When creating and configuring an Azure AD App Registration to use for authenticating a web application with Azure AD, it’s common to see the AADSTS700054: response_type 'id_token' is not enabled for the application
error when the application attempts to authenticate the user. This error may or may not occur, depending on the configuration needed.

To resolve the 'id_token' is not enabled for the application
error, you will need to go into the App Registration’s Authentication settings, and enable ID_Token issuance for the application.

Follow these steps to enable this setting on the App Registration:
- Within the Azure Portal, go to Microsoft Entra ID (formerly Azure AD)
- Under the Manage section on the left side, click on App registrations
- Within the list of App Registrations, click on the App registration for your application
- On the App registration, under the Manage section on the left side, click on Authentication
- On this pane, locate the “Select the tokens you would like to be issued by the authroization endpoint” setting, check the box for “ID tokens (used for implicit and hybrid flows)“
- Then click Save
Once this is configured, access your application so it attempts to authenticate you again. After this the error message should go away.
Happy authenticating and authorizing your applications!