Resolves TOO-201
Documentation PR for this is here:
https://github.com/ArcadeAI/docs/pull/626
<!-- CURSOR_SUMMARY -->
---
> [!NOTE]
> **Medium Risk**
> Changes how environment variables/secrets are discovered and loaded,
which can subtly alter runtime behavior depending on directory structure
and existing env vars; bounded traversal and added tests reduce but
don’t eliminate this risk.
>
> **Overview**
> **Improves `.env` discovery across the MCP server and CLI.** Adds
`find_env_file()` (bounded by the nearest `pyproject.toml` by default)
and switches settings loading, `arcade deploy`, `arcade configure` stdio
env injection, and provider API-key resolution to use it.
>
> Updates dev reload to also watch the discovered `.env` even when it
lives outside the current working directory, adjusts `deploy --secrets
all` to only run when a `.env` was found, and moves the minimal
scaffold’s `.env.example` to the project root with updated
tests/integration checks. Version bumps align examples and top-level
deps with `arcade-mcp-server` `1.17.4` and `arcade-mcp` `1.11.2`.
>
> <sup>Written by [Cursor
Bugbot](https://cursor.com/dashboard?tab=bugbot) for commit
40cff1738c14674ce01f09fd325ece9c874cd072. This will update automatically
on new commits. Configure
[here](https://cursor.com/dashboard?tab=bugbot).</sup>
<!-- /CURSOR_SUMMARY -->
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Co-authored-by: Claude Sonnet 4.6 <noreply@anthropic.com>
4a737b9710