How to resolve AADSTS650053: The application 'identity-client-app' asked for scope 'AllSites.Manage' that doesn't exist on the resource '00000003-0000-0000-c000-000000000000' error

I'm working on a mini project where a middleware handles leave requests submitted in SharePoint. To achieve this, I created an identity application on Azure and add permissions to the API. I then tried to access SharePoint after providing credentials like 'Client ID', 'Client Secret', 'Tenant ID' and 'SharePoint URL' but got the following error:
AADSTS650053: The application 'identity-client-app' asked for scope 'AllSites.Manage' that doesn't exist on the resource '00000003-0000-0000-c000-000000000000'.

I have also removed the 'AllSites.Manage' scope and replaced it with 'Sites.Manage.All'. But I still get the same error.

How do I resolve this issue?