[release-1.16] Bump CAPI to v1.7.9

[mboersma]

What type of PR is this?

/kind cleanup

What this PR does / why we need it:

Updates CAPI to v1.7.9.

Which issue(s) this PR fixes:

N/A, but see #5256 for prior art.

Special notes for your reviewer:

• cherry-pick candidate

TODOs:

• squashed commits
• includes documentation
• adds unit tests

Release note:

Bump CAPI to v1.7.9

[k8s-ci-robot]

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[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Project coverage is 52.33%. Comparing base (207a72f) to head (b3f60a4).
Report is 1 commits behind head on release-1.16.

Additional details and impacted files

@@              Coverage Diff              @@
##           release-1.16    #5330   +/-   ##
=============================================
  Coverage         52.33%   52.33%           
=============================================
  Files               273      273           
  Lines             29156    29156           
=============================================
  Hits              15259    15259           
  Misses            13093    13093           
  Partials            804      804           

☔ View full report in Codecov by Sentry.
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[mboersma]

/retest

[k8s-ci-robot]

@mboersma: The following tests failed, say /retest to rerun all failed tests or /retest-required to rerun all mandatory failed tests:

Test name	Commit	Details	Required	Rerun command
pull-cluster-api-provider-azure-e2e-v1beta1	b3f60a4	link	true	/test pull-cluster-api-provider-azure-e2e-v1beta1
pull-cluster-api-provider-azure-e2e-aks-v1beta1	b3f60a4	link	true	/test pull-cluster-api-provider-azure-e2e-aks-v1beta1

Full PR test history. Your PR dashboard. Please help us cut down on flakes by linking to an open issue when you hit one in your PR.

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