Yes they are different.
Azure.Identity is Specialized for Azure services authentication. It simplifies getting tokens azure resources with a focus on managed identities and service principals.
While MSAL is for various Microsoft services and custom APIs and provides user auth flows, token acquisition and various app support. It is suitable for user flows where you need to sign in a user and access resources.
See: https://learn.microsoft.com/en-us/dotnet/api/azure.identity?view=azure-dotnet
https://learn.microsoft.com/en-us/dotnet/api/microsoft.identity.client?view=msal-dotnet-latest
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Regards,
Abiola