For the above error please follow the below steps to resolve the issue.
Login to the Microsoft Azure Account portal with administrator access account.
Url to login is https://portal.azure.com
After login –> Click on view Manage Azure Active Directory as shown in the below image.
Select properties.
Click on Manage Security defaults.
By default Enable Security defaults it will set to yes change it to No. this will allow you to configure AzureAD / Office365 account successfully in Enterprise Self-Service.