How to Solve the "authentication credential type for the storage account isn't valid" Error in Azure Logic Apps

When working with Azure Logic Apps (Standard) and you try to use a User-Assigned Managed Identity for accessing a storage account, you might encounter the following error:

Microsoft.Azure.Workflows.Data.Edge authentication credential type for the storage account isn't valid

In my case the error was because I was using the wrong ID as value of the AzureWebJobsStorage__managedIdentityResourceId app setting.

First of all, ensure your User-Assigned Managed Identity has the necessary permissions on the storage account, typically Storage Blob Data Contributor.

To authenticate with a User-Assigned Managed Identity instead of a connection string against a storage account, you need to configure two specific application settings in your Logic App:

1. Set the Credential Type

Add or update the following application setting:

AzureWebJobsStorage__credentialType = managedIdentity

The double underscore (__) in the setting names is intentional and required

2. Set the Resource ID of the Managed Identity

Add or update the following application setting:

AzureWebJobsStorage__managedIdentityResourceId = /subscriptions/{subscription-id}/resourceGroups/{resource-group}/providers/Microsoft.ManagedIdentity/userAssignedIdentities/{identity-name}

This should be this long string and NOT some other ID of the Managed Identity!

How to find the Resource ID

Either by using the Azure Portal:

1. Navigate to your User-Assigned Managed Identity
2. Go to the Properties section
3. Copy the Resource ID value

or by using the Azure CLI:

az identity show --name <identity-name> --resource-group <resource-group-name> --query id --output tsv

Configuring via Azure CLI

You can set these application settings using the Azure CLI:

az logicapp config appsettings set \
  --name <logic-app-name> \
  --resource-group <resource-group-name> \
  --settings AzureWebJobsStorage__credentialType=managedIdentity \
    AzureWebJobsStorage__managedIdentityResourceId="/subscriptions/{subscription-id}/resourceGroups/{resource-group}/providers/Microsoft.ManagedIdentity/userAssignedIdentities/{identity-name}"

By saving the app settings, you Logic App is going to restart and this time will store all its files into the storage account without any issues.