It happens because Microsoft changed their approach to devboxes settings:
As of November 15, 2023, certificates in your Microsoft Entra tenant are no longer installed in new one-box development environments by default.
Here are the steps:
1) Go to Azure portal and select app registration and create a new one (name the app to be the same as the environment name & leave settings at default)
2) The app registration needs to have the following:
a) 2 reply URLs > https://<fno-url> & https://<fno-url>/oauth
b) add the following API permissions to the App registration:
Grant above permissions.
3) On the VM for the environment, open PowerShell
4) Run the following commands:
a) Install-Module D365fo.tools, and accept all the prompts
b) New-D365EntraIntegration -ClientId <client-id> (client-id is the app registration id that was created)
5) The above command will save a certificate, which then needs to be uploaded to the app registration that was created
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