Hi Sajin Seby,
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
We understand from your query that you are experiencing an issue with node count increases when you renewed SP.
It appears that the growth in node numbers may be because of automated functionality within AKS, such as the Cluster Auto scaler, which may have been activated following the SP renewal. When the Service Principal was renewed, it may have reinstated permissions or activated a policy to enable autoscaling to take place, particularly if there were resource requirements.
It's also conceivable that certain automated tasks or scripts involving the SP renewal inadvertently caused scaling activities. To avoid this in the future, I'd recommend verifying the autoscaling configuration and checking any automation associated with the SP to make sure everything is set up as desired.
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