Configuring Azure AD Sync without Azure AD Graph?

Hello team,

I seem to be having an issue lately when trying to add new clients with AAD Sync as requested before adding Sophos Email Gateway . I follow the steps on this guide  https://community.sophos.com/sophos-central/f/recommended-reads/122089/how-to-configure-azure-ad-sync followed by https://docs.sophos.com/central/Customer/help/en-us/central/Customer/tasks/AddAzureApplication.html to upgrade the dependency on Microsoft Graph rather than Azure Active Directory API because for some reason MS doesn't allow this API to be added yet still on Sophos side it forces you to get the AAD Graph, or it fails.

Below are all the screenshots of my current configuration just in case I'm missing something, I can connect to Azure it just doesn't let me continue until I have the Azure AD API.

Any Help will be appreciated