Using MS-Graph Module

Connect to graph API

# log in initially
$passwd = ConvertTo-SecureString 'm7flq6%gsZ@cW9yA1!' -AsPlainText -Force
$creds = New-Object System.Management.Automation.PSCredential('[email protected]',$passwd)
Connect-AzAccount  -Credential $creds
 
# get ms graph token
$Token = (Get-AzAccessToken -ResourceTypeName MSGraph).Token | ConvertTo-SecureString -AsPlainText -Force
Connect-MgGraph -AccessToken $Token

Use MS-Graph to set a new application password

# get the application id
Get-MgApplication -All | Where-Object {$_.Displayname -eq 'ASinesahkzcu3220396' }
 
# add the new application secret (not it from the list)
$params = @{                                                                                   passwordCredential = @{
	 displayName = "Password friendly name"
   }
}
Add-MgApplicationPassword -ApplicationId $appId -BodyParameter $params