Why SSO Fails with Azure Analysis Services in Power BI
You have a Power BI workspace that contains a report connected to an Azure Analysis Services (AAS) model. The data source uses Single Sign-On (SSO) with Microsoft Entra ID. When users access the report, they see an error that the data cannot be refreshed. What is the most likely cause?
Quick Answer
The answer is that the dataset is configured in Import mode. This is correct because SSO with Azure Analysis Services in Power BI requires the dataset to use DirectQuery or a Live Connection, as Import mode caches data locally and cannot pass the user’s Microsoft Entra ID credentials to the AAS model for per-user identity verification. On the PL-300 exam, this question tests your understanding of how data connectivity modes affect authentication—a common trap is assuming SSO works with any mode, but Import mode bypasses the source entirely. Remember the memory tip: “Import is inert; SSO needs a live circuit.”
⚠ Common exam trap
Candidates may confuse the requirement for SSO: it requires DirectQuery or Live Connection, not Import mode.
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 dataset is configured in Import mode.
The most likely cause is that the dataset is configured in Import mode. Single Sign-On (SSO) with Microsoft Entra ID is only supported when the dataset uses DirectQuery or Live Connection mode. Import mode requires stored credentials and does not pass the user's identity to the data source. Option A is incorrect because RLS does not affect data refresh connectivity. Option B is incorrect because stored credentials are not used when SSO is enabled. Option C is incorrect because SSO uses the user's identity, not a service principal.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Row-level security (RLS) is not configured on the AAS model.
Why it's wrong here
RLS is optional and not related to the connection error.
- ✗
The data source credentials are stored in the dataset.
Why it's wrong here
SSO does not store credentials; it passes the user's identity.
- ✗
The service principal used for authentication has expired.
Why it's wrong here
SSO uses the user's Microsoft Entra identity, not a service principal.
- ✓
The dataset is configured in Import mode.
Why this is correct
SSO only works with DirectQuery or Live Connection.
Go deeper
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Same concept, more angles
1 more way this is tested on PL-300
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You have a Power BI dataset that connects to an Azure SQL Database. You need to use single sign-on (SSO) so that users' identities are passed to the database. What authentication method should you configure?
easy- A.Windows authentication
- B.Key authentication
- ✓ C.OAuth2 with Microsoft Entra ID
- D.Basic authentication with a service account
Why C: OAuth2 with Microsoft Entra ID, is correct because it enables single sign-on (SSO) by passing the user's identity from Power BI to the Azure SQL Database. Windows authentication (A) is for on-premises environments and does not work with Azure SQL Database. Key authentication (B) is used for Azure Storage, not SQL Database. Basic authentication with a service account (D) uses a fixed identity and does not provide SSO.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PL-300 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 PL-300 exam.