@KVNARK . :
It's recommended to use the Azure AD Integrated authentication type. This authentication type allows you to use Azure Active Directory (AD) to authenticate and manage access to Blob Storage resources at the folder or container level using role-based access control (RBAC).
Service Principal authentication can also be used to restrict folder or container level access, but it requires additional setup and management of the Azure AD application and RBAC roles.
SAS URLs can also be used to restrict folder or container level access, but as mentioned in the question, they are not part of the authentication type options in Power Automate. However, SAS URLs can be generated for specific Blob Storage resources with limited permissions and shared with users or applications to provide temporary access to those resources.