Thanks for all the detailed info and your patience throughout the troubleshooting.
Following your updates, I reached out to the internal team to take a closer look. After reviewing the setup with your configuration, the issue was successfully resolved by reconfiguring the connector setup from scratch.
It appears that while all permissions (including Microsoft.Storage/storageAccounts/write and Microsoft.EventGrid/eventSubscriptions/write) were present, there might have been a transient inconsistency in how the identity or permissions were recognized by the backend during provisioning. A full teardown and recreation of the external location and connector resolved the conflict.
Resolution Steps Taken:
- Reconfigured the external location setup using the same connector identity.
- Reassigned roles explicitly at the storage account scope again (Storage Account Contributor, Storage Queue Data Contributor, and Storage Blob Data Contributor).
- Verified EventGrid permissions and refreshed the test connection.
- File Events were activated successfully post-reconfiguration.
If others face a similar error (LinkedAuthorizationFailed despite correct role assignments), a full re-setup of the connector and location is worth trying, especially if the roles were changed after the connector was initially configured.
Let us know if you need anything else - and appreciate your persistence on this!
I hope this information helps. Please do let us know if you have any further queries.
If this answers your query, do click Accept Answer and Yes for was this answer helpful. And, if you have any further query do let us know.