What causes SharePointOnlineAuthFailed?

The registered application's service principal ID or client key is incorrect in the linked service. The SharePoint Online tenant was created after November 7, 2018 — ACS (legacy token auth) is disabled by default for these tenants. ACS-based authentication fails with 'Token type is not allowed' because the tenant disables custom app authentication

How do I fix SharePointOnlineAuthFailed?

Verify the service principal (application) ID and client key in your ADF linked service are correct.. If you see 'Token type is not allowed': enable ACS authentication via SharePoint Online Management Shell.. Download the SharePoint Online Management Shell and sign in with a tenant admin account.. Run: Connect-SPOService -Url https:// -admin.sharepoint.com/.. Run: Set-SPOTenant -DisableCustomAppAuthentication $false.. Retry the connection after running the PowerShell command.

High severitycredentials

Power BI Refresh Error:
SharePointOnlineAuthFailed

What does this error mean?

Authentication to SharePoint Online failed in ADF or Fabric. The service principal credentials are wrong, or ACS authentication is disabled for the tenant.

Common causes

1The registered application's service principal ID or client key is incorrect in the linked service
2The SharePoint Online tenant was created after November 7, 2018 — ACS (legacy token auth) is disabled by default for these tenants
3ACS-based authentication fails with 'Token type is not allowed' because the tenant disables custom app authentication

How to fix it

1Verify the service principal (application) ID and client key in your ADF linked service are correct.
2If you see 'Token type is not allowed': enable ACS authentication via SharePoint Online Management Shell.
3Download the SharePoint Online Management Shell and sign in with a tenant admin account.
4Run: Connect-SPOService -Url https://<tenant name>-admin.sharepoint.com/.
5Run: Set-SPOTenant -DisableCustomAppAuthentication $false.
6Retry the connection after running the PowerShell command.

Frequently asked questions

Does this error affect all users or just the dataset owner?

All users — scheduled and manual refreshes run under the credentials stored in the dataset settings, not individual user accounts.

Can expired OAuth tokens cause this error?

Yes — if the data source uses OAuth (SharePoint, Dynamics 365, Azure), the token expires periodically and must be re-authorized by the dataset owner.

Will this error clear itself after I update the credentials?

Yes — once you re-enter valid credentials in the dataset settings, the next refresh (scheduled or triggered manually) will succeed.

How do I know which dataset is using which credentials?

Go to Power BI Service → Settings → Datasets → Data source credentials for the affected dataset. Each connection shows the credential type and the account it's stored under.

Source · learn.microsoft.com/en-us/fabric/data-factory/connector-troubleshoot-sharepoint-online-list