diff --git a/.github/dependabot.yml b/.github/dependabot.yml
index 5838fe6e..6562f7f2 100644
--- a/.github/dependabot.yml
+++ b/.github/dependabot.yml
@@ -6,12 +6,29 @@ updates:
     schedule:
       interval: "weekly"
       day: "monday"
-    open-pull-requests-limit: 5
+    open-pull-requests-limit: 10
     labels:
       - "dependencies"
       - "nuget"
     commit-message:
       prefix: "deps"
+    # Group related dependencies to reduce PR noise
+    groups:
+      microsoft-extensions:
+        patterns:
+          - "Microsoft.Extensions.*"
+      test-infrastructure:
+        patterns:
+          - "Microsoft.NET.Test.Sdk"
+          - "xunit*"
+          - "coverlet.*"
+          - "Moq"
+          - "FluentAssertions"
+      dataverse:
+        patterns:
+          - "Microsoft.PowerPlatform.Dataverse.*"
+    # Widen version constraints when needed (e.g., 1.1.* -> 1.2.*)
+    versioning-strategy: increase
 
   # GitHub Actions
   - package-ecosystem: "github-actions"
@@ -25,3 +42,7 @@ updates:
       - "github-actions"
     commit-message:
       prefix: "ci"
+    groups:
+      github-actions:
+        patterns:
+          - "*"
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 53dcc8cc..019396ea 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,21 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Security
+
+- Updated `Microsoft.PowerPlatform.Dataverse.Client` from `1.1.*` to `1.2.*` - includes CVE-2022-26907 fix
+
+### Changed
+
+- Updated test infrastructure packages:
+  - `Microsoft.NET.Test.Sdk`: 17.8.0 → 18.0.1
+  - `xunit`: 2.6.4 → 2.9.3
+  - `xunit.runner.visualstudio`: 2.5.6 → 3.0.2
+- Improved Dependabot configuration:
+  - Added `versioning-strategy: increase` to handle floating version bumps
+  - Added dependency grouping for reduced PR noise
+  - Increased PR limit to 10
+
 ### Added
 
 - **PPDS.Migration** - New library for high-performance Dataverse data migration
diff --git a/src/PPDS.Dataverse/PPDS.Dataverse.csproj b/src/PPDS.Dataverse/PPDS.Dataverse.csproj
index 1ed70857..11b1adb3 100644
--- a/src/PPDS.Dataverse/PPDS.Dataverse.csproj
+++ b/src/PPDS.Dataverse/PPDS.Dataverse.csproj
@@ -41,7 +41,7 @@
 
   <ItemGroup>
     <PackageReference Include="Microsoft.Extensions.DependencyInjection" Version="10.0.1" />
-    <PackageReference Include="Microsoft.PowerPlatform.Dataverse.Client" Version="1.1.*" />
+    <PackageReference Include="Microsoft.PowerPlatform.Dataverse.Client" Version="1.2.*" />
     <PackageReference Include="Microsoft.Extensions.DependencyInjection.Abstractions" Version="10.0.1" />
     <PackageReference Include="Microsoft.Extensions.Logging.Abstractions" Version="10.0.1" />
     <PackageReference Include="Microsoft.Extensions.Options" Version="10.0.1" />
diff --git a/tests/PPDS.Dataverse.Tests/PPDS.Dataverse.Tests.csproj b/tests/PPDS.Dataverse.Tests/PPDS.Dataverse.Tests.csproj
index c3ea154d..2d60a4a7 100644
--- a/tests/PPDS.Dataverse.Tests/PPDS.Dataverse.Tests.csproj
+++ b/tests/PPDS.Dataverse.Tests/PPDS.Dataverse.Tests.csproj
@@ -10,9 +10,9 @@
   </PropertyGroup>
 
   <ItemGroup>
-    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="17.8.0" />
-    <PackageReference Include="xunit" Version="2.6.4" />
-    <PackageReference Include="xunit.runner.visualstudio" Version="2.5.6">
+    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="18.0.1" />
+    <PackageReference Include="xunit" Version="2.9.3" />
+    <PackageReference Include="xunit.runner.visualstudio" Version="3.0.2">
       <PrivateAssets>all</PrivateAssets>
       <IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
     </PackageReference>
diff --git a/tests/PPDS.Migration.Cli.Tests/PPDS.Migration.Cli.Tests.csproj b/tests/PPDS.Migration.Cli.Tests/PPDS.Migration.Cli.Tests.csproj
index 84fe0e28..9ae086fd 100644
--- a/tests/PPDS.Migration.Cli.Tests/PPDS.Migration.Cli.Tests.csproj
+++ b/tests/PPDS.Migration.Cli.Tests/PPDS.Migration.Cli.Tests.csproj
@@ -10,9 +10,9 @@
   </PropertyGroup>
 
   <ItemGroup>
-    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="17.8.0" />
-    <PackageReference Include="xunit" Version="2.6.4" />
-    <PackageReference Include="xunit.runner.visualstudio" Version="2.5.6">
+    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="18.0.1" />
+    <PackageReference Include="xunit" Version="2.9.3" />
+    <PackageReference Include="xunit.runner.visualstudio" Version="3.0.2">
       <PrivateAssets>all</PrivateAssets>
       <IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
     </PackageReference>
diff --git a/tests/PPDS.Plugins.Tests/PPDS.Plugins.Tests.csproj b/tests/PPDS.Plugins.Tests/PPDS.Plugins.Tests.csproj
index c27ee3dc..58accd46 100644
--- a/tests/PPDS.Plugins.Tests/PPDS.Plugins.Tests.csproj
+++ b/tests/PPDS.Plugins.Tests/PPDS.Plugins.Tests.csproj
@@ -10,9 +10,9 @@
   </PropertyGroup>
 
   <ItemGroup>
-    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="17.8.0" />
-    <PackageReference Include="xunit" Version="2.6.4" />
-    <PackageReference Include="xunit.runner.visualstudio" Version="2.5.6">
+    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="18.0.1" />
+    <PackageReference Include="xunit" Version="2.9.3" />
+    <PackageReference Include="xunit.runner.visualstudio" Version="3.0.2">
       <PrivateAssets>all</PrivateAssets>
       <IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
     </PackageReference>