403 status When using this permission, the backing application of the service principal being created must in the local tenant

[gusgallows]

Using Vault Azure Secrets Engine. Getting an intermittent failure to create service principals.
Error is as follows:
error creating service principal: graphrbac.ServicePrincipalsClient#Create: Failure responding to request: StatusCode=403 -- Original Error: autorest/azure: Service returned an error. Status=403 Code="Unknown" Message="Unknown service error" Details=[{"odata.error":{"code":"Authorization_RequestDenied","date":"2020-10-20T11:59:36","message":{"lang":"en","value":"When using this permission, the backing application of the service principal being created must in the local tenant"},"requestId":"f7203633-ea6f-48e9-954a-46a6583db4b4"}<200b>}]

As far as I can tell, all permissions are in place as the failure is intermittent. Not sure why this is failing on some service principals and not others.

[fairclothjm]

@gusgallows Could you please provide some repro steps?