Impact of July 2025 Managed Certificate Changes on Traffic Manager Integration

My Azure Function App / Web App relies on Traffic Manager (priority-based) to route HTTP traffic across different regions.
According to the Microsoft documentation, we will no longer be able to create certificates for *.trafficmanager.net
domains. Until now, this was possible.
If I follow the recommended steps in the guide—creating a custom domain, adding the CNAME to the Traffic Manager domain, and adding that domain in the App Service Custom Domains section (with a certificate generated by App Service Managed Certificates)—my App Service shows as Degraded in the Traffic Manager profile.
How can I prevent this?
In the Traffic Manager documentation, it states:
"Since the App Service app is now integrated with a Traffic Manager endpoint, you should see the Traffic Manager domain name under CNAME configuration. Select it and click Add custom domain."
If I do this, a managed certificate is created automatically (which should not be the case as mentioned in App Service Managed Certificate (ASMC) changes – July 28, 2025), which is the expected behavior. However, if I skip this step, the app shows as Degraded in the Traffic Manager profile, and traffic is not routed.
Am I doing something wrong or interpreting the documentation incorrectly?