[Bug]: auth for connection to dataverse broke in 1.42.0

[ematt70]

Description

auth for connection to dataverse broke in 1.42.0, still does not work in current version.

In 1.41.0, the following configuration works to authenticate with dataverse:

When trying the same in 1.42.0, 1.42.1 or 1.42.2, it gives the following error:

mssql: Error 18456: Login failed: The HTTP request is unauthorized with client authentication scheme 'Anonymous'. The authentication header received from the server was 'Bearer authorization_uri=https://login.microsoftonline.com/39b03722-b836-496a-85ec-850f0957ca6b/oauth2/authorize, resource_id=(environment server)'. RequestId: TDS;64b1faff-339f-4aed-afb3-76e0b9b5adab;1 Time: 2026-05-26T18:08:37.1743748Z

Steps to Reproduce

Set up new database connection to a dataverse database.
Use appropriate server name from session details in dataverse environment (excluding the "https://").
Use Microsoft Entra ID - Universal with MFA support for auth type
Sign in using appropriate credentials
Connect

Affected Area

• Connection dialog (SQL Server | Azure browse/Fabric browse)
• Query editor
• Query results panel
• Object Explorer
• GitHub Copilot integration
• Preview/Edit data
• Table Designer
• Schema Designer
• Schema Compare
• Local SQL Server Container provisioning
• SQL database in Fabric provisioning
• DACPAC/BACPAC export/import
• SQL Database projects
• Query Plan Visualizer
• Other (please describe below)

If you selected "Other", please describe the affected area

No response

Environment Information

VSCODE
Version: 1.121.0 (Universal)
Commit: f6cfa2ea2403534de03f069bdf160d06451ed282
Date: 2026-05-19T11:51:53+02:00
Electron: 39.8.8
ElectronBuildId: 13870025
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.5.0

MSSQL
1.42.0, 1.42.1, 1.42.2

OS
Mac OSX 26.5

Confirmation

• I have searched existing issues and couldn't find a match
• I want to work on this issue

[Benjin]

@ematt70 can you try the fix mentioned in here and chime in on that thread if it worked or if you're still hitting this issue?

I suspect this is a duplicate of #22031

[ematt70]

@Benjin looking at the issue you mentioned, it smells like the same thing, however, when installing the experimental fix and enabling the MFA flag, it still doesn't work......in fact, I get some different errors:

Funny thing is, I did download and install the new dotnet framework, but it doesn't seem to be recognizing it?

[rmbennet]

Having what I suspect is similar behavior. New to D365 Dataverse TDS endpoint: able to connect in SSMS just fine but when I tried to connect via vscode-mssql, no luck. Discovered this issue thread, reverted to 1.41.0 and I am able to query as normal.

[Benjin]

@ematt70 looks like it's now having difficulty launching the core logic layer. We just released 1.43.0; can you uninstall the extension, close all instances of VS Code, then try installing 1.43.0?

@rmbennet can you also try with 1.43.0, and let me know if that's working for you?

[ematt70]

@Benjin in my initial testing, I'm getting the same error as before (in 1.41.0 < x <= 1.42.2). Verified that mssql.preview.useVscodeAccountsForEntraMFA was set to true.

[Benjin]

I'm able to reproduce this error. We're in the process of migrating to a new token acquisition system for EntraMFA authentication, and it seems it's not yet working for Dataverse connections.

However, if you set a flag to go back to the old system, it seems to be working for me.  After updating to v1.43.0 (released yesterday), could you try explicitly setting mssql.preview.useVscodeAccountsForEntraMFA to false (not true! the default has changed with 1.43.0) and restarting VS Code, then letting me know how it goes for you?

In the meantime, I'll work on a fix for the useVscodeAccountsForEntraMFA: true path, and post it here for people to validate with.