Is this an SQL Server instance on-prem? If so, have you enabled the machine it runs on for Azure Arc? That's a pre-condition for enabling for Entra ID Authentication. (Yeah, it's called Entra these days, not AAD. Not my idea.) You must also configure an Entra ID Adminisrator.
Issue with SQL Server Authentication Using "Active Directory - Universal with MFA Support"
I am currently testing our SQL Server, which is configured with SQL authentication and is being transitioned to support both SQL and Azure Active Directory (AAD) authentication.
During testing, I attempted to log in using the "Active Directory - Universal with MFA Support" option. However, I encountered the following error:
Error: "Login failed for user '<token-identified principal>'. The server is not currently configured to accept this token. (.Net SqlClient Data Provider)"
I couldn’t find a solution for this issue. Do I need to perform any additional configuration to enable this authentication method?
Notably, when I attempted to log in using the "Active Directory - Password" option with an email and password, the authentication was successful, and the user was able to log in without any issues