Problem
When attempting to use the remote backend with Terraform Cloud / Enterprise on Azure, the "Confidential Client is not supported in Cross-Cloud request" error occurs.
Cause
The remote backend workspace is missing the Azure environment. If you're using China, German, or Government Azure Clouds, then the ARM_ENVIRONMENT needs to be set.
Solution
Add the ARM_ENVIRONMENT environment variable with the proper value to the workspace.
An example would be ARM_ENVIRONMENT = usgovernment.
Note: Possible values are public , china , german , stack , and usgovernment.
Defaults to public.
Outcome
This will allow the environment to be set in the provider.