set-teamsfx-env does not expand variables

[jmservera]

Describe the bug
I'm using a script to gather the current user principal to send it to the bicep template like this:

  - uses: script
    name: set environment variables
    with:
      run: $AZURE_PRINCIPAL_ID=(az ad signed-in-user show --query id -o tsv);
        echo "::set-teamsfx-env
        AZURE_PRINCIPAL_ID=${AZURE_PRINCIPAL_ID}"

When I run it I can see in the output the correct ID:

*  Executing task: $AZURE_PRINCIPAL_ID=(az ad signed-in-user show --query id -o tsv); echo $AZURE_PRINCIPAL_ID; echo "::set-teamsfx-env AZURE_PRINCIPAL_ID=${AZURE_PRINCIPAL_ID}" 

::set-teamsfx-env
AZURE_PRINCIPAL_ID=ee******-****-****-****-********46e9
 *  Terminal will be reused by tasks, press any key to close it. 

But then, in the .env.dev file, the unexpanded value is stored:

AZURE_PRINCIPAL_ID=${AZURE_PRINCIPAL_ID}

To Reproduce
Steps to reproduce the behavior:

1. Write a script
2. Store a value inside a script variable (ex: $VAR="value")
3. Use echo "::set-teamsfx-env ..." to write the variable to the environment
4. See the unexpanded variable in the .env.dev file

Expected behavior
Write expanded value into the .env file

VS Code Extension Information (please complete the following information):

• OS: Windows
• Version 6.4.2

CLI Information (please complete the following information):

• OS: Windows
• Version [e.g. 22]

Additional context

Script is running on powershell

[m365-agent-toolkit-assistant]

👋 Hi @jmservera,

Thank you for reporting this issue! We want to let you know that:

⏱️ Our team will personally review your issue
🎯 You can expect a response within 2 business days

✨ This is an AI-generated initial response
🤖 AI-Generated Preliminary Analysis:

This is a known issue: when using ::set-teamsfx-env from a PowerShell script (in Microsoft 365 Agents Toolkit/Teams Toolkit), the value sometimes stays unexpanded (e.g., ${AZURE_PRINCIPAL_ID}) in .env.dev. This happens because PowerShell variable interpolation (${VAR}) in double quotes does not work as expected with Teams Toolkit's script runner. Also, the toolkit’s parser for ::set-teamsfx-env can be strict about whitespace and quoting.

Workarounds:

1. Use plain variables in PowerShell:

   $AZURE_PRINCIPAL_ID = az ad signed-in-user show --query id -o tsv
   Write-Host "::set-teamsfx-env AZURE_PRINCIPAL_ID=$AZURE_PRINCIPAL_ID"

2. Avoid ${VAR} syntax. Use $VAR for PowerShell, not ${VAR} (that's Bash):

   run: |
     $AZURE_PRINCIPAL_ID = az ad signed-in-user show --query id -o tsv
     Write-Host "::set-teamsfx-env AZURE_PRINCIPAL_ID=$AZURE_PRINCIPAL_ID"
   shell: pwsh

3. Quoting Issue: Avoid " and ' around the value, as the toolkit parser may only capture the first word if spaces are present.

References:

• Toolkit script parser quoting issue

Let me know if this doesn't resolve it, or provide more logs/environment info for deeper troubleshooting.

✨We'd love your feedback! Please take a moment to fill out our survey.

---

Note: This is an automated first response generated by AI. A human team member will review your issue and provide a more detailed response soon. We appreciate your patience!

[jmservera]

👋 Hi @jmservera,

Thank you for reporting this issue! We want to let you know that:

⏱️ Our team will personally review your issue 🎯 You can expect a response within 2 business days

✨ This is an AI-generated initial response 🤖 AI-Generated Preliminary Analysis:

This is a known issue: when using ::set-teamsfx-env from a PowerShell script (in Microsoft 365 Agents Toolkit/Teams Toolkit), the value sometimes stays unexpanded (e.g., ${AZURE_PRINCIPAL_ID}) in .env.dev. This happens because PowerShell variable interpolation (${VAR}) in double quotes does not work as expected with Teams Toolkit's script runner. Also, the toolkit’s parser for ::set-teamsfx-env can be strict about whitespace and quoting.

Workarounds:

1. Use plain variables in PowerShell:
   $AZURE_PRINCIPAL_ID = az ad signed-in-user show --query id -o tsv
   Write-Host "::set-teamsfx-env AZURE_PRINCIPAL_ID=$AZURE_PRINCIPAL_ID"
2. Avoid ${VAR} syntax. Use $VAR for PowerShell, not ${VAR} (that's Bash):
   run: |
   $AZURE_PRINCIPAL_ID = az ad signed-in-user show --query id -o tsv
   Write-Host "::set-teamsfx-env AZURE_PRINCIPAL_ID=$AZURE_PRINCIPAL_ID"
   shell: pwsh
3. Quoting Issue: Avoid " and ' around the value, as the toolkit parser may only capture the first word if spaces are present.

References:

• Toolkit script parser quoting issue

Let me know if this doesn't resolve it, or provide more logs/environment info for deeper troubleshooting.

✨_We'd love your feedback! Please take a moment to fill out our_ survey.

Note: This is an automated first response generated by AI. A human team member will review your issue and provide a more detailed response soon. We appreciate your patience!

I've tried multiple combinations, including this one, but I've copy pasted it just in case I had any "spacing" issue, but no, it still doesn't work.