@testuser7
Yes, this means there will be one application registered in Azure AD and multiple service principals will be created for that application.
This is implemented when the organization has multiple accounts, each of which needs a separate service principal to handle instance-specific claims mapping and roles assignment. Or the customer has multiple instances of an application, which doesn't need special claims mapping, but does need separate service principals for separate signing keys.
This way you can configure multiple different claims for different service principal instance.
Let me know if you have any further questions.
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