AADSTS650056: Misconfigured application..." error from Azure AD connection

Problem statement

We’ve received the following error on our Azure AD connection:

"AADSTS650056: Misconfigured application. This could be due to one of the following: the client has not listed any permissions for 'AAD Graph' in the requested permissions in the client's application registration. Or, the admin has not consented in the tenant. Or, check the application identifier in the request to ensure it matches the configured client application identifier. Or, check the certificate in the request to ensure it's valid. Please contact your admin to fix the configuration or consent on behalf of the tenant.
Client app ID: *******.
Trace ID: ********
Correlation ID: ***********
Timestamp: ***********".

Our client has Microsoft Graph allowed, not AAH Graph. Do I need to adjust the Identity API in the connection to “Microsoft Identity Platform (v2)”?

Solution

While this message returned by Azure can be related to several possible misconfigurations, we have found that updating the Identity API setting to use Microsoft Identity Platform (v2) resolves this error.
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