diff --git a/sdk/terraform/azure-mgmt-terraform/_meta.json b/sdk/terraform/azure-mgmt-terraform/_meta.json
index d4ba5b700af0..cd11ce13a446 100644
--- a/sdk/terraform/azure-mgmt-terraform/_meta.json
+++ b/sdk/terraform/azure-mgmt-terraform/_meta.json
@@ -1,6 +1,6 @@
 {
-  "commit": "ed3e7186654df4ec286c3d92f03dfa6c14b37279",
+  "commit": "7bd3011537fa5957c18765c3d7fbe6da2021873c",
   "repository_url": "https://github.com/Azure/azure-rest-api-specs",
   "typespec_src": "specification/terraform/Microsoft.AzureTerraform.Management",
-  "@azure-tools/typespec-python": "0.36.1"
+  "@azure-tools/typespec-python": "0.36.5"
 }
\ No newline at end of file
diff --git a/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_model_base.py b/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_model_base.py
index e6a2730f9276..6a6e1f38b17e 100644
--- a/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_model_base.py
+++ b/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_model_base.py
@@ -754,7 +754,7 @@ def _get_deserialize_callable_from_annotation(  # pylint: disable=too-many-retur
         except AttributeError:
             model_name = annotation
         if module is not None:
-            annotation = _get_model(module, model_name)
+            annotation = _get_model(module, model_name)  # type: ignore
 
     try:
         if module and _is_model(annotation):
diff --git a/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_serialization.py b/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_serialization.py
index ce17d1798ce7..e2ad51869908 100644
--- a/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_serialization.py
+++ b/sdk/terraform/azure-mgmt-terraform/azure/mgmt/terraform/_serialization.py
@@ -1683,17 +1683,21 @@ def _instantiate_model(self, response, attrs, additional_properties=None):
             subtype = getattr(response, "_subtype_map", {})
             try:
                 readonly = [
-                    k for k, v in response._validation.items() if v.get("readonly")  # pylint: disable=protected-access
+                    k
+                    for k, v in response._validation.items()  # pylint: disable=protected-access  # type: ignore
+                    if v.get("readonly")
                 ]
                 const = [
-                    k for k, v in response._validation.items() if v.get("constant")  # pylint: disable=protected-access
+                    k
+                    for k, v in response._validation.items()  # pylint: disable=protected-access  # type: ignore
+                    if v.get("constant")
                 ]
                 kwargs = {k: v for k, v in attrs.items() if k not in subtype and k not in readonly + const}
                 response_obj = response(**kwargs)
                 for attr in readonly:
                     setattr(response_obj, attr, attrs.get(attr))
                 if additional_properties:
-                    response_obj.additional_properties = additional_properties
+                    response_obj.additional_properties = additional_properties  # type: ignore
                 return response_obj
             except TypeError as err:
                 msg = "Unable to deserialize {} into model {}. ".format(kwargs, response)  # type: ignore
diff --git a/sdk/terraform/azure-mgmt-terraform/setup.py b/sdk/terraform/azure-mgmt-terraform/setup.py
index eebf3c3c8cff..8aa3e22191c7 100644
--- a/sdk/terraform/azure-mgmt-terraform/setup.py
+++ b/sdk/terraform/azure-mgmt-terraform/setup.py
@@ -22,11 +22,9 @@
 
 # Version extraction inspired from 'requests'
 with open(
-    (
-        os.path.join(package_folder_path, "version.py")
-        if os.path.exists(os.path.join(package_folder_path, "version.py"))
-        else os.path.join(package_folder_path, "_version.py")
-    ),
+    os.path.join(package_folder_path, "version.py")
+    if os.path.exists(os.path.join(package_folder_path, "version.py"))
+    else os.path.join(package_folder_path, "_version.py"),
     "r",
 ) as fd:
     version = re.search(r'^VERSION\s*=\s*[\'"]([^\'"]*)[\'"]', fd.read(), re.MULTILINE).group(1)
diff --git a/sdk/terraform/azure-mgmt-terraform/tsp-location.yaml b/sdk/terraform/azure-mgmt-terraform/tsp-location.yaml
index a944e5473578..d0feb2bb79fe 100644
--- a/sdk/terraform/azure-mgmt-terraform/tsp-location.yaml
+++ b/sdk/terraform/azure-mgmt-terraform/tsp-location.yaml
@@ -1,4 +1,4 @@
 directory: specification/terraform/Microsoft.AzureTerraform.Management
-commit: ed3e7186654df4ec286c3d92f03dfa6c14b37279
+commit: 7bd3011537fa5957c18765c3d7fbe6da2021873c
 repo: Azure/azure-rest-api-specs
 additionalDirectories: