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Description
The Azure PowerShell team release a new version (2.12.2) of Az.Accounts on 4/24/23, which is not compatible with PowerShell 7.0. As a result, existing PowerShell 6 function apps that installed this version Az.Accounts stopped working. To mitigate this issue, the customer has two options: apply a manual work around to pin the function app to the previous version of Az.Accounts or to migrate their function app to PowerShell 7.2 (this migration is safe and easy).
PowerShell 7.0 reached EOL in March 2022 (see https://docs.microsoft.com/en-us/powershell/scripting/install/PowerShell-Support-Lifecycle?view=powershell-7.2#powershell-end-of-support-dates).

PowerShell 7.0 apps are still supported in Azure Functions (PowerShell 7.0 reached EOL in Azure Function on December 2022, please see https://learn.microsoft.com/en-us/azure/azure-functions/functions-reference-powershell?tabs=portal#changing-the-powershell-version for more information). We are strongly recommending that our our customers to migrate their function app to PowerShell 7.2 as soon as possible.
To ensure that our PowerShell 7.0 customers do not get an update which could potential break their function apps, we will disable optional upgrades in Managed Dependencies. To get this functionality back, the customer must migrate their function app to PowerShell 7.2.