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The issue arises because system-assigned managed identities are tied to the Azure Function App's lifecycle. When you update the Docker image or make changes that affect the Function App's configuration, Azure may internally re-provision the identity, causing the principal_id to change. Terraform detects this change and re-creates the role assignments and might lead to the observed behavior.
- Try to switch to use User-Assigned Managed Identity as these are persistent and not tied to the Function App's lifecycle, so the principal_id remains consistent across updates. This eliminates the issue of role assignments being re-created unnecessarily.
- Try if this solution works using Terraform's ignore_changes as this approach tells Terraform to ignore changes to the principal_id, preventing it from treating the identity update as a trigger to modify role assignments. It's a quick and straightforward fix to avoid disruptions while keeping the system-assigned identity.
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