fix: improve Azure provider config handling and GPT-5.4 reasoning variants (#8566)

* fix: pass resourceName to Azure provider from env or config

The azure custom loader was returning empty options, causing the
@ai-sdk/azure SDK to fail with 'Azure OpenAI resource name setting is
missing' when AZURE_RESOURCE_NAME is set in the environment.

Read resourceName from provider config options, AZURE_RESOURCE_NAME, or
AZURE_OPENAI_RESOURCE_NAME env vars (in that order of precedence) and
pass it explicitly to the SDK options, consistent with how
azure-cognitive-services handles its resource name.

Fixes #8273

* fix: also support baseURL for azure provider to avoid resourceName requirement

Users with a full endpoint URL (e.g. https://resource.openai.azure.com/openai/v1)
can now set baseURL in provider options or AZURE_OPENAI_ENDPOINT env var.
Per @ai-sdk/azure docs, baseURL takes precedence over resourceName and makes
it optional, fixing the 'resource name setting is missing' error for both
configuration styles.

* fix: add xhigh reasoning effort to Azure provider for GPT-5.4+

Azure variant logic was missing xhigh even though @ai-sdk/openai adds it
for models with release_date >= 2025-12-04. Azure GPT-5.4 now exposes
the same xhigh effort level as OpenAI/Kilo Gateway.

* fix(cli): annotate Azure reasoning changes

---------

Co-authored-by: marius-kilocode <marius@kilocode.ai>

packages/opencode/src/provider/provider.ts

@@ -210,12 +210,27 @@ export namespace Provider {
         options: {},
       }
     },
+    // kilocode_change start
+    "github-copilot-enterprise": async () => {
+      return {
+        autoload: false,
+        async getModel(sdk: any, modelID: string, _options?: Record<string, any>) {
+          if (useLanguageModel(sdk)) return sdk.languageModel(modelID)
+          return shouldUseCopilotResponsesApi(modelID) ? sdk.responses(modelID) : sdk.chat(modelID)
+        },
+        options: {},
+      }
+    },
+    // kilocode_change end
     azure: async (provider) => {
+      // kilocode_change start
+      const url = provider.options?.baseURL ?? Env.get("AZURE_OPENAI_ENDPOINT")
       const resource = iife(() => {
         const name = provider.options?.resourceName
         if (typeof name === "string" && name.trim() !== "") return name
-        return Env.get("AZURE_RESOURCE_NAME")
+        return Env.get("AZURE_RESOURCE_NAME") ?? Env.get("AZURE_OPENAI_RESOURCE_NAME")
       })
+      // kilocode_change end
 
       return {
         autoload: false,
@@ -227,7 +242,11 @@ export namespace Provider {
             return sdk.responses(modelID)
           }
         },
-        options: {},
+        // kilocode_change start
+        options: {
+          ...(url ? { baseURL: url } : resource ? { resourceName: resource } : {}),
+        },
+        // kilocode_change end
         vars(_options) {
           return {
             ...(resource && { AZURE_RESOURCE_NAME: resource }),

packages/opencode/src/provider/transform.ts

@@ -583,6 +583,11 @@ export namespace ProviderTransform {
         if (id.includes("gpt-5-") || id === "gpt-5") {
           azureEfforts.unshift("minimal")
         }
+        // kilocode_change start
+        if (model.release_date >= "2025-12-04") {
+          azureEfforts.push("xhigh")
+        }
+        // kilocode_change end
         return Object.fromEntries(
           azureEfforts.map((effort) => [
             effort,

packages/opencode/test/provider/transform.test.ts

@@ -2321,6 +2321,30 @@ describe("ProviderTransform.variants", () => {
     })
   })
 
+  // kilocode_change start
+  describe("@ai-sdk/azure", () => {
+    test("gpt-5.4 includes xhigh", () => {
+      const model = createMockModel({
+        id: "gpt-5.4",
+        release_date: "2026-03-05",
+        providerID: "azure",
+        api: {
+          id: "gpt-5.4",
+          url: "https://resource.openai.azure.com/openai",
+          npm: "@ai-sdk/azure",
+        },
+      })
+      const result = ProviderTransform.variants(model)
+      expect(Object.keys(result)).toEqual(["low", "medium", "high", "xhigh"])
+      expect(result.xhigh).toEqual({
+        reasoningEffort: "xhigh",
+        reasoningSummary: "auto",
+        include: ["reasoning.encrypted_content"],
+      })
+    })
+  })
+  // kilocode_change end
+
   describe("@ai-sdk/cerebras", () => {
     test("returns WIDELY_SUPPORTED_EFFORTS with reasoningEffort", () => {
       const model = createMockModel({