@Prashant patil Thanks for reaching out. The error message indicates that there is a permission issue with the managed identity used to access the blob storage.
verify if the managed identity has the necessary role assigned, you can go to the storage account in the Azure portal, click on "Access control (IAM)" in the left-hand menu, and search for the managed identity. If the managed identity has the Storage Blob Data Contributor role or the Storage Blob Data Owner role assigned, it should be listed in the "Role assignments" tab. please refer https://learn.microsoft.com/en-us/azure/azure-functions/functions-bindings-storage-blob-trigger?tabs=python-v2%2Cisolated-process%2Cnodejs-v4%2Cextensionv5&pivots=programming-language-csharp#grant-permission-to-the-identity
In addition to the role assignment, you also need to set the AzureWebJobsStorage__blobServiceUri application setting in the Function App. This setting specifies the URL of the blob storage account and is required when using a managed identity to access the storage account. https://learn.microsoft.com/en-us/azure/azure-functions/functions-reference?tabs=blob&pivots=programming-language-csharp#connecting-to-host-storage-with-an-identity
try restarting the function app to see if this issue resolves. do let me know incase of further queries, I would be happy to assist you.