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# 🔧 Module 3: Advanced MCP Development with Microsoft Foundry Toolkit
![Duration](https://img.shields.io/badge/Duration-20_minutes-blue?style=flat-square)
![Microsoft Foundry Toolkit](https://img.shields.io/badge/Microsoft_Foundry_Toolkit-Required-orange?style=flat-square)
![Python](https://img.shields.io/badge/Python-3.10+-green?style=flat-square)
![MCP SDK](https://img.shields.io/badge/MCP_SDK-1.9.3-purple?style=flat-square)
![Inspector](https://img.shields.io/badge/MCP_Inspector-0.14.0-blue?style=flat-square)
## 🎯 Learning Objectives
By the end of this lab, you will be able to:
- ✅ Create custom MCP servers using the Microsoft Foundry Toolkit
- ✅ Configure and use the latest MCP Python SDK (v1.9.3)
- ✅ Set up and utilize the MCP Inspector for debugging
- ✅ Debug MCP servers in both Agent Builder and Inspector environments
- ✅ Understand advanced MCP server development workflows
## 📋 Prerequisites
- Completion of Lab 2 (MCP Fundamentals)
- VS Code with Microsoft Foundry Toolkit extension installed
- Python 3.10+ environment
- Node.js and npm for Inspector setup
## 🏗️ What You'll Build
In this lab, you'll create a **Weather MCP Server** that demonstrates:
- Custom MCP server implementation
- Integration with Microsoft Foundry Toolkit Agent Builder
- Professional debugging workflows
- Modern MCP SDK usage patterns
---
## 🔧 Core Components Overview
### 🐍 MCP Python SDK
The Model Context Protocol Python SDK provides the foundation for building custom MCP servers. You'll use version 1.9.3 with enhanced debugging capabilities.
### 🔍 MCP Inspector
A powerful debugging tool that provides:
- Real-time server monitoring
- Tool execution visualization
- Network request/response inspection
- Interactive testing environment
---
## 📖 Step-by-Step Implementation
### Step 1: Create a WeatherAgent in Agent Builder
1. **Launch Agent Builder** in VS Code through the Microsoft Foundry Toolkit extension
2. **Create a new agent** with the following configuration:
- Agent Name: `WeatherAgent`
![Agent Creation](../../images/10-StreamliningAIWorkflowsBuildingAnMCPServerWithAIToolkit/lab3/Agent.png)
### Step 2: Initialize MCP Server Project
1. **Navigate to Tools****Add Tool** in Agent Builder
2. **Select "MCP Server"** from the available options
3. **Choose "Create A new MCP Server"**
4. **Select the `python-weather` template**
5. **Name your server:** `weather_mcp`
![Python Template Selection](../../images/10-StreamliningAIWorkflowsBuildingAnMCPServerWithAIToolkit/lab3/Pythontemplate.png)
### Step 3: Open and Examine the Project
1. **Open the generated project** in VS Code
2. **Review the project structure:**
```
weather_mcp/
├── src/
│ ├── __init__.py
│ └── server.py
├── inspector/
│ ├── package.json
│ └── package-lock.json
├── .vscode/
│ ├── launch.json
│ └── tasks.json
├── pyproject.toml
└── README.md
```
### Step 4: Upgrade to Latest MCP SDK
> **🔍 Why Upgrade?** We want to use the latest MCP SDK (v1.9.3) and Inspector service (0.14.0) for enhanced features and better debugging capabilities.
#### 4a. Update Python Dependencies
**Edit `pyproject.toml`:** update [./code/weather_mcp/pyproject.toml](./code/weather_mcp/pyproject.toml)
#### 4b. Update Inspector Configuration
**Edit `inspector/package.json`:** update [./code/weather_mcp/inspector/package.json](./code/weather_mcp/inspector/package.json)
#### 4c. Update Inspector Dependencies
**Edit `inspector/package-lock.json`:** update [./code/weather_mcp/inspector/package-lock.json](./code/weather_mcp/inspector/package-lock.json)
> **📝 Note:** This file contains extensive dependency definitions. Below is the essential structure - the full content ensures proper dependency resolution.
> **⚡ Full Package Lock:** The complete package-lock.json contains ~3000 lines of dependency definitions. The above shows the key structure - use the provided file for complete dependency resolution.
### Step 5: Configure VS Code Debugging
*Note: Please copy the file in the specified path to replace the corresponding local file*
#### 5a. Update Launch Configuration
**Edit `.vscode/launch.json`:**
```json
{
"version": "0.2.0",
"configurations": [
{
"name": "Attach to Local MCP",
"type": "debugpy",
"request": "attach",
"connect": {
"host": "localhost",
"port": 5678
},
"presentation": {
"hidden": true
},
"internalConsoleOptions": "neverOpen",
"postDebugTask": "Terminate All Tasks"
},
{
"name": "Launch Inspector (Edge)",
"type": "msedge",
"request": "launch",
"url": "http://localhost:6274?timeout=60000&serverUrl=http://localhost:3001/sse#tools",
"cascadeTerminateToConfigurations": [
"Attach to Local MCP"
],
"presentation": {
"hidden": true
},
"internalConsoleOptions": "neverOpen"
},
{
"name": "Launch Inspector (Chrome)",
"type": "chrome",
"request": "launch",
"url": "http://localhost:6274?timeout=60000&serverUrl=http://localhost:3001/sse#tools",
"cascadeTerminateToConfigurations": [
"Attach to Local MCP"
],
"presentation": {
"hidden": true
},
"internalConsoleOptions": "neverOpen"
}
],
"compounds": [
{
"name": "Debug in Agent Builder",
"configurations": [
"Attach to Local MCP"
],
"preLaunchTask": "Open Agent Builder",
},
{
"name": "Debug in Inspector (Edge)",
"configurations": [
"Launch Inspector (Edge)",
"Attach to Local MCP"
],
"preLaunchTask": "Start MCP Inspector",
"stopAll": true
},
{
"name": "Debug in Inspector (Chrome)",
"configurations": [
"Launch Inspector (Chrome)",
"Attach to Local MCP"
],
"preLaunchTask": "Start MCP Inspector",
"stopAll": true
}
]
}
```
**Edit `.vscode/tasks.json`:**
```
{
"version": "2.0.0",
"tasks": [
{
"label": "Start MCP Server",
"type": "shell",
"command": "python -m debugpy --listen 127.0.0.1:5678 src/__init__.py sse",
"isBackground": true,
"options": {
"cwd": "${workspaceFolder}",
"env": {
"PORT": "3001"
}
},
"problemMatcher": {
"pattern": [
{
"regexp": "^.*$",
"file": 0,
"location": 1,
"message": 2
}
],
"background": {
"activeOnStart": true,
"beginsPattern": ".*",
"endsPattern": "Application startup complete|running"
}
}
},
{
"label": "Start MCP Inspector",
"type": "shell",
"command": "npm run dev:inspector",
"isBackground": true,
"options": {
"cwd": "${workspaceFolder}/inspector",
"env": {
"CLIENT_PORT": "6274",
"SERVER_PORT": "6277",
}
},
"problemMatcher": {
"pattern": [
{
"regexp": "^.*$",
"file": 0,
"location": 1,
"message": 2
}
],
"background": {
"activeOnStart": true,
"beginsPattern": "Starting MCP inspector",
"endsPattern": "Proxy server listening on port"
}
},
"dependsOn": [
"Start MCP Server"
]
},
{
"label": "Open Agent Builder",
"type": "shell",
"command": "echo ${input:openAgentBuilder}",
"presentation": {
"reveal": "never"
},
"dependsOn": [
"Start MCP Server"
],
},
{
"label": "Terminate All Tasks",
"command": "echo ${input:terminate}",
"type": "shell",
"problemMatcher": []
}
],
"inputs": [
{
"id": "openAgentBuilder",
"type": "command",
"command": "ai-mlstudio.agentBuilder",
"args": {
"initialMCPs": [ "local-server-weather_mcp" ],
"triggeredFrom": "vsc-tasks"
}
},
{
"id": "terminate",
"type": "command",
"command": "workbench.action.tasks.terminate",
"args": "terminateAll"
}
]
}
```
---
## 🚀 Running and Testing Your MCP Server
### Step 6: Install Dependencies
After making the configuration changes, run the following commands:
**Install Python dependencies:**
```bash
uv sync
```
**Install Inspector dependencies:**
```bash
cd inspector
npm install
```
### Step 7: Debug with Agent Builder
1. **Press F5** or use the **"Debug in Agent Builder"** configuration
2. **Select the compound configuration** from the debug panel
3. **Wait for the server to start** and Agent Builder to open
4. **Test your weather MCP server** with natural language queries
Input prompt like this
SYSTEM_PROMPT
```
You are my weather assistant
```
USER_PROMPT
```
How's the weather like in Seattle
```
![Agent Builder Debug Result](../../images/10-StreamliningAIWorkflowsBuildingAnMCPServerWithAIToolkit/lab3/Result.png)
### Step 8: Debug with MCP Inspector
1. **Use the "Debug in Inspector"** configuration (Edge or Chrome)
2. **Open the Inspector interface** at `http://localhost:6274`
3. **Explore the interactive testing environment:**
- View available tools
- Test tool execution
- Monitor network requests
- Debug server responses
![MCP Inspector Interface](../../images/10-StreamliningAIWorkflowsBuildingAnMCPServerWithAIToolkit/lab3/Inspector.png)
---
## 🎯 Key Learning Outcomes
By completing this lab, you have:
- [x] **Created a custom MCP server** using Microsoft Foundry Toolkit templates
- [x] **Upgraded to the latest MCP SDK** (v1.9.3) for enhanced functionality
- [x] **Configured professional debugging workflows** for both Agent Builder and Inspector
- [x] **Set up the MCP Inspector** for interactive server testing
- [x] **Mastered VS Code debugging configurations** for MCP development
## 🔧 Advanced Features Explored
| Feature | Description | Use Case |
|---------|-------------|----------|
| **MCP Python SDK v1.9.3** | Latest protocol implementation | Modern server development |
| **MCP Inspector 0.14.0** | Interactive debugging tool | Real-time server testing |
| **VS Code Debugging** | Integrated development environment | Professional debugging workflow |
| **Agent Builder Integration** | Direct Microsoft Foundry Toolkit connection | End-to-end agent testing |
## 📚 Additional Resources
- [MCP Python SDK Documentation](https://modelcontextprotocol.io/docs/sdk/python)
- [Microsoft Foundry Toolkit Extension Guide](https://code.visualstudio.com/docs/ai/ai-toolkit)
- [VS Code Debugging Documentation](https://code.visualstudio.com/docs/editor/debugging)
- [Model Context Protocol Specification](https://modelcontextprotocol.io/docs/concepts/architecture)
---
**🎉 Congratulations!** You've successfully completed Lab 3 and can now create, debug, and deploy custom MCP servers using professional development workflows.
### 🔜 Continue to Next Module
Ready to apply your MCP skills to a real-world development workflow? Continue to **[Module 4: Practical MCP Development - Custom GitHub Clone Server](../lab4/README.md)** where you'll:
- Build a production-ready MCP server that automates GitHub repository operations
- Implement GitHub repository cloning functionality via MCP
- Integrate custom MCP servers with VS Code and GitHub Copilot Agent Mode
- Test and deploy custom MCP servers in production environments
- Learn practical workflow automation for developers