Fix critical PR review issues

Fixed high-impact issues from PR #1024 code review:

1. **Boolean conversion bug (schema.py)**
   - Fixed _expand_env_vars returning strings 'true'/'false' instead of booleans
   - Now properly converts boolean-like strings (true/false/1/0/yes/no/on/off) to actual booleans
   - Simplified logic by removing redundant string-to-string conversions
   - Added support for common boolean string variations

2. **Dependency management (pyproject.toml)**
   - Removed pytest from main dependencies (now only in dev dependencies)
   - Moved azure-identity to optional dependencies under new [azure] group
   - Prevents forcing Azure and testing dependencies on all users

3. **Conditional Azure imports (utils.py)**
   - Made azure-identity import conditional in create_azure_credential_token_provider()
   - Raises helpful ImportError with installation instructions if not available
   - Follows lazy-import pattern for optional dependencies

4. **Documentation fix (graphiti_mcp_server.py)**
   - Fixed confusing JSON escaping in add_memory docstring example
   - Changed from triple-backslash escaping to standard JSON string
   - Updated comment to clarify standard JSON escaping is used

Issues verified as already fixed:
- Docker build context (all docker-compose files use context: ..)

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude <noreply@anthropic.com>

mcp_server/pyproject.toml

@@ -8,13 +8,14 @@ dependencies = [
     "mcp>=1.9.4",
     "openai>=1.91.0",
     "graphiti-core[falkordb]>=0.16.0",
-    "azure-identity>=1.21.0",
     "pydantic-settings>=2.0.0",
     "pyyaml>=6.0",
-    "pytest>=8.4.1",
 ]
 
 [project.optional-dependencies]
+azure = [
+    "azure-identity>=1.21.0",
+]
 providers = [
     "google-genai>=1.8.0",
     "anthropic>=0.49.0",

mcp_server/src/config/schema.py

@@ -29,30 +29,24 @@ class YamlSettingsSource(PydanticBaseSettingsSource):
             def replacer(match):
                 var_name = match.group(1)
                 default_value = match.group(3) if match.group(3) is not None else ''
-                result = os.environ.get(var_name, default_value)
+                return os.environ.get(var_name, default_value)
-
-                # Convert string booleans to actual booleans
-                if result.lower() == 'true':
-                    return 'true'  # Keep as string, let Pydantic handle conversion
-                elif result.lower() == 'false':
-                    return 'false'  # Keep as string, let Pydantic handle conversion
-                return result
 
             pattern = r'\$\{([^:}]+)(:([^}]*))?\}'
 
-            # Check if the entire value is a single env var expression with boolean default
+            # Check if the entire value is a single env var expression
             full_match = re.fullmatch(pattern, value)
             if full_match:
                 result = replacer(full_match)
-                # If the result is a boolean string and the whole value was the env var,
+                # Convert boolean-like strings to actual booleans
-                # return the actual boolean
+                if isinstance(result, str):
-                if result == 'true':
+                    lower_result = result.lower().strip()
-                    return True
+                    if lower_result in ('true', '1', 'yes', 'on'):
-                elif result == 'false':
+                        return True
-                    return False
+                    elif lower_result in ('false', '0', 'no', 'off', ''):
+                        return False
                 return result
             else:
-                # Otherwise, do string substitution
+                # Otherwise, do string substitution (keep as strings for partial replacements)
                 return re.sub(pattern, replacer, value)
         elif isinstance(value, dict):
             return {k: self._expand_env_vars(v) for k, v in value.items()}

mcp_server/src/graphiti_mcp_server.py

@@ -286,10 +286,10 @@ async def add_memory(
         )
 
         # Adding structured JSON data
-        # NOTE: episode_body must be a properly escaped JSON string. Note the triple backslashes
+        # NOTE: episode_body should be a JSON string (standard JSON escaping)
         add_memory(
             name="Customer Profile",
-            episode_body="{\\\"company\\\": {\\\"name\\\": \\\"Acme Technologies\\\"}, \\\"products\\\": [{\\\"id\\\": \\\"P001\\\", \\\"name\\\": \\\"CloudSync\\\"}, {\\\"id\\\": \\\"P002\\\", \\\"name\\\": \\\"DataMiner\\\"}]}",
+            episode_body='{"company": {"name": "Acme Technologies"}, "products": [{"id": "P001", "name": "CloudSync"}, {"id": "P002", "name": "DataMiner"}]}',
             source="json",
             source_description="CRM data"
         )

mcp_server/src/utils/utils.py

@@ -2,11 +2,24 @@
 
 from collections.abc import Callable
 
-from azure.identity import DefaultAzureCredential, get_bearer_token_provider
-
 
 def create_azure_credential_token_provider() -> Callable[[], str]:
-    """Create Azure credential token provider for managed identity authentication."""
+    """
+    Create Azure credential token provider for managed identity authentication.
+
+    Requires azure-identity package. Install with: pip install mcp-server[azure]
+
+    Raises:
+        ImportError: If azure-identity package is not installed
+    """
+    try:
+        from azure.identity import DefaultAzureCredential, get_bearer_token_provider
+    except ImportError:
+        raise ImportError(
+            'azure-identity is required for Azure AD authentication. '
+            'Install it with: pip install mcp-server[azure]'
+        ) from None
+
     credential = DefaultAzureCredential()
     token_provider = get_bearer_token_provider(
         credential, 'https://cognitiveservices.azure.com/.default'