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title: Azure MCP Server 3.0 stable release: More tools. More...
description: Azure MCP Server 3.0 is now stable, adding new toolsets for Azure Backup, Resilience Management, SRE Agent, Terraform, Advisor, Monitor, Cosmos DB, IoT Hub,...
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# Azure MCP Server 3.0 stable release: More tools. More possibilities

**[DevBlogs](https://daily.dev/sources/devblogs)** · 10 min read · 1 upvotes · 0 comments

## Summary

Azure MCP Server 3.0 is now stable, adding new toolsets for Azure Backup, Resilience Management, SRE Agent, Terraform, Advisor, Monitor, Cosmos DB, IoT Hub, and more, letting AI agents inspect and act on Azure operational context. The release also introduces security-focused defaults for new resources (disabled shared keys, disabled public networking on new Recovery Services vaults, RootSquash on NFS shares), clearer tool contracts with structured output modes, improved error codes, and startup performance gains of about 39% for targeted CLI invocations. Upgrading from 2.0 or 3.0 previews requires reviewing a detailed changelog covering renamed commands, changed response payload shapes, removed SQL-verb filtering, configuration namespace changes, and new protocol header requirements.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://devblogs.microsoft.com/azure-sdk/azure-mcp-server-3-0-stable-release>

## Questions this post answers

### What breaking changes do I need to handle when upgrading to Azure MCP Server 3.0 from 2.0?

Upgrading to Azure MCP Server 3.0 requires removing obsolete parameters from saved calls and scripts, renaming azmcp resilience to azmcp resiliency, replacing monitor healthmodels entity get with monitor healthmodels list or get, moving configuration settings to the MicrosoftMcp section, and updating code namespaces from Azure.Mcp.Core.* to Microsoft.Mcp.Core.*. VM creation now requires an explicit --image parameter since the Win2019Datacenter and Ubuntu2004 aliases were removed.

_daily.dev helps engineers track breaking changes like these before they hit a shared deployment._

### What is the default VM size when creating virtual machines with Azure MCP Server 3.0?

The default size is Standard_D2s_v5, and an explicit --image parameter is now required for VM and VM Scale Set creation since the Win2019Datacenter and Ubuntu2004 image aliases were removed. Teams should revisit image, sizing, and cost assumptions when upgrading alongside the new resource-creation security defaults.

_Engineers planning infrastructure-as-code changes can follow Azure tooling updates like this on daily.dev._

### What security defaults does Azure MCP Server 3.0 apply when creating new Azure resources?

New Storage accounts disable Shared Key authentication while keeping HTTPS, TLS 1.2, and disabled anonymous blob access; new Event Hubs namespaces disable local authentication; new Recovery Services vaults disable public networking; and new NFS file shares use RootSquash with encryption in transit. These defaults apply only to newly created resources and do not reconfigure existing ones on upgrade.

_daily.dev keeps cloud teams current on secure-by-default changes like these across Azure services._

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---

Tags: [#ai-agents](https://daily.dev/tags/ai-agents), [#github](https://daily.dev/tags/github), [#azure](https://daily.dev/tags/azure), [#mcp](https://daily.dev/tags/mcp), [#terraform](https://daily.dev/tags/terraform)

[View this post on daily.dev](https://daily.dev/posts/azure-mcp-server-3-0-stable-release-more-tools-more-possibilities-ih8uo1vpt)

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