RAG Template Issue w/Managed Identity Auth Type

### Severity

P2 - High (Major functionality broken)

### Describe the Bug with repro steps

When using the RAG template for Blob ingestion (Ingest_Index_Ai_Blob_Storage_Rag), the connections to AI Search, OpenAI, and blob storage cannot be created as the Auth Type drop-down menu does not function. In this case, "Managed Identity" is the required option, but the drop-down menu does not allow you to choose it. If, however, you create a workflow without using the template and attempt to create the same connection, the drop-down menu works fine.

### What type of Logic App Is this happening in?

Standard (Portal)

### Are you experiencing a regression?

worked earlier this year, at least in March 2025.

### Which operating system are you using?

Windows

### Did you refer to the TSG before filing this issue? https://aka.ms/lauxtsg

No

### Workflow JSON

```json

```

### Screenshots or Videos

_No response_

### Environment

Have tried using Chrome, Edge and Safari browsers.

### Additional context

AI Search instance has already been created successfully, and logic app system managed identity been given these permissions on the search service:

- Search Index Data Reader
- Search Index Data Contributor
- Search Service Contributor

No repository files or tests are named, and the workflow JSON is empty. Start by reproducing the Ingest_Index_Ai_Blob_Storage_Rag template in a Standard Portal Logic App and compare its connection Auth Type dropdown with the equivalent standalone workflow. Done means Managed Identity can be selected when creating the AI Search, OpenAI, and blob storage connections.

Written by the indexing model from the issue text.