Prepare for release (#53536)

* Prepare for release

* Add entries to the changelog

* Fix

Author: nick863

sdk/ai/Azure.AI.Agents.Persistent/CHANGELOG.md

@@ -1,15 +1,17 @@
 # Release History
 
-## 1.2.0-beta.7 (Unreleased)
-
-### Features Added
+## 1.2.0-beta.7 (2025-10-28)
 
 ### Breaking Changes
 - The `trust` parameter for `MCPApproval` constructor was renamed to `requireApproval`.
 
 ### Bugs Fixed
+- Relax the validation of previous conversation in the `PersistentAgentsChatClient`.
 
 ### Other Changes
+- Expand AIFunction support to also include any AIFunctionDeclaration.
+- Add an extension AsAITool method that makes it easy to add any persistent ToolDefinition to ChatOptions.Tools.
+- Add HostedMcpServerTool support for `PersistentAgentsChatClient`.
 
 ## 1.2.0-beta.6 (2025-10-10)