Jacques Boivin Thanks for posting your question in Microsoft Q&A. Azure Functions Isolated model supports identity-based connections that includes SQL and here is doc: Tutorial: Connect a function app to Azure SQL with managed identity and SQL bindings for triggers and bindings.
From the description above, you are using EntityFramework with timer trigger and I assume your code follows code snippet available in https://github.com/Azure/azure-functions-dotnet-worker/tree/main/samples/EntityFramework. If so, please validate Connection String should be similar like below:
For more info about managed identity connection string for SQL, refer Using managed identity authentication. Then validate the managed identity of Azure Function (system-assigned or user-assigned) has access to SQL database (like App Service).
Update for the community:
Jacques Boivin resolved the issue by deleting and recreating the sql db user and role assignment. Refer https://techcommunity.microsoft.com/t5/azure-database-support-blog/aad-auth-error-login-failed-for-user-lt-token-identified/ba-p/1417535 for troubleshooting guide.
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