Hello,
A very similar question was asked here:
Can a service principal create other service principals in Azure? (answer by scottwtang)
A service principal can create another service principal after being assigned either the corresponding MS Graph permission, or Azure AD role
MS Graph Permissions
Either of the permissions:
Application.ReadWrite.All
Application.ReadWrite.OwnedBy
Azure AD Role
Any role with one of these permissions:
microsoft.directory/applications/create
microsoft.directory/applications/createAsOwner
microsoft.directory/applications/allProperties/allTasks
Built-in roles
- Application Administrator
- Application Developer
- Cloud Application Administrator
- Global Administrator
- Hybrid Identity Administrator
If this is helpful please accept answer.