Cannot use personal account to log in with MS Entra ID when integrating with Flask.

Question

I am trying to integrate "Sign in with Microsoft" option into my Flask application via Microsoft Entra ID. I have followed strictly all steps described in these two official MS tutorials:

https://learn.microsoft.com/en-us/entra/external-id/customers/tutorial-web-app-python-flask-prepare-tenant

https://learn.microsoft.com/en-us/entra/external-id/customers/tutorial-web-app-python-flask-sign-in-sign-out?tabs=windows

And I have checked multiple times that the supported account types are "Accounts in any organizational directory (Any Microsoft Entra ID tenant - Multitenant) and personal Microsoft accounts (e.g. Skype, Xbox)".

The manifest is set up correctly too with:

"signInAudience": "AzureADandPersonalMicrosoftAccount"

For my Flask application, I am using Python's identity package and more specifically identity.web.Auth in the following way:

# Registering the client
microsoft_client_id = "my_client_id_here"
microsoft_client_secret_value = "my_clent_secret_here"
authority = "https://login.microsoftonline.com/common"

microsoft = identity.web.Auth(
    session=session,
    authority=authority,
    client_id=microsoft_client_id,
    client_credential={"client_secret": microsoft_client_secret_value}
)

# View function for logging in

@authnetication.route("/auth/microsoft_login", methods=["POST", "GET"])
def microsoft_login_api():
    redirect_uri = url_for('authentication.auth_microsoft_callback', _external=True)
    return redirect(microsoft.log_in(
        scopes=["User.Read"],
        redirect_uri=redirect_uri
    ).get('auth_uri'))


@authnetication.route('/auth/microsoft/callback')
def auth_microsoft_callback():
    logging.info("Callback triggered.")

However, whenever I go to the login page and enter my outlook email, I keep getting the error message "You can't sign in here with a personal account. Use your work or school account instead."

I feel like this is an issue on Microsoft side, as I have done all steps exactly as described in the official tutorials and still it is not working... Can someone please support with this?

It is worth mentioning that I am using a free trial tenant account currently and also my redirect URI is on localhost ("http://localhost:5101/auth/microsoft/callback").