Hello Ukkaapie,
Thank you for posting your question in the Microsoft Q&A forum.
The inability to set ownership on Azure Files despite having the Storage File Data SMB Share Elevated Contributor role typically stems from Active Directory permission gaps or authentication misconfigurations. While Azure RBAC grants share-level access, actual file/folder ownership requires explicit AD permissions, including Take Ownership rights at both the domain policy and AD computer object levels.
Hybrid environments often face synchronization delays via Azure AD Connect, preventing permission propagation, while Kerberos ticket or SPN issues can silently block ownership changes. DNS misresolution of private endpoints may force fallback to storage key authentication, which doesn’t support ownership operations. To resolve, verify AD permissions, force a delta sync, and validate Kerberos SPNs, while ensuring private endpoint DNS records correctly resolve. Tools like icacls can manually assign ownership if policies are correctly configured. For persistent issues, temporary Domain Admin rights or Azure Files REST API scripts may serve as workarounds. Always cross-check Event Viewer and Azure Storage metrics for underlying authentication failures.
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