The single-tenant server-to-server (S2S) scenario typically applies for enterprise organizations that have multiple Microsoft Dataverse environments using Active Directory Federation Services (AD FS) for authentication. However, it can also be applied by environments when the application won't be distributed to other environments.
An enterprise can create a web application or service to connect to any Dataverse environments associated with a single Azure Active Directory (Azure AD) tenant.
Please do watch https://www.youtube.com/watch?v=YUXvCtPyqro&t=99s
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