Thank you for posting your query on Microsoft Q&A, from above error ""The operation failed because of authentication issue on Key Vault" seems like we need to validate the following:
- You must create the user-assigned identity before you configure customer-managed keys.
- The user-assigned managed identity must have permissions to access the key in the key vault. Assign the Key Vault Crypto Service Encryption User role to the user-assigned managed identity with key vault scope to grant these permissions.
- Firewall setting of the Key Vault.
Please do let me know if above conditions validated or if you have any queries in the comments section.
Thanks,
Akshay Kaushik
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