We are using Deployment Pipelines to manage all our Power App and Workflows from Dev to Test to Prod. We use the Delegated Deployment option using a Service Principal account. This is to make sure all connections are workflows are shared to that account. This helps when you have multiple people working in the Power Platform and someone leaves the company. Their flows and power apps will still work. However, we discovered today that if a Solution includes some "Desktop Flows" and you are promoting it to a new environment, the deployment will fail. You will get an error

"ServicePrincipalShareNotSupportedInApi - Sharing connections with a service principal is not supported by the api."

This happens because under the connections section, we check the option to share connections with service principal account. This is required to ensure workflows will run correctly when deployed. This needs to be allowed with Desktop Flow Machine Group connections too.

My work around right now is to manually export the solution as zip as a managed solution. Then manually import it into the new environment. Once imported, you will be able to deploy updates to the solution with Pipelines once more.