Azure App CLI access fails

[marcoandredinis]

Expected behavior:
$ tsh apps login azure-cli --azure-identity marco-teleport-azure creates valid credentials in the system.
And allows cli access using azure's cli.

Current behavior:

marcodinis@MarcoM3 ~> tsh apps login azure-cli --azure-identity marco-teleport-azure --debug
...
2025-05-30T15:46:23.015+01:00 INFO [LOCALPROX] Starting HTTP access proxy trace_id:187e9b6fc6c33ef3be063ffe52d12833 span_id:cca88f4934c7f289 alpnproxy/local_proxy.go:355
2025-05-30T15:46:23.015+01:00 DEBU [TSH]       Running azure command command:/opt/homebrew/bin/az login --identity -u marco-teleport-azure trace_id:187e9b6fc6c33ef3be063ffe52d12833 span_id:cca88f4934c7f289 common/app_azure.go:194
Passing the managed identity ID with --username is no longer supported. Use --client-id, --object-id or --resource-id instead.
2025-05-30T15:46:23.215+01:00 INFO [LOCALPROX] HTTP access proxy stopped trace_id:187e9b6fc6c33ef3be063ffe52d12833 span_id:cca88f4934c7f289 alpnproxy/local_proxy.go:403

ERROR REPORT:
Original Error: *exec.ExitError exit status 1
Stack Trace:
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:657 github.com/gravitational/teleport/tool/tsh/common.(*CLIConf).RunCommand
        github.com/gravitational/teleport/tool/tsh/common/app_azure.go:204 github.com/gravitational/teleport/tool/tsh/common.(*azureApp).RunCommand
        github.com/gravitational/teleport/tool/tsh/common/app_azure.go:69 github.com/gravitational/teleport/tool/tsh/common.onAzure
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:1686 github.com/gravitational/teleport/tool/tsh/common.Run
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:703 github.com/gravitational/teleport/tool/tsh/common.Main
        github.com/gravitational/teleport/tool/tsh/main.go:26 main.main
        runtime/proc.go:283 runtime.main
        runtime/asm_arm64.s:1223 runtime.goexit
User Message: exit status 1

ERROR REPORT:
Original Error: *exec.ExitError exit status 1
Stack Trace:
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:657 github.com/gravitational/teleport/tool/tsh/common.(*CLIConf).RunCommand
        github.com/gravitational/teleport/tool/tsh/common/app.go:167 github.com/gravitational/teleport/tool/tsh/common.printAppCommand
        github.com/gravitational/teleport/tool/tsh/common/app.go:111 github.com/gravitational/teleport/tool/tsh/common.onAppLogin
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:1611 github.com/gravitational/teleport/tool/tsh/common.Run
        github.com/gravitational/teleport/tool/tsh/common/tsh.go:703 github.com/gravitational/teleport/tool/tsh/common.Main
        github.com/gravitational/teleport/tool/tsh/main.go:26 main.main
        runtime/proc.go:283 runtime.main
        runtime/asm_arm64.s:1223 runtime.goexit
User Message: failed to automatically login with `az login` using identity "marco-teleport-azure"; run with --debug for details
        exit status 1

Azure CLI version

$ az version
{
  "azure-cli": "2.73.0",
  "azure-cli-core": "2.73.0",
  "azure-cli-telemetry": "1.1.0",
  "extensions": {}
}

Bug details:

• Teleport version
  18.0.0-alpha.1
• Recreation steps
  Follow https://goteleport.com/docs/enroll-resources/application-access/cloud-apis/azure/
• Debug logs