Possible cause 1
Account set in the "Configure Connection" in the Project missing SharePoint Admin Role.
Make sure this account is MFA free
Possible cause 2
Microsoft provisioning not complete / stuck
Possible Resolution 1
Add an account with SharePoint Admin Role to the Connection Configuration section:

Possible Resolution 2
Some of the Admin unassign Onedrive license and reassigned Onedrive license helps Graph api sees the Onedrive.