QueueTrigger not able to load the proper ManagedIdentity

[RickDnB]

QueueTrigger does not seem to work with managedidentity. I followed: https://learn.microsoft.com/en-us/azure/azure-functions/functions-bindings-storage-queue-trigger?tabs=python-v2%2Cisolated-process%2Cnodejs-v4%2Cextensionv5&pivots=programming-language-csharp#identity-based-connections and added the required config (copied from bicep):

      EVENTQUEUE__clientId: identity.clientId
      EVENTQUEUE__queueServiceUri: storageServices.dataEventsQueue.uri
      EVENTQUEUE__credential: 'managedidentity'

The C# attribute

[QueueTrigger(ModelSelectorEnvironmentSettingsVars.EventQueueNameLookup, Connection = "EVENTQUEUE")]

However in the logs I get an error: Error Message: Unable to load the proper Managed Identity. even though I provide a clientid