Create changelog for azd 1.23.12

[Copilot]

Prepares the 1.23.12 stable release by updating the version and changelog.

Changes

• cli/version.txt: Bumped from 1.24.0-beta.1 → 1.23.12
• cli/azd/CHANGELOG.md: Added ## 1.23.12 (2026-03-24) with:
  • Bugs Fixed: Revert -e shorthand regression (Revert: Fix env var leak when running extension commands with -e flag (#7035) #7274)
  • Other Changes: Telemetry MapError routing (Route error spans through MapError to reduce UnknownFailure bucket #7241); copilot.session.id PII classification fix (fix copilot.session.id classification #7253)

Original prompt

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This section details on the original issue you should resolve

<issue_title>Create changelog for 1.23.12</issue_title>
<issue_description></issue_description>

Comments on the Issue (you are @copilot in this section)

• Fixes Create changelog for 1.23.12 #7275

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[rajeshkamal5050]

@copilot remove #7232

[Copilot]

@copilot remove #7232

Done — removed #7232 from the 1.23.12 changelog in bdc2704.

[Copilot]

Pull request overview

Prepares the azd 1.23.12 stable release by updating the CLI version and adding the corresponding release notes to the core changelog.

Changes:

• Set cli/version.txt to 1.23.12.
• Add a new ## 1.23.12 (2026-03-24) section to cli/azd/CHANGELOG.md with the key fixes/changes included in this patch.

Reviewed changes

Copilot reviewed 2 out of 2 changed files in this pull request and generated 2 comments.

File	Description
cli/version.txt	Sets the CLI version string to 1.23.12 for the release.
cli/azd/CHANGELOG.md	Adds the 1.23.12 release notes (bug fix + telemetry-related changes).

[Copilot]

cli/version.txt is moving from 1.24.0-beta.1 to 1.23.12, which is a SemVer downgrade. If this PR is intended to merge into main, this will also change CI-produced prerelease builds (e.g., -daily.<BuildId> from eng/scripts/Set-CliVersionInBuild.ps1) to be based on 1.23.12, potentially regressing the daily channel/version ordering. Please confirm this targets the correct release branch, or plan a follow-up bump back to the next beta on main immediately after the 1.23.12 release cut.

Suggested change

	1.23.12
	1.24.0-beta.1

[Copilot]

The #7274 entry explains the -e shorthand conflict, but it doesn’t clearly call out that this revert also backs out the behavior change from #7035 (the 1.23.11 fix for env var leakage when specifying a different environment). Consider adding a brief clause about what user-visible behavior is restored/regressed (e.g., extension -e flags work again, and the earlier -e-related env var isolation fix is reverted) to avoid confusion when reading 1.23.11 vs 1.23.12 notes.

Suggested change

- [[#7274]](https://github.com/Azure/azure-dev/pull/7274) Revert env-flag change from v1.23.11 to fix regression where the `-e` shorthand for `--environment` conflicted with extension commands that use `-e` for their own flags (e.g., `--project-endpoint` in `azure.ai.models` and `azure.ai.finetune`), restoring compatibility with those extensions.

- [[#7274]](https://github.com/Azure/azure-dev/pull/7274) Revert env-flag change from v1.23.11 to fix regression where the `-e` shorthand for `--environment` conflicted with extension commands that use `-e` for their own flags (e.g., `--project-endpoint` in `azure.ai.models` and `azure.ai.finetune`), restoring compatibility with those extensions but also reverting the `#7035` 1.23.11 fix so default environment variables may again leak into extension processes when using `-e` to select a different environment.