Jayani Rasangi I'm glad to see you were able to resolve your issue. Thanks for posting your solution so that others experiencing the same thing can easily reference this. Since the Microsoft Q&A community has a policy that the question author cannot accept their own answer, they can only accept answers by others, I'll repost your solution in case you'd like to Accept the answer.
. Issue:
You wanted to deploy the agent you created in AI Foundry to Microsoft Teams, but the 'Deploy' option is disabled.
. Resolution:
You made your model in Azure then deployed it to copilot studios where the integration to teams was much easier as its already configured to work with teams.
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Please do not forget to "Accept the answer” and “up-vote” so that, this can be beneficial to other community members.