Istio with single sign-on in Azure Active Directory(Microsoft SSO) is not working

We have deployed istio version 1.11.0 in the GKE cluster.
Traffic flow looks like this:
GCP Https Loadbalancer >> Istio ingress gateway (cluster ip service) >> web application.

Gateway.yaml

apiVersion: networking.istio.io/v1alpha3
kind: Gateway
metadata:
  name: backend-gateway
spec:
  selector:
    istio: ingressgateway # use istio default controller
  servers:
    - port:
        number: 80
        name: http
        protocol: HTTP
      hosts:
        - "*"
      tls:
        httpsRedirect: true
    - port:
        number: 443
        name: https-443
        protocol: HTTPS
      hosts:
        - "*"
      tls:
        mode: SIMPLE 
        credentialName: {{ .Values.istio.tls.secretName }}


virtual-service.yaml

apiVersion: networking.istio.io/v1alpha3
kind: VirtualService
metadata:
  name: backend-app
spec:
  hosts:
  - "*"
  gateways:
  - default/backend-gateway
  http:
  - name: ui
    match:
    - uri:
        prefix: /
    rewrite:
      uri: /
    headers:
      request:
          add:
            Cache-Control: "max-age=0, no-cache, no-store, must-revalidate"
            Pragma: "no-cache"
            Expires: "-1"
            Content-Security-Policy: "style-src 'self' https://fonts.googleapis.com/ 'unsafe-inline'; font-src 'self' https://fonts.gstatic.com/ 'unsafe-inline';connect-src 'self' https://login.microsoftonline.com/ https://apis.google.com/ https://accounts.google.com/ https://api-js.mixpanel.com/"
            add_header: "more_clear_headers server"
    corsPolicy:
        allowOrigins:
          - exact: "*"
        allowMethods:
          - POST
          - GET
        allowCredentials: true
    route:
    - destination:
        host: ui-service
        port:
          number: 80

SSO flow:
Web application >> Microsoft Server >> web application
Ref : https://docs.microsoft.com/en-us/azure/active-directory/develop/tutorial-v2-react

We are using MSAL library in web application for SSO.
Ref: https://www.npmjs.com/package/msal

Microsoft server is not able to send responses back to the web application.
Getting error as ClientAuthError: User cancelled the flow.
PFA screenshot.


Expected traffic calls should be like this:

Actual traffic calls are:

How are you connecting to the istio load balancer? I am hoping you have configured that as an internal load balancer