Dropping .NET Framework\v5.1 support would be a dream but from my understanding is that most people are relying on it. Not sure about people’s ability to run PSv7\7.1 in their environments.
Here’s the discussion on VS Code: Cant start dashboard from Visual Code =====> PowerShell Integrated Console <=====
The problem with the Az module discussion is here: Community version conflicts with Azure 'Az' module
The problem is that this could really crop up with any assembly. I’ve also seen mixing and matching of other modules with UD causing this as well.
Honestly, it’s a bit of a problem with PowerShell in general. Any module could potentially conflict with another module. UD just takes advantage of some pretty common assemblies which seem to cause problems more often.