Hi Prajwal Pyakurel,
Thank you for reaching out to Microsoft QA!
Synapse cannot connect directly to Azure Service Bus using managed identity, because there is no native “Azure Service Bus” linked service in Synapse. The SFI‑compliant approach is to use another Azure service that supports Service Bus with managed identity (for example, Azure Functions or Azure Data Factory), grant it the required Service Bus RBAC roles, and then call that service from Synapse for any Service Bus operations.
DefaultAzureCredential fails in Synapse notebooks with that IMDS endpoint error because Spark pools do not expose the IMDS endpoint, even after assigning Data Owner to the workspace managed identity. The Spark runtime does not expose the standard IMDS endpoint, so ManagedIdentityCredential cannot obtain a token and has no valid fallbacks (no CLI/PowerShell/environment credentials in the runtime), and user‑assigned managed identities are also not supported in Synapse Spark notebooks