## Third-party MCP server shows "Connected" in the app but its tools are miss...
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## Third-party MCP server shows "Connected" in the app but its tools are missing from CLI sessions
After signing in to a third-party OAuth MCP server (Atlassian, `https://mcp.atlassian.com/v1/mcp`) through the app, it shows a green **"Connected"** badge, but none of its tools are available to the agent in the sessions the app spawns. The first-party GitHub MCP server works fine. Restarting the app, re-enabling the server, re-signing in, and updating the app don't help.
### Steps to reproduce
1. In the Copilot app, add the Atlassian MCP server (`https://mcp.atlassian.com/v1/mcp`) and complete OAuth sign-in — it shows a green "Connected" badge.
2. Open any session and ask the agent to list its tools, or to use a Jira/Confluence tool.
3. No `atlassian-*` tools are available to the agent.
4. The session log (`~/.copilot/logs/process-*.log`) shows: `Server atlassian requires authentication, initiating OAuth flow` then `OAuth required for atlassian with no cached tokens; marking as needs-auth`.
### Expected behavior
Once the app shows a third-party MCP server as "Connected," its tools should be available to the agent in spawned sessions, just like the first-party GitHub server.
### Root cause / context
- The green badge reflects the app's own daemon MCP connection, authenticated with tokens in Windows Credential Manager (service `copilot-mcp-oauth`). Each spawned session is a separate MCP client using host-delegated OAuth: for first-party GitHub the app returns a token, but for third-party servers it cancels the host-token hand-back and only reconnects its own daemon so the badge goes green. The session token store is ephemeral, so it can't fall back to the cached tokens on disk. Net: sessions never get third-party credentials and mark the server needs-auth.
- Evidence the tokens are valid: injecting the app's token as a static `Authorization: Bearer` header on the atlassian entry in `~/.copilot/mcp-config.json` makes sessions connect and load all 31 tools. That static header isn't a real fix — the access token expires in a few hours and rotates.
- Suggested fix: bridge third-party MCP OAuth tokens to spawned sessions the same way the first-party GitHub token is handed off (or let sessions read the persistent `copilot-mcp-oauth` store).
### Environment
Windows 11 Pro (10.0.26200), x86_64; app 1.0.20; bundled CLI 1.0.70.
---
| Field | Value |
| --- | --- |
| App version | 1.0.20 |
| OS | Windows 10.0.26200 |
| Theme | GitHub |
| Path | /chat |
| Tenure | Week 4 |
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