Hi @Hariharan Viswanath,
Since you have provided Key vault administrator to a Managed identity, please check the description here: Perform all data plane operations on a key vault and all objects in it, including certificates, keys, and secrets. Cannot manage key vault resources or manage role assignments
. Only works for key vaults that use the 'Azure role-based access control' permission model.
As specified, role cannot manage key vault resources or role assignments. Please make sure you are not performing the operations which are not in scope. Also, please check the following document for clear description: Azure built-in roles for Key Vault data plane operations.
If this document does not help you, let me know what the operation is you are trying to perform and which model of access (RBAC or Access policies) used.