@Phil Dye , Thanks for the detailed description of the scenario.
Currently, Kudu is not compatible with Lighthouse-delegated permissions.
Our product engineering team is working on it; however, we do not have an exact ETA to share.
We’re expecting it to be available in a few months. Please note that this timeline is just an estimate and is subject to change, depending on a myriad of factors.
I have relayed the feedback internally to our product engineering team and it’s being tracked.
-On a side note, as mentioned in this Kudu wiki :
“Only those with Contributor / Owner access (to be exact, with microsoft.web/sites/publish/action or, for slot, microsoft.web/sites/slots/publish/action) can access to Kudu (SCM).”
Much appreciate your valuable feedback on this. Thanks for your patience!