Thank you for contacting to Microsoft QA. Following our investigation, I wanted to share a clear summary of the root cause and the supported path forward regarding the Azure File Share mounting issue from SQL Managed Instance.
The error occurs because SQL Managed Instance does not support outbound SMB (port 445) connectivity, which is required to mount Azure File Shares. Even though DNS and Private Endpoint are configured correctly, SQL Agent jobs run in a restricted sandbox that cannot establish SMB connections. This is why:
- Port 445 works from the VM
- The same test fails from SQL MI
- The agent returns OS Error 67: network name cannot be found
SQL Managed Instance cannot mount Azure Files using SMB, and this scenario is not supported by the platform.
Supported Alternatives
To access storage from SQL MI, use one of the following:
- Azure Blob Storage via REST API (Supported) Use CREATE EXTERNAL DATA SOURCE with TYPE = BLOB_STORAGE.
- Use Azure Data Factory or Synapse pipelines for file movement between MI and Azure Storage.
- Use a VM or container as an intermediary If SMB-based workflow is mandatory.