With Contributor the pipeline can't create role assignments
Contributor does not allow assigning roles in Azure RBAC (it excludes Microsoft.Authorization/*/Write). If your Terraform assigns roles (say, an app's identity on a Key Vault), Contributor is not enough. The quick fix is giving the pipeline Owner or User Access Administrator, which is exactly what you don't want. The right fix is Role Based Access Control Administrator with a condition limiting which roles it can assign (and excluding privileged ones).