For Azure Key Vaults access policies based permision setup is now legacy and all key vaults will have to use Azure RBAC permisions eventually for data access permisions according to offcial Microsft documentation here. Using terraform we can setup the changes. However, we have to be carefull about the switching to RBAC from access policies in production scenarios to avoid interptions to applications. Taking two step approach, first set RBAC permisions and in a next release performing switch to RBAC for key vault will help the transtion to be smooth. Let's look at how to setup this requirement with terraform.
The expectation is to have a keyvault setup with RBAC permisions as shown below.
