In this blog let us see Application Users in Microsoft Dataverse. Microsoft introduced a concept called "Application Users" to connect to the D365 or Microsoft Dataverse from client application with better security and control over the access to the third parties. Before introducing "Application User", to connect Dynamics data we used to leverage licensed user account using Username and passwords. Refer the blow URL for details on the Application User setup and it's utilization. https://mspowerassist.blogspot.com/2021/05/how-to-connect-to-multi-factor-enabled.html