ClientAuthenticationError: ChainedTokenCredential failed to retrieve a token

ClientAuthenticationError: ChainedTokenCredential failed to retrieve a token from the included credentials.
Attempted credentials:
	AzureCliCredential: Unexpected output from Azure CLI: 'WARNING: New Azure CLI version available. Running 'az upgrade' to update automatically.
WARNING: Unable to prompt for auto upgrade as no tty available. Run 'az config set auto-upgrade.prompt=no' to allow auto upgrade with no prompt.
{
  ****,
  "expiresOn": "2021-11-03 18:02:03.908341",
  "subscription": "a61545b7-abcd-4a28-bff6-85c783b2a02e",
  "tenant": "72f988bf-86f1-41af-91ab-2d7cd011db47",
  "tokenType": "Bearer"
}

This is caused by Azure CLI checking for upgrades and finding a new version. When MSAL (The Microsoft Authentication Library) calls Azure CLI to obtain a token it does not handle the Azure CLI message correctly and produces an error.

The fix is to upgrade Azure cli:

In a terminal

$ az upgrade

From a notebook

!az upgrade -y