Hello Sai kiran Bonthu,
Thank you for reaching out to Microsoft Q&A.
From the Error message you posted in your query, it shows that your Service Principal does not have at least Reader role assigned at the subscription level.
Even I faced the same error, When I tried creating Service connection without adding at least Reader role to the Service Principal, Refer below:
To resolve this Error, please add the Reader role to the Service Principal like below:
Visit your Subscription > Access Control (IAM) > Add Role Assignment > Select Reader role > In Members > Select your Service principal.
Assign access to – User, Group, Service Principal> In Members Select your Service Principal > Click on Next > Review and Assign > After the role is assigned try creating the Service Connection again.
Refer below: -
Note- Make sure you add the Reader role in the subscription which you will add while creating the Service Connection.
After the role is added, try creating/verifying the Service Connection and it will be created successfully like below:
Visit your Azure DevOps Project Settings > Service Connection > New Service Connection > Azure Resource Manager > Identity Type: App registration or managed identity (manual) > Credential: Secret > Scope Subscription> Add the Subscription ID and Subscription Name of the Subscription where your Service principal has Reader role assigned > Add your Client ID, Tenant ID and Client Secret > Click on Verify > once it shows Verification Succeeded > Click on Verify and Save > The Service Connection will be created like below: