Which component is requiring admin approval in this scenario? Please provide guidance on how to resolve this issue.
If you are trying to authenticate to a chat application from an Azure AI Studio-generated WebApp and received an error message that you need admin approval, it is likely that the Azure AD application requires admin approval and was not approved before logging in. Admin approval is required to continue.
Firstly, Please check what level of permission do you have in your subscription? Are you a Global Admin?
Granting tenant-wide admin consent requires you to sign in as a Global Administrator, an Application Administrator, or a Cloud Application Administrator.
Please check Grant tenant-wide admin consent to an application for more details.
Hope this helps. Do let us know if you need any further help.