You are configuring the Entra Identity provider for vCenter and during the part of the workflow where you test the provisioning agent connection to vCenter it fails with an invalid credentials message.
vCenter
Check for SSL/TLS packet inspection on the network. Packet traces may capture malformed headers. This indicates there is something disassembling and reassembling the packets, and the Entra servers pick up on this and do not accept the communication so the test connection fails.
Move the provisioning agent server to a network with no SSL/TLS inspection being performed, or bypass inspection for this host.