Microsoft Attempts to Fix Microsoft Graph PowerShell SDK Problem with Azure Automation
.NET Dependencies Stop Microsoft Graph PowerShell SDK Authentication in Runbooks
As anyone who keeps tabs on the Microsoft Graph PowerShell SDK, the V2.26 release was a disaster. Poor testing and other failures let obvious problems escape into customer environments. To be fair to Microsoft, the development group fixed some of the more grievous problems and issued version 2.26.1 a week or so after V2.26 appeared.
Alas, V2.26.1 came with its own set of flaws, notably breaking Azure Automation runbooks that use PowerShell V7.1 and V7.2 because the SDK developers decided to remove support for .NET 6. Cue the infamous “invalid JWT access token” issue (Figure 1).

All in all, the Microsoft Graph PowerShell SDK descended into grand farce, and no one knew what would happen next. The problem only happens for runbooks based on PowerShell V7.1 and V7.2. It doesn’t arise when runbooks use PowerShell V5.1.
Microsoft’s Solution – Azure Automation Support for PowerShell V7.4
On April 10, 2025, Microsoft laid out their plans to clean up the mess. Explaining that the root cause of the problem in V2.26.1 is a component conflict between the Exchange Online PowerShell module and the Microsoft Graph PowerShell SDK that prevents the Connect-MgGraph cmdlet working, Microsoft says that the issue is resolved when Azure Automation is upgraded to support PowerShell V7.4 (based on .NET 8). A preview of PowerShell V7.4 support is available today.
Microsoft doesn’t say when Azure Automation will fully support PowerShell V7.4 support in a generally available version. However, they do say that the next release of the Microsoft Graph PowerShell SDK is “expected later this month.” Given the recent problems in SDK versions, it’s inconceivable that Microsoft would push out a new version of the SDK without full and stable support for Azure Automation, and that means PowerShell V7.4 support.
In the interim, if you have Azure Automation runbooks, stay with Microsoft Graph PowerShell SDK V2.25.
Work Remains to be Done
Assuming that Microsoft delivers a new version of the Microsoft Graph PowerShell SDK that delivers “enhanced stability” (couldn’t be worse than the last two versions), “compatibility and performance” and address the many issues reported in the SDK GitHub repository (163 open at present), is that the end of this saga?
I don’t think so. The history of the Microsoft Graph PowerShell SDK is littered with poor quality and buggy releases. The clash with the Exchange Online PowerShell module speaks of a failure within Microsoft to coordinate updates to critical PowerShell modules used by Microsoft 365 customers. Given the closely-connected nature of Microsoft 365, it’s unacceptable for engineering groups to make changes to PowerShell modules without understanding if their updates will impact modules like Teams, SharePoint, and Exchange.
Quality instead of Fast-Paced Releases
Customers need a sustained run of high-quality Microsoft Graph PowerShell SDK releases to rebuild faith. In the past, Microsoft issued new SDK versions on a monthly cadence in an attempt to keep up with changes in Graph APIs. That cadence is too rapid. Stability should be the name of the game from here on with focus on delivering a high-quality quarterly SDK. Lessening the pace will permit the SDK engineers to coordinate better with their peers and burn down the swelling bug list. If people need to use a new Graph API, there’s no need to wait for Microsoft to build an SDK cmdlet because they can always use the API via the Invoke-MgGraphRequest cmdlet.
Over three million downloads now occur for new SDK versions. It’s time that Microsoft treats the Microsoft Graph PowerShell SDK as what it is: a serious piece of the PowerShell framework for Microsoft 365 automation.