[Bug]: MCP authentication with Claude

Please select the area the issue is related to

Gateway

Please select the aspect the issue is related to

Aspect/API (API backends, definitions, contracts, interfaces, OpenAPI)

Description

Description

I am trying to secure and MCP using AI GW and consume it through Claude. The expectation is , when I access it through claude, I should be prompted to authenticate through my KM (Asgardeo). Please note that, since this is user authentication, I expect cluade to launch browser and bring me to Asgardeo.

However I am redirected to a GW to authenticate, despite I have configured correct onfigurations. Below is the URL I am redirected to. I have exposed the AI GW through ngrok and below url is pointing to GW instead of KM

https://654f-2600-100c-b054-2e81-1547-9547-27b0-2fa2.ngrok-free.app/authorize?response_type=code&client_id=VQXbAfue5KFia9csYMaZc0z5tP4a&redirect_uri=https%3A%2F%2Fclaude.ai%2Fapi%2Fmcp%2Fauth_callback&code_challenge=7F8qq5--g24zFpJyxQPQhxAyiRd2kgku9rBo9sivk1E&code_challenge_method=S256&state=l1uE5Oy9xiqf4FYkADTMwTfbBmZTvO2nLwpyqoPWzII

If I inspect, the url given as resource metadata, it has a localhost url depsite correct configs in config.toml.

Bearer resource_metadata="https://localhost:8443/default/orderstatusmcpserver/.well-known/oauth-protected-resource", error="invalid_token", error_description="Authentication failed"

When I visit https://localhost:8443/default/orderstatusmcpserver/.well-known/oauth-protected-resource, this is what I see

{"resource":"https://localhost:8443/default/orderstatusmcpserver/mcp","authorization_servers":["https://api.asgardeo.io/t/wealthadv/oauth2/token"]}

MCP service I used (you can use the same to reproudce the issue, this is the original mcp without authentication)
https://b51050bd-6f0e-466b-9a5a-a1de3d2c35d9-dev.e1-us-east-azure.choreoapis.dev/default/orderstatusmcp/v1.0/mcp

Steps to Reproduce

Given above

Severity Level of the Issue

Severity/Major (Important functionality is broken. Should be prioritized. Doesn't need immediate attention)

Environment Details (with versions)

API GW 1.1.0