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Document environment variables comprehensively in environment-variables.md #6652

Description

@spboyer

Summary

The current cli/azd/docs/environment-variables.md file only documents a subset of the environment variables used by azd. Many important variables are undocumented and should be added.

Current State

The file documents approximately 12 variables including tool path overrides and some configuration options.

Requested Updates

Update the documentation to include all environment variables used by azd, organized into logical sections:

  • Core Azure Variables - Variables like AZURE_ENV_NAME, AZURE_LOCATION, AZURE_SUBSCRIPTION_ID, etc.
  • Debug Variables - AZD_DEBUG_* variables for troubleshooting
  • Extension Variables - Variables for configuring azd extensions
  • Telemetry & Tracing - Variables for telemetry configuration
  • CI/CD Variables - Variables used in pipeline scenarios
  • Tool Configuration - Tool path overrides and runtime configuration

Tasks

  • Search the codebase for all environment variable usage (os.Getenv, os.LookupEnv, and constant definitions)
  • Organize variables into logical sections
  • Add descriptions and usage examples for each variable
  • Document which variables are for user configuration vs internal/debug use
  • Update cli/azd/docs/environment-variables.md with the comprehensive list
  • Update AGENTS.md Copilot instructions to include guidance on keeping the environment variables documentation up-to-date when adding or modifying environment variable usage

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