, 7:24:32.829 AM	responsesapi.create_response_method.parse_request_body	true		
6/12/2026, 7:24:32.867 AM	emitter.emit	true		
6/12/2026, 7:24:32.874 AM	responses_common.persistence.models.chat_conversation	true		
6/12/2026, 7:24:32.874 AM	responsesapi.execute_response.build_conversation	true		
6/12/2026, 7:24:32.892 AM	POST	true		
6/12/2026, 7:24:32.894 AM	emitter.emit	true		
6/12/2026, 7:24:32.905 AM	execute_response_telemetry	false	TooManyRequests: TooManyRequests[429, internal=Your requests to gpt-5.4 for gpt-5.4 in eastus2 have exceeded rate limit., user=Too Many Requests, internal_extra={'internal_message': 'Your requests to gpt-5.4 for gpt-5.4 in eastus2 have exceeded rate limit.', 'user_message': 'Too Many Requests', 'status': 429, 'headers': {'x-ms-fe-error': 'true'}, 'type': 'too_many_requests', 'code': 'too_many_requests'}]	
6/12/2026, 7:24:32.905 AM	emitter.emit	true		
6/12/2026, 7:24:32.923 AM	xapi.api_method.endpoint_with_background_tasks	true		
6/12/2026, 7:24:32.926 AM	POST v1/responses	true		200
6/12/2026, 7:24:32.927 AM	ProxyRequest	true		
6/12/2026, 7:24:32.928 AM	POST /v1/responses	true		
6/12/2026, 7:24:32.931 AM	POST agents/v2.0/subscriptions/{subscription}/resourceGroups/{resourceGroup}/providers/Microsoft.MachineLearningServices/workspaces/{workspace}/openai/responses	true		200
6/12/2026, 7:24:32.983 AM	AuthorizeFilter	true		
6/12/2026, 7:24:32.997 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:33 AM	GET dbs/agents/colls/run-state-v1/docs/conv_bhQ2a7EiIxBo8Xfp6tl6bViqIX8c8E9B	true		200
6/12/2026, 7:24:33.002 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:33.005 AM	GET dbs/agents/colls/run-state-v1/docs/conv2item_bhQ2a7EiIxBo8Xfp6tl6bViqIX8c8E9B_0	true		200
6/12/2026, 7:24:33.01 AM	GET dbs/agents/colls/run-state-v1/docs/conv_bhQ2a7EiIxBo8Xfp6tl6bViqIX8c8E9B	true		200
6/12/2026, 7:24:33.021 AM	POST dbs/agents/colls/run-state-v1/docs	true		200
6/12/2026, 7:24:33.022 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:33.023 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:33.026 AM	GET dbs/agents/colls/run-state-v1/docs/conv_bhQ2a7EiIxBo8Xfp6tl6bViqIX8c8E9B	true		200
6/12/2026, 7:24:33.026 AM	Provider.ScopeByoEntityClientProvider.GetClientAsync	true		
6/12/2026, 7:24:33.03 AM	POST dbs/agents/colls/run-state-v1/docs	true		201
6/12/2026, 7:24:33.033 AM	POST dbs/agents/colls/run-state-v1/docs	true		201
6/12/2026, 7:24:33.033 AM	Manager.ResponseStorageManager.CreateAsync	true		
6/12/2026, 7:24:33.035 AM	POST agents/v2.0/subscriptions/{subscription}/resourceGroups/{resourceGroup}/providers/Microsoft.MachineLearningServices/workspaces/{workspace}/storage/responses	true		201
6/12/2026, 7:24:33.045 AM	ContainerProxy.Forward	true		200
6/12/2026, 7:24:33.046 AM	POST agents/v2.0/subscriptions/{subscription}/resourceGroups/{resourceGroup}/providers/Microsoft.MachineLearningServices/workspaces/{workspace}/agents/{agentName}/endpoint/protocols/openai/responses	true		200