Thanks for your response,
Yes, as per the document the IDP flow is only supported for local account and cannot be performed for external identity providers with federated IDPs. This comes as the federated identity cannot be signed up in Azure AD B2C as they are specifically managed in federated tenants. Also, B2C does not send the id_token_hint and post_logout_redirect_uri to Okta, and these are required parameters on Okta's side. I would request you to provide your feedback in feedback channel: https://feedback.azure.com/d365community/forum/79b1327d-d925-ec11-b6e6-000d3a4f06a4.
I hope this information is helpful. Please feel free to reach out if you have any further questions.
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