I am also concerned about this. Very little has been told. If Edge doesn't support full functionality, in fact, privacy is compromised...

I'm too curious about how this will end.
Seeing their roadmap they will definetly drop v2 one day:

When this change is released, Microsoft Partner Center will not accept updates to existing Manifest V2 Microsoft Edge Add-ons. Microsoft Edge will no longer support or run Manifest V2 Microsoft Edge Add-ons.

Note that by using Microsoft Edge Enterprise Policies, Enterprise Accounts can allow Manifest V2 Microsoft Edge Add-ons to run and operate on Microsoft Edge.

I think microsoft have done a good job with edge till now, but if ublock will not work anymore I'll never use edge again and I don't think I'm the only one.

We are closely watching this as well. uBlock has published an experimental MV3 extension (title uBlock Origin Lite) to Chrome. You may want to try that out and provide feedback if you see any specific deficiencies.

It seems like ublock origin lite isnt gonna work out. It doesnt work anywhere near as well and to get it to approach the level of v2, the browser spams the user with nagging permissions prompts that will train the user to always click yes.

We need to stop having discussions about "try it out and provide feedback" because everyone knows what the outcome here is.
V3 is not about security or privacy, its about Google wanting to break adblockers because Google is an advertising company.

Edge has created a bunch of goodwill for Microsoft, and now you guys are looking to throw it away by mandating V3 and bringing ads back into our lives. Ads are the largest security and privacy threat that users will face on the web and content blockers like ublock protect users more than any of these V3 changes will.

Microsoft could win alot of hearts and minds by retaining v2 support forever. Or by creating a feature superset for v3 (lets call it v3+) that allows extensions to bring in v2 content blocking features. Extensions could check for feature availability in order to retain browser compatibility.

In addition if you're actually worried about extensions causing privacy or security problems (and lets be honest you arent) you could have an extensions approval process whereby extensions are validated by microsoft against threats and then signed before being deployed to the store. These signed and approved extensions could be granted higher permissions. Effectively treating extensions like apps in the microsoft store or ios app store. Unsigned extensions would still be allowed, but they'd be subject to the stricter controls of v3.

IDK, think about it. The current plan stinks.

uBlock has published an experimental MV3 extension (title uBlock Origin Lite) to Chrome. You may want to try that out and provide feedback if you see any specific deficiencies.

The lack of the element picker is a bit annoying since sometimes I want to get rid of some small thing showing up on a webpage that's annoying me, this doesn't generally mean an advertisement, I mostly use it to remove overlays and that's not possible with uBlock Origin Lite. Other than that, only being able to update filters on extension updates means that you end up seeing ads more often because the approval process of extension updates tends to be slower (especially for extensions with broad host permissions). I still have to use it longer to figure out all the quirks, will try to report back when I have any more feedback.