@Christoph Dambacher , You wont be able to connect to AzureAD using the connect-AzureAD and System Managed Identity. The reason behind that being when you enable MSI be it System Managed Identity or User Managed Identity, in both cases, there is a Service Principal object that gets created, but the password for that Service Principal is never exposed as we find in a normal Service Principal. But to login to Azure AD, using Service Prinicipal we have to use the following cmdlet:
Connect-AzAccount -ServicePrincipal -Credential $psCredentials -Tenant $tenantId
, which requires the credentials for that service principal which we dont have in case of MSI. Hence we cannot login to AzureAD PS module as using MSI.
Hope this helps.
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