I am trying to deploy an Azure Linux function app via Terraform. This function app using Microsoft based authentication. Inside my function app resource template I have this block for authentication:

"auth_settings_v2" {
    content {
        auth_enabled           = true
        require_authentication = true
        microsoft_v2 {
            client_id                  = var.app_registration_client_id
            client_secret_setting_name = "MICROSOFT_PROVIDER_AUTHENTICATION_SECRET"
            allowed_audiences          = ["api://${var.app_registration_client_id}"]
        }
        login {}
    }
}

I also specify an app_setting named MICROSOFT_PROVIDER_AUTHENTICATION_SECRET. I verified in Azure Portal that the authentication does get enabled, but it shows “Microsoft (V1)”. I also verified the app setting was added with the correct secret value.

I am using hashicorp/azurerm = 3.104.2". Why is this enabling V1 auth instead of V2?