Hello @Green, Jim
I have seen a couple of more issues with similar behavior for different customers, and realized that this issue arises because batch currently does not support pool creation with managed identities using the data plane (Microsoft.Azure.Batch). Could you please switch to our control plane SDK (Azure.ResourceManager.Batch)?
I found a similar query on GitHub that might be a helpful reference: [QUERY] How do I add BatchPoolIdentity to my CloudPool so that my nodes can have UserDefinedManagedIdentity? · Issue #37937 · Azure/azure-sdk-for-net.
Hope that helps! Please feel free to tag me for any questions.
If I have answered your question, please accept this as answer as a token of appreciation.