Hi @Rohit Ladda yes following article helped us
https://support.servicenow.com/kb?id=kb_article_view&sysparm_article=KB1642138.
The bot has to be in multi tenant, that is missing in the ServiceNow Docs

Description

After Creation of Custom Bot on microsoft teams and integrating in ServiceNow, there is no response while initiating conversations

From instance outbound logs 400 error could see below error response

"error":"unauthorized_client","error_description":"AADSTS700016: Application with identifier '1234567890' was not found in the directory 'Bot Framework'. This can happen if the application has not been installed by the administrator of the tenant or consented to by any user in the tenant. You may have sent your authentication request to the wrong tenant. Trace ID: 1234567890 Correlation ID: 1234567890 Timestamp: 2024-05-02 06:51:24Z","error_codes":[700016],

Cause

The error message above is the response received from Microsoft when the instance tries to communicate with the bot using the Application (Client) ID but Azure cannot find the bot in the bot framework.

This is because in the Azure portal the application is created in single tenant

When the bot is created in the "Teams Developer Portal" the bot is registered in the bot framework. When you view the bot at dev.botframework.com, Select Bot Name -> Settings -> Scroll down to "Configurations", you will see it is registered as multi tenant

Resolution

Ensure the Bot Tenancy in Azure Portal matches the value in dev.botframework.com

• dev.botframework.com
  • Select Bot Name -> Settings -> Scroll down to "Configurations"
• Azure Portal Applications
  • Select Bot Name -> Authentication -> Supported account Types

Additional Information

ServiceNow has no specific requirement for the bot to be multi tenant or single tenant

Details as to why the azure application needs to have the same tenancy configuration as the bot framework will need to come from Microsoft as this is outside of ServiceNow control.