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+## Changes by Kind
+
+### Other (Cleanup or Flake)
+
+- Bump CAPI to v1.12.7 ([#6250](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/6250), [@mboersma](https://github.com/mboersma))
+
+## Dependencies
+
+### Added
+- github.com/moby/moby/api: [v1.54.1](https://github.com/moby/moby/tree/api/v1.54.1)
+- github.com/moby/moby/client: [v0.4.0](https://github.com/moby/moby/tree/client/v0.4.0)
+- github.com/russross/blackfriday: [v1.6.0](https://github.com/russross/blackfriday/tree/v1.6.0)
+- github.com/santhosh-tekuri/jsonschema/v5: [v5.3.1](https://github.com/santhosh-tekuri/jsonschema/tree/v5.3.1)
+- pgregory.net/rapid: v1.2.0
+
+### Changed
+- github.com/GoogleCloudPlatform/opentelemetry-operations-go/detectors/gcp: [v1.30.0 → v1.31.0](https://github.com/GoogleCloudPlatform/opentelemetry-operations-go/compare/detectors/gcp/v1.30.0...detectors/gcp/v1.31.0)
+- github.com/Microsoft/go-winio: [v0.5.0 → v0.6.2](https://github.com/Microsoft/go-winio/compare/v0.5.0...v0.6.2)
+- github.com/coredns/corefile-migration: [v1.0.30 → v1.0.31](https://github.com/coredns/corefile-migration/compare/v1.0.30...v1.0.31)
+- github.com/creack/pty: [v1.1.18 → v1.1.24](https://github.com/creack/pty/compare/v1.1.18...v1.1.24)
+- github.com/docker/go-units: [v0.4.0 → v0.5.0](https://github.com/docker/go-units/compare/v0.4.0...v0.5.0)
+- github.com/opencontainers/image-spec: [v1.0.2 → v1.1.1](https://github.com/opencontainers/image-spec/compare/v1.0.2...v1.1.1)
+- go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel/exporters/otlp/otlptrace: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel/metric: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel/sdk/metric: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel/sdk: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel/trace: v1.41.0 → v1.43.0
+- go.opentelemetry.io/otel: v1.41.0 → v1.43.0
+- go.opentelemetry.io/proto/otlp: v1.9.0 → v1.10.0
+- golang.org/x/crypto: v0.48.0 → v0.49.0
+- golang.org/x/net: v0.50.0 → v0.52.0
+- golang.org/x/sync: v0.19.0 → v0.20.0
+- golang.org/x/sys: v0.41.0 → v0.42.0
+- golang.org/x/telemetry: bd525da → e7419c6
+- golang.org/x/term: v0.40.0 → v0.41.0
+- golang.org/x/text: v0.34.0 → v0.35.0
+- golang.org/x/tools: v0.41.0 → v0.42.0
+- gonum.org/v1/gonum: v0.16.0 → v0.17.0
+- google.golang.org/genproto/googleapis/api: 4cfbd41 → 9d38bb4
+- google.golang.org/genproto/googleapis/rpc: 4cfbd41 → 9d38bb4
+- google.golang.org/grpc: v1.79.1 → v1.80.0
+- gotest.tools/v3: v3.4.0 → v3.5.2
+- sigs.k8s.io/cluster-api/test: v1.12.4 → v1.12.7
+- sigs.k8s.io/cluster-api: v1.12.4 → v1.12.7
+
+### Removed
+- github.com/containerd/log: [v0.1.0](https://github.com/containerd/log/tree/v0.1.0)
+- github.com/docker/docker: [v28.5.2+incompatible](https://github.com/docker/docker/tree/v28.5.2)
+- github.com/moby/sys/atomicwriter: [v0.1.0](https://github.com/moby/sys/tree/atomicwriter/v0.1.0)
+- github.com/moby/sys/sequential: [v0.6.0](https://github.com/moby/sys/tree/sequential/v0.6.0)
+- github.com/morikuni/aec: [v1.0.0](https://github.com/morikuni/aec/tree/v1.0.0)
+- go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp: v1.40.0
+
+## Details
+<!-- markdown-link-check-disable-next-line -->
+https://github.com/kubernetes-sigs/cluster-api-provider-azure/compare/v1.23.0...v1.23.1