We are getting following notification:
"Public service announcement
Your instance is using the JMWE plugin which will no longer part of JIRA Cloud as of Monday 15 August. A replacement add-on will soon be available, more information in the knowledge base article. We apologise for the inconvenience."
1. Is there anything that we need to upgrade or make changes in configuration or any other action to take at our end?
2. What are the possible impacts on our instance?
Yes, and the message pointed you to a KB article on it. I find https://confluence.atlassian.com/jirakb/jira-miscellaneous-workflow-extensions-jmwe-removal-from-jira-cloud-815262011.html covers all you need to know.
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