Azure Function App identities can be managed by Azure so that administrators do not have access to individual credentials. To learn more about managed identities, see the Azure documentation.
References:
https://learn.microsoft.com/en-us/azure/active-directory/managed-identities-azure-resources/overview
https://learn.microsoft.com/en-us/azure/app-service/overview-managed-identity?tabs=portal%2Chttp
In Azure Console -
In Terraform -
References:
https://learn.microsoft.com/en-us/azure/azure-functions/
https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/windows_function_app#identity