Key Vault vs App Configuration: where each value belongs

Verdict: Secrets, keys and certificates go in Key Vault. Non-secret settings and feature flags go in App Configuration. App Configuration holds Key Vault references, not secret copies, and resolves them live through the app's managed identity.

CriterionKey VaultApp Configuration
StoresSecrets, keys, certificatesNon-secret settings and feature flags
Example valuesConnection strings, API keys, passwordsRetry counts, endpoint URLs, feature toggles, max page size
Secret handlingHolds the secret valueHolds only a Key Vault reference (vault URI); resolves live at load
App accessManaged identity plus a data-plane role such as Key Vault Secrets UserManaged identity plus a data-plane role; App Service resolves Key Vault references in app settings with no SDK code
Network isolationPrivate endpoint plus disable public network access for a no-internet pathNot applicable

Rules

Traps