diff --git a/src/k8s-extension/HISTORY.rst b/src/k8s-extension/HISTORY.rst
index c2c7f13cbef..b4a73e6015b 100644
--- a/src/k8s-extension/HISTORY.rst
+++ b/src/k8s-extension/HISTORY.rst
@@ -3,6 +3,10 @@
 Release History
 ===============
 
+1.0.3
+++++++++++++++++++
+* Remove identity creation for calls to Microsoft.ResourceConnector
+
 1.0.2
 ++++++++++++++++++
 * Update api-version for calls to Microsoft.ResourceConnector to 2021-10-31-preview
diff --git a/src/k8s-extension/azext_k8s_extension/custom.py b/src/k8s-extension/azext_k8s_extension/custom.py
index 8f845333f3b..c0a2c4cdb6a 100644
--- a/src/k8s-extension/azext_k8s_extension/custom.py
+++ b/src/k8s-extension/azext_k8s_extension/custom.py
@@ -359,7 +359,11 @@ def __create_identity(cmd, resource_group_name, cluster_name, cluster_type):
     subscription_id = get_subscription_id(cmd.cli_ctx)
     resources = cf_resources(cmd.cli_ctx, subscription_id)
 
-    if cluster_type.lower() == consts.MANAGED_CLUSTER_TYPE:
+    # We do not create any identities for managedClusters or appliances
+    if (
+        cluster_type.lower() == consts.MANAGED_CLUSTER_TYPE
+        or cluster_type.lower() == consts.APPLIANCE_TYPE
+    ):
         return None, None
 
     cluster_rp, parent_api_version = get_cluster_rp_api_version(cluster_type)
diff --git a/src/k8s-extension/setup.py b/src/k8s-extension/setup.py
index fce65b7232c..c846f00ce76 100644
--- a/src/k8s-extension/setup.py
+++ b/src/k8s-extension/setup.py
@@ -33,7 +33,7 @@
 # TODO: Add any additional SDK dependencies here
 DEPENDENCIES = []
 
-VERSION = "1.0.2"
+VERSION = "1.0.3"
 
 with open("README.rst", "r", encoding="utf-8") as f:
     README = f.read()