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App Service provides built-in authentication and authorization support, so you can sign in users with no code in your web app. Using the optional App Service authentication/authorization module simplifies authentication and authorization for your app. When you are ready for custom authentication and authorization, you build on this architecture.
Implementing a secure solution for authentication (signing-in users) and authorization (providing access to secure data) can take significant effort. You must make sure to follow industry best practices and standards and keep your implementation up to date. The built-in authentication feature for App Service and Azure Functions can save you time and effort by providing out-of-the-box authentication with federated identity providers, allowing you to focus on the rest of your application.
Please note that you will have to choose the option “Provide the details of an existing app registration” under App registration type because you will be using a different tenant than the one attached to your Azure subscription.