*** UPDATED 27 July 2021 *** Version 5 (NAV 2016 Important Update)
ISSUE
This is fully documented here: Important changes (deprecations) coming in Power Apps, Power Automate and customer engagement apps - Power Platform | Microsoft Docs
Impacted customers are only those who still use username/password (the old legacy Dynamics 365 integration).
Through a support request to Microsoft, it is possible to re-enable Regional Discovery Service temporarily up to 30th June.
What is provided below is how to resolve the issue depending on different scenarios.
NOTE: if you suffer of this issue, it is required that you take action before 30th June deadline.
Dynamics 365 Business Central SaaS
Short Term Solution:
Dynamics 365 Business Central product group is about to rollout a hotfix starting 11th June 2021. It might take 7/10 days to be rolled out worldwide. This hotfix is related to use latest XRM SDK that allow for skipping URL verification and fall back using global discoverability service. This is a short-term solution valid until April 2022 where legacy Office365 authentication method will be deprecated by Dynamics 365 team.
Long term solution:
Move to OAuth2.0
User must change the authentication type to connect to Dataverse.
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Open Microsoft Dynamics 365 Connection Setup page
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In the action pane choose Connection > Use Certificate Authentication
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When prompted to sign in via https://login.microsoftonline.com, sign in as the Administrator of your Dataverse organization
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Wait for the task to be accomplished (it should take about 30/40 seconds).
In the end, you should get an information message that you have successfully upgraded your connection to Dataverse to a service-to-service (S2S) connection with a certificate, and that you got a new integration user.
Dynamics 365 Business Central On-Premise 18.x, 17.x and 16.x
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Short Term Solution 2:
This is a mid-term solution valid until April 2022 where legacy Office365 authentication method will be deprecated by Dynamics 365 team.
These versions already contain natively the latest CRM SDK 9.1 that allow for skipping URL verification and fall back using global discoverability service. In the Dynamics 365 Connection Setup page it is necessary to change “Proxy Version” to 9.1 and execute the code that lies beneath in order to update the connection string accordingly. Since “Proxy Version” is disabled in the standard page, a simple Per Tenant Extension (PTE) would be suitable to cope with this. Follow this link how to do it (+) PTE to change Proxy SDK version to 9.1 - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth2.0 authentication.
For Business central SaaS, Microsoft has registered its own app for OAuth2 connection, whereas in Business Central OnPrem, the OnPrem owner has to register the app. Follow this OnPrem specific documentation: https://docs.microsoft.com/en-us/dynamics365/business-central/admin-how-to-set-up-a-dynamics-crm-connection#connecting-on-premises-versions
NOTE: 16.0 and 16.1 needs to be updated to 16.2 or higher in order to enable OAuth2.0 authentication With 16.0 and 16.1, only OAuth authentication could be enabled. In this situation, it is warmly recommended to upgrade to 16.2 or later.
Dynamics 365 Business Central On-Premise 15.x
This version is out of support as per lifecycle since April 2021. See more Software lifecycle policy and on-premises updates - Business Central | Microsoft Docs
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth authentication. See how to do it here (99+) How to enable OAuth authentication in Dynamics 365 Integration for Dynamics NAV and Dynamics 365 Business Central - Dynamics 365 Business Central Forum Community Forum
NOTE: both application (objects) and platform need to be updated to December 2020 CU (15.13) https://support.microsoft.com/help/4583552 or higher in order to enable OAuth authentication.
You can also upgrade to a higher version before April 2022 deadline and enable OAuth2.0 authentication.
Dynamics 365 Business Central On-Premise 14.x
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth authentication. See how to do it here (99+) How to enable OAuth authentication in Dynamics 365 Integration for Dynamics NAV and Dynamics 365 Business Central - Dynamics 365 Business Central Forum Community Forum
NOTE: both application (objects) and platform need to be updated to January 2021 CU 20 (14.21) https://support.microsoft.com/help/4595149 or higher in order to enable OAuth authentication.
Dynamics 365 Business Central On-Premise 13.x
This version is out of support as per lifecycle since April 2020. See more Software lifecycle policy and on-premises updates - Business Central | Microsoft Docs
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Upgrade to a higher version before April 2022 deadline and enable OAuth2.0 authentication.
Dynamics NAV 2018
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth authentication. See how to do it here (99+) How to enable OAuth authentication in Dynamics 365 Integration for Dynamics NAV and Dynamics 365 Business Central - Dynamics 365 Business Central Forum Community Forum
NOTE: both application (objects) and platform need to be updated to June 2021 CU 41 https://support.microsoft.com/en-us/topic/cumulative-update-41-for-microsoft-dynamics-nav-2018-build-47294-b68aaa8e-6fd3-4753-b98b-7c925a90a95a or higher in order to enable OAuth authentication.
Dynamics NAV 2017
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth authentication. See how to do it here (99+) How to enable OAuth authentication in Dynamics 365 Integration for Dynamics NAV and Dynamics 365 Business Central - Dynamics 365 Business Central Forum Community Forum
NOTE: both application (objects) and platform need to be updated to Cumulative Update 55 for Microsoft Dynamics NAV 2017 (Build 30587) or higher in order to enable OAuth authentication.
Dynamics NAV 2016
This version is out of mainstream support as per lifecycle since April 2021.
Short Term Solution:
It will let the existing integration work until April 2022. Drop SDK 9.0.2.11 on the NST and update binding redirect in the server config file. Follow this link (99+) How to deploy manually the newer version of CRM SDK on premise to skip Regional Discovery Service (RDS) validation error - Dynamics 365 Business Central Forum Community Forum
Long term solution:
Move to OAuth authentication. See how to do it here Integrating with Dynamics 365 Sales - Business Central | Microsoft Docs
NOTE: both application (objects) and platform need to be updated to Out Of Band (OOB) hotfix released July 2021 as Cumulative Update 67 for Microsoft Dynamics NAV 2016 (Build 52168) in order to enable OAuth authentication.
IMPORTANT: see also Modifying Dynamics 365 Sales Code for Technical Upgrade to Dynamics NAV 2016 | Microsoft Docs