I am attempting to setup a cloud hosted D365 F&O VM tier 1 environment on LCS and have an azure subscription (ISV for success) and when selecting "authorize" in LCS 
I receive the following error when attempting to grant consent:

I myself am a Global Admin. I have provided my developer the Contributor role (but I am attempting to set it up). What am I missing here? Do I need to get a Partner Account D365 licence even for a tier 1? Does the organization Type need to change from prospect to Partner or Customer? Everything here seems setup perfectly and as this environment is intended to be for now just a T1 for development with demo data (under the ISV for Success program) what is prohibiting me from setting it up? Is there a sequence here that I have to do (do the azure connector before the authorize?).
Thanks