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&gt; `pulumi state upgrade` will make upgraded stacks inaccesible to older versions of Pulumi. This is a one-way operation. Once you have upgraded your backend, you cannot downgrade to the previous version.
<https://www.pulumi.com/docs/concepts/state/#scoping>

Other than requiring Pulumi version 3.61.0+, what are the implications?  Does this impact any features?

This allows you to use project scoped stacks, so you can have "my-project/dev" "my-other-project/dev", where the project name is picked up automatically from the Pulumi.yaml.
Aligns with how names work with the service, and is a lot nicer than having to remember to prepend your project name to every stack name.

Right, okay, I suppose that answers my question too, stack references could become problematic.  Where we have overcome this limitation using our own namespace.

I'm also left a comment here in regards to a point of friction moving between state backends <https://github.com/pulumi/pulumi/issues/12173#issuecomment-1721166693>

Sorry, been offline for a few days but I've replied to that comment now.

Thank you, that solution would ease migration between state backends 100%