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We tried creating Service instance for the Azure AD Resource in 2 ways
From K2 management Integration tab we tried Adding Service Instance and got service instance error - error issuing app only token.


Second way we tried creating service instance through smart object tester 

which gave an exception

Microsoft.Identity.Model.Clients.ActiveDirectory Dll is missing

SourceCode.Smartobjects.Service.Management

AAD requires OAuth authentication, so can't add it as a service instance until that is complete.  There are some topics in the help files that explain the steps.  Select the article that is for the version of K2 Five you are currently using.



 



Manually Configure K2 for Azure Active Directory (AAD) (nintex.com)


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