| **Microsoft Entra** | Agent authenticates using either its own identity (*agent identity*) or the shared identity of the Foundry project (*project managed identity*). | Agent identity supports production scenarios, but shared identity should be limited to development. | [Disable key-based authentication](functions-mcp-tutorial.md?tabs=mcp-extension#disable-key-based-authentication) and [configure built-in server authorization and authentication](functions-mcp-tutorial.md?tabs=mcp-extension#enable-built-in-server-authorization-and-authentication). | Project managed (shared) identity |
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