I was working on some new tenant with the clients. There we had some requirement to create new SharePoint Provider Hosted App with App-Only principals. It was created successfully & working fine in my older tenant. After testing of it, I deployed on newly created tenant where it has started showing issues : I have registered a support ticket to Microsoft SharePoint team . They tried to support with lots of meetings & collected logs but they have not given the solution. After did lots of research , I found the solution from Microsoft Q & A site . Lots of SharePoint experts are facing same issue. They have mentioned some workaround as well. They are asking to run a command : Set - SPOTenant - DisableCustomAppAuthentication $false After running this command, every thing has started working. Just one thing, You have to use latest SharePoint Online Management Shell.
Blog about Office 365, Microsoft Teams & SharePoint by Gaurav Goyal