I did the following on a different Azure subscription and the connection to Dynamics as a source in the dataflow worked fine. When creating the source:
- in source settings select Inline, don't complete the dataset type and linked service with dataset and then swap to inline (imho) then select the inline dataset type and then the linked service
- inline dataset type for me is Dynamics 365
- In source options I started with a entity name and then checked that Projection and Data Preview returned data and field names
- Then swapped to a query as I want to filter the table
- Learnt fetchXML from MS Learn at https://learn.microsoft.com/en-us/power-apps/developer/data-platform/fetchxml/filter-rows?tabs=fetchxml
Works like a charm