Hi dcarvallo ,
Please see below comments.
In order for MSI to work, we can’t use the app settings: WEBSITE_CONTENTAZUREFILECONNECTIONSTRING and WEBSITE_CONTENTSHARE. - https://nam06.safelinks.protection.outlook.com/?url=https%3A%2F%2Flearn.microsoft.com%2Fen-us%2Fazure%2Fazure-functions%2Fstorage-considerations%3Ftabs%3Dazure-cli%23storage-account-connection-setting&data=05%7C02%7Cv-sivareddyd%40microsoft.com%7C954f4002d3b34d3af8d208dc9078c80c%7C72f988bf86f141af91ab2d7cd011db47%7C1%7C0%7C638544095669850081%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=UbdAx2mbNybuRjt0ytl7vwlgyf3c3Yu5ivFT8cTJ50Q%3D&reserved=0. This is due to the fact that the settings are used to connect to the fileshare (SMB) of the storage account which doesn’t support Managed Identity Connection.
Thanks.