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The o1/o3-mini models need Azure OpenAI API version 2024-12-01-preview or later. The workaround in the thread is a custom HttpClient handler (AzureOverrideHandler) passed to the connector to override the API version (and the maxcompletiontokens limitation). The upstream fix arrived in Azure.AI.OpenAI 2.2.0-beta1, so updating that package (and Semantic Kernel to a version that picks it up) resolves it cleanly. Source: https://github.com/microsoft/semantic-kernel/issues/10201
Source: https://github.com/microsoft/semantic-kernel/issues/10201