On environment where Azure policy is applied to not allow key-based authentication, and the property "allowSharedKeyAccess" is always set to false, image-registry is degraded with below error when installing cluster on this environment.

=========
  - lastTransitionTime: "2026-01-07T02:29:18Z"
    message: "Progressing: Unable to apply resources: unable to sync storage configuration:
      PUT https://imageregistryredhatdj7xn.blob.core.windows.net/redhatocp0107-c2mtn-image-registry-mnffliavjqgrihtmjxwxjbnityr\nProgressing:
      --------------------------------------------------------------------------------\nProgressing:
      RESPONSE 403: 403 Key based authentication is not permitted on this storage
      account.\nProgressing: ERROR CODE: KeyBasedAuthenticationNotPermitted\nProgressing:
      --------------------------------------------------------------------------------\nProgressing:
      \uFEFF<?xml version=\"1.0\" encoding=\"utf-8\"?><Error><Code>KeyBasedAuthenticationNotPermitted</Code><Message>Key
      based authentication is not permitted on this storage account.\nProgressing:
      RequestId:f0aef142-601e-0017-0297-7f96b6000000\nProgressing: Time:2026-01-07T05:38:20.9886636Z</Message></Error>\nProgressing:
      --------------------------------------------------------------------------------\nProgressing:
      \nNodeCADaemonProgressing: The daemon set node-ca is deployed"
    reason: Error
    status: "True"
    type: Progressing

    image built on 4.22 with installer PR https://github.com/openshift/installer/pull/9851

    always

    1. Create cluster on environment where policy is applied to enforce allowSharedKeyAccess to false on storage account
    2. 
    3.
    

    image registry operator is degraded

   cluster installation succeeded   

Installer hit same issue, and fix it in PR https://github.com/openshift/installer/pull/9851, change to use user delegated creds instead of key-based authentication