SSO using universal login with Enterprise connections

I am using two ways of authenticating a user for my applications - custom database and enterprise connection(s) using organizations.

I am able to utilize SSO across applications when a user logs in using email/password (custom database), but I can’t seem to do that when a user logs in using an enterprise connection.

As per my understanding, after the first application’s login, auth0 should have a session created which will automatically create a callback to the second application with the necessary authorization_code. Going with the documentation here: Single Sign-On

Am I missing something here? Does SSO not work in the same way with enterprise connection?

Any help would be appreciated.