I have a hosted agent VM in a VNET in my Azure subscription that is supposed to do Bicep deployments to my Azure subscription. It is working well.
I am noticing that Microsoft-hosted agents also can deploy resources or do updates in my Azure subscription once they have a valid service connection. The same pipeline can run on both Self-hosted VM agents or Microsoft-hosted agents. This is a concern for our security department. The preference is that no external entity (outside a designated VNET in the subscription) should be able to access the subscription. We want to establish network isolation between subscription and external access, whether a valid service connection is available or not.