Hi All,
I got a confirmed answer from Microsoft that SharePoint SE does not currently support Azure B2C. The problem is that while SharePoint SE connects to Azure AD just fine however when SP connects to AAD B2C we noticed that the certificate only supports the x5c string. This leads to the certificate needed by SharePoint being mismatched from the one automatically published on Azure AD B2C.
From MS:
"After internal discussion, we have confirmed temporarily B2C only supports the RSA modulus (n) and the RSA public exponent (e).
For more reference about AzureAD B2C public key: https://learn.microsoft.com/en-us/azure/active-directory-b2c/tokens-overview#validate-signature"