Getting error when using User Assigned MSI

Trying to use managed identity to access Azure resources and getting error below during profile script run. How is it supposed to work in a first place when sandbox code runs in is not supposed to have access to 127.0.0.1 IP address in a first place? (https://github.com/projectkudu/kudu/wiki/Azure-Web-App-sandbox#local-address-requests)

2019-05-25T01:32:19.320 [Error] ERROR: An attempt was made to access a socket in a way forbidden by its access permissions
Microsoft.Azure.WebJobs.Script.Rpc.RpcException : Result: ERROR: An attempt was made to access a socket in a way forbidden by its access permissions
Exception: An attempt was made to access a socket in a way forbidden by its access permissions
Stack:    at System.Net.Http.ConnectHelper.ConnectAsync(String host, Int32 port, CancellationToken cancellationToken)
   at System.Threading.Tasks.ValueTask`1.get_Result()

[aws-scripting-guy]

I am also experiencing this issue. I did detailed analysis - in my case the root cause is the User Assigned MSI. When I switch to System Managed MSI, I am not getting the error.

Steps to reproduce the issue:

1. Create new function app (v2.0)
2. Assign User Assigned Identity to the function app
3. Create new vanilla Function
4. Select new HTTP Trigger
5. Update default code: include get-azcontext -verbose in run.ps1 or profile.ps1

You should see the error above in the logs.

[eamonoreilly]

Yes - I validated this on the latest Az module in Azure Functions. You can see an example on https://docs.microsoft.com/en-us/powershell/module/az.accounts/connect-azaccount?view=azps-2.7.0#examples (Example 7).