Port pydantic-ai v1.106.0 parity fixes for event stream observers and non-base64 data URIs

.github/pydantic-ai-version.txt

@@ -1 +1 @@
-1.87.0
+1.106.0

packages/sdk/docs/reference/features.mdx

@@ -290,7 +290,7 @@ Vibes is designed to stay current with Pydantic AI  -  an AI agent automatically
 | Audio / video input  | Audio and video as tool parameters       | ✅     | [Multi-Modal](/advanced/multimodal) | `BinaryContent` with audio/video MIME types; `isAudioContent()` type guard |
 | Document input       | PDFs and documents as tool parameters    | ✅     | [Multi-Modal](/advanced/multimodal) | `BinaryContent` with `application/pdf` etc.; `isDocumentContent()` guard |
 | `UploadedFile`       | File reference for provider file uploads | ✅     | [Multi-Modal](/advanced/multimodal) | `UploadedFile` type + `uploadedFileSchema` + `uploadedFileToToolResult()` |
-| `BinaryImage` output | Agent returns a generated image          | ✅     | [Multi-Modal](/advanced/multimodal) | `outputSchema: BINARY_IMAGE_OUTPUT` - agent returns `BinaryContent` when a tool produces an `image/*` result |
+| `BinaryImage` output | Agent returns a generated image          | ✅     | [Multi-Modal](/advanced/multimodal) | `outputSchema: BINARY_IMAGE_OUTPUT` - agent returns `BinaryContent` when a tool produces an `image/*` result (supports base64 and non-base64 data URIs) |
 
 ---
 
@@ -304,4 +304,4 @@ Vibes is designed to stay current with Pydantic AI  -  an AI agent automatically
 | `ReinjectSystemPrompt`   | Capability that prepends agent's system prompt when missing from history (v1.86.0) | ❌ | - | Not applicable — vibes never stores system prompts in message history; they are always passed as the `system` field to every `generateText`/`streamText` call, so re-injection is implicit |
 | `UIAdapter.manage_system_prompt` | `'server'` (default) strips frontend system prompts and reinjects agent's own (v1.86.0) | ❌ | - | Not applicable — vibes AG-UI adapter does not store or forward system prompts via message history |
 | `HandleDeferredToolCalls` | Auto-resolve deferred tool calls inline (v1.87.0)                | ✅     | -    | `deferredToolHandler` on `AgentOptions`/`RunOptions`; return `DeferredToolResults` to auto-approve or `null` to fall back to `ApprovalRequiredError` |
-| `ProcessEventStream`     | Observe or transform the agent event stream (v1.87.0)             | ✅     | -    | `eventStreamHandler` on `AgentOptions`/`RunOptions`; observer form (async fn → void) or processor form (async generator → iterable); applies to `runStreamEvents()` |
+| `ProcessEventStream`     | Observe or transform the agent event stream (v1.87.0)             | ✅     | -    | `eventStreamHandler` on `AgentOptions`/`RunOptions`; observer form (async fn → void) or processor form (async generator → iterable); applies to `runStreamEvents()` and preserves downstream completion even when observer handlers do not consume events |

packages/sdk/lib/multimodal/binary_content.ts

@@ -239,11 +239,23 @@ export function extractBinaryImageFromToolOutput(
   }
   const commaIdx = image.indexOf(",");
   if (commaIdx === -1) return null;
-  const base64 = image.slice(commaIdx + 1);
-  const binaryString = atob(base64);
-  const data = new Uint8Array(binaryString.length);
-  for (let i = 0; i < binaryString.length; i++) {
-    data[i] = binaryString.charCodeAt(i);
+  const metadata = image.slice(0, commaIdx).toLowerCase();
+  const encodedData = image.slice(commaIdx + 1);
+
+  try {
+    if (metadata.includes(";base64")) {
+      const binaryString = atob(encodedData);
+      const data = new Uint8Array(binaryString.length);
+      for (let i = 0; i < binaryString.length; i++) {
+        data[i] = binaryString.charCodeAt(i);
+      }
+      return { type: "binary", mimeType, data };
+    }
+
+    const decoded = decodeURIComponent(encodedData);
+    const data = new TextEncoder().encode(decoded);
+    return { type: "binary", mimeType, data };
+  } catch {
+    return null;
   }
-  return { type: "binary", mimeType, data };
 }

packages/sdk/tests/binary_image_output_test.ts

@@ -73,6 +73,31 @@ Deno.test("extractBinaryImageFromToolOutput - returns null when image field miss
   );
 });
 
+Deno.test("extractBinaryImageFromToolOutput - supports valid non-base64 data URI", () => {
+  const extracted = extractBinaryImageFromToolOutput({
+    type: "image",
+    image: "data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A//www.w3.org/2000/svg%22%3E%3C/svg%3E",
+    mimeType: "image/svg+xml",
+  });
+  assertEquals(extracted !== null, true);
+  assertEquals(extracted?.mimeType, "image/svg+xml");
+  assertEquals(
+    extracted?.data,
+    new TextEncoder().encode('<svg xmlns="http://www.w3.org/2000/svg"></svg>'),
+  );
+});
+
+Deno.test("extractBinaryImageFromToolOutput - returns null for invalid base64 data URI", () => {
+  assertEquals(
+    extractBinaryImageFromToolOutput({
+      type: "image",
+      image: "data:image/png;base64,***not-base64***",
+      mimeType: "image/png",
+    }),
+    null,
+  );
+});
+
 // ---------------------------------------------------------------------------
 // Integration tests: Agent with BINARY_IMAGE_OUTPUT sentinel
 // ---------------------------------------------------------------------------

packages/sdk/tests/event_stream_test.ts

@@ -394,6 +394,28 @@ Deno.test("eventStreamHandler - observer form: side-channel receives all events"
   assertEquals(downstreamKinds.includes("final-result"), true);
 });
 
+Deno.test("eventStreamHandler - observer form: downstream completes even if handler does not consume", async () => {
+  const model = new MockLanguageModelV3({
+    doStream: () => Promise.resolve(textStream("hello")),
+  });
+
+  let handlerCalls = 0;
+
+  const agent = new Agent({
+    model,
+    eventStreamHandler: () => {
+      handlerCalls += 1;
+      // Intentionally do not iterate the stream.
+    },
+  });
+
+  const downstreamEvents = await collectEvents(agent.runStreamEvents("hi"));
+  const finalResult = downstreamEvents.find((e) => e.kind === "final-result");
+
+  assertExists(finalResult);
+  assertEquals(handlerCalls, 2); // Probe + real observer invocation
+});
+
 Deno.test("eventStreamHandler - processor form: can filter events", async () => {
   const model = new MockLanguageModelV3({
     doStream: () => Promise.resolve(textStream("hello world")),