v3.36.0 vscode regression - 500 error on read Blob Storage Secret Repository

[andrew-eldridge]

After updating Azurite vscode extension to v3.36.0, I get this error on Azure functions host startup (confirmed downgrade to v3.35.0 fixes):

Azure Functions Core Tools
Core Tools Version: 4.6.0+8b616562b6d244870ef3ba385f6e8481423f419e (64-bit)
Function Runtime Version: 4.849.100.26208
[2026-07-23T15:28:03.614Z] Csproj not found in D:\logic-apps-new\custom-code-reg-7-15\la2 directory tree. Skipping user secrets file configuration.
[2026-07-23T15:28:30.229Z] There was an error performing a read operation on the Blob Storage Secret Repository.
[2026-07-23T15:28:30.229Z] Azure.Storage.Blobs: Service request failed.
[2026-07-23T15:28:30.229Z] Status: 500 (Internal Server Error)
[2026-07-23T15:28:30.230Z]
[2026-07-23T15:28:30.230Z] Headers:
[2026-07-23T15:28:30.230Z] Server: Azurite-Blob/3.36.0
[2026-07-23T15:28:30.230Z] Date: Thu, 23 Jul 2026 15:28:30 GMT
[2026-07-23T15:28:30.231Z] Connection: keep-alive
[2026-07-23T15:28:30.231Z] Keep-Alive: REDACTED
[2026-07-23T15:28:30.231Z] .
[2026-07-23T15:28:30.260Z] A host error has occurred during startup operation 'f1cecc77-5637-488d-8577-eb083d1395b1'.
[2026-07-23T15:28:30.261Z] Azure.Storage.Blobs: Service request failed.
[2026-07-23T15:28:30.261Z] Status: 500 (Internal Server Error)
[2026-07-23T15:28:30.261Z]
[2026-07-23T15:28:30.262Z] Headers:
[2026-07-23T15:28:30.262Z] Server: Azurite-Blob/3.36.0
[2026-07-23T15:28:30.262Z] Date: Thu, 23 Jul 2026 15:28:30 GMT
[2026-07-23T15:28:30.263Z] Connection: keep-alive
[2026-07-23T15:28:30.263Z] Keep-Alive: REDACTED
[2026-07-23T15:28:30.263Z] .
[2026-07-23T15:28:53.427Z] There was an error performing a read operation on the Blob Storage Secret Repository.
[2026-07-23T15:28:53.427Z] Azure.Storage.Blobs: Service request failed.
[2026-07-23T15:28:53.428Z] Status: 500 (Internal Server Error)
[2026-07-23T15:28:53.428Z]
[2026-07-23T15:28:53.428Z] Headers:
[2026-07-23T15:28:53.428Z] Server: Azurite-Blob/3.36.0
[2026-07-23T15:28:53.429Z] Date: Thu, 23 Jul 2026 15:28:53 GMT
[2026-07-23T15:28:53.429Z] Connection: keep-alive
[2026-07-23T15:28:53.429Z] Keep-Alive: REDACTED

[jainakanksha-msft]

@andrew-eldridge Could you please share the debug logs.

[Brianuk9]

Same issue here - reverted to Ver 3.35 and now works.

[jainakanksha-msft]

@Brianuk9, can you please share the debug logs

[jainakanksha-msft]

This is the way to enable debug logs