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34 changes: 34 additions & 0 deletions CHANGELOG/v1.16.1.md
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## 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