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Please to archive what you are looking for read this official documentation from Microsoft https://learn.microsoft.com/en-us/azure/backup/backup-azure-encrypted-vm-troubleshoot
Azure Backup uses the managed identity of the Recovery Services Vault to talk to Key Vault. That identity needs both Key and Secret permissions.
In the Azure Portal:
- Go to the Key Vault → Access policies.
- Add Access Policy:
- Configure from template: Azure Backup
- This pre‑selects:
- Key permissions:
Get
,List
,Unwrap Key
,Wrap Key
,Encrypt
,Decrypt
,Backup
,Restore
- Secret permissions:
Get
,List
,Backup
,Restore
- Select principal: search for your Recovery Services Vault name and pick its managed identity.
- Save the policy.
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