How to handle dual JWT validation (APIM OAuth + Backend Azure AD) without breaking Data API Builder integration?

Description:
Scenario:

I have an API backend built with Azure Data API Builder (DAB).
DAB enforces Azure AD JWT validation (configured with audience and issuer in dab-config.json).
When calling DAB directly with a token for its App Registration, everything works fine.

Problem after publishing via APIM:

The API is onboarded to Azure API Management, which also enforces OAuth 2.0 validation using validate-jwt policy.
Both APIM and DAB expect Authorization: Bearer , but:

APIM expects a token for APIM’s App Registration.
DAB expects a token for DAB’s App Registration.

If I send APIM’s token → DAB rejects it (audience mismatch).
If I send DAB’s token → APIM rejects it (audience mismatch).

Goal:

Keep both layers secure (APIM + DAB) without disabling DAB’s JWT validation.
Avoid unnecessary complexity or performance penalties if possible.

What I’ve tried:

Added validate-jwt in APIM for APIM App audience.
Tried forwarding the original token to DAB → fails because DAB validates its own audience.
Implemented On-Behalf-Of (OBO) flow in APIM policy:

send-request to AAD /oauth2/v2.0/token with grant_type=urn:ietf:params:oauth:grant-type:jwt-bearer and requested_token_use=on_behalf_of.
Successfully exchanges APIM token for DAB token and rewrites Authorization header.

This works but adds complexity and latency.

Questions:

Is OBO flow in APIM policy the recommended approach for this scenario?
Are there built-in APIM features (e.g., authentication-managed-identity or delegation) that can simplify this pattern?
Any best practices for integrating APIM with backends like DAB that enforce their own Azure AD JWT validation?
Is there a way to validate APIM token at the gateway but forward DAB token without OBO (e.g., dual token headers)?

Environment:

APIM: Global Azure
AAD Tenant: Global Azure AD
Backend: Azure Data API Builder hosted on Azure App Service (China region, but using Global AAD)
Auth Flow: Client → APIM (OAuth) → DAB (Azure AD JWT)

Would appreciate any official guidance, recommended patterns, or sample policies for this scenario. Thanks!

Start with the APIM validate-jwt and OBO policy flow described in the issue, then compare it with the Azure AD audience and issuer settings in dab-config.json. Done means documenting an officially recommended APIM-to-Data API Builder authentication pattern, including whether OBO, managed identity, delegation, or dual headers is supported and any sample policy guidance.

Written by the indexing model from the issue text.