Getting the error "The server identity is not correctly configured on server 'sqlservername'. Please re-configure Identitity on the server."

When using the template below, I am hitting an error.

Template URL : https://github.com/Azure/azure-quickstart-templates/tree/master/201-sql-auditing-server-policy-to-oms

{ "id": "/subscriptions/SUBSCRIPTIONID/resourceGroups/RG-NAME/providers/Microsoft.Resources/deployments/USERID.azuresqlserver-01/operations/F9264887C31AC377", "operationId": "F9264887C31AC377", "properties": { "provisioningOperation": "Create", "provisioningState": "Failed", "timestamp": "2019-09-17T11:38:14.0472907Z", "duration": "PT1M1.418349S", "trackingId": "89254f55-c1a2-414c-875e-388664c65977", "statusCode": "Conflict", "statusMessage": { "status": "Failed", "error": { "code": "ResourceDeploymentFailure", "message": "The resource operation completed with terminal provisioning state 'Failed'.", "details": [ { "code": "BlobAuditingNoServerIdentity", "message": "The server identity is not correctly configured on server 'crownkenticosqlsrvr'. Please re-configure Identitity on the server." } ] } }, "targetResource": { "id": "/subscriptions/SUBSCRIPTIONID/resourceGroups/RGNAME/providers/Microsoft.Sql/serversSQLSERVER/auditingSettings/DefaultAuditingSettings", "resourceType": "Microsoft.Sql/servers/auditingSettings", "resourceName": "SQLSERVERNAME/DefaultAuditingSettings" } }}

Start with the 201-sql-auditing-server-policy-to-oms template at the linked URL and reproduce the deployment using the reported Azure SQL server configuration. Compare the failed auditingSettings operation and BlobAuditingNoServerIdentity message with the template's identity setup. Done means the template deploys its auditing policy without the server-identity failure.

Written by the indexing model from the issue text.