Prepare for Fabric MCP Server 1.2.0 release (#3007)

* Prepare for Fabric MCP Server 1.2.0 release

Compile changelog entries into the 1.2.0 section, set the release date, and sync the VS Code extension changelog.

* Remove pre-release suffix from 1.2.0 VS Code changelog entry

Author: AmosHersch

servers/Fabric.Mcp.Server/CHANGELOG.md

@@ -5,16 +5,24 @@ All notable changes to the Microsoft Fabric MCP Server will be documented in thi
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
-## 1.2.0 (Unreleased)
+## 1.2.0 (2026-07-08)
 
 ### Features Added
 
-### Breaking Changes
+- Added 12 new OneLake tools: Data Access Security (list, get, create-or-update, delete roles), Shortcuts (list, get, create-or-update, delete, reset-cache), and Settings (get, modify-diagnostics, modify-immutability-policy) [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Added 9 per-target shortcut creation tools (OneLake, ADLS Gen2, Amazon S3, Azure Blob, GCS, S3-compatible, Dataverse, OneDrive/SharePoint, External Data Share) with flat typed options for better LLM ergonomics. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Flattened JSON-string options into discrete typed parameters for diagnostics, immutability policy, and data access role commands. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Added the `core_search-catalog` tool to search the Microsoft Fabric OneLake catalog for items across workspaces by display name, description, or workspace name, with optional filtering by item type. Calls the Catalog Search API (POST /v1/catalog/search). [[#2963](https://github.com/microsoft/mcp/pull/2963)]
 
 ### Bugs Fixed
 
+- Refactored OneLake DFS ListPath methods to follow ADLS Gen2 Path List API specification (directory as query parameter) [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Fixed OneLake diagnostics and immutability settings models to match the Fabric REST API contract. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+
 ### Other Changes
 
+- Updated Fabric REST API specifications and item definition documentation. [[#3006](https://github.com/microsoft/mcp/pull/3006)]
+
 ## 1.1.0 (2026-06-15)
 
 ### Features Added

servers/Fabric.Mcp.Server/changelog-entries/1778530260238.yaml

@@ -1,5 +1,23 @@
 # Release History
 
+## 1.2.0 (2026-07-08)
+
+### Added
+
+- Added 12 new OneLake tools: Data Access Security (list, get, create-or-update, delete roles), Shortcuts (list, get, create-or-update, delete, reset-cache), and Settings (get, modify-diagnostics, modify-immutability-policy) [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Added 9 per-target shortcut creation tools (OneLake, ADLS Gen2, Amazon S3, Azure Blob, GCS, S3-compatible, Dataverse, OneDrive/SharePoint, External Data Share) with flat typed options for better LLM ergonomics. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Flattened JSON-string options into discrete typed parameters for diagnostics, immutability policy, and data access role commands. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Added the `core_search-catalog` tool to search the Microsoft Fabric OneLake catalog for items across workspaces by display name, description, or workspace name, with optional filtering by item type. Calls the Catalog Search API (POST /v1/catalog/search). [[#2963](https://github.com/microsoft/mcp/pull/2963)]
+
+### Changed
+
+- Updated Fabric REST API specifications and item definition documentation. [[#3006](https://github.com/microsoft/mcp/pull/3006)]
+
+### Fixed
+
+- Refactored OneLake DFS ListPath methods to follow ADLS Gen2 Path List API specification (directory as query parameter) [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+- Fixed OneLake diagnostics and immutability settings models to match the Fabric REST API contract. [[#2625](https://github.com/microsoft/mcp/pull/2625)]
+
 ## 1.1.0 (2026-06-15)
 
 ### Added