Hi Lalit Tiwari,
Thanks for reaching out to Microsoft!
I attempted to reproduce the issue on my end, and as expected, I was successfully able to add the app to the chat.
Since you mentioned that the app is added successfully after multiple tries, I recommend logging a support case for further investigation. This situation requires analyzing the logs, so please raise a support request with the relevant client ID and request ID where the failures occur. A Support Engineer will assist you with this issue in detail.
To create a support ticket, you can use the New support request - Microsoft Entra admin center or https://admin.microsoft.com/#/support/requests.
Hope this helps.
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