@Yash Mochi Thank you for reaching out to Microsoft Q&A. Based on my understanding, you have deployed APIM with Vnet: None and a private endpoint connection set up and got 403 error when trying to access Azure Function HttpTrigger from APIM.
Unfortunately, private endpoint (preview) only supports incoming traffic to API Management instance and outbound traffic is not possible at the moment (refer similar discussion). However, I think you are accessing public endpoint of Azure Functions from APIM and hence it works when you disable the access restriction in Azure Functions. You would need to add public IP addresses of APIM in Azure Functions access restrictions for it to allow (since connections from APIM are not private). Refer IP addresses of Azure API Management.
Alternatively, you can deploy APIM in VNET and only allow subnets in access restriction feature for now. I hope this answers your question and feel free to add a comment if you have any other questions. We would be happy to assist you.
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