Thank you for your patience here. I got a response back from the team.
Update: 06/04
The "family": "Generation_2" tag is used to identify the underline SKU family associated with the Application Gateway V2. As we transition to the next generation SKU family, this tag helps differentiate Application Gateways that are part of the updated infrastructure. We are currently migrating existing Generation_1 gateways to Generation_2 as part of this upgrade initiative. Please note that this setting is not configurable at this time.
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