diff --git a/.github/CODEOWNERS b/.github/CODEOWNERS
index d48f3ee16e4..3e8b1725888 100644
--- a/.github/CODEOWNERS
+++ b/.github/CODEOWNERS
@@ -62,8 +62,6 @@
 
 /src/aks-preview/ @andyzhangx @andyliuliming @fumingzhang
 
-/src/aks-agent/ @nilo19 @mainerd
-
 /src/bastion/ @aavalang
 
 /src/vm-repair/ @haagha
diff --git a/src/aks-agent/.gitignore b/src/aks-agent/.gitignore
new file mode 100644
index 00000000000..69c8c381769
--- /dev/null
+++ b/src/aks-agent/.gitignore
@@ -0,0 +1,2 @@
+poetry.lock
+pyproject.toml
diff --git a/src/aks-agent/HISTORY.rst b/src/aks-agent/HISTORY.rst
index 0fbd9384339..c2e7f8812d4 100644
--- a/src/aks-agent/HISTORY.rst
+++ b/src/aks-agent/HISTORY.rst
@@ -15,6 +15,11 @@ Pending
 1.0.0b2
 +++++++
 
+* Add pydantic-core dependency.
+
+1.0.0b2
++++++++
+
 - Add MCP integration for `az aks agent` with aks-mcp binary management and local server lifecycle (download, version validation, start/stop, health checks).
 - Introduce dual-mode operation: MCP mode (enhanced) and Traditional mode (built-in toolsets), with mode-specific system prompts.
 - Implement smart toolset refresh strategy with persisted mode state to avoid unnecessary refresh on repeated runs.
diff --git a/src/aks-agent/setup.py b/src/aks-agent/setup.py
index 4b14b4696f0..2012a1d467b 100644
--- a/src/aks-agent/setup.py
+++ b/src/aks-agent/setup.py
@@ -9,7 +9,7 @@
 
 from setuptools import find_packages, setup
 
-VERSION = "1.0.0b2"
+VERSION = "1.0.0b3"
 
 CLASSIFIERS = [
     "Development Status :: 4 - Beta",
@@ -24,8 +24,9 @@
 ]
 
 DEPENDENCIES = [
-    "holmesgpt==0.12.6; python_version >= '3.10'",
     "pytest-asyncio>=1.1.0",
+    "pydantic-core",
+    "holmesgpt==0.12.6; python_version >= '3.10'",
 ]
 
 with open1("README.rst", "r", encoding="utf-8") as f: