Thanks for asking question! Could you please confirm if users have user scope assigned by the Admin?
Further to elaborate on User-level credentials: It is one set of credentials for the entire Azure account. It can be used to deploy to App Service for any app, in any subscription, that the Azure account has permission to access. It's the default set that's surfaced in the portal GUI (such as the Overview and Properties of the app's resource page). When a user is granted app access via Role-Based Access Control (RBAC) or coadmin permissions, that user can use their own user-level credentials until the access is revoked.
Also, do not share these credentials with other Azure users.
Reference: https://learn.microsoft.com/en-us/azure/app-service/deploy-configure-credentials?tabs=portal
Check this document on Common reasons for FTP “530 User Cannot log in” scenario
Refer to below document link to understand more about FTP and troubleshooting in Azure app services,
https://azureappservices.blogspot.com/2020/02/everything-about-azure-app-service-ftp.html
Let us know if further query or issue remains.