How to enable AAD authentication for storage account listing?

I'm following this tutorial for listing all of the storage accounts in my subscription. Previously I used Microsoft.Azure.Management.Fluent but this is now deprecated so that's the reason for switching to the new approach suggested by Microsoft. I had no issues with Microsoft.Azure.Management.Fluent but now I can't authenticate against my DefaultAzureCredential that is later on used as an input of ArmClient. I have my Managed Identity switched ON for my App Service that contains the code that calls the function for listing storage accounts but still doesn't work. I spent my last two days in searching for the right permissions and how to set them but failed. Has someone used this functionality in cloud and what did you do to make it work?

I tried to reproduce to the same in my environment and got below results:

I created one web application with same code and published it to Azure successfully like below:

When I checked Portal, webjob created in Azure Web App with same name as below:

Now, I ran the above webjob by clicking Run where state changed to Running like below:

When I checked Logs tab from above screen, I got AuthorizationFailed error in response like this:

> Note that, DefaultAzureCredential will automatically detect
> authentication method based on your app's configuration. If you
> enabled system-managed identity, make sure to assign proper RBAC role to it.

To list storage accounts in subscription, you can assign Storage Blob Data Reader or Reader role to managed identity under subscription like this:

Go to Azure Portal -> App Services -> Your App Service -> Identity -> Azure role assignments

I selected Storage Blob Data Reader role with Subscription as scope like below:

After few minutes, role assigned successfully to managed identity like this:

When I ran webjob now, I got response with Succeeded message like below:

To run the same code from local environment via Visual Studio, sign in with valid user account that is used by DefaultAzureCredential as authentication method.

In my case, I ran az login command and signed in with admin account like this:

When I ran same code now to list storage accounts, I got response with resource id successfully like below:

using Azure.Core;
using Azure.Identity;
using Azure.ResourceManager;
using Azure.ResourceManager.Resources;
using Azure.ResourceManager.Storage;

TokenCredential cred = new DefaultAzureCredential();

ArmClient client = new ArmClient(cred);

string subscriptionId = "9c80bd38-bcc9-4ccb-8afe-xxxxxxxxxx";
ResourceIdentifier subscriptionResourceId = SubscriptionResource.CreateResourceIdentifier(subscriptionId);
SubscriptionResource subscriptionResource = client.GetSubscriptionResource(subscriptionResourceId);

await foreach (StorageAccountResource item in subscriptionResource.GetStorageAccountsAsync())
{

    StorageAccountData resourceData = item.Data;
    // for demo we just print out the id
    Console.WriteLine($"Succeeded on id: {resourceData.Id}");
}

Console.WriteLine($"Succeeded");

Response:

Reference:
How to authenticate .NET applications with Azure services | Microsoft