Hello Bert,
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this!
Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to "Accept" the answer. Accepted answers show up at the top, resulting in improved discoverability for others.
Issue: The Snapshot Agent in SQL Server replication setup is failing to connect to an Azure File Share with OS error 1130. The setup, which worked a few weeks ago, involves an Azure SQL Managed Instance for both the publisher and subscriber.
Cause: An Azure service issue disrupted connectivity, affecting production replication subscriptions.
Solution: There was no issue with the user configuration. After Microsoft performed scheduled maintenance to fix the Azure service issue, connectivity was restored, and the replication problem was resolved.