We’re announcing a new feature called Azure Active Directory only authentication for Azure SQL (hereafter referred to as “Azure AD-only auth”). This feature is in public preview and is supported for ...
Updated Jul 01, 2021
Version 2.0
Blog Post
I will look into it.
In the meantime could you please try to create an AAD login using an AAD admin.
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I did check the MI executing create login [aad_user] from external provider
and it works for me for both server admin and AAD admin. In both cases I can create an AAD login. Please contact our support organization to investigate your case.
BTW do not enable AAD-only auth since it disables a database access to a server admin.
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One more.
Just checking. Did you run your command in master or in the database?
You have to run your command in master DB.