Power BI Service - Key Vault Reference

hI kstepha0 ,
The issue you're encountering may be related to the regional pairing and backend service limitations in Power BI Service when integrating with Azure Key Vault via OAuth. Even though both Key Vaults have identical configurations, certain Power BI Fabric services can have stricter region affinity or latency-sensitive validations when using OAuth, especially when compared to cross-region scenarios that may rely on slightly different authentication pathways. Since KVA (out-of-region) succeeded while KVB (in-region) is failing, it's possible that Power BI is enforcing stricter OAuth validation or token audience matching due to the regional alignment.

Additionally, OAuth failures can sometimes stem from subtle mismatches in the service principal permissions, Azure AD conditional access policies, or tenant restrictions that behave differently depending on the region. I would suggest verifying whether Managed Identity might provide a more stable alternative for your KVB integration, as Managed Identity often simplifies regional and network dependencies. If OAuth remains essential, it may be best to engage Microsoft support directly to review backend logs, as these types of region-specific authentication issues may require internal diagnostics.