A cloud-based identity and access management service for securing user authentication and resource access
When you configured Sites.Read.All as an Application permission and admin-consented it, then used Sites.Selected scope in your OAuth flow, you're actually leveraging a combination of both permission models. The Sites.Selected scope in the OAuth flow operates as a delegated permission, meaning it respects the signed-in user's existing SharePoint access rights rather than requiring explicit site configuration.
For Sites.Selected-->Refer to the Microsoft Graph Permissions reference here to differentiate Application and Delegated Permissions as well as whether Admin Consent is required or not- https://learn.microsoft.com/en-us/graph/permissions-reference#sitesselected
For Sites.Read.All configured as delegated permission, no admin needs to configure specific sites, it follows least privilege principal and the user sees permissions they are granting during consent
Documentation here https://learn.microsoft.com/en-us/graph/permissions-reference#sitesreadall