SRE Agent - MCP Server shows "Disconnected"

Question

DA-MoD-Administrator 0

MCP Server Connector continues to show Disconnected. User Assigned Managed Identity chosen from the drop down menu.

Field Value

Connector Type MCP server

Name MCPServer01

Connection type Stdio

Command npx

Arguments -y, @azure/mcp, server, start

DA-MoD-Administrator 0 Reputation points

2026-02-18T22:40:22.16+00:00

Could not find a proper Tag for SRE Agent. The field was mandatory - so please ignore the SAP HANA tag info.
Himanshu Shekhar 4,025 Reputation points Microsoft External Staff Moderator

2026-02-18T22:56:18.4066667+00:00
@DA-MoD-Administrator

The MCP Server is showing as Disconnected because User‑Assigned Managed Identity is not supported when the MCP server is run locally using the stdio connection (for example, with npx @azure/mcp server start).

Local MCP servers rely on developer authentication (such as Azure CLI or an interactive sign‑in), so Managed Identity is not used in this mode.

What you can do

If you’re running the MCP server locally, sign in using Azure CLI / VS Code credentials.

If you need Managed Identity, deploy the MCP server as a hosted service in Azure (for example, Azure Container Apps, AKS with Workload Identity, or App Service), where Managed Identity is supported.

This behavior is expected and not a configuration issue on your side.

Your answer

DA-MoD-Administrator 0 Reputation points

2026-02-18T22:40:22.16+00:00

Could not find a proper Tag for SRE Agent. The field was mandatory - so please ignore the SAP HANA tag info.
Himanshu Shekhar 4,025 Reputation points Microsoft External Staff Moderator

2026-02-18T22:56:18.4066667+00:00

@DA-MoD-Administrator

The MCP Server is showing as Disconnected because User‑Assigned Managed Identity is not supported when the MCP server is run locally using the stdio connection (for example, with npx @azure/mcp server start).

Local MCP servers rely on developer authentication (such as Azure CLI or an interactive sign‑in), so Managed Identity is not used in this mode.

What you can do

If you’re running the MCP server locally, sign in using Azure CLI / VS Code credentials.

If you need Managed Identity, deploy the MCP server as a hosted service in Azure (for example, Azure Container Apps, AKS with Workload Identity, or App Service), where Managed Identity is supported.

This behavior is expected and not a configuration issue on your side.