To enable the Directory.Read.All permission, you'll need access to your Azure administration account via portal.azure.com and appropriate permissions (such as Global Administrator or Application Developer) to manage app registrations.
Log in to portal.azure.com and navigate to Azure Active Directory or Microsoft Entra ID.
Under the Manage menu on the left-hand side, click App registrations and select your application from the list.
Under the Manage menu on the left-hand side, open API permissions.
Click Add a permission.
Select Microsoft Graph.
Select Application permissions
Search for and enable the following permission, and click Add permissions:
Directory.Read.AllAfter adding the permission, back in the Configured permissions section you'll find Directory.Read.All listed with a status of Not granted. Select Grant admin consent for to grant the Azure AD Graph permission to your app registration.
And that's it! You've enabled the Microsoft 365 Directory.Read.All permission. 🎉