Register a native web application in Microsoft Entra ID to access D365 F&SCM. For more information, refer to Register an application with the Microsoft identity platform.
For the web app, only OAuth 2.0 authentication is supported. So, on the registered app, as authentication, add a platform of type Mobile and desktop applications, and choose an option that supports OAuth2.
Make sure the required API permissions to the Dynamics ERP API are granted for the Microsoft Entra ID application. For more information, refer to Permissions and consent in the Microsoft identity platform.