The velero-plugin-formicrosoft-azure docs have started advising #186
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adding environment variables in the credentials file. This can work, but the environment variables must be loaded early so that functions requiring those variables work correctly.
For testing this patch, I build the plugin container and deployed it to a govcloud AKS cluster. Details on why this has to be tested in govcloud in the bug report at vmware-tanzu/velero#6196, specifically in the comment vmware-tanzu/velero#6196 (comment)