Workload identity federation for Azure deployments is now generally available - Azure DevOps Blog
Briefly

Azure service connections that use workload identity federation are easier to manage and more secure.
This provides a stricter constraint than a secret, which could unintentionally be leaked and used for other purposes or from other locations.
Configuration of an Azure service connection with workload identity federation is a one-time setup. You don't have to worry about expiring secrets that have to be rotated in order for the service connection to stay operational.
Read at Azure DevOps Blog
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