Response from MS Support:
"Issue Description: The advisory to update to TLS 1.2 or higher primarily applies to custom topics and System topics in Azure Event Grid,
Analysis:
The advisory to update to TLS 1.2 or higher primarily applies to custom topics in Azure Event Grid, where users have control over the TLS settings. For system topics, the TLS versioning is managed by the Azure platform itself, and users do not have the ability to view or modify these settings. Therefore, the advisory does not require any action for system topics, as Azure will handle the TLS versioning automatically to ensure compliance with security standards.
If you are only using system topics, it seems that the advisory does not apply to you, and no action is needed on your part."