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Power BI On-premises gateway cannot connect to database with service principal

One of our clients uses Power BI with an on-premises gateway that is running on a VM within their virtual network. The Azure SQL database which contains the report data has public network access set to disabled. Only access through private endpoints is allowed.
We discovered that the authorization of the Power BI gateway connections was still configured using OAuth 2.0 using personal user credentials. We are trying to switch this to using a service principal instead.