AADSTS500089: SAML 2.0 assertion validation failed: SAML token is invalid

As per https://learn.microsoft.com/en-us/entra/external-id/direct-federation, the recommended Audience for new federations is https://login.microsoftonline.com/<tenant ID>/
. However, when I use it, I get AADSTS500089: SAML 2.0 assertion validation failed: SAML token is invalid
error. It works with urn:federation:MicrosoftOnline
as the audience. Is it a known issue or is there any additional configuration required to allow the use of the new/recommended audience value?
Error: server_error
Error description: AADSTS500089: SAML 2.0 assertion validation failed: SAML token is invalid. Trace ID: 6e398f5e-ef6e-433f-b81c-e8f1cb9d2a00 Correlation ID: 91b0d7ae-5f13-45d1-9d90-948b86b6c148 Timestamp: 2025-04-28 16:37:28Z
https://learn.microsoft.com/en-us/entra/external-id/direct-federation
Audience:
https://login.microsoftonline.com/<tenant ID>/
(Recommended) Replace <tenant ID>
with the tenant ID of the Microsoft Entra tenant you're setting up federation with. In the SAML request sent by Microsoft Entra ID for external federations, the Issuer URL is a tenanted endpoint (for example, https://login.microsoftonline.com/<tenant ID>/
). For any new federations, we recommend that all our partners set the audience of the SAML or WS-Fed based IdP to a tenanted endpoint. Any existing federations configured with the global endpoint (for example, urn:federation:MicrosoftOnline
) continue to work, but new federations stop working if your external IdP is expecting a global issuer URL in the SAML request sent by Microsoft Entra ID.