@Anita Govindarajan
Thank you for your time and patience throughout this issue!
I was able to confirm that the $top parameter isn't working within the Vaults - List By Resource Group REST API. When running the API for myself, it was returning all 3 Key Vaults that I had within my resource group even with the top parameter.
Note: The output was too large to capture my 3rd vault within this screenshot.
I've reached out to our Key Vault engineering team and will update as soon as possible.
If you have any other questions, please let me know.
Thank you for your time and patience throughout this issue.
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