fix: prevent agent from deleting user workspace when adding MCP support

plugin/skills/azure-prepare/SKILL.md

@@ -4,7 +4,7 @@ description: "Prepare Azure apps for deployment (infra Bicep/Terraform, azure.ya
 license: MIT
 metadata:
   author: Microsoft
-  version: "1.0.10"
+  version: "1.0.11"
 ---
 
 # Azure Prepare
@@ -35,7 +35,8 @@ Activate this skill when user wants to:
 5. **Validate before deploy** — Invoke azure-validate before azure-deploy
 6. **Confirm Azure context** — Use `ask_user` for subscription and location per [Azure Context](references/azure-context.md)
 7. ❌ **Destructive actions require `ask_user`** — [Global Rules](references/global-rules.md)
-8. **Scope: preparation only** — This skill generates infrastructure code and configuration files. Deployment execution (`azd up`, `azd deploy`, `terraform apply`) is handled by the **azure-deploy** skill, which provides built-in error recovery and deployment verification.
+8. ⛔ **NEVER delete user project or workspace directories** — When adding features to an existing project, MODIFY existing files. `azd init -t <template>` is for NEW projects only; do NOT run `azd init -t` in an existing workspace. Plain `azd init` (without a template argument) may be used in existing workspaces when appropriate. File deletions within a project (e.g., removing build artifacts or temp files) are permitted when appropriate, but NEVER delete the user's project or workspace directory itself. See [Global Rules](references/global-rules.md).
+9. **Scope: preparation only** — This skill generates infrastructure code and configuration files. Deployment execution (`azd up`, `azd deploy`, `terraform apply`) is handled by the **azure-deploy** skill, which provides built-in error recovery and deployment verification.
 
 ---
 

plugin/skills/azure-prepare/references/global-rules.md

@@ -30,6 +30,8 @@ ask_user(
 - Do NOT assume user wants to delete/overwrite
 - Do NOT proceed based on "the user asked to deploy" (deploy ≠ delete old)
 - Do NOT batch destructive actions without individual confirmation
+- ⛔ Do NOT delete user project or workspace directories (e.g., `rm -rf <project-dir>`) even when adding features, converting, or migrating — use MODIFY mode to edit existing files instead. File deletions within a project (e.g., removing build artifacts or temp files) are permitted when appropriate.
+- ⛔ `azd init -t <template>` (and any `azd init` command with a template argument) is for NEW projects only — run it **only** in an empty/new directory. If the user explicitly requests re-initialization of an existing project, create a separate new directory, run the template there, and then migrate changes into the existing project with user-confirmed edits. Never run `azd init -t` directly in a non-empty existing workspace. `azd init` without a template argument may be used in existing workspaces when appropriate.
 
 ---
 

plugin/skills/azure-prepare/references/services/functions/templates/mcp.md

@@ -4,7 +4,19 @@ Templates for hosting MCP (Model Context Protocol) servers on Azure Functions.
 
 **Indicators**: `mcp_tool_trigger`, `MCPTrigger`, `@app.mcp_tool`, project name contains "mcp"
 
-## Standard MCP Templates
+> ⚠️ **Warning: Templates are for NEW projects only.**
+> If the user has an existing Azure Functions project, do NOT use `azd init` — this will overwrite their workspace.
+> For existing projects, use the **recipe approach** instead: [recipes/mcp/](recipes/mcp/README.md).
+> ⛔ **NEVER run `rm -rf` or delete the user's project/workspace directory under any circumstances.** For all other destructive actions (excluding deletion of user workspaces), follow `ask_user` confirmation rules as described in [global-rules.md](../../../global-rules.md).
+
+## When to Use Templates vs. Recipes
+
+| Scenario | Action |
+|----------|--------|
+| **New project** — no existing code | Use `azd init -t` template below |
+| **Existing project** — add MCP support | Use [recipes/mcp/](recipes/mcp/README.md) — modify existing files, do NOT reinitialize |
+
+## Standard MCP Templates (NEW projects only)
 
 | Language | Template |
 |----------|----------|
@@ -13,13 +25,13 @@ Templates for hosting MCP (Model Context Protocol) servers on Azure Functions.
 | C# (.NET) | `azd init -t remote-mcp-functions-dotnet` |
 | Java | `azd init -t remote-mcp-functions-java` |
 
-## MCP + API Management (OAuth)
+## MCP + API Management (OAuth) (NEW projects only)
 
 | Language | Template |
 |----------|----------|
 | Python | `azd init -t remote-mcp-apim-functions-python` |
 
-## Self-Hosted MCP SDK
+## Self-Hosted MCP SDK (NEW projects only)
 
 | Language | Template |
 |----------|----------|

plugin/skills/azure-prepare/references/services/functions/templates/recipes/blob-eventgrid/README.md

@@ -15,7 +15,9 @@ This recipe creates functions that respond to blob creation/deletion events via
 | **Auth** | Managed Identity (UAMI) |
 | **IaC** | ✅ Full template available |
 
-## AZD Templates (Recommended)
+## AZD Templates (NEW projects only)
+
+> ⚠️ **Warning:** Use these templates only for **new projects**. If the user has an existing Azure Functions project, use the **Composition Steps** below to modify existing files instead.
 
 Use these templates directly instead of composing from HTTP base:
 

plugin/skills/azure-prepare/references/services/functions/templates/recipes/sql/README.md

@@ -15,7 +15,9 @@ This recipe creates functions that respond to row changes in Azure SQL Database
 | **Auth** | Entra ID (Managed Identity) |
 | **IaC** | ✅ Full template available |
 
-## AZD Templates (Recommended)
+## AZD Templates (NEW projects only)
+
+> ⚠️ **Warning:** Use these templates only for **new projects**. If the user has an existing Azure Functions project, use the **Composition Steps** below to modify existing files instead.
 
 Use these templates directly instead of composing from HTTP base: