Hello @Ofek Waiz
Firstly, the error message you received indicates that the system-assigned identity for your Function App does not exist.
You can try enabling the system-assigned identity for your Function App by running the following Azure CLI command:
az functionapp identity assign --name --resource-group
Once you have enabled the system-assigned identity for your Function App, you can try creating the service connector again using the Azure CLI command you mentioned earlier. If you are still encountering issues, you can try connecting to the VNet from your local environment using a VPN or ExpressRoute connection.
Once you are connected to the VNet, you should be able to execute the Azure CLI command to create the service connector.
Alternatively, you can try using the Azure Portal to create the service connector. To do this, you will need to create a Virtual Network Service Endpoint for your MySQL Flexible Server and then create the service connector using the Azure Portal.
You can find more information on how to do this in the following article: Create and manage virtual networks for Azure Database for MySQL - Flexible Server using the Azure CLIL.
I hope that this response has addressed your query and helped you overcome your challenges. If so, please mark this response as Answered. This will not only acknowledge our efforts, but also assist other community members who may be looking for similar solutions.