When connecting to azure AD through a Web Connection, FME Form uses QT WebEngine to perform the authentication. QT WebEngine does not support conditional access from azure (https://learn.microsoft.com/en-us/azure/active-directory/conditional-access/overview).
Make an option in the authentication process to choose a different browser for authentication (like edge or chrome where this is supported) or make the QT WebEngine supplied with FME Form support conditional access.