We released Distributed Tracing V2 for Durable Functions to help improve observability! Durable Functions enables you to write long-running, reliable, event-driven, and stateful logic on the Azure Functions platform using everyday imperative code. Distributed Tracing allows you to correlate operations together and track requests between services. This is especially useful for Durable Functions apps as they coordinate work across multiple services and VMs. Distributed Tracing V2 Improvements The first implementation was limited to .NET Http client diagnostic integration, now we expanded the integration scope to SDK calls, enabling tracing propagation in complex scenarios. Weve added support for correlation context handling, enabling users to pass information between operations in I/O-bound scenarios. We improved log message formatting to include runtime information, log levels, and exception details to give a more complete view of execution flow and errors. Weve refined error reporting to include error codes, descriptions, and formatted exceptions for easier debugging and troubleshooting. We added new distributed tracing diagnostic settings options for customizing the sampling rate, filtering, and throttling to suit your specific requirements. And finally, we improved trace dashboard visualization for easier analysis of distributed tracing data, including timelines, dependencies, and operation details. All these improvements collectively enhance the observability and debugging experience for Durable Functions apps, making it easier to identify, diagnose, and resolve issues in complex distributed systems.