diff --git a/cli/azd/extensions/azure.ai.agents/go.mod b/cli/azd/extensions/azure.ai.agents/go.mod
index 71f94343c91..bfad84820b0 100644
--- a/cli/azd/extensions/azure.ai.agents/go.mod
+++ b/cli/azd/extensions/azure.ai.agents/go.mod
@@ -12,7 +12,7 @@ require (
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.3.0-beta.3
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/resources/armresources v1.2.0
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/resources/armsubscriptions v1.3.0
-	github.com/azure/azure-dev/cli/azd v1.23.14
+	github.com/azure/azure-dev/cli/azd v1.24.3
 	github.com/braydonk/yaml v0.9.0
 	github.com/drone/envsubst v1.0.3
 	github.com/fatih/color v1.18.0
diff --git a/cli/azd/extensions/azure.ai.agents/go.sum b/cli/azd/extensions/azure.ai.agents/go.sum
index 098ea504f0a..2d1a8679e86 100644
--- a/cli/azd/extensions/azure.ai.agents/go.sum
+++ b/cli/azd/extensions/azure.ai.agents/go.sum
@@ -19,8 +19,6 @@ github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/authorization/armauthoriza
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/authorization/armauthorization/v3 v3.0.0-beta.2/go.mod h1:jVRrRDLCOuif95HDYC23ADTMlvahB7tMdl519m9Iyjc=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/cognitiveservices/armcognitiveservices/v2 v2.0.0 h1:pxphC/uRZKNHNPbZ0duDDgKkefju2F03OkG5xF6byHQ=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/cognitiveservices/armcognitiveservices/v2 v2.0.0/go.mod h1:twcwRey+l1znKBL5TEzYiZMtiVkWfM7Pq8a9vY04xYc=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.2.0 h1:DWlwvVV5r/Wy1561nZ3wrpI1/vDIBRY/Wd1HWaRBZWA=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.2.0/go.mod h1:E7ltexgRDmeJ0fJWv0D/HLwY2xbDdN+uv+X2uZtOx3w=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.3.0-beta.3 h1:4qfc7os3wRQcl+ImfeH9z0abWJzuV9IGcN1B9olmPTU=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.3.0-beta.3/go.mod h1:NlNAngH4e++mzPTN0+1EEvyUmwFmR91u/MQUVV230Z4=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/internal/v2 v2.0.0 h1:PTFGRSlMKCQelWwxUyYVEUqseBJVemLyqWJjvMyt0do=
@@ -61,8 +59,8 @@ github.com/aymanbagabas/go-udiff v0.2.0 h1:TK0fH4MteXUDspT88n8CKzvK0X9O2xu9yQjWp
 github.com/aymanbagabas/go-udiff v0.2.0/go.mod h1:RE4Ex0qsGkTAJoQdQQCA0uG+nAzJO/pI/QwceO5fgrA=
 github.com/aymerick/douceur v0.2.0 h1:Mv+mAeH1Q+n9Fr+oyamOlAkUNPWPlA8PPGR0QAaYuPk=
 github.com/aymerick/douceur v0.2.0/go.mod h1:wlT5vV2O3h55X9m7iVYN0TBM0NH/MmbLnd30/FjWUq4=
-github.com/azure/azure-dev/cli/azd v1.23.14 h1:yfmEPu3T+FqFuHhHHX9gEc+yflAu0k1aDOkN00HlFzo=
-github.com/azure/azure-dev/cli/azd v1.23.14/go.mod h1:mS/n9XZcwRrTaDcFxWFfgcsmB6AuuTNarB2IDCS5QzI=
+github.com/azure/azure-dev/cli/azd v1.24.3 h1:r2kEr2YYLu4ImKo6nR/WjhHg/1SliN1uwmAVqnM8t3o=
+github.com/azure/azure-dev/cli/azd v1.24.3/go.mod h1:YANepMw36aWA8/mQyXau6JCAG84oK0ZgfvLF8rN5asU=
 github.com/bahlo/generic-list-go v0.2.0 h1:5sz/EEAK+ls5wF+NeqDpk5+iNdMDXrh3z3nPnH1Wvgk=
 github.com/bahlo/generic-list-go v0.2.0/go.mod h1:2KvAjgMlE5NNynlg/5iLrrCCZ2+5xWbdbCW3pNTGyYg=
 github.com/benbjohnson/clock v1.3.5 h1:VvXlSJBzZpA/zum6Sj74hxwYI2DIxRWuNIoXAzHZz5o=
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/extension_context.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/extension_context.go
new file mode 100644
index 00000000000..93dd4d56487
--- /dev/null
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/extension_context.go
@@ -0,0 +1,18 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package cmd
+
+import "github.com/azure/azure-dev/cli/azd/pkg/azdext"
+
+// ensureExtensionContext returns a non-nil [azdext.ExtensionContext] so command
+// constructors can be safely invoked from tests with a nil receiver. The SDK's
+// [azdext.NewExtensionRootCommand] populates the real context (and its env-var
+// fallback) before any leaf RunE runs, so tests that don't exercise RunE can
+// safely pass nil here.
+func ensureExtensionContext(extCtx *azdext.ExtensionContext) *azdext.ExtensionContext {
+	if extCtx == nil {
+		return &azdext.ExtensionContext{}
+	}
+	return extCtx
+}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/files.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/files.go
index 5706630ec32..1830db2ee08 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/files.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/files.go
@@ -24,7 +24,9 @@ type filesFlags struct {
 	session   string // optional: explicit session ID override
 }
 
-func newFilesCommand() *cobra.Command {
+func newFilesCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
+	extCtx = ensureExtensionContext(extCtx)
+
 	cmd := &cobra.Command{
 		Use:   "files",
 		Short: "Manage files in a hosted agent session.",
@@ -37,26 +39,14 @@ Agent details (name, endpoint) are automatically resolved from the
 azd environment. Use --agent-name to select a specific agent when the project
 has multiple azure.ai.agent services. The session ID is automatically resolved
 from the last invoke session, or can be overridden with --session-id.`,
-		PersistentPreRunE: func(cmd *cobra.Command, args []string) error {
-			// Chain with root's PersistentPreRunE (root sets NoPrompt).
-			// Note: cmd.Parent() would return the "files" command itself when
-			// a subcommand runs, causing infinite recursion.
-			if root := cmd.Root(); root != nil && root.PersistentPreRunE != nil {
-				if err := root.PersistentPreRunE(cmd, args); err != nil {
-					return err
-				}
-			}
-
-			return nil
-		},
 	}
 
-	cmd.AddCommand(newFilesUploadCommand())
-	cmd.AddCommand(newFilesDownloadCommand())
-	cmd.AddCommand(newFilesListCommand())
-	cmd.AddCommand(newFilesRemoveCommand())
-	cmd.AddCommand(newFilesMkdirCommand())
-	cmd.AddCommand(newFilesStatCommand())
+	cmd.AddCommand(newFilesUploadCommand(extCtx))
+	cmd.AddCommand(newFilesDownloadCommand(extCtx))
+	cmd.AddCommand(newFilesListCommand(extCtx))
+	cmd.AddCommand(newFilesRemoveCommand(extCtx))
+	cmd.AddCommand(newFilesMkdirCommand(extCtx))
+	cmd.AddCommand(newFilesStatCommand(extCtx))
 
 	return cmd
 }
@@ -74,14 +64,14 @@ type filesContext struct {
 }
 
 // resolveFilesContext resolves agent details and session from the azd environment.
-func resolveFilesContext(ctx context.Context, flags *filesFlags) (*filesContext, error) {
+func resolveFilesContext(ctx context.Context, flags *filesFlags, noPrompt bool) (*filesContext, error) {
 	azdClient, err := azdext.NewAzdClient()
 	if err != nil {
 		return nil, fmt.Errorf("failed to create azd client: %w", err)
 	}
 	defer azdClient.Close()
 
-	info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.agentName, rootFlags.NoPrompt)
+	info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.agentName, noPrompt)
 	if err != nil {
 		return nil, err
 	}
@@ -137,8 +127,9 @@ type FilesUploadAction struct {
 	sessionID string
 }
 
-func newFilesUploadCommand() *cobra.Command {
+func newFilesUploadCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesUploadFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "upload [file]",
@@ -161,8 +152,6 @@ Agent details are automatically resolved from the azd environment.`,
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			if len(args) > 0 && flags.file == "" {
 				flags.file = args[0]
@@ -174,7 +163,7 @@ Agent details are automatically resolved from the azd environment.`,
 				)
 			}
 
-			fc, err := resolveFilesContext(ctx, &flags.filesFlags)
+			fc, err := resolveFilesContext(ctx, &flags.filesFlags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -246,8 +235,9 @@ type FilesDownloadAction struct {
 	sessionID string
 }
 
-func newFilesDownloadCommand() *cobra.Command {
+func newFilesDownloadCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesDownloadFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "download [file]",
@@ -270,8 +260,6 @@ Agent details are automatically resolved from the azd environment.`,
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			if len(args) > 0 && flags.file == "" {
 				flags.file = args[0]
@@ -283,7 +271,7 @@ Agent details are automatically resolved from the azd environment.`,
 				)
 			}
 
-			fc, err := resolveFilesContext(ctx, &flags.filesFlags)
+			fc, err := resolveFilesContext(ctx, &flags.filesFlags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -359,8 +347,9 @@ type FilesListAction struct {
 	remotePath string
 }
 
-func newFilesListCommand() *cobra.Command {
+func newFilesListCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesListFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:     "list [remote-path]",
@@ -385,11 +374,11 @@ Agent details are automatically resolved from the azd environment.`,
   azd ai agent files list --session-id <session-id>`,
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
-			fc, err := resolveFilesContext(ctx, &flags.filesFlags)
+			fc, err := resolveFilesContext(ctx, &flags.filesFlags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -411,7 +400,11 @@ Agent details are automatically resolved from the azd environment.`,
 	}
 
 	addFilesFlags(cmd, &flags.filesFlags)
-	cmd.Flags().StringVar(&flags.output, "output", "json", "Output format (json or table)")
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 
 	return cmd
 }
@@ -486,9 +479,10 @@ type FilesRemoveAction struct {
 	remotePath string
 }
 
-func newFilesRemoveCommand() *cobra.Command {
+func newFilesRemoveCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesRemoveFlags{}
 	var filePath string
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:     "delete [file]",
@@ -511,8 +505,6 @@ Agent details are automatically resolved from the azd environment.`,
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			if len(args) > 0 && filePath == "" {
 				filePath = args[0]
@@ -524,7 +516,7 @@ Agent details are automatically resolved from the azd environment.`,
 				)
 			}
 
-			fc, err := resolveFilesContext(ctx, &flags.filesFlags)
+			fc, err := resolveFilesContext(ctx, &flags.filesFlags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -579,9 +571,10 @@ type FilesMkdirAction struct {
 	remotePath string
 }
 
-func newFilesMkdirCommand() *cobra.Command {
+func newFilesMkdirCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesFlags{}
 	var dirPath string
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "mkdir [dir]",
@@ -600,8 +593,6 @@ Agent details are automatically resolved from the azd environment.`,
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			if len(args) > 0 && dirPath == "" {
 				dirPath = args[0]
@@ -613,7 +604,7 @@ Agent details are automatically resolved from the azd environment.`,
 				)
 			}
 
-			fc, err := resolveFilesContext(ctx, flags)
+			fc, err := resolveFilesContext(ctx, flags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -671,8 +662,9 @@ type FilesStatAction struct {
 	remotePath string
 }
 
-func newFilesStatCommand() *cobra.Command {
+func newFilesStatCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &filesStatFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "stat <remote-path>",
@@ -692,11 +684,11 @@ Agent details are automatically resolved from the azd environment.`,
   azd ai agent files stat /data/output.csv --session-id <session-id>`,
 		Args: cobra.ExactArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
-			fc, err := resolveFilesContext(ctx, &flags.filesFlags)
+			fc, err := resolveFilesContext(ctx, &flags.filesFlags, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -713,7 +705,11 @@ Agent details are automatically resolved from the azd environment.`,
 	}
 
 	addFilesFlags(cmd, &flags.filesFlags)
-	cmd.Flags().StringVarP(&flags.output, "output", "o", "json", "Output format (json or table)")
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 
 	return cmd
 }
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/files_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/files_test.go
index ea28f362211..124e87d205e 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/files_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/files_test.go
@@ -8,31 +8,12 @@ import (
 
 	"azureaiagent/internal/pkg/agents/agent_api"
 
-	"github.com/spf13/cobra"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
-func TestFilesCommand_PersistentPreRunE_NoRecursion(t *testing.T) {
-	// Regression: PersistentPreRunE previously used cmd.Parent() which returned
-	// the "files" command itself when a subcommand ran, causing infinite recursion
-	// (stack overflow). The fix uses cmd.Root() to chain to the root command.
-	root := NewRootCommand()
-
-	// Override the list subcommand's RunE so it doesn't need a real environment.
-	filesCmd, _, _ := root.Find([]string{"files"})
-	require.NotNil(t, filesCmd)
-	for _, sub := range filesCmd.Commands() {
-		sub.RunE = func(cmd *cobra.Command, args []string) error { return nil }
-	}
-
-	root.SetArgs([]string{"files", "list"})
-	// If the bug is present this will stack-overflow instead of returning.
-	_ = root.Execute()
-}
-
 func TestFilesCommand_HasSubcommands(t *testing.T) {
-	cmd := newFilesCommand()
+	cmd := newFilesCommand(nil)
 
 	subcommands := cmd.Commands()
 	names := make([]string, len(subcommands))
@@ -47,7 +28,7 @@ func TestFilesCommand_HasSubcommands(t *testing.T) {
 }
 
 func TestFilesUploadCommand_MissingFile(t *testing.T) {
-	cmd := newFilesUploadCommand()
+	cmd := newFilesUploadCommand(nil)
 
 	// Missing required --file flag
 	cmd.SetArgs([]string{})
@@ -57,7 +38,7 @@ func TestFilesUploadCommand_MissingFile(t *testing.T) {
 }
 
 func TestFilesUploadCommand_HasFlags(t *testing.T) {
-	cmd := newFilesUploadCommand()
+	cmd := newFilesUploadCommand(nil)
 
 	for _, name := range []string{"file", "target-path", "agent-name", "session-id"} {
 		f := cmd.Flags().Lookup(name)
@@ -67,7 +48,7 @@ func TestFilesUploadCommand_HasFlags(t *testing.T) {
 }
 
 func TestFilesDownloadCommand_MissingFile(t *testing.T) {
-	cmd := newFilesDownloadCommand()
+	cmd := newFilesDownloadCommand(nil)
 
 	// Missing required --file flag
 	cmd.SetArgs([]string{})
@@ -77,7 +58,7 @@ func TestFilesDownloadCommand_MissingFile(t *testing.T) {
 }
 
 func TestFilesDownloadCommand_HasFlags(t *testing.T) {
-	cmd := newFilesDownloadCommand()
+	cmd := newFilesDownloadCommand(nil)
 
 	for _, name := range []string{"file", "target-path", "agent-name", "session-id"} {
 		f := cmd.Flags().Lookup(name)
@@ -87,21 +68,19 @@ func TestFilesDownloadCommand_HasFlags(t *testing.T) {
 }
 
 func TestFilesListCommand_DefaultOutputFormat(t *testing.T) {
-	cmd := newFilesListCommand()
-
-	output, _ := cmd.Flags().GetString("output")
-	assert.Equal(t, "json", output)
+	cmd := newFilesListCommand(nil)
+	assertOutputFlagOptions(t, cmd, "json", []string{"json", "table"})
 }
 
 func TestFilesListCommand_OptionalRemotePath(t *testing.T) {
-	cmd := newFilesListCommand()
+	cmd := newFilesListCommand(nil)
 
 	// Verify the command accepts 0 or 1 args
 	assert.NotNil(t, cmd.Args)
 }
 
 func TestFilesDeleteCommand_MissingFile(t *testing.T) {
-	cmd := newFilesRemoveCommand()
+	cmd := newFilesRemoveCommand(nil)
 
 	// Missing required --file flag
 	cmd.SetArgs([]string{})
@@ -111,7 +90,7 @@ func TestFilesDeleteCommand_MissingFile(t *testing.T) {
 }
 
 func TestFilesDeleteCommand_HasFlags(t *testing.T) {
-	cmd := newFilesRemoveCommand()
+	cmd := newFilesRemoveCommand(nil)
 
 	for _, name := range []string{"file", "recursive", "agent-name", "session-id"} {
 		f := cmd.Flags().Lookup(name)
@@ -123,7 +102,7 @@ func TestFilesDeleteCommand_HasFlags(t *testing.T) {
 }
 
 func TestFilesMkdirCommand_MissingDir(t *testing.T) {
-	cmd := newFilesMkdirCommand()
+	cmd := newFilesMkdirCommand(nil)
 
 	// Missing required --dir flag
 	cmd.SetArgs([]string{})
@@ -133,7 +112,7 @@ func TestFilesMkdirCommand_MissingDir(t *testing.T) {
 }
 
 func TestFilesMkdirCommand_HasFlags(t *testing.T) {
-	cmd := newFilesMkdirCommand()
+	cmd := newFilesMkdirCommand(nil)
 
 	for _, name := range []string{"dir", "agent-name", "session-id"} {
 		f := cmd.Flags().Lookup(name)
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/flag_options_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/flag_options_test.go
new file mode 100644
index 00000000000..7d1abb3d95d
--- /dev/null
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/flag_options_test.go
@@ -0,0 +1,32 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package cmd
+
+import (
+	"encoding/json"
+	"testing"
+
+	"github.com/spf13/cobra"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+// assertOutputFlagOptions verifies that cmd has the per-command --output flag
+// configuration registered via [azdext.RegisterFlagOptions]. The SDK records
+// these as cobra annotations rather than as a redeclared flag value, so we
+// inspect cmd.Annotations directly rather than reading from cmd.Flags().
+func assertOutputFlagOptions(t *testing.T, cmd *cobra.Command, wantDefault string, wantAllowed []string) {
+	t.Helper()
+	require.NotNil(t, cmd)
+	require.NotNil(t, cmd.Annotations, "cmd.Annotations should be set by RegisterFlagOptions")
+
+	got := cmd.Annotations["azdext.default/output"]
+	assert.Equal(t, wantDefault, got, "default for --output")
+
+	allowedJSON := cmd.Annotations["azdext.allowed-values/output"]
+	require.NotEmpty(t, allowedJSON, "allowed values for --output should be set")
+	var allowed []string
+	require.NoError(t, json.Unmarshal([]byte(allowedJSON), &allowed))
+	assert.Equal(t, wantAllowed, allowed, "allowed values for --output")
+}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
index a2216edc13f..d5838ff6769 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
@@ -43,7 +43,6 @@ import (
 )
 
 type initFlags struct {
-	*rootFlagsDefinition
 	projectResourceId string
 	modelDeployment   string
 	model             string
@@ -51,6 +50,9 @@ type initFlags struct {
 	src               string
 	env               string
 	protocols         []string
+	// noPrompt is resolved from the extension context (--no-prompt / AZD_NO_PROMPT)
+	// and is not registered as a CLI flag on the init command itself.
+	noPrompt bool
 }
 
 // AiProjectResourceConfig represents the configuration for an AI project resource
@@ -276,16 +278,20 @@ func runInitFromManifest(
 	return action.Run(ctx)
 }
 
-func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
-	flags := &initFlags{
-		rootFlagsDefinition: rootFlags,
-	}
+func newInitCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
+	flags := &initFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "init [<path>] [-m <manifest pointer>] [--src <source directory>]",
 		Short: fmt.Sprintf("Initialize a new AI agent project. %s", color.YellowString("(Preview)")),
 		Args:  cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.noPrompt = extCtx.NoPrompt
+			if flags.env == "" {
+				flags.env = extCtx.Environment
+			}
+
 			printBanner(cmd.OutOrStdout())
 
 			// Resolve optional positional argument into --manifest or --src
@@ -297,9 +303,6 @@ func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
 
 			ctx := azdext.WithAccessToken(cmd.Context())
 
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
-
 			azdClient, err := azdext.NewAzdClient()
 			if err != nil {
 				return exterrors.Internal(exterrors.CodeAzdClientFailed, fmt.Sprintf("failed to create azd client: %s", err))
@@ -338,8 +341,8 @@ func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
 					return fmt.Errorf("checking for existing manifest: %w", detectErr)
 				}
 				if detected != "" {
-					useExisting := flags.NoPrompt
-					if !flags.NoPrompt {
+					useExisting := flags.noPrompt
+					if !flags.noPrompt {
 						confirmResp, promptErr := azdClient.Prompt().Confirm(ctx, &azdext.ConfirmRequest{
 							Options: &azdext.ConfirmOptions{
 								Message: fmt.Sprintf(
@@ -392,7 +395,7 @@ func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
 				switch initMode {
 				case initModeTemplate:
 					// User chose to start from a template - select one
-					selectedTemplate, err := promptAgentTemplate(ctx, azdClient, httpClient, flags.NoPrompt)
+					selectedTemplate, err := promptAgentTemplate(ctx, azdClient, httpClient, flags.noPrompt)
 					if err != nil {
 						if exterrors.IsCancellation(err) {
 							return exterrors.Cancelled("initialization was cancelled")
@@ -514,8 +517,6 @@ func newInitCommand(rootFlags *rootFlagsDefinition) *cobra.Command {
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "",
 		"Directory to download the agent definition to (defaults to 'src/<agent-id>')")
 
-	cmd.Flags().StringVar(&flags.env, "environment", "", "The name of the azd environment to use.")
-
 	cmd.Flags().StringSliceVar(&flags.protocols, "protocol", nil,
 		"Protocols supported by the agent (e.g., 'responses', 'invocations'). Can be specified multiple times.")
 
@@ -594,7 +595,7 @@ func (a *InitAction) Run(ctx context.Context) error {
 
 		// Prompt for manifest parameters (e.g. tool credentials) after project selection
 		agentManifest, err = agent_yaml.ProcessManifestParameters(
-			ctx, agentManifest, a.azdClient, a.flags.NoPrompt,
+			ctx, agentManifest, a.azdClient, a.flags.noPrompt,
 		)
 		if err != nil {
 			return fmt.Errorf("failed to process manifest parameters: %w", err)
@@ -1557,7 +1558,7 @@ func (a *InitAction) addToProject(ctx context.Context, targetDir string, agentMa
 	}
 
 	// Detect startup command from the project source directory
-	startupCmd, err := resolveStartupCommandForInit(ctx, a.azdClient, a.projectConfig.Path, targetDir, a.flags.NoPrompt)
+	startupCmd, err := resolveStartupCommandForInit(ctx, a.azdClient, a.projectConfig.Path, targetDir, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
@@ -1642,7 +1643,7 @@ func (a *InitAction) resolveCollisions(
 		return "", "", err
 	}
 
-	if a.flags.NoPrompt {
+	if a.flags.noPrompt {
 		log.Printf(
 			"Collision on %q; using %q", agentId, suggestion,
 		)
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_copy.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_copy.go
index b76d1080842..e9e153a7b85 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_copy.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_copy.go
@@ -60,7 +60,7 @@ func (a *InitAction) validateLocalContainerAgentCopy(ctx context.Context, manife
 		return nil
 	}
 
-	if a.flags.NoPrompt {
+	if a.flags.noPrompt {
 		return nil
 	}
 
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
index 3fa02facc29..c6d14c9b4a5 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
@@ -81,7 +81,7 @@ func (a *InitFromCodeAction) Run(ctx context.Context) error {
 	// doesn't complete the full agent configuration only to have it discarded.
 	agentYamlPath := filepath.Join(srcDir, "agent.yaml")
 	if _, statErr := os.Stat(agentYamlPath); statErr == nil {
-		if a.flags.NoPrompt {
+		if a.flags.noPrompt {
 			return exterrors.Cancelled("agent.yaml already exists; overwrite declined in no-prompt mode")
 		}
 
@@ -469,7 +469,7 @@ func (a *InitFromCodeAction) createDefinitionFromLocalAgent(ctx context.Context)
 	agentKind := agent_yaml.AgentKindHosted
 
 	// Prompt user for supported protocols
-	protocols, err := promptProtocols(ctx, a.azdClient.Prompt(), a.flags.NoPrompt, a.flags.protocols)
+	protocols, err := promptProtocols(ctx, a.azdClient.Prompt(), a.flags.noPrompt, a.flags.protocols)
 	if err != nil {
 		return nil, err
 	}
@@ -806,7 +806,7 @@ func (a *InitFromCodeAction) addToProject(ctx context.Context, targetDir string,
 	agentConfig.Deployments = a.deploymentDetails
 
 	// Detect startup command from the project source directory
-	startupCmd, err := resolveStartupCommandForInit(ctx, a.azdClient, a.projectConfig.Path, targetDir, a.flags.NoPrompt)
+	startupCmd, err := resolveStartupCommandForInit(ctx, a.azdClient, a.projectConfig.Path, targetDir, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_models.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_models.go
index d54c9d27c0d..b9bedd09429 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_models.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_models.go
@@ -116,7 +116,7 @@ func (a *InitAction) selectFromList(
 		defaultStr = defaultOpt
 	}
 
-	if a.flags.NoPrompt {
+	if a.flags.noPrompt {
 		fmt.Printf("No prompt mode enabled, selecting default %s: %s\n", property, defaultStr)
 		return defaultStr, nil
 	}
@@ -356,7 +356,7 @@ func (a *modelSelector) getModelDetails(ctx context.Context, modelName string) (
 		currentLocation = resolvedLocation
 	}
 
-	if a.flags.NoPrompt {
+	if a.flags.noPrompt {
 		fmt.Println("No prompt mode enabled, automatically selecting a model deployment based on availability and quota...")
 		return resolveModelDeployment(ctx, a.azdClient, a.azureContext, model, currentLocation)
 	}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_test.go
index e29cc11cc13..a9b81c8b117 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_test.go
@@ -1215,7 +1215,7 @@ func TestApplyPositionalArg_ConflictWithManifestFlag(t *testing.T) {
 		t.Fatalf("failed to create test manifest: %v", err)
 	}
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
 	// Simulate the user having set --manifest explicitly
@@ -1245,7 +1245,7 @@ func TestApplyPositionalArg_ConflictWithSrcFlag(t *testing.T) {
 
 	tmpDir := t.TempDir()
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "", "")
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
@@ -1279,7 +1279,7 @@ func TestApplyPositionalArg_SetsManifestPointer(t *testing.T) {
 		t.Fatalf("failed to create test manifest: %v", err)
 	}
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "", "")
@@ -1297,7 +1297,7 @@ func TestApplyPositionalArg_SetsSrcDir(t *testing.T) {
 
 	tmpDir := t.TempDir()
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "", "")
@@ -1315,7 +1315,7 @@ func TestApplyPositionalArg_NonExistentDirSetsSrc(t *testing.T) {
 
 	newDir := filepath.Join(t.TempDir(), "new-project")
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "", "")
@@ -1333,7 +1333,7 @@ func TestApplyPositionalArg_NonExistentYamlSetsManifest(t *testing.T) {
 
 	yamlPath := filepath.Join(t.TempDir(), "agent.yaml")
 
-	flags := &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}}
+	flags := &initFlags{}
 	cmd := &cobra.Command{}
 	cmd.Flags().StringVarP(&flags.manifestPointer, "manifest", "m", "", "")
 	cmd.Flags().StringVarP(&flags.src, "src", "s", "", "")
@@ -1621,7 +1621,7 @@ func TestResolveCollisions_NoCollision(t *testing.T) {
 	t.Chdir(tmpDir)
 
 	action := &InitAction{
-		flags: &initFlags{rootFlagsDefinition: &rootFlagsDefinition{}},
+		flags: &initFlags{},
 	}
 
 	dir, svc, err := action.resolveCollisions(
@@ -1698,9 +1698,7 @@ func TestResolveCollisions_NoPrompt(t *testing.T) {
 			action := &InitAction{
 				projectConfig: projectCfg,
 				flags: &initFlags{
-					rootFlagsDefinition: &rootFlagsDefinition{
-						NoPrompt: true,
-					},
+					noPrompt: true,
 				},
 			}
 
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke.go
index 7599056a000..9f65bffe856 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke.go
@@ -41,11 +41,13 @@ type invokeFlags struct {
 }
 
 type InvokeAction struct {
-	flags *invokeFlags
+	flags    *invokeFlags
+	noPrompt bool
 }
 
-func newInvokeCommand() *cobra.Command {
+func newInvokeCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &invokeFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "invoke [name] [message]",
@@ -89,8 +91,6 @@ session automatically. Pass --new-session to force a reset.`,
 		Args: cobra.RangeArgs(0, 2),
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			switch len(args) {
 			case 2:
@@ -144,7 +144,10 @@ session automatically. Pass --new-session to force a reset.`,
 				}
 			}
 
-			action := &InvokeAction{flags: flags}
+			action := &InvokeAction{
+				flags:    flags,
+				noPrompt: extCtx.NoPrompt,
+			}
 			return action.Run(ctx)
 		},
 	}
@@ -202,11 +205,11 @@ func (a *InvokeAction) resolveProtocol(
 
 	if a.flags.local {
 		return resolveAgentProtocol(
-			ctx, azdClient, "", rootFlags.NoPrompt,
+			ctx, azdClient, "", a.noPrompt,
 		)
 	}
 	return resolveAgentProtocol(
-		ctx, azdClient, a.flags.name, rootFlags.NoPrompt,
+		ctx, azdClient, a.flags.name, a.noPrompt,
 	)
 }
 
@@ -257,7 +260,7 @@ func (a *InvokeAction) responsesLocal(ctx context.Context) error {
 		defer azdClient.Close()
 	}
 
-	agentKey := resolveLocalAgentKey(ctx, azdClient, a.flags.name, rootFlags.NoPrompt)
+	agentKey := resolveLocalAgentKey(ctx, azdClient, a.flags.name, a.noPrompt)
 
 	// Resolve local session and conversation IDs (always generated locally).
 	var sid, convID string
@@ -350,7 +353,7 @@ func (a *InvokeAction) responsesRemote(ctx context.Context) error {
 	var agentEndpoint string
 
 	// Auto-resolve agent name and version from azure.yaml
-	if info, err := resolveAgentServiceFromProject(ctx, azdClient, name, rootFlags.NoPrompt); err == nil {
+	if info, err := resolveAgentServiceFromProject(ctx, azdClient, name, a.noPrompt); err == nil {
 		if name == "" && info.AgentName != "" {
 			name = info.AgentName
 		}
@@ -495,7 +498,7 @@ func (a *InvokeAction) invocationsLocal(ctx context.Context) error {
 		defer azdClient.Close()
 	}
 
-	agentKey := resolveLocalAgentKey(ctx, azdClient, a.flags.name, rootFlags.NoPrompt)
+	agentKey := resolveLocalAgentKey(ctx, azdClient, a.flags.name, a.noPrompt)
 
 	// Resolve local session ID (generated locally, not server-assigned).
 	var sid string
@@ -562,7 +565,7 @@ func (a *InvokeAction) invocationsRemote(ctx context.Context) error {
 	var agentEndpoint string
 
 	// Auto-resolve agent name from azure.yaml / azd environment
-	if info, err := resolveAgentServiceFromProject(ctx, azdClient, name, rootFlags.NoPrompt); err == nil {
+	if info, err := resolveAgentServiceFromProject(ctx, azdClient, name, a.noPrompt); err == nil {
 		if name == "" && info.AgentName != "" {
 			name = info.AgentName
 		}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke_test.go
index 38695480a99..b5bdda30971 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/invoke_test.go
@@ -322,7 +322,7 @@ func TestProtocolFlagValidation(t *testing.T) {
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
 			t.Parallel()
-			cmd := newInvokeCommand()
+			cmd := newInvokeCommand(nil)
 			cmd.SetArgs(tt.args)
 			err := cmd.Execute()
 			if tt.wantErr {
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/listen.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/listen.go
index b40a2eecbed..045bf26fa71 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/listen.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/listen.go
@@ -24,7 +24,6 @@ import (
 	"github.com/azure/azure-dev/cli/azd/pkg/azdext"
 	"github.com/braydonk/yaml"
 	"github.com/drone/envsubst"
-	"github.com/spf13/cobra"
 	"google.golang.org/protobuf/types/known/structpb"
 )
 
@@ -32,55 +31,33 @@ import (
 // digit, used to sanitize environment variable key segments.
 var nonAlphanumEnvKeyRe = regexp.MustCompile(`[^A-Z0-9]+`)
 
-func newListenCommand() *cobra.Command {
-	return &cobra.Command{
-		Use:    "listen",
-		Short:  "Starts the extension and listens for events.",
-		Hidden: true,
-		RunE: func(cmd *cobra.Command, args []string) error {
-			// Create a new context that includes the AZD access token.
-			ctx := azdext.WithAccessToken(cmd.Context())
-
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
-
-			// Create a new AZD client.
-			azdClient, err := azdext.NewAzdClient()
-			if err != nil {
-				return fmt.Errorf("failed to create azd client: %w", err)
-			}
-			defer azdClient.Close()
-
-			// IMPORTANT: service target name here must match the name used in the extension manifest.
-			host := azdext.NewExtensionHost(azdClient).
-				WithServiceTarget(AiAgentHost, func() azdext.ServiceTargetProvider {
-					return project.NewAgentServiceTargetProvider(azdClient)
-				}).
-				WithProjectEventHandler("preprovision", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return preprovisionHandler(ctx, azdClient, args)
-				}).
-				WithProjectEventHandler("postprovision", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return postprovisionHandler(ctx, azdClient, args)
-				}).
-				WithProjectEventHandler("predeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return predeployHandler(ctx, azdClient, args)
-				}).
-				WithProjectEventHandler("postdeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return postdeployHandler(ctx, azdClient, args)
-				}).
-				WithProjectEventHandler("postdown", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
-					return postdownHandler(ctx, azdClient, args)
-				})
-
-			// Start listening for events
-			// This is a blocking call and will not return until the server connection is closed.
-			if err := host.Run(ctx); err != nil {
-				return fmt.Errorf("failed to run extension: %w", err)
-			}
-
-			return nil
-		},
-	}
+// configureExtensionHost wires the service target and event handlers on the
+// supplied [azdext.ExtensionHost]. It is passed to [azdext.NewListenCommand]
+// from the root command, which handles the surrounding setup (access token,
+// AzdClient creation, and host.Run lifecycle).
+func configureExtensionHost(host *azdext.ExtensionHost) {
+	azdClient := host.Client()
+
+	// IMPORTANT: service target name here must match the name used in the extension manifest.
+	host.
+		WithServiceTarget(AiAgentHost, func() azdext.ServiceTargetProvider {
+			return project.NewAgentServiceTargetProvider(azdClient)
+		}).
+		WithProjectEventHandler("preprovision", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
+			return preprovisionHandler(ctx, azdClient, args)
+		}).
+		WithProjectEventHandler("postprovision", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
+			return postprovisionHandler(ctx, azdClient, args)
+		}).
+		WithProjectEventHandler("predeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
+			return predeployHandler(ctx, azdClient, args)
+		}).
+		WithProjectEventHandler("postdeploy", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
+			return postdeployHandler(ctx, azdClient, args)
+		}).
+		WithProjectEventHandler("postdown", func(ctx context.Context, args *azdext.ProjectEventArgs) error {
+			return postdownHandler(ctx, azdClient, args)
+		})
 }
 
 func preprovisionHandler(ctx context.Context, azdClient *azdext.AzdClient, args *azdext.ProjectEventArgs) error {
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/metadata.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/metadata.go
deleted file mode 100644
index f83bb769460..00000000000
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/metadata.go
+++ /dev/null
@@ -1,40 +0,0 @@
-// Copyright (c) Microsoft Corporation. All rights reserved.
-// Licensed under the MIT License.
-
-package cmd
-
-import (
-	"encoding/json"
-	"fmt"
-
-	"github.com/azure/azure-dev/cli/azd/pkg/azdext"
-	"github.com/spf13/cobra"
-)
-
-func newMetadataCommand() *cobra.Command {
-	return &cobra.Command{
-		Use:    "metadata",
-		Short:  "Generate extension metadata including command structure and configuration schemas",
-		Hidden: true,
-		RunE: func(cmd *cobra.Command, args []string) error {
-			// Get root command for metadata generation
-			rootCmd := cmd.Root()
-
-			// Generate extension metadata with commands and configuration
-			metadata := azdext.GenerateExtensionMetadata(
-				"1.0",             // schema version
-				"azure.ai.agents", // extension id
-				rootCmd,
-			)
-
-			// Output as JSON
-			jsonBytes, err := json.MarshalIndent(metadata, "", "  ")
-			if err != nil {
-				return fmt.Errorf("failed to marshal metadata: %w", err)
-			}
-
-			fmt.Println(string(jsonBytes))
-			return nil
-		},
-	}
-}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor.go
index 79f1177b0fa..422abec77b4 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor.go
@@ -31,8 +31,9 @@ type MonitorAction struct {
 	flags *monitorFlags
 }
 
-func newMonitorCommand() *cobra.Command {
+func newMonitorCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &monitorFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "monitor [name]",
@@ -73,8 +74,6 @@ configuration and the current azd environment. Optionally specify the service na
 			}
 
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			azdClient, err := azdext.NewAzdClient()
 			if err != nil {
@@ -82,7 +81,7 @@ configuration and the current azd environment. Optionally specify the service na
 			}
 			defer azdClient.Close()
 
-			info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.name, rootFlags.NoPrompt)
+			info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.name, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor_test.go
index 7a0e96a7303..c7d9a4f2d08 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/monitor_test.go
@@ -14,19 +14,19 @@ import (
 )
 
 func TestMonitorCommand_AcceptsPositionalArg(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 	err := cmd.Args(cmd, []string{"my-agent"})
 	assert.NoError(t, err)
 }
 
 func TestMonitorCommand_AcceptsNoArgs(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 	err := cmd.Args(cmd, []string{})
 	assert.NoError(t, err)
 }
 
 func TestMonitorCommand_RejectsMultipleArgs(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 	err := cmd.Args(cmd, []string{"svc1", "svc2"})
 	assert.Error(t, err)
 }
@@ -88,7 +88,7 @@ func TestValidateMonitorFlags_InvalidType(t *testing.T) {
 }
 
 func TestMonitorCommand_DefaultValues(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 
 	// Verify default flag values
 	tail, _ := cmd.Flags().GetInt("tail")
@@ -105,7 +105,7 @@ func TestMonitorCommand_DefaultValues(t *testing.T) {
 }
 
 func TestMonitorCommand_SessionFlagRegistered(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 
 	// The --session-id / -s flag must be defined
 	f := cmd.Flags().Lookup("session-id")
@@ -114,7 +114,7 @@ func TestMonitorCommand_SessionFlagRegistered(t *testing.T) {
 }
 
 func TestMonitorCommand_FollowFlagRegistered(t *testing.T) {
-	cmd := newMonitorCommand()
+	cmd := newMonitorCommand(nil)
 
 	f := cmd.Flags().Lookup("follow")
 	require.NotNil(t, f, "--follow flag should be registered")
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
index da0a79bd842..d65d1c0b8e5 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
@@ -5,30 +5,35 @@ package cmd
 
 import (
 	"fmt"
-	"os"
-	"strconv"
 
+	"github.com/azure/azure-dev/cli/azd/pkg/azdext"
 	"github.com/fatih/color"
 	"github.com/spf13/cobra"
 )
 
-type rootFlagsDefinition struct {
-	Debug    bool
-	NoPrompt bool
-}
-
-// Enable access to the global command flags
-var rootFlags rootFlagsDefinition
-
 func NewRootCommand() *cobra.Command {
-	rootCmd := &cobra.Command{
-		Use:           "agent <command> [options]",
-		Short:         fmt.Sprintf("Ship agents with Microsoft Foundry from your terminal. %s", color.YellowString("(Preview)")),
-		SilenceUsage:  true,
-		SilenceErrors: true,
-		CompletionOptions: cobra.CompletionOptions{
-			DisableDefaultCmd: true,
-		},
+	rootCmd, extCtx := azdext.NewExtensionRootCommand(azdext.ExtensionCommandOptions{
+		Name:  "agent",
+		Use:   "agent <command> [options]",
+		Short: fmt.Sprintf("Ship agents with Microsoft Foundry from your terminal. %s", color.YellowString("(Preview)")),
+	})
+	rootCmd.SilenceUsage = true
+	rootCmd.SilenceErrors = true
+	rootCmd.CompletionOptions.DisableDefaultCmd = true
+
+	// Configure debug logging once on the root command so every subcommand
+	// inherits it (cobra.EnableTraverseRunHooks, set by the SDK, ensures this
+	// runs alongside any subcommand pre-runs). The cleanup func is intentionally
+	// discarded: log writes are unbuffered and the OS closes the file on exit.
+	sdkPreRun := rootCmd.PersistentPreRunE
+	rootCmd.PersistentPreRunE = func(cmd *cobra.Command, args []string) error {
+		if sdkPreRun != nil {
+			if err := sdkPreRun(cmd, args); err != nil {
+				return err
+			}
+		}
+		setupDebugLogging(cmd.Flags())
+		return nil
 	}
 
 	// Show the ASCII art banner above the default help text for the root command
@@ -41,45 +46,20 @@ func NewRootCommand() *cobra.Command {
 	})
 
 	rootCmd.SetHelpCommand(&cobra.Command{Hidden: true})
-	rootCmd.PersistentFlags().BoolVar(
-		&rootFlags.Debug,
-		"debug",
-		false,
-		"Enable debug mode",
-	)
-
-	// Adds support for `--no-prompt` global flag in azd
-	// Without this the extension command will error when the flag is provided
-	rootCmd.PersistentFlags().BoolVar(
-		&rootFlags.NoPrompt,
-		"no-prompt",
-		false,
-		"Runs without prompts. Uses existing values; "+
-			"fails if any required value or decision cannot be resolved automatically.",
-	)
-
-	rootCmd.PersistentPreRunE = func(cmd *cobra.Command, args []string) error {
-		if !cmd.Flags().Changed("no-prompt") {
-			if v := os.Getenv("AZD_NO_PROMPT"); v != "" {
-				if b, err := strconv.ParseBool(v); err == nil {
-					rootFlags.NoPrompt = b
-				}
-			}
-		}
-		return nil
-	}
 
-	rootCmd.AddCommand(newListenCommand())
+	rootCmd.AddCommand(azdext.NewListenCommand(configureExtensionHost))
 	rootCmd.AddCommand(newVersionCommand())
-	rootCmd.AddCommand(newInitCommand(&rootFlags))
-	rootCmd.AddCommand(newRunCommand())
-	rootCmd.AddCommand(newInvokeCommand())
+	rootCmd.AddCommand(newInitCommand(extCtx))
+	rootCmd.AddCommand(newRunCommand(extCtx))
+	rootCmd.AddCommand(newInvokeCommand(extCtx))
 	rootCmd.AddCommand(newMcpCommand())
-	rootCmd.AddCommand(newMetadataCommand())
-	rootCmd.AddCommand(newShowCommand())
-	rootCmd.AddCommand(newMonitorCommand())
-	rootCmd.AddCommand(newFilesCommand())
-	rootCmd.AddCommand(newSessionCommand())
+	rootCmd.AddCommand(azdext.NewMetadataCommand("1.0", "azure.ai.agents", func() *cobra.Command {
+		return rootCmd
+	}))
+	rootCmd.AddCommand(newShowCommand(extCtx))
+	rootCmd.AddCommand(newMonitorCommand(extCtx))
+	rootCmd.AddCommand(newFilesCommand(extCtx))
+	rootCmd.AddCommand(newSessionCommand(extCtx))
 
 	return rootCmd
 }
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/run.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/run.go
index 9648d59a314..ee2ef0b530c 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/run.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/run.go
@@ -26,8 +26,9 @@ type runFlags struct {
 	startCommand string
 }
 
-func newRunCommand() *cobra.Command {
+func newRunCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &runFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "run [name]",
@@ -63,9 +64,7 @@ Use a separate terminal to invoke the running agent:
 				flags.name = args[0]
 			}
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
-			return runRun(ctx, flags)
+			return runRun(ctx, flags, extCtx.NoPrompt)
 		},
 	}
 
@@ -76,7 +75,7 @@ Use a separate terminal to invoke the running agent:
 	return cmd
 }
 
-func runRun(ctx context.Context, flags *runFlags) error {
+func runRun(ctx context.Context, flags *runFlags, noPrompt bool) error {
 	azdClient, err := azdext.NewAzdClient()
 	if err != nil {
 		return fmt.Errorf("failed to create azd client: %w", err)
@@ -84,14 +83,14 @@ func runRun(ctx context.Context, flags *runFlags) error {
 	defer azdClient.Close()
 
 	// Resolve the service source directory and startup command from azure.yaml
-	runCtx, err := resolveServiceRunContext(ctx, azdClient, flags.name, rootFlags.NoPrompt)
+	runCtx, err := resolveServiceRunContext(ctx, azdClient, flags.name, noPrompt)
 	if err != nil {
 		return err
 	}
 	projectDir := runCtx.ProjectDir
 
 	// Clean up stored local session when the agent process exits.
-	localAgentKey := resolveLocalAgentKeyWithPort(ctx, azdClient, runCtx.ServiceName, rootFlags.NoPrompt, flags.port)
+	localAgentKey := resolveLocalAgentKeyWithPort(ctx, azdClient, runCtx.ServiceName, noPrompt, flags.port)
 	defer func() {
 		if err := deleteContextValue(ctx, azdClient, "sessions", localAgentKey); err != nil {
 			log.Printf("run: failed to clear stored local session: %v", err)
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/session.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/session.go
index b3d35c8282e..3b4ebab1472 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/session.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/session.go
@@ -25,10 +25,13 @@ import (
 // sessionFlags holds common flags shared by all session subcommands.
 type sessionFlags struct {
 	agentName string
+	noPrompt  bool
 	output    string
 }
 
-func newSessionCommand() *cobra.Command {
+func newSessionCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
+	extCtx = ensureExtensionContext(extCtx)
+
 	cmd := &cobra.Command{
 		Use:   "sessions",
 		Short: "Manage sessions for a hosted agent endpoint.",
@@ -43,27 +46,10 @@ Use --agent-name to select a specific agent when the project has
 multiple azure.ai.agent services.`,
 	}
 
-	// PersistentPreRunE is set outside the struct literal so the closure
-	// captures the outer cmd variable. When a subcommand runs (e.g.
-	// "sessions create"), Cobra passes the leaf command as the function
-	// parameter. Using cmd.Parent() here reaches the root command;
-	// using the parameter's Parent() would return this session command
-	// itself, causing infinite recursion.
-	cmd.PersistentPreRunE = func(childCmd *cobra.Command, args []string) error {
-		if parent := cmd.Parent(); parent != nil &&
-			parent.PersistentPreRunE != nil {
-			if err := parent.PersistentPreRunE(childCmd, args); err != nil {
-				return err
-			}
-		}
-
-		return nil
-	}
-
-	cmd.AddCommand(newSessionCreateCommand())
-	cmd.AddCommand(newSessionShowCommand())
-	cmd.AddCommand(newSessionDeleteCommand())
-	cmd.AddCommand(newSessionListCommand())
+	cmd.AddCommand(newSessionCreateCommand(extCtx))
+	cmd.AddCommand(newSessionShowCommand(extCtx))
+	cmd.AddCommand(newSessionDeleteCommand(extCtx))
+	cmd.AddCommand(newSessionListCommand(extCtx))
 
 	return cmd
 }
@@ -75,10 +61,6 @@ func addSessionFlags(cmd *cobra.Command, flags *sessionFlags) {
 		"Agent name (matches azure.yaml service name; "+
 			"auto-detected when only one exists)",
 	)
-	cmd.Flags().StringVarP(
-		&flags.output, "output", "o", "json",
-		"Output format (json or table)",
-	)
 }
 
 // sessionContext holds the resolved agent context for session operations.
@@ -91,7 +73,7 @@ type sessionContext struct {
 
 // resolveSessionContext resolves the agent name, version, and project endpoint.
 func resolveSessionContext(
-	ctx context.Context, agentName string,
+	ctx context.Context, agentName string, noPrompt bool,
 ) (*sessionContext, error) {
 	azdClient, err := azdext.NewAzdClient()
 	if err != nil {
@@ -104,7 +86,7 @@ func resolveSessionContext(
 	var agentEndpoint string
 
 	if info, err := resolveAgentServiceFromProject(
-		ctx, azdClient, name, rootFlags.NoPrompt,
+		ctx, azdClient, name, noPrompt,
 	); err == nil {
 		if name == "" && info.AgentName != "" {
 			name = info.AgentName
@@ -150,9 +132,10 @@ type sessionCreateFlags struct {
 	isolationKey string
 }
 
-func newSessionCreateCommand() *cobra.Command {
+func newSessionCreateCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &sessionCreateFlags{}
 	action := &SessionCreateAction{flags: flags}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "create [agent-name] [version] [isolation-key]",
@@ -185,8 +168,10 @@ Positional arguments can be used instead of flags:
   azd ai agent sessions create --session-id my-session`,
 		Args: cobra.MaximumNArgs(3),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.noPrompt = extCtx.NoPrompt
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			setupDebugLogging(cmd.Flags())
 
 			// Positional args fill in missing flags
 			switch len(args) {
@@ -211,6 +196,11 @@ Positional arguments can be used instead of flags:
 	}
 
 	addSessionFlags(cmd, &flags.sessionFlags)
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 	cmd.Flags().StringVar(
 		&flags.sessionID, "session-id", "",
 		"Optional caller-provided session ID "+
@@ -236,7 +226,7 @@ type SessionCreateAction struct {
 }
 
 func (a *SessionCreateAction) Run(ctx context.Context) error {
-	sc, err := resolveSessionContext(ctx, a.flags.agentName)
+	sc, err := resolveSessionContext(ctx, a.flags.agentName, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
@@ -302,9 +292,10 @@ type sessionShowFlags struct {
 	sessionFlags
 }
 
-func newSessionShowCommand() *cobra.Command {
+func newSessionShowCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &sessionShowFlags{}
 	action := &SessionShowAction{flags: flags}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "show <session-id>",
@@ -320,8 +311,10 @@ specified session.`,
   azd ai agent sessions show my-session --output table`,
 		Args: cobra.ExactArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.noPrompt = extCtx.NoPrompt
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			setupDebugLogging(cmd.Flags())
 
 			action.sessionID = args[0]
 			return action.Run(ctx)
@@ -329,6 +322,11 @@ specified session.`,
 	}
 
 	addSessionFlags(cmd, &flags.sessionFlags)
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 
 	return cmd
 }
@@ -340,7 +338,7 @@ type SessionShowAction struct {
 }
 
 func (a *SessionShowAction) Run(ctx context.Context) error {
-	sc, err := resolveSessionContext(ctx, a.flags.agentName)
+	sc, err := resolveSessionContext(ctx, a.flags.agentName, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
@@ -388,9 +386,10 @@ type sessionDeleteFlags struct {
 	isolationKey string
 }
 
-func newSessionDeleteCommand() *cobra.Command {
+func newSessionDeleteCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &sessionDeleteFlags{}
 	action := &SessionDeleteAction{flags: flags}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "delete <session-id>",
@@ -408,8 +407,9 @@ The isolation key is derived from the Entra token by default.`,
   azd ai agent sessions delete my-session --isolation-key sk-abc123`,
 		Args: cobra.ExactArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.noPrompt = extCtx.NoPrompt
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			setupDebugLogging(cmd.Flags())
 
 			action.sessionID = args[0]
 			return action.Run(ctx)
@@ -439,7 +439,7 @@ type SessionDeleteAction struct {
 }
 
 func (a *SessionDeleteAction) Run(ctx context.Context) error {
-	sc, err := resolveSessionContext(ctx, a.flags.agentName)
+	sc, err := resolveSessionContext(ctx, a.flags.agentName, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
@@ -508,9 +508,10 @@ type sessionListFlags struct {
 	paginationToken string
 }
 
-func newSessionListCommand() *cobra.Command {
+func newSessionListCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &sessionListFlags{}
 	action := &SessionListAction{flags: flags}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "list",
@@ -527,8 +528,10 @@ Returns a paged list of sessions with their status, version, and timestamps.`,
   # List in table format
   azd ai agent sessions list --output table`,
 		RunE: func(cmd *cobra.Command, args []string) error {
+			flags.noPrompt = extCtx.NoPrompt
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			setupDebugLogging(cmd.Flags())
 
 			action.limitChanged = cmd.Flags().Changed("limit")
 			return action.Run(ctx)
@@ -536,6 +539,11 @@ Returns a paged list of sessions with their status, version, and timestamps.`,
 	}
 
 	addSessionFlags(cmd, &flags.sessionFlags)
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 	cmd.Flags().Int32Var(
 		&flags.limit, "limit", 0,
 		"Maximum number of sessions to return",
@@ -555,7 +563,7 @@ type SessionListAction struct {
 }
 
 func (a *SessionListAction) Run(ctx context.Context) error {
-	sc, err := resolveSessionContext(ctx, a.flags.agentName)
+	sc, err := resolveSessionContext(ctx, a.flags.agentName, a.flags.noPrompt)
 	if err != nil {
 		return err
 	}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/session_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/session_test.go
index 7f20c2e0a8f..ccb616562ae 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/session_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/session_test.go
@@ -24,7 +24,7 @@ import (
 // ---------------------------------------------------------------------------
 
 func TestSessionCommand_HasSubcommands(t *testing.T) {
-	cmd := newSessionCommand()
+	cmd := newSessionCommand(nil)
 
 	names := make([]string, 0, len(cmd.Commands()))
 	for _, sub := range cmd.Commands() {
@@ -38,7 +38,7 @@ func TestSessionCommand_HasSubcommands(t *testing.T) {
 }
 
 func TestSessionShowCommand_RequiresOneArg(t *testing.T) {
-	cmd := newSessionShowCommand()
+	cmd := newSessionShowCommand(nil)
 
 	assert.NoError(t, cmd.Args(cmd, []string{"my-session"}))
 	assert.Error(t, cmd.Args(cmd, []string{}))
@@ -46,7 +46,7 @@ func TestSessionShowCommand_RequiresOneArg(t *testing.T) {
 }
 
 func TestSessionDeleteCommand_RequiresOneArg(t *testing.T) {
-	cmd := newSessionDeleteCommand()
+	cmd := newSessionDeleteCommand(nil)
 
 	assert.NoError(t, cmd.Args(cmd, []string{"my-session"}))
 	assert.Error(t, cmd.Args(cmd, []string{}))
@@ -54,10 +54,9 @@ func TestSessionDeleteCommand_RequiresOneArg(t *testing.T) {
 }
 
 func TestSessionCreateCommand_DefaultFlags(t *testing.T) {
-	cmd := newSessionCreateCommand()
+	cmd := newSessionCreateCommand(nil)
 
-	output, _ := cmd.Flags().GetString("output")
-	assert.Equal(t, "json", output)
+	assertOutputFlagOptions(t, cmd, "json", []string{"json", "table"})
 
 	sessionID, _ := cmd.Flags().GetString("session-id")
 	assert.Equal(t, "", sessionID)
@@ -70,7 +69,7 @@ func TestSessionCreateCommand_DefaultFlags(t *testing.T) {
 }
 
 func TestSessionCreateCommand_AcceptsPositionalArgs(t *testing.T) {
-	cmd := newSessionCreateCommand()
+	cmd := newSessionCreateCommand(nil)
 
 	assert.NoError(t, cmd.Args(cmd, []string{}))
 	assert.NoError(t, cmd.Args(cmd, []string{"my-agent"}))
@@ -80,10 +79,9 @@ func TestSessionCreateCommand_AcceptsPositionalArgs(t *testing.T) {
 }
 
 func TestSessionListCommand_DefaultFlags(t *testing.T) {
-	cmd := newSessionListCommand()
+	cmd := newSessionListCommand(nil)
 
-	output, _ := cmd.Flags().GetString("output")
-	assert.Equal(t, "json", output)
+	assertOutputFlagOptions(t, cmd, "json", []string{"json", "table"})
 
 	limit, _ := cmd.Flags().GetInt32("limit")
 	assert.Equal(t, int32(0), limit)
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/show.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/show.go
index 4e74061e0ad..2916fe4ab86 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/show.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/show.go
@@ -36,8 +36,9 @@ type ShowAction struct {
 	serviceKey string
 }
 
-func newShowCommand() *cobra.Command {
+func newShowCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
 	flags := &showFlags{}
+	extCtx = ensureExtensionContext(extCtx)
 
 	cmd := &cobra.Command{
 		Use:   "show [name]",
@@ -60,9 +61,9 @@ configuration and the current azd environment. Optionally specify the service na
 			if len(args) > 0 {
 				flags.name = args[0]
 			}
+			flags.output = extCtx.OutputFormat
+
 			ctx := azdext.WithAccessToken(cmd.Context())
-			logCleanup := setupDebugLogging(cmd.Flags())
-			defer logCleanup()
 
 			azdClient, err := azdext.NewAzdClient()
 			if err != nil {
@@ -70,7 +71,7 @@ configuration and the current azd environment. Optionally specify the service na
 			}
 			defer azdClient.Close()
 
-			info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.name, rootFlags.NoPrompt)
+			info, err := resolveAgentServiceFromProject(ctx, azdClient, flags.name, extCtx.NoPrompt)
 			if err != nil {
 				return err
 			}
@@ -113,7 +114,11 @@ configuration and the current azd environment. Optionally specify the service na
 		},
 	}
 
-	cmd.Flags().StringVarP(&flags.output, "output", "o", "json", "Output format (json or table)")
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "table"},
+		Default:       "json",
+	})
 
 	return cmd
 }
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/show_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/show_test.go
index 5a45044cdd7..955d4021331 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/show_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/show_test.go
@@ -14,19 +14,19 @@ import (
 )
 
 func TestShowCommand_AcceptsPositionalArg(t *testing.T) {
-	cmd := newShowCommand()
+	cmd := newShowCommand(nil)
 	err := cmd.Args(cmd, []string{"my-agent"})
 	assert.NoError(t, err)
 }
 
 func TestShowCommand_AcceptsNoArgs(t *testing.T) {
-	cmd := newShowCommand()
+	cmd := newShowCommand(nil)
 	err := cmd.Args(cmd, []string{})
 	assert.NoError(t, err)
 }
 
 func TestShowCommand_RejectsMultipleArgs(t *testing.T) {
-	cmd := newShowCommand()
+	cmd := newShowCommand(nil)
 	err := cmd.Args(cmd, []string{"svc1", "svc2"})
 	assert.Error(t, err)
 }
@@ -67,11 +67,9 @@ func TestNewAgentContext_PartialFlags(t *testing.T) {
 	assert.Contains(t, err.Error(), "both --account-name and --project-name must be provided together")
 }
 
-func TestShowCommand_DefaultOutputFlag(t *testing.T) {
-	cmd := newShowCommand()
-
-	output, _ := cmd.Flags().GetString("output")
-	assert.Equal(t, "json", output)
+func TestShowCommand_DefaultOutputFormat(t *testing.T) {
+	cmd := newShowCommand(nil)
+	assertOutputFlagOptions(t, cmd, "json", []string{"json", "table"})
 }
 
 func TestPrintAgentVersionJSON(t *testing.T) {