Our tenant is using Security Defaults, so connecting using a username and password is not accepted anymore. Therefore, we want to use App-Only permissions to connect to the SharePoint environment, create modern team sites with a default language set to Dutch and do some additional modifications using the PnP Framework.
Using PnP version 3.20.2004.0 (April 2020 release) I am able to create a certificate, connect to the tenant and create an App Registration. We can create a modern team site without an exception being thrown. However, although we specified Dutch as our required base language, the created site has English as the base language.
We need the base language to be Dutch because the template that we regularly deploy to it and other solution that is depended on the provisioned sites.

Reporting an Issue or Missing Feature
Reporting an issue that the default language provided as the LCID parameter is ignored during site creation with the New-PnPSite command.
Expected behavior
When connected to SharePoint in an App-only context and subsequently creating a site using the New-PnPSite command with the LCID parameter set to 1043, we expect the created site to have a default language set to Dutch.
Actual behavior
Although we set the LCID parameter to the Dutch-language code 1043, the base language is not set to Dutch. Actually, the created site has English as the base language, which can be retrieved at the page located at https://TenantName.sharepoint.com/sites/SiteName/_layouts/15/muisetng.aspx.
Steps to reproduce behavior
Because our tenant is set to security defaults, we connected to the SharePoint tenant in an app-only context with the following command:
Connect-PnPOnline -ClientId $AzureAppId -Tenant $tenantname -Url $adminUrl -CertificatePath $certificatePath
Subsequently, we created the site using the New-PnPSite command and the LCID parameter set to 1043 (Dutch):
New-PnPSite -Type TeamSite -Title "DemoSite" -Alias "DemoSite" -Description "DemoSite" -Lcid 1043 -Owners "[email protected]", "[email protected]"
After the site has been created, navigate to the Site Information > View all site settings > Site languages page at https://TenantName.sharepoint.com/sites/SiteName/_layouts/15/muisetng.aspx. On this page, the base language is unexpectedly set to English instead of Dutch.
Which version of the PnP-PowerShell Cmdlets are you using?
What is the version of the Cmdlet module you are running?
3.20.2004.0 (April 2020 release)
How did you install the PnP-PowerShell Cmdlets?