Hi , Welcome to MS Q&A
Similar issue has been address here https://learn.microsoft.com/en-us/answers/questions/1358829/azure-unable-to-create-kubernetes-service-connecti, please check
More in detail, kindly check below
Local accounts need to be enabled In AKS cluster in order to create a service connection. Following azure cli can help on enabling the local account in the cluster
az aks update -g <resource-group> -n <cluster-name> --enable-local-accounts
After enabling the local account successfully, restart creating the service connection. While selecting the subscription from the 'Azure Subscription' dropdown, a new popup window will ask to enter the credentials (make sure that pop up blockers are not preventing this window)
After this step, you will be able to see the cluster names as below:
Kindly accept answer if it ., helps
Thanks
Deepanshu