Cannot connect to Dataverse with Power Platform Tools for VS 2022

With the advent of PPAC (Power platform admin center), part of the setup your Visual studio for development is to connect it with a Dataverse.

You might get the error   {“error”:”interaction_required”,”error_description”:”AADSTS50076: Due to a configuration change made by your administrator, or because you moved to a new location, you must use multi-factor authentication to access ‘00000007-0000-0000-c000-000000000000.

This is due to authenticator policy of the organization you are using for the connection. You might want to disable the security default.