MCP tool listing hangs indefinitely when server is unresponsive

[rishikunnath2747]

Describe the Bug

Issue

When listing MCP tools, if the MCP server is unresponsive or is throwing some error, session.initialize()
gets stuck indefinitely/keeps retrying instead of failing fast.

Likely cause: session.initialize() in /agentgateway/_lob.py (lines 350
and 482) has no deadline at the MCP protocol level. While self._config.timeout
(default 60 s) is passed down to httpx.AsyncClient, it only bounds individual
HTTP chunk reads — SSE keep-alives from the server continuously reset this timer,
so the call never actually times out.

Steps to Reproduce

Try listing tools from an MCP server that isn't working or is unreachable. The AGW client keeps retrying until the upstream request times out

Expected Behavior

It should retry once or twice and then error out

Screenshots

No response

Used Versions

v0.49.1

https://github.tools.sap/agent-extensibility/extensibility-agent/blob/main/requirements.txt

Code Examples

# Your code here

Stack Trace

No response

Log File

Log file

...

Affected Development Phase

Development

Impact

Blocked

Timeline

This is a requirement for EAC