Hello Mansi Vaishnav,
Thank you for posting this on the Microsoft Q&A Community.
From my understanding, you are experiencing an authentication issue due to audiences not matching.
The focus should be on the SigninAudience. The endpoint used v1.0 or v2.0, is chosen by the client and only impacts the version of id_tokens.
You need to update your Application Manifest to effect this
Follow this link https://learn.microsoft.com/en-us/entra/identity-platform/reference-app-manifest to get more information about the accessTokenAcceptedVersion attribute.
Let me know if further assistance is needed.
Babafemi