Preheat your oven to 375°F. Line a baking sheet with parchment paper.
In a mixing bowl, combine the softened cream cheese, powdered sugar, vanilla extract, and 1/4 cup of rainbow sprinkles. Mix until smooth and well combined.
Unroll the crescent roll dough and separate it into triangles. Place a generous tablespoon of the cream cheese mixture at the wide end of each triangle.
Roll up each triangle starting from the wide end, tucking the edges in as you go to seal the filling inside. Place the rolls on the prepared baking sheet, spacing them about 2 inches apart.
Brush the tops of the rolls with the beaten egg and sprinkle with granulated sugar and additional rainbow sprinkles.
Bake in the preheated oven for 12-15 minutes or until golden brown. Remove from the oven and let cool for a few minutes before serving.