How to create linked servers from SQL managed instance using Entra Authentication (part 1)

phSTC don't see anything wrong in terms of the configuration. But what I can see is that the error message states that an access token was not found on the response from Entra (aka AAD). If the access token was not granted to the managed identity, then it is not possible to connect to the remote Azure SQL server.

Things that come to mind that may block this are Conditional Access policies on your Entra ID domain. I'd recommend that you validate this with your Entra admin in your organization.