Failed to connect to Dataverse because of loopback redirect URI

[YalingL]

Hello ServiceClient community,

Our backend ServiceClient code recently stops working and in our log system.

var crmConnectionString = $@"AuthType=OAuth;Url={parameters["OrgUrl"]};
                            Username={parameters["Username"]};
                            Password={secret.Value};
                            AppId={parameters["AppId"]};
                            RedirectUri=app://{parameters["AppId"]};";

I see the following error message:

Microsoft.PowerPlatform.Dataverse.Client.Utils.DataverseConnectionException: Failed to connect to Dataverse
 ---> MSAL.NetCore.4.56.0.0.MsalClientException: 
	ErrorCode: loopback_redirect_uri
Microsoft.Identity.Client.MsalClientException: Only loopback redirect uri is supported, but app://6dc051****/ was found. Configure http://localhost or http://localhost:port both during app registration and when you create the PublicClientApplication object. See https://aka.ms/msal-net-os-browser for details

My question is our code works fine for years and why it starts complaining about the redirect URI? I also checked the authentication section in App registration and the URI was configured.

The public connection string doc also states:
When using the OAuth AuthType\AuthenticationType
For development and prototyping purposes we have provided the following AppId or ClientId and Redirect URI for use in OAuth Flows.
For production use, you should create an AppId or ClientId that is specific to your tenant in the Azure Management portal.
Sample AppId or ClientId = 51f81489-12ee-4a9e-aaae-a2591f45987d
Sample RedirectUri = app://58145B91-0C36-4500-8554-080854F2AC97