How does ERP MCP determine F&O environment?

Hi SalmanAliTMV​ 

If the MCP is connected via OAuth in Copilot Studio, it is environment-scoped, so connects to the Finance and Operations instance in the same Power Platform environment the agent is deployed in, and runs in the signed-in user’s security context.

If connecting from a non environment-scoped AI tool, for example foundry, the connection is made via service principle, and the environment scope is defined in the connection. For this type of connection, the users security context is ignored, so security roles need to be assigned to the Service Principle via a mapped user, in the Entra ID Applications form with Finance and Operations.

https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/copilot/mcp/mcp-security

Thanks

Anthony