Azure function TSC build errors in msal-node

[pragmatta]

• Package Name: @azure/identity
• Package Version: 4.7.0
• Operating system: Windows (dev), Linux (Azure function)
• nodejs
  • version: 22
• browser
  • name/version:
• typescript
  • version:

Describe the bug
After updating my Azure function packages, started getting TSC build errors in VSCode "Deploy to web app". First noticed this on function I had changed but getting same error on different function that was not changed. Looks like a regression in JS build.

> tsc

node_modules/@azure/msal-common/lib/types/broker/nativeBroker/INativeBrokerPlugin.d.ts:1:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

1 /// <reference types="node" resolution-mode="require"/>
                        ~~~~

node_modules/@azure/msal-common/lib/types/broker/nativeBroker/INativeBrokerPlugin.d.ts:2:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

2 /// <reference types="node" resolution-mode="require"/>
                        ~~~~

node_modules/@azure/msal-node/dist/config/Configuration.d.ts:1:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

1 /// <reference types="node" resolution-mode="require"/>
                        ~~~~

node_modules/@azure/msal-node/dist/config/Configuration.d.ts:2:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

2 /// <reference types="node" resolution-mode="require"/>
                        ~~~~

node_modules/@azure/msal-node/dist/config/Configuration.d.ts:4:8 - error TS1192: Module '"http"' has no default export.

4 import http from "http";
         ~~~~

node_modules/@azure/msal-node/dist/config/Configuration.d.ts:5:8 - error TS1192: Module '"https"' has no default export.

5 import https from "https";
         ~~~~~

node_modules/@azure/msal-node/dist/request/InteractiveRequest.d.ts:1:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

1 /// <reference types="node" resolution-mode="require"/>
                        ~~~~

node_modules/@azure/msal-node/dist/request/InteractiveRequest.d.ts:2:23 - error TS1452: 'resolution-mode' assertions are only supported when `moduleResolution` is `node16` or `nodenext`.

2 /// <reference types="node" resolution-mode="require"/>
                        ~~~~


Found 8 errors in 3 files.

Errors  Files
     2  node_modules/@azure/msal-common/lib/types/broker/nativeBroker/INativeBrokerPlugin.d.ts:1
     4  node_modules/@azure/msal-node/dist/config/Configuration.d.ts:1
     2  node_modules/@azure/msal-node/dist/request/InteractiveRequest.d.ts:1

To Reproduce
Not sure what exactly is needed for replication but these azure packages are required and azure/identity is required by them and msal-node by that
"@azure/functions": "^4.0.0",
"@azure/core-http": "^3.0.0",
"@azure/keyvault-secrets": "^4.0.0",
"@azure/storage-queue": "^12.25.0",
"@azure/communication-email": "^1.0.0",

Expected behavior
Building Azure functions should succeed.

Additional context
I have also reported this to msal-node
AzureAD/microsoft-authentication-library-for-js#7593