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Ok figured it out on my own, needed to set an IdentityProfile for "kubeletidentity" on the managedCluster:

```            IdentityProfile =
            {
                { "kubeletidentity", new Pulumi.AzureNative.ContainerService.Inputs.UserAssignedIdentityArgs
                    {
                        ClientId = managedIdentity.ClientId,
                        ObjectId = managedIdentity.PrincipalId,
                        ResourceId = id
                    }
                }
            },```