Can a "User Assigned Managed Identity" be used locally? - azure

Question

I am trying to use a User Assigned Managed Identity in one of our applications. I also read about the differences between System Assigned Managed Identity and User Assigned Managed Identity.
It is very clear to me that a System Assigned Managed Identity cannot be used locally as there you're assigning an identity to an Azure Resource.
However I am not clear if a User Assigned Managed Identity can be used locally. Only thing I could find is the following:
In my scenario, I would like to read some secrets from an Azure Key Vault. I have created a User Assigned Managed Identity and configured access policies on the Key Vault to give necessary permissions to this identity. Considering I am using this identity to access Azure Key Vault (which is an Azure resource), my expectation is that it should work regardless of the location (using JetBrains Rider as my IDE) from where my code is running.
However when I try to do something like:
var managedIdentityCredential = new ManagedIdentityCredential("managed-identity-id");
SecretClient secretClient = new(new Uri("https://mykeyvault.vault.azure.net/"), managedIdentityCredential);
KeyVaultSecret secret = await secretClient.GetSecretAsync(key);
I get the Azure.Identity.CredentialUnavailableException with ManagedIdentityCredential authentication unavailable. No Managed Identity endpoint found error message when I run the code locally:
Azure.Identity.CredentialUnavailableException: ManagedIdentityCredential authentication unavailable. No Managed Identity endpoint found.
at Azure.Identity.ManagedIdentityClient.AuthenticateAsync(Boolean async, TokenRequestContext context, CancellationToken cancellationToken)
at Azure.Identity.ManagedIdentityCredential.GetTokenImplAsync(Boolean async, TokenRequestContext requestContext, CancellationToken cancellationToken)
at Azure.Identity.CredentialDiagnosticScope.FailWrapAndThrow(Exception ex)
at Azure.Identity.ManagedIdentityCredential.GetTokenImplAsync(Boolean async, TokenRequestContext requestContext, CancellationToken cancellationToken)
at Azure.Identity.ManagedIdentityCredential.GetTokenAsync(TokenRequestContext requestContext, CancellationToken cancellationToken)
at Azure.Security.KeyVault.ChallengeBasedAuthenticationPolicy.AuthenticateRequestAsync(HttpMessage message, Boolean async, AuthenticationChallenge challenge)
at Azure.Security.KeyVault.ChallengeBasedAuthenticationPolicy.ProcessCoreAsync(HttpMessage message, ReadOnlyMemory`1 pipeline, Boolean async)
at Azure.Core.Pipeline.RetryPolicy.ProcessAsync(HttpMessage message, ReadOnlyMemory`1 pipeline, Boolean async)
at Azure.Core.Pipeline.RetryPolicy.ProcessAsync(HttpMessage message, ReadOnlyMemory`1 pipeline, Boolean async)
at Azure.Core.Pipeline.HttpPipeline.SendRequestAsync(Request request, CancellationToken cancellationToken)
at Azure.Security.KeyVault.KeyVaultPipeline.SendRequestAsync(Request request, CancellationToken cancellationToken)
at Azure.Security.KeyVault.KeyVaultPipeline.SendRequestAsync[TResult](RequestMethod method, Func`1 resultFactory, CancellationToken cancellationToken, String[] path)
at Azure.Security.KeyVault.Certificates.CertificateClient.GetCertificateAsync(String certificateName, CancellationToken cancellationToken)
Any insights into this will be highly appreciated.

Answer 1

No. User managed identity is also not supported with ManagedIdentityCredential in the local environment.
You should use DefaultAzureCredential for the code to work in local environment.
See the Note tip here.
Note
The ManagedIdentityCredential works only in Azure environments of
services that support managed identity authentication. It doesn't work
in the local environment. Use DefaultAzureCredential for the code
to work in both local and Azure environments as it will fall back to a
few authentication options including managed identity.
In case you want to use a user-asigned managed identity with the
DefaultAzureCredential when deployed to Azure, specify the
clientId.