Unable to add Entra ID as authentication method on our Azure API Management

Unable to add Entra ID authentication. We are getting the following error message.

We tried to deploy it using Portal Overview > Enable Azure Active Directory and got the following error message*.*

Register ‘YourAPI’ Azure Active Directory application – Success

Enable access tokens and ID tokens authentication to the Azure Active Directory application – Success

Add Directory.ReadAll permissions to Microsoft Graph and Azure Active Directory Graph APIs – Success

Create client secret in the Azure Active Directory application – Success

Add Azure Active Directory identity in API Management – Failed with following error

ajaxExtended call failed
Correlation ID: {REDACTED}

Also tried manually, it fails manually also.
Created several manual App registrations, had no luck.

How do I fix this issue?