Hi @Nandan Hegde ,
After additional research and having conversation with internal team, below are the findings:
Function Key provides secure access to function name with each one having separate unique keys or master key within a function app. Managed identity provides secure access to the entire function app.
User is free to provide no key and/or MI to access function name. Please refer to this function documentation for more details about access key: https://learn.microsoft.com/en-us/azure/azure-functions/functions-bindings-http-webhook-trigger?tabs=csharp#configuration
Managed identity provides secure access to the entire function app and be able access any function name. So, any anonymous function name could be accessed without a key. Or an additional key(access level - Function or Admin) could be provided to secure function name level access.
Hope this clarifies.
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