Files Connect Error: 'Your SharePoint admin doesn't allow site owners to create an Azure Access Control principal'

Sharepoint admin may run into the following error when trying to register or update the Files Connect Office 365 app. (https://help.salesforce.com/s/articleView?id=sf.admin_files_connect_sp_online_auth_office365.htm&type=5)

"Your SharePoint admin doesn't allow site owners to create an Azure Access Control (ACS) principal. Please contact your SharePoint administrator."

or

"Your SharePoint tenant admin doesn’t allow site collection admins to update app permissions. Please contact your SharePoint tenant administrator."

This is due to a recent change rolled out by Microsoft:
https://learn.microsoft.com/en-us/sharepoint/troubleshoot/apps/cannot-register-app-update-permissions