Terraform warning: Warning: "use_microsoft_graph": [DEPRECATED] This field now defaults to `true` and will be removed in v1.3 of Terraform Core - terraform-provider-azure

Question

I created a Terraform configuration to create a resource group. This uses a backend provider configuration, so the tfstate file will be created at a shared location and not locally.
When I apply plan terraform plan, I get the following warning.
Warning: "use_microsoft_graph": [DEPRECATED] This field now defaults to true and will be removed in v1.3 of Terraform Core due to the deprecation of ADAL by Microsoft.
The config files are as follows.
# Terraform Block
terraform {
required_version = ">= 1.0.0"
required_providers {
azurerm = {
source = "hashicorp/azurerm"
version = ">= 3.0"
}
}
# Terraform State Storage to Azure Storage Container
backend "azurerm" {
resource_group_name = "storage-rg"
storage_account_name = "tfstatetrial"
container_name = "tfstatefiles"
key = "terraform.tfstate"
}
}
# Provider Block
provider "azurerm" {
features {}
}
# Resource-1: Azure Resource Group
resource "azurerm_resource_group" "myrg" {
name = "simple-rg" # local.rg_name
location = "centralindia" #var.resoure_group_location
}
I looked into this github issue, but could not find an answer.
The warning is because of the backend azurerm block. If I remove that(no remote state), then no warning comes up.
Any ideas what to be done?

Answer 1

This is a known "issue" and has been discussed at hashicorp/terraform#31118. tl;dr (as far as I understood):
The reasoning for this warning is [...] a temporary addition in 1.1, which has been flipped on in 1.2, and will be removed in 1.3
See also here:
use_microsoft_graph - (Optional) Should MSAL be used for authentication instead of ADAL, and should Microsoft Graph be used instead of Azure Active Directory Graph? Defaults to true.
Note: In Terraform 1.2 the Azure Backend uses MSAL (and Microsoft Graph) rather than ADAL (and Azure Active Directory Graph) for authentication by default - you can disable this by setting use_microsoft_graph to false. This setting will be removed in Terraform 1.3, due to Microsoft's deprecation of ADAL.
I know this is not technically a solution to your question or issue, but I think you'll be better off when subscribing and contributing to the GitHub issue instead of waiting for an answer here :)