[BUG] Access Denied from a Azure Function App by Managed Identity

[khha]

Expected behavior

I expect that the script upload a file into a SharePoint library

Actual behavior

I got an access denied:

2025-03-28T16:03:40Z [Information] INFORMATION: Site statistics Report Generated Successfully C:\home\data\M365StatisticsReport-28-03-2025-04-03-17.csv
2025-03-28T16:03:40Z [Information] OUTPUT: Save file on C:\home\data\M365StatisticsReport-28-03-2025-04-03-17.csv
2025-03-28T16:03:40Z [Information] OUTPUT: Connect to site: https://myCompany.sharepoint.com/teams/biinput
2025-03-28T16:03:40Z [Information] OUTPUT: Site title: BI Input
2025-03-28T16:03:42Z [Error] ERROR: Toegang geweigerd. (this is in dutch Access denied)

Exception :
Type : System.Management.Automation.PSInvalidOperationException
ErrorRecord :
Exception :
Type : System.Management.Automation.ParentContainsErrorRecordException
Message : Toegang geweigerd. (this is in dutch Access denied)
HResult : -2146233087
CategoryInfo : InvalidOperation: (:) [], ParentContainsErrorRecordException
FullyQualifiedErrorId : InvalidOperation
TargetSite :
Name : ProcessRecord
DeclaringType : [PnP.PowerShell.Commands.Base.PnPConnectedCmdlet]
MemberType : Method
Module : PnP.PowerShell.dll
Message : Toegang geweigerd. (this is in dutch Access denied)
Source : PnP.PowerShell
HResult : -2146233079
StackTrace :
at PnP.PowerShell.Commands.Base.PnPConnectedCmdlet.ProcessRecord() in c:\build\src\Commands\Base\PnPConnectedCmdlet.cs:line 101
at System.Management.Automation.CommandProcessor.ProcessRecord()
CategoryInfo : InvalidOperation: (:) [Add-PnPFile], PSInvalidOperationException
FullyQualifiedErrorId : InvalidOperation,PnP.PowerShell.Commands.Files.AddFile
InvocationInfo :
MyCommand : Add-PnPFile
ScriptLineNumber : 75
OffsetInLine : 1
HistoryId : 1
ScriptName : C:\home\site\wwwroot\GetM365StatisticsReport\run.ps1
Line : Add-PnPFile -Path "C:\home\data\M365StatisticsReport-18-03-2025-08-00-53.csv" -Folder "$($destinationLibrary)" | Out-Null

Statement        : Add-PnPFile -Path "C:\home\data\M365StatisticsReport-18-03-2025-08-00-53.csv" -Folder "$($destinationLibrary)"
PositionMessage  : At C:\home\site\wwwroot\GetM365StatisticsReport\run.ps1:75 char:1
                   + Add-PnPFile -Path "C:\home\data\M365StatisticsReport-18-03-2025-08-00 …
                   + ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PSScriptRoot     : C:\home\site\wwwroot\GetM365StatisticsReport
PSCommandPath    : C:\home\site\wwwroot\GetM365StatisticsReport\run.ps1
InvocationName   : Add-PnPFile
CommandOrigin    : Internal

ScriptStackTrace : at , C:\home\site\wwwroot\GetM365StatisticsReport\run.ps1: line 75

Steps to reproduce behavior

Create an Azure Function app with language PowerShell Core. Enable managed identity. Give the managed identity full control permissions on SharePoint Online. Create a new function where you try to upload a file into a SharePoint library.

What is the version of the Cmdlet module you are running?

2.12.0

Which operating system/environment are you running PnP PowerShell on?

• [ X] Azure Functions