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Error AADSTS16000 is thrown when the user not found in the tenant used for authentication. In your case, this error usually occurs when you sign in to Azure Portal using your personal account which is not added as an external/guest user to an Azure AD tenant. Due to this, you by default get connected to the Microsoft Services tenant.
Since you are connected to the Microsoft Services tenant as a standard user with restricted access, you cannot perform actions such as creating new users, groups, enterprise applications, and so on. To perform administrative actions, you must have administrative access to the tenant.
For this purpose, you need to create your own tenant rather than using the Microsoft Services tenant. When you create a new tenant, you by default become the Global Administrator of the new tenant and have full access to all the options in that tenant.
To create a new tenant, open in-private/incognito browser window (just to avoid SSO), access https://azure.microsoft.com/en-us/free/ to create a free Azure account.
Once the new account is created, you should be able to see and switch to the new tenant by clicking on the settings icon as highlighted below:
In some cases, the user might already have an active session that uses a different personal account than the one that's intended to be used. Or they have a session that uses their organization account although they intended to use a personal guest account (or vice versa).
In that scenario, try signing in to the Azure Portal trough a tenant-specific URL using the following format:
https://portal.azure.com/<tenant domain name>
Eg.
https://portal.azure.com/constoso.onmicrosoft.com
If the issue persisted, try to clear the browser data or try with the different browser and see if the issue is fix
Reference: https://learn.microsoft.com/en-us/answers/questions/1403749/encountered-an-authentication-problem
Hope this helps. Do let us know if you any further queries by responding in the comments section.
Thanks,
Akhilesh V.
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