- A
The storage account was created before infrastructure encryption was generally available
Why wrong: Infrastructure encryption is a feature that can be enabled at creation time, but it does not affect which key type (customer vs. Microsoft) is used for encryption.
- B
The customer-managed key in Key Vault is disabled or expired
Why wrong: If the CMK is disabled or expired, attempts to write new blobs will fail; they will not silently fall back to Microsoft-managed keys.
- C
The storage account's encryption type is set to Microsoft-managed keys
The storage account must have its encryption type explicitly set to 'Customer-managed keys'. If it is set to 'Microsoft-managed keys', all blobs are encrypted with Microsoft-managed keys regardless of the key vault configuration.
- D
The blob container has a policy that overrides the encryption setting
Why wrong: Blob containers do not have policies that can override the storage account's encryption type. Encryption is applied at the storage account level.
Quick Answer
The answer is that the storage account’s encryption type must be explicitly set to Customer-managed keys. This is the most likely cause because Azure Storage has two distinct encryption type settings: one for the key source (Microsoft-managed or Customer-managed) and a separate infrastructure encryption toggle. Even if you configure a customer-managed key in Azure Key Vault and enable infrastructure encryption, the storage account’s encryption type defaults to Microsoft-managed keys, so newly uploaded blobs will still use Microsoft-managed keys until you change that setting. On the AZ-500 exam, this scenario tests your understanding that infrastructure encryption is a hardware-level feature independent of key management, and the common trap is assuming that linking a Key Vault key automatically switches the encryption type. A reliable memory tip is to think of it as a two-step process: first set the encryption type to Customer-managed, then assign the key—the order matters.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company has an Azure Storage account with infrastructure encryption enabled. They configure the storage account to use customer-managed keys (CMK) stored in Azure Key Vault for encryption at rest. Despite this configuration, newly uploaded blobs are still encrypted with Microsoft-managed keys. What is the most likely cause?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"most likely"Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
The storage account's encryption type is set to Microsoft-managed keys
Option C is correct because the storage account's encryption type must be explicitly set to 'Customer-managed keys' to use CMK from Azure Key Vault. If the encryption type remains at the default 'Microsoft-managed keys', newly uploaded blobs will continue to be encrypted with Microsoft-managed keys regardless of the CMK configuration in Key Vault. Infrastructure encryption is a separate feature that encrypts data at the hardware level and does not affect the key management type.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The storage account was created before infrastructure encryption was generally available
Why it's wrong here
Infrastructure encryption is a feature that can be enabled at creation time, but it does not affect which key type (customer vs. Microsoft) is used for encryption.
- ✗
The customer-managed key in Key Vault is disabled or expired
Why it's wrong here
If the CMK is disabled or expired, attempts to write new blobs will fail; they will not silently fall back to Microsoft-managed keys.
- ✓
The storage account's encryption type is set to Microsoft-managed keys
Why this is correct
The storage account must have its encryption type explicitly set to 'Customer-managed keys'. If it is set to 'Microsoft-managed keys', all blobs are encrypted with Microsoft-managed keys regardless of the key vault configuration.
Clue confirmation
The clue word "most likely" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The blob container has a policy that overrides the encryption setting
Why it's wrong here
Blob containers do not have policies that can override the storage account's encryption type. Encryption is applied at the storage account level.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume that simply configuring a customer-managed key in Key Vault automatically changes the storage account's encryption type, but Azure requires an explicit configuration step to switch the encryption type from 'Microsoft-managed keys' to 'Customer-managed keys'.
Detailed technical explanation
How to think about this question
Under the hood, Azure Storage encryption uses a root key hierarchy: the storage account's encryption scope determines whether the root key is Microsoft-managed or customer-managed. When CMK is enabled, the storage account uses the key URI from Key Vault to wrap the account's data encryption key (DEK). Infrastructure encryption adds an additional layer of encryption at the storage node level using a separate key, but it does not change the key management type for blob encryption. A common real-world scenario is when an administrator enables CMK in Key Vault but forgets to update the storage account's encryption type property via the Azure portal or PowerShell (Set-AzStorageAccount -EncryptionType CustomerManaged), resulting in continued use of Microsoft-managed keys.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Secure compute, storage, and databases — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The storage account's encryption type is set to Microsoft-managed keys — Option C is correct because the storage account's encryption type must be explicitly set to 'Customer-managed keys' to use CMK from Azure Key Vault. If the encryption type remains at the default 'Microsoft-managed keys', newly uploaded blobs will continue to be encrypted with Microsoft-managed keys regardless of the CMK configuration in Key Vault. Infrastructure encryption is a separate feature that encrypts data at the hardware level and does not affect the key management type.
What should I do if I get this AZ-500 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This AZ-500 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-500 exam.
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