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Fix azd x watch looping on .git file changes.

Update readmes

Fixes #6412

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Pull request overview

This PR fixes the azd x watch command looping issue caused by .git file changes and updates documentation for extension development workflows.

Key changes:

  • Adds .git to the ignored folders list in the watch command to prevent infinite rebuild loops
  • Adds local development instructions to microsoft.azd.extensions/README.md
  • Removes outdated troubleshooting section from azure.ai.agents/README.md
  • Removes obsolete build-orig.sh script

Reviewed changes

Copilot reviewed 4 out of 4 changed files in this pull request and generated 1 comment.

File Description
cli/azd/extensions/microsoft.azd.extensions/internal/cmd/watch.go Adds .git to ignored folders to fix watch loop issue
cli/azd/extensions/microsoft.azd.extensions/README.md Adds local development workflow documentation
cli/azd/extensions/azure.ai.agents/README.md Removes outdated registry.json troubleshooting section
cli/azd/extensions/microsoft.azd.extensions/build-orig.sh Removes obsolete build script

@weikanglim weikanglim merged commit 4425eb0 into Azure:main Dec 19, 2025
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azd x watch infinite looping on .git changes

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