Migrating from the Azure MMA to AMA Agent

Is this correct?

"You must have system-assigned managed identity enabled on each virtual machine before you deploy the agent."

I thought this choice governs whether the Policy gets assigned a system-assigned identity, or whether the Policy uses the user-assigned identity that you specify. The system-assigned identity is assigned a role at the scope you are applying the policy to. If you use a user-assigned identity, I think it has to have a pre-assigned role where the policy is being applied to. I don't think you need system-assigned identity enabled on all of the VM's you are installing the MMA on.