It might be an unpopular opinion, but Azure Boards has worked well in small and large orgs that I’ve been at. Some teams I’ve worked with also used GitHub projects, depending on your source control and other providers.
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Somehow never heard of it, I'll give it a look!
I worked with Azure Boards and the entire TFS stack for multiple years and it's a horrible experience. It's very slow, buggy and especially the access-management is so poorly designed, most engineers had admin rights, because we tried for hours and ended it with "fuck it" and gave them admin rights, so they could do their job.
What code hosting do you use? The native issue tracking may be viable and skip the need for a separate tool?