Hi @Zach Howell ,
Thank you for posting your question.
The automatic AKS SKU will automatically configure monitoring as mentioned here. Therefore, service principal is not allowed.
Regarding using service principals, I would advise using managed identities instead, they need less maintenance, and do not require renewals (automatic). They are basically wrappers around service principals, and have wider application compatibility. So, unless you have a reason to use service principals, use MI instead :).
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Thank you.