I was a bit brief apologies. I was writing the post on another macbook ( M1 Air) at the time.
The macbook in question is an M1 macbook pro.
The MacOs version is:
The warning message is here:
The "Learn More" link is
https://support.apple.com/en-us/102423?cid=mc-ols-TimeMachine-article_102423-Settings-04282025
The explicit warning is here:
The same linked section states that an external disk attached to said time machine targets running Mac OS Extended (Journaled) filesystem will be compatible.
The Airport Time Capsule in question is definitely running APFS.
(yes I upgraded the 1TB disk some time ago to 6TB)
There is no option to set the file format if erasing the INTERNAL disk using airport utility - can only do this for a usb disk attached to the time machine proper.
Edit: I tried doing this using Disk Utility but the drive only appears to Disk utility if the macbook is connected to the time capsule and if connected Disk Utility cannot make changes. I am not sure how the time machine / time capsule software would like a change in disk format though even if I could do it
So . . . .Apple instead of simply stating that legacy devices only support APFS and will not be compatible . . . Apple had to be very very obtuse.
The end result is the same. The time capsule is useless if I upgrade to 26.x
I could remove the 6TB disk and using a USB case attach it to the Mac Book but then I lose the ability to use the file store for my second Mac Book as both mac books are mobile and are not 100% connected all the time. I will look into having the same disk in a USB case attached to the current time capsule but I suspect it runs USB2 speeds and this things will run like real slow
Hope this helps