Hi Salil,
Can you check the Group ID is matching the User you created in SQL DB? Also check this article and some suggestions on this auth issue - https://techcommunity.microsoft.com/t5/azure-database-support-blog/aad-auth-error-login-failed-for-user-lt-token-identified/ba-p/1417535
Hope this helps. JS
== Please Accept the answer if the information helped you. This will help us and others in the community as well.