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Graceful failure when extensions are not updated #6742

@kristenwomack

Description

@kristenwomack

Opportunity to improve extension installation error messages.

Describe the bug
When extensions (including test extensions) aren't updated, the tool currently fails with verbose errors that aren't helpful or relevant particularly when the extension isn't related to the current task. The messaging is noisy and doesn't guide the user to resolution.

It feels like a tidy task that's "in the way" unless it's needed for what I'm trying to accomplish (which in this case with azd up the updates aren't needed).

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To Reproduce

  • Attempt to use Azure Developer CLI features when certain extensions are out-of-date (especially test extension).
  • Observe the verbose failure output.

Expected behavior
Instead of verbose errors, the tool should fail gracefully with clear, plain-language guidance. Error messaging should briefly explain that an extension needs updating and provide instructions/link on how to update.

Additional context
Current error output is distracting and not relevant to the user flow. The experience could be improved by minimizing noise and offering actionable steps.

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