**Why Managed Identities**: No passwords, keys, or secrets to manage. Azure AD-backed identity for Azure resources. Eliminates credential rotation and leakage. **Types**: System-assigned (tied to resource lifecycle) and User-assigned (reusable across resources). **Use cases**: ADF accessing Storage/Key Vault; Function App accessing SQL; VM accessing Blob. Use DefaultAzureCredential in code—tries Managed Identity first, then env vars....
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