Azure Active Directory breaking change impacting Azure CLI and Azure PowerShell

Context
Starting 10/15/2021, Azure Active directory will require the AppId Uri in single tenant applications to use default scheme or verified domains. If you have not upgraded Azure CLI or Azure PowerShell to the most recent versions, you will receive the following error message when creating a service principal:
Values of identifierUris property must use a verified domain of the organization or its subdomain
Solution
You must upgrade to the following versions for reach impacted:
- Azure CLI version 2.25.0 or later
- Azure PowerShell version 6.0.0 or later
You can read more about the impact of this breaking change in each tool:
- Azure CLI: https://github.com/Azure/azure-cli/issues/19892
- Azure PowerShell: https://github.com/Azure/azure-powershell/issues/16097
Workaround
We understand that upgrading to a new version of an automation tool is not always straightforward, the workaround consists of the following steps:
- If needed, add your custom domain name using Azure Active Directory portal
- Create the application with an authorized IdentifierUri
- Create the service principal referring to this application
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