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You must include the Format attribute on the NameIdPolicy node and the Format value has to match the configuration for your application in Okta.

Applications > “Your Application” > General > Edit (SAML Settings) > Next > Scroll to Bottom
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<saml2:NameID Format="urn:oasis:names:tc:SAML:1.1:nameid-format:unspecified">

To Fix The Issue:
We are using ComponentSpace and you can’t set the Format prior to calling InitiateSsoAsync. You can only set it when the OnAuthnRequestCreated event occurs.

_samlServiceProvider.Events.OnAuthnRequestCreated += (context, request) =>
{
    request.NameIDPolicy.Format = "urn:oasis:names:tc:SAML:1.1:nameid-format:unspecified";
    return request;
};