An Azure data analytics service for real-time analysis on large volumes of data streaming from sources including applications, websites, and internet of things devices.
While principalAssignments allows specifying a tenantId and the tenant can be added under trustedExternalTenants, this does not guarantee that cross-tenant Azure AD groups are supported.
The error you’re seeing, AAD principal was not found, indicates that ADX is unable to resolve the provided principal during the assignment. For Azure Data Explorer, you should use the Object ID from the home tenant (where the group is originally created). However, even with the correct Object ID and a trusted tenant configuration, external Azure AD groups are not always resolvable across tenants, which is the key limitation in this scenario.
In contrast, user principals behave differently. External users can often be made resolvable (for example, by inviting them as B2B guests into the resource tenant), which helps ADX validate the identity. You can refer to this document for adding guest users:
https://docs.azure.cn/en-us/entra/external-id/b2b-quickstart-add-guest-users-portal
Because groups cannot be materialized in the same way as users, assigning a cross-tenant AAD group directly in principalAssignments is not a reliably supported scenario today.
As a practical approach, you can use a group within the same tenant as the ADX cluster or assign individual users from the external tenant.
Please let us know if you have any questions and concerns.