Hi Kaalasurya
Azure Blob NFS 3.0 only supports the default Azure Kubernetes Service (AKS) node identity, system-assigned managed identity of the VM/VMSS) for container creation and access.
User-assigned managed identities or service principals are not supported for Blob NFS authentication.
you can grant permissions to the default identity associated with the resource, that is mounting the NFS share.
To allow container creation and access, assign appropriate RBAC roles to the storage account’s system-managed identity
Find the system-managed identity’s object ID and assign Storage Blob Data Contributor role
Blob Fuse (FUSE): Blob Fuse is a virtual file system driver that allows you to mount Azure Blob Storage as a file system in Linux. It uses the Azure Storage REST API for all operations. The REST API supports Azure Active Directory (Microsoft Entra ID) authentication, which means you can use both system-assigned and user-assigned managed identities, or even service principals, to securely access blob data.
NFS Protocol: Azure Blob NFS (NFS 3.0) exposes blob storage through the NFS protocol, which is a legacy file-sharing protocol designed for on-premises environments. NFS does not natively support user-based authentication or identity-based access control.
Please refer these documents:
https://learn.microsoft.com/en-us/azure/storage/blobs/network-file-system-protocol-known-issues
https://learn.microsoft.com/en-us/azure/storage/files/storage-files-active-directory-overview
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Thank you.