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This is an issue that was recently reported to me. One of the developers from my customer team was trying to provision a portal for their Dynamics 365 environment. But unfortunately he was receiving the below error.
The developer here in question here have System administrator privilege in Dynamics 365. Also as per Microsoft recommendation the user had access mode set to Read-Write under Client Access License (CAL)
However if you observe the error carefully here, the issue is not with the user privileges in Dynamics 365/ CDS. Rather the issue is with the user’s permission to create Azure Active Directory application in Azure tenant. But why is that permission required?
When you create a portal, a new application is registered in Azure Active Directory associated with the tenant. The issue is while creating the application, since the user is not having the required privileges to create the application it is failing.
For a portal already provisioned, if you go to Azure Active Directory and navigate to App Registrations section, you should see and Portal APP.
So after adding the developer to appropriate user group in Active directory with permission to create an APP, the user was successfully able to provision the portal.
Hope this helps!