Error creating application access policy

Hi Hunaid, thank you. Following your suggestion I got this error:

Connect-MicrosoftTeams: One or more errors occurred. (ROPC does not support MSA accounts. See https://aka.ms/msal-net-ropc for details. )
Connect-MicrosoftTeams: ROPC does not support MSA accounts. See https://aka.ms/msal-net-ropc for details.
Connect-MicrosoftTeams: One or more errors occurred. (ROPC does not support MSA accounts. See https://aka.ms/msal-net-ropc for details. )

I was using my MSA, then I tried with an Office 365 dev tenant account and even my initial approach worked like a charm.

The documentation is not clear about that. It states only permission type Delegated (personal microsoft account) is not supported, but I was using permission type Application along with my MSA.