Microsoft Team desktop version returns 502 Bad Gateway Nginx error to authenticate 'Microsoft Teams for Jira Cloud'

Issue Summary

Customers are receiving a 502 Bad Gateway Nginx error from auth.atlassian.net after putting in the email to authenticate 'Microsoft Teams for Jira Cloud' from Microsoft Team desktop version.

Steps to Reproduce

1. Open MS Teams app desktop version.
2. Click on the JIRA cloud app.
3. Get Microsoft authentication, which works.
4. Click on Authenticate in Jira (sign in using SSO enabled credentials).
5. It routes to auth.atlassian.net and returns 502 Bad Gateway error.

Expected Results

Authentication should be done successfully

Actual Results

The issue can be reproduced only in the Microsoft Team desktop version while authenticating the Jira Cloud app.

Getting 502 Bad Gateway Nginx error

Workaround

Authorize via the web version of the Microsoft Teams App.