error executing step command 'init -t Azure-Samples/azd-ai-starter-basic --environment <env name>': environment already initialized to <env name>

Ran azd ai agent init in an existing directory that already includes an agent.yaml:

v0.1.20-preview
Visit the docs at https://aka.ms/azd-ai-agent-docs

? An existing agent manifest was found at "agent.manifest.yaml". Use it?: Yes
Let's get your project initialized.

Initializing an app to run on Azure (azd init)

WARNING: The current directory is not empty.
Initializing an app in this directory may overwrite existing files.

? Continue initializing an app in 'C:\Users\johmil\Projects\hosted-agents-vnext-private-preview\samples\python\agentserver-invocations\echo-agent-streaming'? Yes
WARNING: The following files are present both locally and in the template:
* README.md
? What would you like to do with these files? Keep my existing files unchanged

ERROR: failed to initialize project: rpc error: code = Internal desc = failed to run workflow: error executing step command 'init -t Azure-Samples/azd-ai-starter-basic --environment echo-agent-streaming-dev': environment already initialized to echo-agent-streaming-dev