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Can anyone help me with the difference between different versions of PowerShell? As it has many versions which is sort of confusing also, in able to connect to Azure Active directory the cmdlet is not working with PowerShell version 7. Can anyone have any idea?

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So, from PowerShell 1.0 to PowerShell 5.1, these are called Windows PowerShell and comes with Windows Operating Systems and work only for Windows only. Whereas, PowerShell 6.0+ are called cross platform, which does not comes with OS. Also, in able to connect your Azure Active Directory, it comes with different modules. You need to install those first, then you can able to use it.

I hope this will help.

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