[asyncsquadlabs]

Summary

When MCP servers (such as @runpod/mcp-server) return tool inputSchema objects containing JSON Schema $ref pointers (e.g., "$ref": "#/$defs/CreateDelegationRequest" or "$ref": "#/definitions/..."), McpManager.getMcpToolDefinitions() previously copied only properties, required, and additionalProperties from inputSchema, dropping $defs and definitions.

As a result, the LLM API rejected requests with:

HTTP 400: Invalid schema for function 'mcp__runpod__create-delegation': Pointer '/$defs/CreateDelegationRequest' does not exist

Changes

• Added normalizeMcpInputSchema() in packages/core/src/mcp/mcp-manager.ts to:
  1. Recursively inline local #/$defs/<Key> and #/definitions/<Key> $ref pointers (merging sibling keywords and flattening single-element allOf wrappers, with cycle detection).
  2. Preserve $defs and definitions on parameters when any unresolved/cyclic $ref remains.
• Updated McpToolDefinition and ToolDefinition types to include optional $defs and definitions.
• Added unit tests in packages/core/src/tests/mcp-client.test.ts covering both inlined $defs/definitions references and cyclic $ref preservation.