@poojachare Not sure you stated, "the blob storage is part of a VNet. ". But in this case, you could enable a Service endpoint for Azure Storage within the VNet(VM located) and add its subnet into virtual networks of the blob storage. You don't need to add the VM's IP address to the firewall of the storage account.
Troubleshooting Storage Firewall Issues: https://techcommunity.microsoft.com/t5/azure-paas-blog/troubleshooting-storage-firewall-issues/ba-p/1944730
Troubleshooting Storage Firewall Issues
If the issue still persist, I would like to work closer on this issue
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