Hello Varsha Vishwakarma,
Error is saying the subscription is under a Safe Secrets Standard policy that enforces strict storage account compliance.
The policy SFI_XXXXXXX_StXXXXXXXXSS likely enforces:
- Disabling shared keys or requiring Microsoft Entra ID authentication.
- Private endpoints only (no public network access).
- Possibly customer-managed keys for encryption.
When these conditions aren’t met, the portal blocks both creation and selection.
To bypass this error use ARM/Bicep or CLI instead of Portal
The portal cannot override policy restrictions. You can:
- Deploy via ARM template or Bicep and explicitly reference an existing compliant storage account.
- Add required app settings: WEBSITE_CONTENTAZUREFILECONNECTIONSTRING = <connection string> WEBSITE_CONTENTSHARE = <file share name> WEBSITE_CONTENTOVERVNET = 1 Ensure the storage account has Azure Files enabled and allows the Function App to create a file share.
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