Use user assigned managed identity for Azure VM with proxy

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We created an Azure VM with a user-assigned managed identity as described here.
The following environment variable was exported, so the Azure CLI uses a proxy (direct internet connection is blocked in our subnet).

export http_proxy="http://proxy.local:111"
export https_proxy="http://proxy.local:111"

Now I would like to use az login --idenity to login to Azure with the assigned managed identity.
Unfortunately, I receive all the time the following message:

Failed to connect to MSI. Please make sure MSI is configured correctly.
Get Token request returned http error: 400, reason: Bad Request
azure-cli azure
1 Answers

Using az login --identity --verbose --debug we observed, that az login --identity performers the following call:

...
urllib3.connectionpool: http://proxy.local:111 "GET http://169.254.169.254/metadata/identity/oauth2/token?resource=https%3A%2F%2Fmanagement.core.windows.net%2F&api-version=2018-02-01 HTTP/1.1" 400 68
...

Because of the proxy settings, az login --identity is trying to connect to 169.254.169.254 over the configured proxy, which will not work. Setting export no_proxy="169.254.169.254" resolved the issue.

user_39634780
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