When we store the Service principal certificate/appKey in the VM (to access the keyvault), we could limit access to that file to just the user account running the program. Other users or accounts wouldn't have access to the secrets in keyvault.
When we use Azure Managed Service Identity to access keyvault from an IaaS VM, my understanding is that any user logged into the VM or any program running on the machine can access the keyvault secrets - is this true?
And if it is, doesn't that decrease the security in case one of the user accounts is compromised?