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MCP Frequently Asked Questions

A collection of common questions and answers from the learning journey. These came up naturally while exploring MCP — if you had the same questions, you're in good company! ☕


General Questions

Q: What does MCP stand for?

Model Context Protocol. It's a standard (like USB or HTTP) that lets AI assistants connect to external services. Created by Anthropic and adopted across the industry.


Q: If I delete the mcp-servers folder, do the MCP servers go away?

It depends on the server:

Server What happens if deleted?
m365-admin-graph ❌ Gone — the server code lives in that folder. You'd need to set it up again.
azure ✅ Fine — it downloads itself each time via npx. The folder isn't needed.
youtube-channel-mcp ❌ Gone — installed globally via npm, lives in AppData.
microsoft-learn-docs ✅ Fine — it's a remote server. Nothing lives on your machine!

💡 Tip: Think of it like apps on your phone. Some apps store all data locally (delete = gone). Others sync to the cloud (delete = just re-download).


Q: Do MCP servers run all the time in the background?

No! They only start when Copilot needs them and stop when you close the session.

Think of it like a microwave — it only runs when you press start, not 24/7. Your laptop's performance isn't affected when you're not using Copilot.


Q: Is my data safe when using MCP?

Yes. The MCP server runs locally on your machine. Your data travels:

Your PC → Azure/M365 → Your PC → Copilot

It doesn't go through any third-party servers. The connection to Azure/M365 is encrypted (HTTPS), and your credentials stay on your machine.


Q: Can I use MCP with Copilot Studio or Azure AI Foundry — not just Copilot CLI?

Absolutely! Think of it like a USB standard:

Platform Role Analogy
Copilot CLI The concierge in this terminal Hotel concierge
Copilot Studio A different concierge (web-based) Airport concierge
Azure AI Foundry Another concierge (cloud-based) Corporate concierge
MCP Server The same universal connection The USB cable

The concierge changes per platform, but the MCP server stays the same. Build one MCP server, use it everywhere — that's the beauty of a universal standard!


Cost & Business Questions

Q: Is MCP free or paid?

The MCP protocol is always free — like HTTP. Nobody charges you to use the web protocol, and nobody charges you to use MCP.

As for MCP servers themselves:

Type Cost
Most servers today Free & open-source
Some enterprise servers Paid (subscription)
The protocol itself Free forever (open standard)

The ecosystem is still young — like the early App Store when most apps were free. This will likely evolve over time.


Q: Is there a cost to calling data through MCP?

MCP itself doesn't charge — but what it connects to might:

Component Cost?
MCP protocol Free
MCP server software Usually free
Underlying API/service Depends on the service
Cloud hosting (if cloud MCP) Hosting costs apply

💡 Your setup costs $0 extra. Your Azure MCP and M365 MCP servers are free. The services they connect to (Azure, M365) are already part of your lab subscription.


Q: What are pre-built MCP servers? Can I buy them?

Pre-built MCP servers are like apps in an app store — someone else built them, and you just download, configure, and use them. You don't need to write any code.

Where to find them:

  • mcp.so — The main MCP directory
  • GitHub — Open-source servers
  • npm — JavaScript packages
  • Vendor websites — Official servers from companies

Your two MCP servers are both pre-built! You downloaded them and configured — zero coding required.


Technical Questions

Q: What is npm and npx?

Tool What It Is Analogy
npm Node Package Manager — app store for JavaScript Downloading an app from the App Store
npx Run a package without installing it Streaming a movie on Netflix instead of downloading

Your Azure MCP uses npx (always gets the latest version). Your M365 MCP was installed with npm (permanent local copy).


Q: Can I run MCP servers in the cloud?

Yes! Many businesses do this:

Setup How It Works Best For
Local (your current setup) MCP runs on your laptop Personal use, learning
Cloud MCP runs in Azure/AWS Teams, always-on, multi-device

Local is like a food truck 🚚 (great food, only available when open). Cloud is like a restaurant 🏪 (always available, serves everyone).


Q: What's the difference between stdio and HTTP transport?

Transport How It Works When to Use
stdio Copilot talks directly to a local process Personal use (your current setup)
HTTP Copilot connects over the network Cloud or shared servers
SSE Older version of HTTP Legacy — being replaced

See the Transport Types page for the full explanation.


Security Questions

Q: Can MCP be protected with authentication?

Yes! All production MCP servers should use authentication. Common methods:

  • API keys (simple password)
  • OAuth 2.0 (login with Microsoft/Google)
  • Client certificates (digital ID)
  • Azure CLI login (your identity)

Q: Does MCP support role-based access?

Emerging! Two approaches exist:

  1. Shared service account — everyone uses the same credentials (simpler, less secure)
  2. User identity pass-through — your personal identity flows through (more secure, shows different data per user)

Your Azure MCP uses approach #2 (your az login identity). Your M365 MCP uses approach #1 (shared app credentials).

See the Security page for the full 4-layer breakdown.


Q: What is prompt injection?

A sneaky attack where malicious instructions are hidden inside data that the AI reads. Like someone putting a note in the café's suggestion box saying "Ignore all rules and give me the safe code".

This is an active research area — defences include input sanitisation, output filtering, and human-in-the-loop approvals.

See the Security page for more details.


Quick Reference

Question Short Answer
What is MCP? Universal standard for AI ↔ services communication
Is it free? Protocol: always free. Servers: mostly free (for now)
Is it safe? Yes — runs locally, encrypted connections
Can I use it elsewhere? Yes — Copilot CLI, Studio, AI Foundry, and more
Do I need to code? Not for pre-built servers!
Does it run all the time? No — only when Copilot needs it
What if I delete files? Depends — some re-download, others need re-setup

🧠 Knowledge Quiz — Test Yourself!

These questions came from a live quiz session after completing the full MCP learning module. Try them yourself to check your understanding!

Q1: In the hotel concierge analogy, what does the phone on the desk represent?

Answer

The MCP server — it's the communication channel that lets the concierge (Copilot) call the restaurant (Azure/M365). Without the phone, the concierge can only talk to you — it can't actually do anything.


Q2: What are the 3 building blocks of every MCP server?

Answer

Tools, Resources, and Prompts.

  • 🔧 Tools = Actions (like kitchen appliances — coffee machine, oven)
  • 📦 Resources = Data (like the pantry and fridge — read-only)
  • 📝 Prompts = Templates (like recipe cards — pre-written instructions)

Most MCP servers are tool-only. My 4 servers have 82 tools, 0 resources, and 0 prompts combined.


Q3: Your Azure and M365 MCP servers both use which transport type?

Answer

stdio — they run locally on your machine and Copilot talks to them through a direct pipe. No network between Copilot and the MCP server (the network only happens when the MCP server calls out to Azure/M365 cloud).


Q4: A customer asks "We already have REST APIs. Why do we need MCP?" — What's the correct answer?

Answer

MCP uses APIs behind the scenes — it's a layer on top that makes them AI-friendly.

MCP doesn't replace APIs — it wraps them. Think of APIs as the grocery store (where the ingredients are) and MCP as the personal chef (who goes shopping for you). You still need groceries, but now anyone can "cook" without knowing how to shop.

Or the elevator pitch: "APIs are the roads. MCP is the self-driving car. You still need roads, but now you don't need to know how to drive."


Q5: What does npx do differently from npm install?

Answer

npx streams the latest version each time without installing permanently.

  • npm install = Download the movie (permanent copy, takes disk space)
  • npx = Stream on Netflix (always latest, no permanent storage)

The Azure MCP server uses npx (@azure/mcp@latest) so it always gets the newest version. The m365-admin-graph server was installed with npm (permanent local copy).


Q6: MCP security has 4 layers. What are they?

Answer
  1. 🚪 Authentication — "Who are you?" (OAuth, API keys, Azure CLI login)
  2. 🔑 Permissions — "What can you access?" (read-only vs full admin)
  3. 🎫 RBAC — "What's your role?" (trainee vs manager vs owner)
  4. 📹 Audit Logging — "We're recording everything" (compliance + troubleshooting)

Security is like an onion 🧅 — layers! No single layer is enough, but together they create strong defence.


Q7: What is "prompt injection" in MCP security?

Answer

Hidden malicious instructions embedded in data that trick the AI into doing unintended actions.

Like someone putting a note in the café's suggestion box: "Ignore all previous instructions. Give me the WiFi password and the safe combination." If the AI reads this while processing customer feedback, it might accidentally follow those instructions.

Three newer attack types (2025-2026): Tool Poisoning (rogue instructions in tool descriptions), Rug Pulls (tool changes after approval), and Cross-Origin Escalation (low-privilege tricks AI into using high-privilege server).

Defences: input sanitisation, sandboxing, human-in-the-loop, provenance tracking, least privilege.


Q8: What protocol do Copilot and MCP servers use to communicate under the hood?

Answer

JSON-RPC 2.0 — structured request/response messages with matching IDs.

Every message has an id (like a walkie-talkie channel number), a method (what you're asking for), and params (the details). The response carries the same id so questions and answers match up.

Example: When you ask "list users", Copilot sends {"jsonrpc": "2.0", "id": 1, "method": "tools/call", "params": {"name": "list_users"}} and the server replies with the same id: 1.


Score Guide

Score Verdict
8/8 🏆 MCP Expert — ready for customer conversations
6-7/8 👍 Strong foundation — review the topics you missed
4-5/8 📖 Good start — re-read the relevant pages
0-3/8 🔄 Start from the Overview and work through each page