Hi @akdav ,

Could you check if your account has enabled hierarchical namespace? According to documentation it's required for SFTP events.

That would also explained why it works when you upload files manually, but not when you use SFTP.

"SFTP events These events are triggered if you enable a hierarchical namespace on the storage account, and clients use SFTP APIs. For more information about SFTP support for Azure Blob Storage, see SSH File Transfer Protocol (SFTP) in Azure Blob Storage."