Hello Akshay,
Thank you for posting your question in the Microsoft Q&A forum.
The failure to retrieve an Azure token via the VS Code extension typically stems from authentication or permission misconfigurations. First, ensure you're properly signed into the Azure Account extension and have selected the correct tenant. The VisualStudioCodeCredential requires explicit tenant configuration in some cases, so specifying the tenantId parameter often resolves issues.
For proper error handling, wrap the token request in a try-catch block to identify whether the problem relates to authentication (AADSTS errors) or insufficient API permissions. The Microsoft Graph scope (https://graph.microsoft.com/.default) demands appropriate Azure AD app registration permissions, so verify these are correctly configured with admin consent if required.
A more resilient approach uses DefaultAzureCredential with a fallback chain, ensuring authentication works across different environments. Enabling verbose logging via @azure/logger helps diagnose underlying issues. Most problems are resolved by re-authenticating in VS Code or adjusting tenant settings, while persistent errors usually indicate missing permissions in Azure AD. Structured troubleshooting ensures reliable token acquisition for Azure services.
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