GitHub Actions still using ubuntu-20.04

Correct. If vmImage isn’t used, then you’re not using a Microsoft-hosted agent.

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So does this need updating:

Eventually yes, I guess, but right now ubuntu-24.04 is the latest version anyway.

There’s nothing wrong with using the Microsoft-hosted agents when appropriate. The issue is using soon-to-be-removed VM images.

All of the ansible-core managed projects already have a regular update schedule where we upgrade to the latest Ubuntu LTS image after it becomes available.