Connection MSSql using Azure AAD - Service Principal Auth

Issue

I am facing trouble connecting to an MS SQL Database hosted on Azure SQL Server.

Dependencies

Python@3.10.0
Django@4.2.21
pyodbc@4.0.39

Other details

In the Azure environment:

I have registered an application in my Directory
I have created Client credentials for my application
I have created a SQL Logical Server called organisation and a SQL Database called university
I have added my application as the admin of the SQL server and assigned my role as a Reader
I have white-listed my public IP

CREATE USER [<<application_name>>] FROM EXTERNAL PROVIDER;
ALTER ROLE db_datareader ADD MEMBER [<<application_name>>];

P.S. I was able to connect using the same credentials in VS Code with no problem. I ran telnet your_server_name.database.windows.net 1433 and was able to find my SQL server.

In the development environment(local environment):

I am running my application on a docker
I am using MSAL to create an access token
I connected using the following code:

# Connection string 

CONNECTION_STRING: Final[str] = "DRIVER={{ODBC Driver 18 for SQL Server}};SERVER=tcp:{server_url},{port};DATABASE={database_name};Encrypt=yes;TrustServerCertificate=yes;"

# Create an access token for login using
# 1. Tenant ID
# 2. Application ID
# 3. Secret value

AUTHORITY_URL: Final[str] = "https://login.microsoftonline.com/{tenant_id}"

application_instance: ConfidentialClientApplication = (
    ConfidentialClientApplication(
        client_id=         {application_id},
        authority=         AUTHORITY_URL,
        client_credential= {secret_value},
    )
)

ACCESS_TOKEN: Final[str] = application_instance.acquire_token_for_client(scopes=["https://database.windows.net/.default"])["access_token"]

TOKEN: Final[bytes] = bytes(ACCESS_TOKEN, "utf-16-le")

# Connect to Database using pyodbc

connection: pyodbc.Connection = pyodbc.connect(
    CONNECTION_STRING,
    attrs_before={1256: TOKEN},
    timeout=30,
)

Traceback

Traceback (most recent call last):
pyodbc.connect(
pyodbc.OperationalError: ('08001', '[08001] [Microsoft][ODBC Driver 18 for SQL Server]Client unable to establish connection because an error was encountered during handshakes before login. Common causes include the client attempting to connect to an unsupported version of SQL Server, the server being too busy to accept new connections, or a resource limitation (memory or maximum allowed connections) on the server. (26) (SQLDriverConnect)')

I would like to: