Use silenceDeprecations instead of quietDeps:

{
  loader: "sass-loader",
  options: {
    api: "modern",
    sassOptions: {
      silenceDeprecations: ["import", "color-functions"],
    },
  },
},

Works fine with:

"sass-embedded": "^1.89.0",
"sass-loader": "^13.3.3",
"webpack": "^5.99.8",

Full list of deprecation ids