[Container app] az containerapp up: Fix issue for auto-creating res…

…ource group (Azure#7601)

src/containerapp/HISTORY.rst

@@ -11,6 +11,7 @@ upcoming
 * 'az containerapp create/update': Support enable or disable Java metrics with --runtime and --enable-java-metrics
 * 'az containerapp update': Fix --scale-rule-tcp-concurrency for TCP scale rule
 * 'az containerapp compose create': Fix an issue where the environment's location is not resolved from --location
+* 'az containerapp up': Fix an issue about creating resource group automatically
 
 0.3.50
 ++++++

src/containerapp/azext_containerapp/_up_utils.py

@@ -17,7 +17,7 @@
     ValidationError,
     InvalidArgumentValueError,
     MutuallyExclusiveArgumentError,
-    CLIError,
+    CLIError, CLIInternalError,
 )
 from azure.cli.core.commands.client_factory import get_subscription_id
 from azure.cli.command_modules.appservice._create_util import (
@@ -1405,7 +1405,17 @@ def _infer_existing_connected_env(
         custom_location: "CustomLocation",
 ):
     if not env.resource_type or (env.is_connected_environment() and (not env.name or not resource_group.name or not env.custom_location_id)):
-        connected_env_list = list_connected_environments(cmd=cmd, resource_group_name=resource_group.name)
+        connected_env_list = []
+        try:
+            connected_env_list = list_connected_environments(cmd=cmd, resource_group_name=resource_group.name)
+        except CLIInternalError as e:
+            string_err = str(e)
+            # If a resource group is provided but not found, we will automatically create it in a subsequent step
+            if "ResourceGroupNotFound" in string_err:
+                pass
+            else:
+                raise e
+
         env_list = []
         for e in connected_env_list:
             if env.name and env.name != e["name"]:

src/containerapp/azext_containerapp/tests/latest/test_containerapp_up.py

@@ -6,14 +6,35 @@
 import os
 import unittest
 
-from azure.cli.testsdk import (ScenarioTest, ResourceGroupPreparer, live_only)
+from azure.cli.testsdk import (ScenarioTest, ResourceGroupPreparer, live_only, JMESPathCheck)
 
-from azext_containerapp.tests.latest.utils import create_and_verify_containerapp_up, create_and_verify_containerapp_up_with_multiple_environments, create_and_verify_containerapp_up_for_default_registry_image
+from .utils import (create_and_verify_containerapp_up,
+                    create_and_verify_containerapp_up_with_multiple_environments,
+                    create_and_verify_containerapp_up_for_default_registry_image,
+                    prepare_containerapp_env_for_app_e2e_tests)
 
 TEST_DIR = os.path.abspath(os.path.join(os.path.abspath(__file__), '..'))
 
 
 class ContainerAppUpImageTest(ScenarioTest):
+
+    def test_containerapp_up_create_resource_group(self):
+        resource_group = self.create_random_name(prefix='cli.group', length=24)
+        image = "mcr.microsoft.com/k8se/quickstart:latest"
+        ca_name = self.create_random_name(prefix='containerapp', length=24)
+
+        env = prepare_containerapp_env_for_app_e2e_tests(self)
+
+        self.cmd(
+            'containerapp up -g {} -n {} --image {} --environment {} --ingress external --target-port 80'.format(
+                resource_group, ca_name, image, env), expect_failure=False)
+
+        self.cmd(f'containerapp show -g {resource_group} -n {ca_name}', checks=[
+            JMESPathCheck("resourceGroup", resource_group),
+            JMESPathCheck("properties.provisioningState", "Succeeded"),
+        ])
+        self.cmd(f'group delete -n {resource_group} --yes --no-wait', expect_failure=False)
+
     @live_only()
     @ResourceGroupPreparer(location="eastus2")
     def test_containerapp_up_image_e2e(self, resource_group):