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D365 FO UE to Azure Application Insights Connection Error

Ahmad "NPT" Mansoor 0 Reputation points
2025-11-24T09:44:02.6+00:00

Greetings,

I have a D365 FO environment deployed from PPAC, it has Telemetry feature enabled.

I have already deployed an Application Insights resource on Azure and setup the D365 env to connect to it:

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But I am not seeing any activity and getting this error on Application Insights:

Unable to retrieve token. Error: invalid_scope. Error description: Principal is not authorized for requested scopes. {   "Principal": "finops-aos:e87ad95f-194e-e111-8982-",   "Context": "finops-env:e87ad95f-194e-e111-8982-"",   "RequestedScopes": [     "https://financeinsightsinitiatorservice.operations365.dynamics.com/.default"   ],   "UnauthorizedScopes": [     "https://financeinsightsinitiatorservice.operations365.dynamics.com/.default"   ] }. Error URI: . Correlation id: 872c1be8-59d1-0006-181a-dc87d159dc01 

I thought D365 and Azure would setup IAM automatically. Any guidance on this?

Azure Analysis Services
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  1. Adam Zachary 2,025 Reputation points
    2025-11-25T03:07:08.8+00:00

    The error means D365 FO is trying to send telemetry to Application Insights using a scope it is not allowed to use. The principal finops-aos:<GUID> does not have permissions for the scope:

    https://financeinsightsinitiatorservice.operations365.dynamics.com/.default

    This happens when Telemetry in D365 FO is enabled, but Application Insights is not configured using the new Managed Identity model.

    What you need to do:

    Go to Azure → Application Insights → Access Control (IAM)

    Assign the following roles to the FO environment's managed identity (the “finops-aos:…” principal):

    • Monitoring Metrics Publisher
    • Application Insights Component Contributor

    Confirm the correct identity is listed in the D365 environment details in LCS/PPAC.

    1. Wait 5 - 10 minutes and try again.

    This resolves the invalid_scope issue because App Insights now trusts the FO environment’s managed identity.

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