after upgrading VBR to 12.3.1.1139 (currently the latest version) we wanted to upgrade the Veeam Backup for Azure appliance which we manage in VBR with all of our installation. However, before even attempting to upgrade, we got this error:

There are some information mentioning re-adding the Azure compute account (however unrelated to this situation) which I tested. (https://helpcenter.veeam.com/rn/veeam_b ... ntegration). I even tried to let Veeam create the App registration directly in Entra ID.
However, Veeam creates the app registration using Secret which worked fine. But I wanted to use certificate for authentication. So within the new Azure compute account (or Entra ID App Registration) I created a self signed certificate the same way we did until now and the I got the error message again.
I believe there are some changes regarding the requirements for the certificate. On the VBR the certificate is imported in Local Computer personal store and Trusted Root as well. Did try to restart the VBR server. This has nothing to do with the appliance itself since because of this error I am not even able to add it back after removing it from the infrastructure.
There is an opened support case #07660031 already pending further investigation.
Anybode else having this issue and was able to resolve it? Or maybe there is some KB/Link mentioning the certificate change?
Thank you