Add changelog for v1.16.1

Author: willie-yao

CHANGELOG/v1.16.1.md

@@ -0,0 +1,34 @@
+## Changes by Kind
+
+### Documentation
+
+- Refactor documentation ([#5094](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5094), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+
+### Bug or Regression
+
+- Fixed a bug causing unnecessary updates to tags to VMSS resources. ([#5063](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5063), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+- Fixed a bug preventing the ASOAPI feature flag from being enabled by default. ([#5095](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5095), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+- Fixed a bug with AzureASOManagedMachinePools preventing it from mapping Nodes when the AKS node resource group is more than 63 characters long. ([#5056](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5056), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+- Fixed a bug causing AzureMachinePool to endlessly reconcile when a tag is applied to a VMSS by an external actor like Azure Policy ([#5021](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5021), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+- Fixed an issue preventing CAPZ from reconciling non-ServicePrincipal-authenticated, AAD-enabled AKS clusters. ([#5073](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5073), [@k8s-infra-cherrypick-robot](https://github.com/k8s-infra-cherrypick-robot))
+
+### Other (Cleanup or Flake)
+
+- Bump CAPI to v1.7.5 ([#5077](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5077), [@mboersma](https://github.com/mboersma))
+
+## Dependencies
+
+### Added
+_Nothing has changed._
+
+### Changed
+- github.com/docker/docker: [v25.0.5+incompatible → v25.0.6+incompatible](https://github.com/docker/docker/compare/v25.0.5...v25.0.6)
+- sigs.k8s.io/cluster-api/test: v1.7.4 → v1.7.5
+- sigs.k8s.io/cluster-api: v1.7.4 → v1.7.5
+
+### Removed
+_Nothing has changed._
+
+## Details
+<!-- markdown-link-check-disable-next-line -->
+https://github.com/kubernetes-sigs/cluster-api-provider-azure/compare/v1.16.0...v1.16.1