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Answer: Upgrade the workspace to Premium capacity.
The question asks what to do FIRST to configure App1 to use a service account for accessing the Power BI model via XMLA endpoint. The workspace is currently Premium Per User (PPU), which does not support service principal authentication (required for service accounts). According to Microsoft documentation and the community discussion consensus, Premium capacity is required for service principal authentication. While adding a managed identity to App1 (option D) is necessary, it can only be done AFTER the workspace is upgraded to Premium capacity. Option C is the prerequisite that enables service account authentication. Options A and B are incorrect: managed identities are not added directly to workspaces, and modifying XMLA endpoint settings alone doesn't enable service account access without Premium capacity.
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You have a Power BI Premium Per User (PPU) workspace containing a semantic model. An Azure App Service app named App1 modifies the model's row-level security (RLS) via the XMLA endpoint. App1 currently requires user sign-in with Microsoft Entra credentials for XMLA endpoint access.
You need to configure App1 to use a service account for model access.
What should you do first?
A
Add a managed identity to the workspace.
B
Modify the XMLA Endpoint setting.
C
Upgrade the workspace to Premium capacity.
D
Add a managed identity to App1.
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