Getting 500 error on UC external HTTP connection to Entra with OAuth User-to-Machine Per User

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I am getting 500 Internal Server Error with Unity Catalog external HTTP connection to Entra (for accessing Microsoft Graph API):

There isn't any special setup with my Entra app, just the default one with my workspace url as the redirect url:

Microsoft Graph API should support the OAuth spec so I am not really sure what am I missing.

request_id of createUserMappedCredential of the failing events from system.access.audit:
e8c76083-d512-4326-893d-7efebe8b0d35
88035b80-f790-402b-ba09-a380ae63174f
17382d3e-bcb4-4779-9ca8-6006295260f1
817d7268-38e0-4473-8720-647818729e7f
965f40bd-03f0-4c68-b1d4-e1b835e6cad1
85d2a547-8875-449d-8a64-1e9578156993

Please help to take a look, thank you!