diff --git a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
index 17be02521dc..ef10ec55423 100644
--- a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
+++ b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
@@ -88,6 +88,7 @@ def _build_arguments_schema(cls, *args, **kwargs):
             options=["--audiences"],
             arg_group="Properties",
             help="The aud value in the token sent to Azure for getting the user-assigned managed identity token. The value configured in the federated credential and the one in the incoming token must exactly match for Azure to issue the access token.",
+            default=["api://AzureADTokenExchange"],
         )
         _args_schema.issuer = AAZStrArg(
             options=["--issuer"],
diff --git a/src/azure-cli/azure/cli/command_modules/identity/tests/latest/recordings/test_federated_identity_credential.yaml b/src/azure-cli/azure/cli/command_modules/identity/tests/latest/recordings/test_federated_identity_credential.yaml
index 56d99c9de48..bdac3231ff1 100644
--- a/src/azure-cli/azure/cli/command_modules/identity/tests/latest/recordings/test_federated_identity_credential.yaml
+++ b/src/azure-cli/azure/cli/command_modules/identity/tests/latest/recordings/test_federated_identity_credential.yaml
@@ -13,12 +13,12 @@ interactions:
       ParameterSetName:
       - -n -g
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourcegroups/cli_test_federated_identity_credential_000001?api-version=2024-11-01
   response:
     body:
-      string: '{"id":"/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001","name":"cli_test_federated_identity_credential_000001","type":"Microsoft.Resources/resourceGroups","location":"centraluseuap","tags":{"product":"azurecli","cause":"automation","test":"test_federated_identity_credential","date":"2025-05-13T16:18:30Z","module":"identity"},"properties":{"provisioningState":"Succeeded"}}'
+      string: '{"id":"/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001","name":"cli_test_federated_identity_credential_000001","type":"Microsoft.Resources/resourceGroups","location":"centraluseuap","tags":{"product":"azurecli","cause":"automation","test":"test_federated_identity_credential","date":"2025-06-06T13:53:05Z","module":"identity"},"properties":{"provisioningState":"Succeeded"}}'
     headers:
       cache-control:
       - no-cache
@@ -27,7 +27,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:32 GMT
+      - Fri, 06 Jun 2025 13:53:07 GMT
       expires:
       - '-1'
       pragma:
@@ -41,7 +41,7 @@ interactions:
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: CCDEC4CB1BA74117A191612CD926C25E Ref B: SN4AA2022303023 Ref C: 2025-05-13T16:18:32Z'
+      - 'Ref A: 8A77C6A83412402294907F6F27B517A4 Ref B: SN4AA2022303025 Ref C: 2025-06-06T13:53:07Z'
     status:
       code: 200
       message: OK
@@ -63,12 +63,12 @@ interactions:
       ParameterSetName:
       - -n -g
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide?api-version=2023-01-31
   response:
     body:
-      string: '{"location":"centraluseuap","tags":{},"id":"/subscriptions/00000000-0000-0000-0000-000000000000/resourcegroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide","name":"ide","type":"Microsoft.ManagedIdentity/userAssignedIdentities","properties":{"tenantId":"abd8daee-d393-4239-9377-883adda3d40f","principalId":"bfec20f8-b4cc-44db-8490-d2bf8ece6cbe","clientId":"d5a162ad-ae2d-460f-a791-bce75b9b777b"}}'
+      string: '{"location":"centraluseuap","tags":{},"id":"/subscriptions/00000000-0000-0000-0000-000000000000/resourcegroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide","name":"ide","type":"Microsoft.ManagedIdentity/userAssignedIdentities","properties":{"tenantId":"abd8daee-d393-4239-9377-883adda3d40f","principalId":"79128027-2560-488a-a048-b713ed14fe18","clientId":"1b838f5f-bdee-4e68-8b12-954d29476a05"}}'
     headers:
       cache-control:
       - no-cache
@@ -77,7 +77,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:35 GMT
+      - Fri, 06 Jun 2025 13:53:11 GMT
       expires:
       - '-1'
       location:
@@ -91,13 +91,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/8e4232a0-3a2f-4513-8787-ed011ff9f349
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/8f8a026c-883b-4a41-a734-1607be24cb69
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: 5BEC40721B534EE48F95CFDC61E297AE Ref B: SN4AA2022302049 Ref C: 2025-05-13T16:18:32Z'
+      - 'Ref A: 47DC449B6F07487BBFB56D5CE856C466 Ref B: SN4AA2022305037 Ref C: 2025-06-06T13:53:08Z'
     status:
       code: 201
       message: Created
@@ -120,7 +120,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --subject --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic1?api-version=2025-01-31-preview
   response:
@@ -134,7 +134,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:37 GMT
+      - Fri, 06 Jun 2025 13:53:13 GMT
       expires:
       - '-1'
       location:
@@ -148,13 +148,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/ead4f916-d2b7-4a2d-aad2-8b104e4ca7ad
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/d318cb52-175c-486f-948e-cf802f7e13fb
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: AC05F81CFB884EDA9C04760EA65EFB0C Ref B: SN4AA2022302011 Ref C: 2025-05-13T16:18:36Z'
+      - 'Ref A: 97D804052A1443D7B5EFEEBD4E96DFFF Ref B: SN4AA2022302053 Ref C: 2025-06-06T13:53:12Z'
     status:
       code: 201
       message: Created
@@ -177,7 +177,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --subject --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic2?api-version=2025-01-31-preview
   response:
@@ -191,7 +191,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:38 GMT
+      - Fri, 06 Jun 2025 13:53:15 GMT
       expires:
       - '-1'
       location:
@@ -205,13 +205,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/4f8fffd4-2f5c-4cb0-a667-f784122538a5
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/bdf3e9f7-86ac-4506-bf82-f941f21d1257
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: A93DAA3348284E46A2AE39B370178BA2 Ref B: SN4AA2022304029 Ref C: 2025-05-13T16:18:38Z'
+      - 'Ref A: 9729A881BC714202AD4B55A4038CBACB Ref B: SN4AA2022304051 Ref C: 2025-06-06T13:53:14Z'
     status:
       code: 201
       message: Created
@@ -235,7 +235,7 @@ interactions:
       - --name --identity-name --resource-group --claims-matching-expression-version
         --claims-matching-expression-value --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic3?api-version=2025-01-31-preview
   response:
@@ -250,7 +250,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:40 GMT
+      - Fri, 06 Jun 2025 13:53:16 GMT
       expires:
       - '-1'
       location:
@@ -264,13 +264,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/63dbb151-d6fa-42a1-b2a3-19aeef95b52e
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/f668ce85-54a4-4efe-8a76-486e116bbb9b
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: 51EB7DB4C96B4AC6AFEE3E0622FFE23E Ref B: SN4AA2022305019 Ref C: 2025-05-13T16:18:39Z'
+      - 'Ref A: E4C37B6D845648A7A699014C8A258C01 Ref B: SN4AA2022303009 Ref C: 2025-06-06T13:53:15Z'
     status:
       code: 201
       message: Created
@@ -288,7 +288,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic1?api-version=2025-01-31-preview
   response:
@@ -302,7 +302,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:41 GMT
+      - Fri, 06 Jun 2025 13:53:17 GMT
       expires:
       - '-1'
       pragma:
@@ -314,11 +314,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/4166165a-a785-491a-b027-a8747890fa8a
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/30c8eaa1-7e59-42e1-9174-d32f230e6d23
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: CD93FEF490A5403C84B89CB03BCDAA6A Ref B: SN4AA2022305037 Ref C: 2025-05-13T16:18:41Z'
+      - 'Ref A: CBDBE530355042FA86DAA37DB3937EA2 Ref B: SN4AA2022302017 Ref C: 2025-06-06T13:53:17Z'
     status:
       code: 200
       message: OK
@@ -336,7 +336,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic3?api-version=2025-01-31-preview
   response:
@@ -351,7 +351,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:41 GMT
+      - Fri, 06 Jun 2025 13:53:18 GMT
       expires:
       - '-1'
       pragma:
@@ -363,11 +363,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/961ea5d4-2590-4a35-b39d-84a63f731475
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/6c407ddc-e71a-44c0-95e1-af25ff113d63
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: 5EB5BA63F1AD4DD8920708F0691EA337 Ref B: SN4AA2022302017 Ref C: 2025-05-13T16:18:42Z'
+      - 'Ref A: 67A0CE2371704F9DBAFD4815210BEF3D Ref B: SN4AA2022302009 Ref C: 2025-06-06T13:53:18Z'
     status:
       code: 200
       message: OK
@@ -385,7 +385,7 @@ interactions:
       ParameterSetName:
       - --identity-name --resource-group
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials?api-version=2025-01-31-preview
   response:
@@ -400,7 +400,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:42 GMT
+      - Fri, 06 Jun 2025 13:53:19 GMT
       expires:
       - '-1'
       pragma:
@@ -412,11 +412,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/6d55f60f-3454-461a-ad07-e34066cc29c8
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/e870578b-ed9e-4fd8-971a-8a75d640466e
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: A8C06687DCA8436BB8B104FE4BD618E7 Ref B: SN4AA2022302027 Ref C: 2025-05-13T16:18:42Z'
+      - 'Ref A: 24C864DBA7EA4179B087847B59B0374F Ref B: SN4AA2022303019 Ref C: 2025-06-06T13:53:19Z'
     status:
       code: 200
       message: OK
@@ -434,7 +434,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --subject --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic1?api-version=2025-01-31-preview
   response:
@@ -448,7 +448,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:43 GMT
+      - Fri, 06 Jun 2025 13:53:20 GMT
       expires:
       - '-1'
       pragma:
@@ -460,11 +460,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/fa21b6bb-6659-4d4c-8f7e-ac053c7f906d
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/a2583402-c0e4-42d1-8c6e-341bc2800a57
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: 73D9EB3C7CA6451AAE0B6A127F322D19 Ref B: SN4AA2022303053 Ref C: 2025-05-13T16:18:43Z'
+      - 'Ref A: 0BA2133A125944A88876A06F830066B8 Ref B: SN4AA2022304053 Ref C: 2025-06-06T13:53:20Z'
     status:
       code: 200
       message: OK
@@ -487,7 +487,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --subject --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic1?api-version=2025-01-31-preview
   response:
@@ -501,7 +501,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:44 GMT
+      - Fri, 06 Jun 2025 13:53:22 GMT
       expires:
       - '-1'
       pragma:
@@ -513,13 +513,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/352e8bfa-6ea8-465b-8b16-68f1b32f7015
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/89941643-76d6-4a9d-a343-ab5dfc6fe342
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: 6DA129A82AAC44A79C9BACA957AB83E0 Ref B: SN4AA2022303031 Ref C: 2025-05-13T16:18:44Z'
+      - 'Ref A: 6F389FF2F345433F8C65BD75FEE5C4FB Ref B: SN4AA2022304053 Ref C: 2025-06-06T13:53:21Z'
     status:
       code: 200
       message: OK
@@ -538,7 +538,7 @@ interactions:
       - --name --identity-name --resource-group --claims-matching-expression-version
         --claims-matching-expression-value --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic3?api-version=2025-01-31-preview
   response:
@@ -553,7 +553,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:44 GMT
+      - Fri, 06 Jun 2025 13:53:23 GMT
       expires:
       - '-1'
       pragma:
@@ -565,11 +565,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/88ade9b1-e6d0-4809-9253-74e667162b9f
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/af736d34-a901-4dfe-b144-7ffa9d703493
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: B86BD6EAC6764B858CACE80918ECE442 Ref B: SN4AA2022305047 Ref C: 2025-05-13T16:18:45Z'
+      - 'Ref A: 4A48A723ABBE4289A8E5E17D5E93F764 Ref B: SN4AA2022302029 Ref C: 2025-06-06T13:53:23Z'
     status:
       code: 200
       message: OK
@@ -594,7 +594,7 @@ interactions:
       - --name --identity-name --resource-group --claims-matching-expression-version
         --claims-matching-expression-value --issuer --audiences
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: PUT
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic3?api-version=2025-01-31-preview
   response:
@@ -609,7 +609,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:46 GMT
+      - Fri, 06 Jun 2025 13:53:25 GMT
       expires:
       - '-1'
       pragma:
@@ -621,13 +621,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/36d49a46-9dd3-4d37-b800-1a431267fe2d
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/d8dc50bf-040a-4720-b372-41e46d940a43
       x-ms-ratelimit-remaining-subscription-global-writes:
       - '2999'
       x-ms-ratelimit-remaining-subscription-writes:
       - '199'
       x-msedge-ref:
-      - 'Ref A: 0DC0B4BF5AB84302A58D3D021AF081F8 Ref B: SN4AA2022305029 Ref C: 2025-05-13T16:18:46Z'
+      - 'Ref A: DC4707E6132D48159A4EED5097E7F425 Ref B: SN4AA2022302025 Ref C: 2025-06-06T13:53:23Z'
     status:
       code: 200
       message: OK
@@ -647,7 +647,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --yes
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: DELETE
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic1?api-version=2025-01-31-preview
   response:
@@ -659,7 +659,7 @@ interactions:
       content-length:
       - '0'
       date:
-      - Tue, 13 May 2025 16:18:48 GMT
+      - Fri, 06 Jun 2025 13:53:26 GMT
       expires:
       - '-1'
       pragma:
@@ -671,13 +671,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/f539478d-fe8e-44e1-bc87-4799843cf085
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/33baa0dd-e658-494e-a1dc-6c25923d7cad
       x-ms-ratelimit-remaining-subscription-deletes:
       - '199'
       x-ms-ratelimit-remaining-subscription-global-deletes:
       - '2999'
       x-msedge-ref:
-      - 'Ref A: C179BAFA65834744BA794DCD21A329D4 Ref B: SN4AA2022305045 Ref C: 2025-05-13T16:18:47Z'
+      - 'Ref A: D2A9027E994C4CC693056C46876FB17B Ref B: SN4AA2022302019 Ref C: 2025-06-06T13:53:25Z'
     status:
       code: 200
       message: OK
@@ -695,7 +695,7 @@ interactions:
       ParameterSetName:
       - --identity-name --resource-group
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials?api-version=2025-01-31-preview
   response:
@@ -710,7 +710,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:49 GMT
+      - Fri, 06 Jun 2025 13:53:27 GMT
       expires:
       - '-1'
       pragma:
@@ -722,14 +722,71 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/967155cd-af24-4617-9cec-c38453f03b1a
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/6757861f-5582-4cfa-a9fc-eee6f545f862
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: 18AB4822A0224850A818A8168F20FBD0 Ref B: SN4AA2022303025 Ref C: 2025-05-13T16:18:48Z'
+      - 'Ref A: C1FD8D319B24465C9E914607417ADBDF Ref B: SN4AA2022304053 Ref C: 2025-06-06T13:53:26Z'
     status:
       code: 200
       message: OK
+- request:
+    body: '{"properties": {"audiences": ["api://AzureADTokenExchange"], "issuer":
+      "https://token.actions.githubusercontent.com", "subject": "system:serviceaccount:ns:svcaccount4"}}'
+    headers:
+      Accept:
+      - application/json
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - identity federated-credential create
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '169'
+      Content-Type:
+      - application/json
+      ParameterSetName:
+      - --name --identity-name --resource-group --subject --issuer
+      User-Agent:
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+    method: PUT
+    uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic4?api-version=2025-01-31-preview
+  response:
+    body:
+      string: '{"id":"/subscriptions/00000000-0000-0000-0000-000000000000/resourcegroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic4","name":"fic4","type":"Microsoft.ManagedIdentity/userAssignedIdentities/federatedIdentityCredentials","properties":{"issuer":"https://token.actions.githubusercontent.com","subject":"system:serviceaccount:ns:svcaccount4","audiences":["api://AzureADTokenExchange"]}}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '481'
+      content-type:
+      - application/json; charset=utf-8
+      date:
+      - Fri, 06 Jun 2025 13:53:28 GMT
+      expires:
+      - '-1'
+      location:
+      - /subscriptions/00000000-0000-0000-0000-000000000000/resourcegroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic4
+      pragma:
+      - no-cache
+      strict-transport-security:
+      - max-age=31536000; includeSubDomains
+      x-cache:
+      - CONFIG_NOCACHE
+      x-content-type-options:
+      - nosniff
+      x-ms-operation-identifier:
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/aa574850-4dd2-4317-8926-c5c8bfbb0647
+      x-ms-ratelimit-remaining-subscription-global-writes:
+      - '2999'
+      x-ms-ratelimit-remaining-subscription-writes:
+      - '199'
+      x-msedge-ref:
+      - 'Ref A: 1310F94B30044CBA85F0CF821E0B0925 Ref B: SN4AA2022304023 Ref C: 2025-06-06T13:53:27Z'
+    status:
+      code: 201
+      message: Created
 - request:
     body: null
     headers:
@@ -746,7 +803,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --yes
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: DELETE
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic2?api-version=2025-01-31-preview
   response:
@@ -758,7 +815,7 @@ interactions:
       content-length:
       - '0'
       date:
-      - Tue, 13 May 2025 16:18:50 GMT
+      - Fri, 06 Jun 2025 13:53:29 GMT
       expires:
       - '-1'
       pragma:
@@ -770,13 +827,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/54091a22-ec01-442a-9f87-62802d9febb1
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/465e9dc4-a2d1-4750-bf03-80b300818de6
       x-ms-ratelimit-remaining-subscription-deletes:
       - '199'
       x-ms-ratelimit-remaining-subscription-global-deletes:
       - '2999'
       x-msedge-ref:
-      - 'Ref A: 810689F43B7E4D5A8D160ADE214A9BAF Ref B: SN4AA2022304025 Ref C: 2025-05-13T16:18:49Z'
+      - 'Ref A: C71BDCE8765C40A28A50D86EE53554B1 Ref B: SN4AA2022303029 Ref C: 2025-06-06T13:53:29Z'
     status:
       code: 200
       message: OK
@@ -796,7 +853,7 @@ interactions:
       ParameterSetName:
       - --name --identity-name --resource-group --yes
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: DELETE
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic3?api-version=2025-01-31-preview
   response:
@@ -808,7 +865,57 @@ interactions:
       content-length:
       - '0'
       date:
-      - Tue, 13 May 2025 16:18:50 GMT
+      - Fri, 06 Jun 2025 13:53:30 GMT
+      expires:
+      - '-1'
+      pragma:
+      - no-cache
+      strict-transport-security:
+      - max-age=31536000; includeSubDomains
+      x-cache:
+      - CONFIG_NOCACHE
+      x-content-type-options:
+      - nosniff
+      x-ms-operation-identifier:
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/cf8c47ce-aad0-4175-b679-412c1d1b9cf1
+      x-ms-ratelimit-remaining-subscription-deletes:
+      - '199'
+      x-ms-ratelimit-remaining-subscription-global-deletes:
+      - '2999'
+      x-msedge-ref:
+      - 'Ref A: CE9304E9D13C487A9C0AAE5276BB1B0B Ref B: SN4AA2022305029 Ref C: 2025-06-06T13:53:30Z'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - identity federated-credential delete
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '0'
+      ParameterSetName:
+      - --name --identity-name --resource-group --yes
+      User-Agent:
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+    method: DELETE
+    uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials/fic4?api-version=2025-01-31-preview
+  response:
+    body:
+      string: ''
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '0'
+      date:
+      - Fri, 06 Jun 2025 13:53:32 GMT
       expires:
       - '-1'
       pragma:
@@ -820,13 +927,13 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/dc2f032a-8e0f-46e9-9bc8-9254b931be04
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/cf80b234-4f5c-4c00-9980-f61d6520b1ae
       x-ms-ratelimit-remaining-subscription-deletes:
       - '199'
       x-ms-ratelimit-remaining-subscription-global-deletes:
       - '2999'
       x-msedge-ref:
-      - 'Ref A: 3E3367223BA642438CD3E36E69DFD270 Ref B: SN4AA2022305047 Ref C: 2025-05-13T16:18:50Z'
+      - 'Ref A: C0EE39096BAC45EB80BB77717ADF1663 Ref B: SN4AA2022305021 Ref C: 2025-06-06T13:53:31Z'
     status:
       code: 200
       message: OK
@@ -844,7 +951,7 @@ interactions:
       ParameterSetName:
       - --identity-name --resource-group
       User-Agent:
-      - AZURECLI/2.72.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
+      - AZURECLI/2.74.0 azsdk-python-core/1.34.0 Python/3.12.10 (Windows-11-10.0.26100-SP0)
     method: GET
     uri: https://management.azure.com/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/cli_test_federated_identity_credential_000001/providers/Microsoft.ManagedIdentity/userAssignedIdentities/ide/federatedIdentityCredentials?api-version=2025-01-31-preview
   response:
@@ -858,7 +965,7 @@ interactions:
       content-type:
       - application/json; charset=utf-8
       date:
-      - Tue, 13 May 2025 16:18:51 GMT
+      - Fri, 06 Jun 2025 13:53:33 GMT
       expires:
       - '-1'
       pragma:
@@ -870,11 +977,11 @@ interactions:
       x-content-type-options:
       - nosniff
       x-ms-operation-identifier:
-      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/446defe4-15ac-48c8-8662-f25509af958b
+      - tenantId=abd8daee-d393-4239-9377-883adda3d40f,objectId=7d2472ba-902d-407c-ae0d-72c7f66f95c6/southcentralus/248c9ce0-0622-474b-89ce-42fda995dda8
       x-ms-ratelimit-remaining-subscription-global-reads:
       - '3749'
       x-msedge-ref:
-      - 'Ref A: D41D27B044F74CA28A4E0D72736649F8 Ref B: SN4AA2022303047 Ref C: 2025-05-13T16:18:51Z'
+      - 'Ref A: CE05A8EBDD6340E8ABDB59C0370752FE Ref B: SN4AA2022305027 Ref C: 2025-06-06T13:53:33Z'
     status:
       code: 200
       message: OK
diff --git a/src/azure-cli/azure/cli/command_modules/identity/tests/latest/test_identity.py b/src/azure-cli/azure/cli/command_modules/identity/tests/latest/test_identity.py
index 3ffb87e5901..a3b1628f1b6 100644
--- a/src/azure-cli/azure/cli/command_modules/identity/tests/latest/test_identity.py
+++ b/src/azure-cli/azure/cli/command_modules/identity/tests/latest/test_identity.py
@@ -36,9 +36,11 @@ def test_federated_identity_credential(self, resource_group):
             'fic1': 'fic1',
             'fic2': 'fic2',
             'fic3': 'fic3',
+            'fic4': 'fic4',
             'subject1': 'system:serviceaccount:ns:svcaccount1',
             'subject2': 'system:serviceaccount:ns:svcaccount2',
             'subject3': 'system:serviceaccount:ns:svcaccount3',
+            'subject4': 'system:serviceaccount:ns:svcaccount4',
             'issuer': 'https://token.actions.githubusercontent.com',
             'audience': 'api://AzureADTokenExchange',
             'cme_version': '1',
@@ -155,15 +157,27 @@ def test_federated_identity_credential(self, resource_group):
                      self.check('[1].claimsMatchingExpression.value', "{new_cme_value}")
                  ])
 
+        # test default audiences value
+        self.cmd('identity federated-credential create --name {fic4} --identity-name {identity} --resource-group {rg} '
+                 '--subject {subject4} --issuer {issuer}',
+                 checks=[
+                     self.check('length(audiences)', 1),
+                     self.check('audiences[0]', 'api://AzureADTokenExchange'),
+                     self.check('issuer', '{issuer}'),
+                     self.check('subject', '{subject4}')
+                 ])
+        
         # delete remaining federated identity credentials
         self.cmd('identity federated-credential delete --name {fic2}'
                  ' --identity-name {identity} --resource-group {rg} --yes')
         self.cmd('identity federated-credential delete --name {fic3}'
                  ' --identity-name {identity} --resource-group {rg} --yes')
+        self.cmd('identity federated-credential delete --name {fic4}'
+                 ' --identity-name {identity} --resource-group {rg} --yes')
         
-        # verify all are deleted
         self.cmd('identity federated-credential list --identity-name {identity} --resource-group {rg}',
                  checks=[
                      self.check('type(@)', 'array'),
                      self.check('length(@)', 0)
                  ])
+        
\ No newline at end of file