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Hi @Theisen Reddy
Thank you for posting your question in the Microsoft Q&A forum.
Based on my research, this issue is typically caused by authentication protocol mismatches when using Integrated Windows Authentication like NTLM or Kerberos over HTTP/2 or HTTP/3. These protocols are not compatible with IWA, and IIS (commonly used by SharePoint Server) defaults to HTTP/2, which can trigger the login loop.
You can read more at HTTP/2 on IIS | Microsoft Learn
To resolve this, you may need to:
-Disable HTTP/2 and QUIC on the IIS site hosting SharePoint Server.
-Enable Negotiate and NTLM Providers in IIS.
For more information about IIS, please access Getting Started with the IIS Manager in IIS | Microsoft Learn
-Clear cookies and cache or try a different browser.
I also found this helpful thread, while this is for SharePoint Online, the concept may apply if you are using hybrid configuration. You may take it as a reference Unauthorzied 401 while accessing sharepoint - Microsoft Q&A
I hope this helps.
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