Unable to connect to azure hosted sql server using service principal

I am trying to run a script on a server to download some csv files from a website then import them to an azure sql server.

I set up a registered app, gave it graph permissions for directory.read.all, user.read, and user.read all.

Then I created a secret and copied the secret value.

When I create the user from external, it always gives the tenant id as all zeros (00000000-0000-0000-0000-000000000000) and I suspect this is why the service principal is unable to authenticate.

How do I get the service principal bound or able to login?

Chatgpt says there is something wrong on the back end.