Using private endpoint to access a blob storage account in Azure returns 403

Question

As seen below I want to put public network access Disabled on a storage account that contains blobs, then have a C# application on a VM access it via a private endpoint configured for blob access. The VM and the Private Endpoint are both hosted in the same virtual network in one region, while the storage account is hosted in the same region but not on the virtual network.

I have enabled telemetry on the storage account and I am currently getting a 403 status code returned from the storage account with a status text of: "AuthorizationFailure" for any type of operation, I have tried with Operations: ListBlobs, ListContainers and more(but ListBlobs should at least be okay when the private endpoint is created for Blob). See in the bottom for the code I am using to access the storage account. If I put Networking in the storage account to allow traffic from all networks then everything works just fine.

My main theory is that my private endpoint is not being used at all, but when I read about private endpoints created for storage accounts then you don't have to change the connection string, it should just automatically sent the traffic through the private endpoint. I have been trying to enable diagnostics on the private endpoint to see if any traffic is entering, but I am not 100% sure that I am looking in the right place, see picture below from Insights -> Show Metrics Pane:

I was looking at this tutorial on how to troubleshoot connectivity issues on private endpoints: =private-link/troubleshoot-private-endpoint-connectivity=x And it says that my use-case should be supported: Virtual network from the same region

Code I use to access the storage account:

    private static void connectToUS2StorageAccount()
{
    var herp = new BlobServiceClient("DefaultEndpointsProtocol=https;AccountName=storageaccountus2x;AccountKey=<AccountKey>;EndpointSuffix=core.windows.net");
    var blobs = herp.FindBlobsByTags("k1=v1");
    foreach(var blob in blobs)
    {
        Console.WriteLine($"Blob name:{blob.BlobName}");
    }
    Console.WriteLine($"-----");
}

General settings for the storage account: