Logic Apps (Standard) - Managed Identity practical usage in VS Code

When in Visual Studio code, and using Managed Identity somewhere in your workflow, for instance, on a HTTP action, the following error will display while debugging:

Workflow Error: operationName='WorkflowDefinitionProvider.ProcessWorkflow', message='Workflow 'workflow-inbound-dynamic-action' validate and create workflow operation failed, 
the exception is 'The operation 'HTTP' for workflow 'workflow-inbound-dynamic-action' contains managed identity authentication which is supported only for Logic Apps Standard or Logic Apps running in App Service Environments.'', 
exception='Microsoft.Azure.Workflows.Common.ErrorResponses.ErrorResponseMessageException: 
The operation 'HTTP' for workflow 'workflow-inbound-dynamic-action' contains managed identity authentication which is supported only for Logic Apps Standard or Logic Apps running 
in App Service Environments.

Will this be supported somehow? This currently means you cannot debug your project when you use a Managed Identity somewhere in a workflow. Not very practical. I guess I understand why it’s not working, because I’m not running it inside Azure, but locally.

As an alternative approach: Wouldn’t implementing DefaultAzureCredential inside Logic Apps (standard) be a better option? That way you are not dependent on credentials on a specific environment.

Another approach: Able to point to a deployed managed identity, similar as how you point to a resource group for API connections (WORKFLOWS_RESOURCE_GROUP_NAME), inside the local.settings.json, so it will try to authenticate with that.

[John-Bosch]

This is a real limitation that needs to be fixed. The whole point of managed identities is to not need to manage the App Registrations. This is now forcing us back down the path of not using managed identities at all if we want to be able to debug locally.

[github-actions[bot]]

This issue was closed because it has been inactive for 7 days since being marked as stale.