Hi Varsha Vishwakarma (AVANADE INC),
Thanks for our offline conversation, Glad your issue is resolved.
Upon investigating further, it was identified that the issue was due to missing roles required for the Function App to run using its Managed Identity.
Solution:
- Go to the Storage Account => IAM => Add Role Assignment
- Assign the following roles to the Function App's Managed Identity:
Storage Blob Data Contributor
Storage Queue Data Contributor
Hope it helps!
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If you have any other questions, let me know in the "comments" and I would be happy to help you.