Hi Kristy Wilhelm
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to accept the answer .
Issue:
Failing to Login when using a Service Principal ID/Key to either Dynamics CRM or Dataverse Linked Service. How do I get it to not try logging into CRM as 'Anonymous' or how do I add permissions into CRM to allow this to connect?
Solution:
I actually figured out my problem late last night..... I needed to add an Application user in my CRM environment in the Power Platform admin center.
If I missed anything please let me know and I'd be happy to add it to my answer, or feel free to comment below with any additional information.I hope this helps!
If you have any other questions, please let me know. Thank you again for your time and patience throughout this issue.
Please don’t forget to Accept Answer
and Yes
for "was this answer helpful" wherever the information provided helps you, this can be beneficial to other community members.