Question 885 of 1,000

Secure compute, storage, and databases →hardMultiple ChoiceObjective-mapped

AZ-500 Secure compute, storage, and databases Practice Question

This AZ-500 practice question tests your understanding of secure compute, storage, and databases. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 wants to enable Azure Disk Encryption (ADE) on their Windows virtual machines using a Key Encryption Key (KEK) stored in Azure Key Vault. They have created the Key Vault with soft-delete enabled and a key. However, the encryption fails. What is the most likely missing configuration that prevents ADE from using the KEK?

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.

Question 1hardmultiple choice

Full question →

A
The Key Vault does not have the 'Azure Disk Encryption for Azure VMs' access policy.
Correct. ADE requires this access policy to allow the Azure platform to access the KEK for encryption operations.
B
The Key Vault does not allow access from the Azure platform.
Why wrong: This is related but the 'Azure Disk Encryption' access policy specifically enables platform access; the statement is vague.
C
The Key Vault firewall is enabled and blocking access from Azure services.
Why wrong: While a firewall could cause failure, the access policy omission is more common and specifically required.
D
The Key Vault does not have the system-assigned managed identity of the VM enabled.
Why wrong: ADE does not use the VM's managed identity; it uses the Azure platform identity.

Full breakdown with real-world context →

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 Key Vault does not have the 'Azure Disk Encryption for Azure VMs' access policy.

Azure Disk Encryption (ADE) requires the Key Vault to have an explicit access policy granting the 'Azure Disk Encryption for Azure VMs' service principal (or the equivalent Azure RBAC role) permission to wrap and unwrap keys. Without this policy, the ADE extension cannot use the KEK to protect the encryption keys, even if the Key Vault itself is correctly configured with soft-delete and a key.

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 Key Vault does not have the 'Azure Disk Encryption for Azure VMs' access policy.
Why this is correct
Correct. ADE requires this access policy to allow the Azure platform to access the KEK for encryption operations.
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 Key Vault does not allow access from the Azure platform.
Why it's wrong here
This is related but the 'Azure Disk Encryption' access policy specifically enables platform access; the statement is vague.
✗
The Key Vault firewall is enabled and blocking access from Azure services.
Why it's wrong here
While a firewall could cause failure, the access policy omission is more common and specifically required.
✗
The Key Vault does not have the system-assigned managed identity of the VM enabled.
Why it's wrong here
ADE does not use the VM's managed identity; it uses the Azure platform identity.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often confuse the Key Vault firewall or VM managed identity as the cause, but the specific access policy for the Azure Disk Encryption service principal is a mandatory prerequisite that is frequently overlooked.

Detailed technical explanation

How to think about this question

ADE leverages the BitLocker Drive Encryption technology on Windows and requires a two-step key protection: a Disk Encryption Key (DEK) is encrypted by a Key Encryption Key (KEK) stored in Azure Key Vault. The 'Azure Disk Encryption for Azure VMs' access policy grants the Azure AD application (service principal) used by ADE the 'wrapKey' and 'unwrapKey' permissions on the KEK. Without this policy, the ADE extension cannot perform the cryptographic operations necessary to encrypt the VM's disks, even if the Key Vault is otherwise accessible.

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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.

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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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 Key Vault does not have the 'Azure Disk Encryption for Azure VMs' access policy. — Azure Disk Encryption (ADE) requires the Key Vault to have an explicit access policy granting the 'Azure Disk Encryption for Azure VMs' service principal (or the equivalent Azure RBAC role) permission to wrap and unwrap keys. Without this policy, the ADE extension cannot use the KEK to protect the encryption keys, even if the Key Vault itself is correctly configured with soft-delete and a key.

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.

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Last reviewed: Jun 11, 2026

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