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The idea, as far as I have understood, is that whenever you invoke the Azure.Identity.DefaultAureCredential class, it provides a flow for attempting authentication using one of the following credentials, in listed order:

I suspect that since I have deployed my Azure Function using the Managed Identity setting to a Systems Assigned identity, like this:

AND the fact that ManagedIdentityCredential is before VisualStudioCredential in the authentication flow, it fails, since it is unable to authenticate the managed identity – which is the main principle of the design – none other than the service can assume the identity of the service.

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• mickeystuewe.com Mickey's T-SQL Ponderings | Sharing my tidbits of knowledge on T-SQL, SSRS,
• sqlchicken.com SQLChicken.com – SQL Server Tips & Tricks