Upgrade to Polkadot stable2506

[manuelmauro]

⚠️ Breaking Changes ⚠️

• Not a breaking change, but notice that DOT/KSM reserve calls should use transfer_assets_using_type_and_then for avoiding errors related to reserve misconfiguration.

What does it do?

Upgrades polkadot-sdk to stable2506.

Are there relevant PRs or issues in other repositories (Substrate, Polkadot, Frontier, Cumulus)?

• PR #3695 - New transfer_assets_using_type_and_then extrinsic enables explicit XCM transfer type selection:
  • LocalReserve / DestinationReserve / RemoteReserve / Teleport
  • Enables multi-hop transfers via explicit reserve chains (e.g., Asset Hub)
  • Critical for bridged assets like ERC20 tokens via Snowbridge
  • pallet-xcm: add new extrinsic for asset transfers using explicit XCM transfer types paritytech/polkadot-sdk#3695
• PR #7682 - Trie Cache Memory Optimization
  • Backend::state_at() signature changed - requires new TrieCacheContext parameter
  • Make SharedTrieCache/LocalTrieCache work with entire state in memory  paritytech/polkadot-sdk#7682
• PR #7730 - XCM Error Type Restructuring
  • ExecuteXcm trait prepare() method signature changed
  • LocalExecutionIncomplete → LocalExecutionIncompleteWithError
  • Nest errors in pallet-xcm paritytech/polkadot-sdk#7730
• PR #7375 - Runtime Interface Refactoring
  • #[runtime_interface] macro requires explicit type marshalling strategies
  • Affects MoonbeamExt custom host functions
  • Refactor the host <-> runtime interface machinery paritytech/polkadot-sdk#7375
• PR #7867 - Storage Benchmark Accuracy
  • Storage benchmark run() method requires new shared_trie_cache parameter
  • benchmark: storage: Make read/write benchmarks more accurate paritytech/polkadot-sdk#7867
• PR #8021 - XCMP Batching + PR #8344 - XCMP Weight Metering
  • Weight files MUST be regenerated (new benchmark functions added)
  • XCMP: use batching when enqueuing inbound messages paritytech/polkadot-sdk#8021
  • XCMP weight metering: account for the MQ page position paritytech/polkadot-sdk#8344
• PR #8179 - Identity Pallet Benchmark Helper
  • New required BenchmarkHelper associated type in pallet_identity::Config
  • Do not make pallet-identity benchmarks signature-dependent paritytech/polkadot-sdk#8179
• PR #8299 - Relay Parent Offset Configuration
  • New required RelayParentOffset associated type in cumulus_pallet_parachain_system::Config
  • Allow building on older relay parents paritytech/polkadot-sdk#8299
• PR #8535 - WeightBounds Return Type Change
  • WeightBounds trait methods return Result<Weight, XcmError> instead of Result<Weight, ()>
  • Make WeightBounds return XcmError to surface failures paritytech/polkadot-sdk#8535

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✨ Finishing touches

🧪 Generate unit tests (beta)

• Create PR with unit tests
• Post copyable unit tests in a comment
• Commit unit tests in branch moonbeam-polkadot-stable2506

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[RomarQ]

The benchmarks are failing: https://github.com/moonbeam-foundation/moonbeam/actions/runs/19515796274/job/55867083680

We should also update the breaking changes section and mention the important changes from polkadot-sdk