credential error when refreshing data from Azure SQL MI

Thanks , here are the steps i followed.

Opened PBI Desktop

I have 2 accounts AC1 for Power BI and AC2 for connecting to Azure. Using AC2 i can connect to the SQL MI using SSMS.

1) Power BI > Get Data> Azure SQL Database> enter credentials prompt and i enter AC2 , get connected  and create report and Publish.

2) In PBI Service i can see the report , but i cannot refresh, when to the data settings and to the snap shot you posted, went to configure the settings and entereed my AC2 and privacy as NONE (I tried the other combinations as well)

and i get the below error message

Failed to update data source credentials: A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: TCP Provider, error: 0 - A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)Hide details
Activity ID:	c26cd055-7d32-465d-9a56-314482d8d94a
Request ID:	9598c339-cb5e-d36a-371e-c17e3538929f
Status code:	400
Time:	Mon Aug 24 2020 08:34:40 GMT-0400 (Eastern Daylight Time)
Service version:	13.0.14066.76
Client version:	2008.1.02249-train
Cluster URI:	https://wabi-us-gov-iowa-redirect.analysis.usgovcloudapi.net/