diff --git a/pyproject.toml b/pyproject.toml
index c0d11f10..ea0cf94c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -21,25 +21,25 @@ classifiers = [
     "Programming Language :: Python :: 3.14",
 ]
 dependencies = [
-    "azure-core<2.0.0,>=1.28.0",
+    "azure-core<2.0.0,>=1.38.0",
     "azure-core-tracing-opentelemetry~=1.0.0b11",
-    "azure-monitor-opentelemetry-exporter~=1.0.0b57",
-    "opentelemetry-sdk~=1.44.0",
-    "opentelemetry-api~=1.44.0",
-    "opentelemetry-exporter-otlp-proto-http~=1.44.0",
-    "opentelemetry-instrumentation>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-django>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-fastapi>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-flask>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-httpx>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-psycopg2>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-requests>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-urllib>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-urllib3>=0.65b0,<0.66b0",
-    "opentelemetry-instrumentation-logging>=0.65b0,<0.66b0",
+    "azure-monitor-opentelemetry-exporter~=1.0.0b58",
+    "opentelemetry-sdk~=1.45.0",
+    "opentelemetry-api~=1.45.0",
+    "opentelemetry-exporter-otlp-proto-http~=1.45.0",
+    "opentelemetry-instrumentation>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-django>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-fastapi>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-flask>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-httpx>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-psycopg2>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-requests>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-urllib>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-urllib3>=0.66b0,<0.67b0",
+    "opentelemetry-instrumentation-logging>=0.66b0,<0.67b0",
     "opentelemetry-instrumentation-openai-agents-v2==0.1.0",
     "opentelemetry-instrumentation-openai-v2==2.3b0",
-    "opentelemetry-resource-detector-azure<1.0.0,>=0.2.0",
+    "opentelemetry-resource-detector-azure<1.0.0,>=0.3.0",
     "wrapt>=1.0.0,<2.0.0",
     "opentelemetry-util-genai==0.3b0",
     "aiohttp>=3.8.0",
diff --git a/tests/upstream/test_service_instance_id_regressions.py b/tests/upstream/test_service_instance_id_regressions.py
index c2e21922..888c48e4 100644
--- a/tests/upstream/test_service_instance_id_regressions.py
+++ b/tests/upstream/test_service_instance_id_regressions.py
@@ -98,10 +98,6 @@ def test_aks_identity_is_not_replaced_by_vm_detector(monkeypatch):
     assert "host.id" not in resource.attributes
 
 
-@pytest.mark.xfail(
-    strict=True,
-    reason="opentelemetry-sdk 1.44 runs the generated service_instance detector after Azure detectors",
-)
 def test_azure_app_service_instance_id_overrides_generated_id(monkeypatch):
     monkeypatch.setenv("OTEL_EXPERIMENTAL_RESOURCE_DETECTORS", "azure_app_service")
     monkeypatch.setenv("WEBSITE_SITE_NAME", "orders-api")