Update Azure.Identity to 1.16.0 & Azure.Core to 1.49.0

[cataggar]

Issue describing the changes in this PR

resolves #11402

Pull request checklist

IMPORTANT: Currently, changes must be backported to the in-proc branch to be included in Core Tools and non-Flex deployments.

• Backporting to the in-proc branch is not required
  • Otherwise: Link to backporting PR
• My changes do not require documentation changes
  • Otherwise: Documentation issue linked to PR
• My changes should not be added to the release notes for the next release
  • Otherwise: I've added my notes to release_notes.md
• My changes do not need to be backported to a previous version
  • Otherwise: Backport tracked by issue/PR #issue_or_pr
• My changes do not require diagnostic events changes
  • Otherwise: I have added/updated all related diagnostic events and their documentation (Documentation issue linked to PR)
• I have added all required tests (Unit tests, E2E tests)

Additional information

Additional PR information

[Copilot]

Pull Request Overview

Updates the Azure.Identity package from version 1.14.2 to 1.16.0 to support the AZURE_TOKEN_CREDENTIALS environment variable functionality.

• Package version update from 1.14.2 to 1.16.0 in project files
• Added release notes entry documenting the change

Reviewed Changes

Copilot reviewed 3 out of 3 changed files in this pull request and generated no comments.

File	Description
src/WebJobs.Script/WebJobs.Script.csproj	Updated Azure.Identity package reference to version 1.16.0
src/WebJobs.Script.WebHost/WebJobs.Script.WebHost.csproj	Updated Azure.Identity package reference to version 1.16.0
release_notes.md	Added release note documenting the Azure.Identity update

[jviau]

/azp run host.public

[azure-pipelines]

Azure Pipelines successfully started running 1 pipeline(s).

[jviau]

@cataggar the build failed due to a package downgrade error. You should be able to get the same error with a local dotnet build.

[cataggar]

/azp run host.public

[azure-pipelines]

Commenter does not have sufficient privileges for PR 11404 in repo Azure/azure-functions-host

[cataggar]

@jviau It restores and builds locally now. I don't have permissions to start CI. Can you kick off another run or can I get permissions?

[jviau]

/azp run host.public

[azure-pipelines]

Azure Pipelines successfully started running 1 pipeline(s).

[jviau]

@cataggar another change will be needed. We have a unit test which verifies our transitive dependency closure to identify changes like this. We need to update a file to signal to the test this change is intentional. Please replace the contents of test/WebJobs.Script.Tests/Microsoft.Azure.WebJobs.Script.WebHost.deps.json with this artifact

[jviau]

/azp run host.public

[azure-pipelines]

Azure Pipelines successfully started running 1 pipeline(s).

[cataggar]

@cataggar another change will be needed. We have a unit test which verifies our transitive dependency closure to identify changes like this. We need to update a file to signal to the test this change is intentional. Please replace the contents of test/WebJobs.Script.Tests/Microsoft.Azure.WebJobs.Script.WebHost.deps.json with this artifact

Thanks @jviau . This is done.

[jviau]

Thanks @cataggar. I am going to wait on review/sign off from @mattchenderson. He keeps an eye on Azure.Identity changes as it has been a source of many regressions for customers.