If you have existing VDC (Veeam Data Cloud) Vault repositories that were originally added using the earlier shared key authentication method, Veeam Backup & Replication may prompt you to perform a component upgrade. The message may be similar to:
Component update: Update Required — Switch to Microsoft Entra ID authentication
This upgrade changes the Vault repository authentication method from shared keys to Microsoft Entra ID authentication, improving security and aligning the repository with the newer Veeam Data Cloud Vault integration model.
This is particularly relevant because Veeam Backup & Replication 12.3.1 introduced automatic upgrade of Veeam Vault V1 repositories using shared key authentication to V2 repositories using Entra ID authentication. In VBR v13, Veeam Data Cloud Vault integration only supports using the newer Entra ID auth rather than the earlier shared key method.
In some environments, attempting the upgrade may fail with an error similar to:
Failed to assign Veeam Data Cloud Vault with the storage account
A common cause is that the Veeam Backup & Replication server has not yet been authorised with Veeam Data Cloud Vault, or the required storage vault has not been assigned to the VBR workload.
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