diff --git a/cli/azd/extensions/azure.ai.agents/AGENTS.md b/cli/azd/extensions/azure.ai.agents/AGENTS.md
index 444bc04a663..20b8f13215f 100644
--- a/cli/azd/extensions/azure.ai.agents/AGENTS.md
+++ b/cli/azd/extensions/azure.ai.agents/AGENTS.md
@@ -120,6 +120,16 @@ Define new codes in `internal/exterrors/codes.go`.
 - describe the specific failure, not the general category
 - keep them stable once introduced
 
+## Release preparation
+
+When bumping the extension version for a patch release, update **only** these files:
+
+- `version.txt` — new semver string
+- `extension.yaml` — `version:` field
+- `CHANGELOG.md` — new release section at the top
+
+**Do NOT update `cli/azd/extensions/registry.json`.** The registry entry (checksums, artifact URLs) is generated automatically by CI after the release build produces the binaries. Editing it manually by hand will result in wrong or placeholder checksums that break installation.
+
 ## Other extension conventions
 
 - Use modern Go 1.26 patterns where they help readability
diff --git a/cli/azd/extensions/azure.ai.agents/CHANGELOG.md b/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
index d2ec8ea5981..cd2e7999bdd 100644
--- a/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
+++ b/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Release History
 
+## 0.1.17-preview (2026-03-20)
+
+- [[#7214]](https://github.com/Azure/azure-dev/pull/7214) Add ASCII art banner with Foundry branding and version info displayed at extension startup.
+- [[#7217]](https://github.com/Azure/azure-dev/pull/7217) Update container settings to use discrete CPU and memory options, and remove min/max replicas prompts.
+
 ## 0.1.16-preview (2026-03-18)
 
 - [[#7141]](https://github.com/Azure/azure-dev/pull/7141) Add `azd ai agent files` command group with `upload`, `download`, `list`, and `remove` subcommands for managing session-scoped files on hosted agent sandboxes.
diff --git a/cli/azd/extensions/azure.ai.agents/extension.yaml b/cli/azd/extensions/azure.ai.agents/extension.yaml
index 023fe8e4b0e..70c06c093e3 100644
--- a/cli/azd/extensions/azure.ai.agents/extension.yaml
+++ b/cli/azd/extensions/azure.ai.agents/extension.yaml
@@ -5,7 +5,7 @@ displayName: Foundry agents (Preview)
 description: Ship agents with Microsoft Foundry from your terminal. (Preview)
 usage: azd ai agent <command> [options]
 # NOTE: Make sure version.txt is in sync with this version.
-version: 0.1.16-preview
+version: 0.1.17-preview
 requiredAzdVersion: ">1.23.6"
 language: go
 capabilities:
diff --git a/cli/azd/extensions/azure.ai.agents/version.txt b/cli/azd/extensions/azure.ai.agents/version.txt
index 42ab1a87a26..76226a944ee 100644
--- a/cli/azd/extensions/azure.ai.agents/version.txt
+++ b/cli/azd/extensions/azure.ai.agents/version.txt
@@ -1 +1 @@
-0.1.16-preview
+0.1.17-preview