This error is not a technical configuration issue with your Client ID or Secret; it is a governance restriction.
The error message—Connection creation/edit of 'shared_service-now' has been blocked by Data Loss Prevention (DLP) policy—means that your Power Platform administrator has explicitly placed the ServiceNow connector in a restricted or blocked category within the "Personal Developer (default)" environment's data policy.
Why this is happening
Data Loss Prevention (DLP) policies are designed to prevent data from being accidentally moved between "Business" and "Non-Business" environments. In a "Personal Developer" environment, admins often apply strict default policies to ensure users don't inadvertently connect sensitive corporate data (like that in ServiceNow) to unauthorized third-party services.
How to resolve this
1. Contact your Power Platform Administrator
You cannot resolve this yourself unless you have administrative rights to the Power Platform Admin Center. You need to contact the person who manages your tenant's Power Platform environment and provide them with the following details:
The Policy Name: Personal Developer (default)
The Connector Name: ServiceNow
The Intent: Explain that you are building an integration and need the ServiceNow connector moved to the "Business" (or "Allowed") data group within that specific policy.
2. Verify the Environment
Sometimes users accidentally try to build flows in a restricted "Personal" environment when they should be working in a designated "Development" or "Sandbox" environment where the DLP policies are more permissive. Ensure you are building in the correct environment assigned to your project.
3. The "HTTP" Workaround (Advanced)
If your administrator refuses to change the DLP policy, you can sometimes bypass specific connector restrictions by using the generic HTTP with Microsoft Entra ID (formerly Azure AD) connector (or the basic HTTP connector if that is allowed).
How it works: Instead of using the dedicated "ServiceNow" connector, you use the HTTP connector to make direct REST API calls to the ServiceNow endpoint.