Thanks for the update! Glad to see you were able to resolve your issue. Thanks 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: The Excel Online (Business) connector in Logic Apps showed an "Unknown Error" when trying to sign in.
Resolution: The issue was related to the authentication pop-up. Logging out first and then logging back in within the same pop-up window resolved the issue.
Quick Fix:
Allow pop-ups in your browser – The connector uses OAuth 2.0 authentication, which requires a pop-up for login. If blocked, authentication may fail.
When the sign-in pop-up appears, log out first instead of continuing with the existing session.
Log back in within the same pop-up to refresh the authentication and establish the connection.
This fix can also help with similar issues in SharePoint and Word Online connectors.
Please do not forget to click "Accept the answer” and Yes
Hope this helps others facing similar issues!