Create changelog for azd 1.23.16 (#7711)

* Initial plan

* Create changelog for azd 1.23.16 (#7694)

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Co-authored-by: rajeshkamal5050 <11532743+rajeshkamal5050@users.noreply.github.com>

* Fix changelog: remove hard-coded tool names from --fail-on-prompt entry

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* Add PR #7672 (AI model quota preflight check) to changelog

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---------

Co-authored-by: copilot-swe-agent[bot] <198982749+Copilot@users.noreply.github.com>
Co-authored-by: rajeshkamal5050 <11532743+rajeshkamal5050@users.noreply.github.com>
Co-authored-by: Rajesh Kamal <rajeshkamal@microsoft.com>
Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Author: 3 people

cli/azd/CHANGELOG.md

@@ -10,6 +10,20 @@
 
 ### Other Changes
 
+## 1.23.16 (2026-04-14)
+
+### Features Added
+
+- [[#7652]](https://github.com/Azure/azure-dev/pull/7652) Add C#/.NET hook support in `azure.yaml`; hooks pointing to `.cs` files are auto-detected and executed using `dotnet run`, with automatic project discovery and support for single-file scripts on .NET 10+.
+- [[#7685]](https://github.com/Azure/azure-dev/pull/7685) Add `.azdignore` support for `azd init`; template authors can create a `.azdignore` file in the template root to exclude contributor-only files (e.g., `SECURITY.md`, `.github/`) from being copied to consumer projects.
+- [[#7394]](https://github.com/Azure/azure-dev/pull/7394) Add `--fail-on-prompt` global flag that immediately fails with an actionable error when any interactive prompt is encountered; azd automatically enables this when invoked from an AI coding agent. Thanks @spboyer for the contribution!
+- [[#7672]](https://github.com/Azure/azure-dev/pull/7672) Add AI model quota preflight check; `azd provision` now detects Azure Cognitive Services model deployments in the Bicep snapshot and validates quota availability before provisioning, warning on exceeded quota or unrecognized model names.
+
+### Bugs Fixed
+
+- [[#7689]](https://github.com/Azure/azure-dev/pull/7689) Fix service-level hooks referencing shared scripts via relative paths (e.g., `../../hooks/script.ps1`) failing with "hook script path escapes project root"; the containment boundary is now the project root instead of the service directory (regression in 1.23.15).
+- [[#7642]](https://github.com/Azure/azure-dev/pull/7642) Fix arrow keys printing escape sequence characters (`[A`, `[B`, `[C`, `[D`) in the filter text of select and multi-select prompts when running azd in PowerShell.
+
 ## 1.23.15 (2026-04-10)
 
 ### Features Added

cli/azd/pkg/azdext/version.go

@@ -6,4 +6,4 @@ package azdext
 // Version is the semantic version of the azdext SDK package.
 // This value mirrors the CLI version in cli/version.txt and is
 // automatically updated by eng/scripts/Update-CliVersion.ps1.
-const Version = "1.23.15"
+const Version = "1.23.16"

cli/version.txt

@@ -1 +1 @@
-1.23.15
+1.23.16