QueueTrigger not able to load the proper ManagedIdentity

QueueTrigger does not seem to work with managedidentity. I followed: https://learn.microsoft.com/en-us/azure/azure-functions/functions-bindings-storage-queue-trigger?tabs=python-v2%2Cisolated-process%2Cnodejs-v4%2Cextensionv5&pivots=programming-language-csharp#identity-based-connections and added the required config (copied from bicep):
```
EVENTQUEUE__clientId: identity.clientId
EVENTQUEUE__queueServiceUri: storageServices.dataEventsQueue.uri
EVENTQUEUE__credential: 'managedidentity'
```
The C# attribute
```
[QueueTrigger(ModelSelectorEnvironmentSettingsVars.EventQueueNameLookup, Connection = "EVENTQUEUE")]
```

However in the logs I get an error: `Error Message: Unable to load the proper Managed Identity.` even though I provide a clientid