@Adrian Stauffer Apologies for the inconvenience caused. This appears to be a bug in the portal UI.
Thanks for bringing this to our attention. I've reached out to the team for a fix.
As a workaround, you can use Azure CLI to configure the Managed Identity for the event handler. This method bypasses the portal issue and allows for correct setup.
Please refer to the following Microsoft Learn article for detailed steps: How to configure event handler | Microsoft Learn
Let us know if further assistance is required!