Microsoft Dataverse directory connector: "Authorization with the MCP server failed" despite correct Entra config (ofid_efcbf64ee6f059c8)

### MCP server URL or name

Microsoft Dataverse (directory connector)

### How are you connecting to this server?

From a custom connector URL I entered manually

### Where does the issue occur?

When auth finishes and redirects back to Claude.ai

### When did you last reproduce this?

July 31, 2026, 2:08 PM IST

### Browser and OS

On Claude Browser

### Describe the issue

I'm trying to connect the directory-listed Microsoft Dataverse connector using a custom OAuth Client ID (my own Azure AD app registration). Sign-in and consent on Microsoft's side complete without error, but the connection fails right after with "Authorization with the MCP server failed." I've reproduced this 3 times, fixing a different possible Entra-side misconfiguration before each retry, and it fails the same way every time with a new ofid_ reference.

### Error details

```shell
"Authorization with the MCP server failed. You can check your credentials and permissions."

Entra Trace IDs: 81d10f8f-7d9b-4c4d-ae20-650740350200, 63a68e6b-7b59-4766-bad7-71a56b897700, ef4b874a-aaee-4b29-8e46-88addb250600
ofid_ references: ofid_12fd7f8166a19cbe, ofid_ebecba5ea044af8d, ofid_efcbf64ee6f059c8 (most recent)
```

### Expected behavior

After completing Microsoft sign-in and consent, the connector should show as "Connected" in Claude.ai Settings > Connectors, with its Dataverse tools (create_record, read_query, list_tables, etc.) available in conversations.

### Additional context

Setup details, in case useful for diagnosis:
- Dataverse environment URL: https://orgd63bc31d.crm8.dynamics.com
- Azure AD app registration Client ID: a16c0146-ecbc-486f-908a-ba04f466f2e7
- Redirect URIs registered under "Web" platform: https://claude.ai/api/mcp/auth_callback and https://claude.com/api/mcp/auth_callback
- API permissions granted with admin consent (confirmed green checkmarks): Dynamics CRM > mcp.tools (delegated), Dynamics CRM > user_impersonation (delegated), Microsoft Graph > User.Read (delegated)
- Application user registered in Dataverse (Power Platform Admin Center > Application users) with System Administrator role, State: Active
- "Allow public client flows" set to Yes on the app registration

Each of the above was checked/fixed in sequence between attempts, and the failure persisted identically each time. Screenshots of the Application users list, API permissions, and redirect URI configuration available on request.