Cannot access Azure backend storage using SSL


I am using Azure Blob Storage as a state backend, due to new security requirements, I now need to access the azure storage accounts using SSL. This however fails with the following: data.terraform_remote_state.mccp_core_infra: storage: service returned error: StatusCode=403, ErrorCode=AuthenticationFailed, ErrorMessage=Server failed to authenticate the request. Make sure the value of Authorization header is formed correctly including the signature.

Here’s an example configuration:

resource "azurerm_storage_account" "terraform_state_account" {
   name                     = "${lower(replace(var.azure_tenant_name, "/\\W|_/", ""))}tfstate"
   resource_group_name      = "${}"
   location                 = "${var.azure_location}"
   account_tier             = "Standard"
   account_replication_type = "LRS"
   enable_https_traffic_only = true
   network_rules {
     ip_rules                   = ["masked/24"]
     virtual_network_subnet_ids = ["${}"]
   tags = {
     environment = "${var.azure_tenant_name} terraform state account"

data "terraform_remote_state" "mccp_core_infra" {
   backend = "azurerm"
   config = {
     storage_account_name = "${lower(replace(var.azure_tenant_name, "/\\W|_/", ""))}tfstate"
     container_name       = "mccp-core-infra-tf-state"
     key                  = "terraform.tfstate"
     access_key           = "${var.azure_mccp_storage_account_key}"

I am using Terraform 0.11.11 with azurerm provider 1.33.0. This works just fine without the enable_https_traffic_only flag. What am I missing here?