Asynchronous microgrid (ASMG) with a power conditioning system (PCS) is a promising solution for future microgrids (MGs). High voltage (HV, >3.3 kV) SiC device-based PCS is becoming more and more popular in the ASMG PCS implementation. PCS with HV SiC MOSFETs can realize higher control frequencies with lower losses to bring numerous system-level benefits, which have not been fully investigated in the existing literature. In this paper, the active power filtering (APF) capability of the HV SiC-based PCS for both grid and MG power quality improvement is discussed and demonstrated. A harmonic impedance-based APF algorithm is proposed for MG-side PCS. The PCS APF functions are demonstrated on a 10 kV SiC MOSFET-based PCS prototype with the modular multi-level converter (MMC) topology to 19th-order harmonic currents.