Azure AD Login – The browser based authentication dialog failed to complete. Reason: the server or proxy was not found

Problem

I am receiving the error “The browser based authentication dialog failed to complete. Reason: the server or proxy was not found” when I try to connect Azure AD powershell command.

Connect-AzureAD : One or more errors occurred.:  The browser based authentication dialog failed to complete. Reason:
The server or proxy was not found.
At line:1 char:1
+ Connect-AzureAD
+ ~~~~~~~~~~~~~~~
    + CategoryInfo          : AuthenticationError: (:) [Connect-AzureAD], AadAuthenticationFailedException
    + FullyQualifiedErrorId : Connect-AzureAD,Microsoft.Open.Azure.AD.CommonLibrary.ConnectAzureAD

Cause

This issue may occur if your proxy server not allowing to connect internet (especially login portal: https://login.microsoftonline.com) or the proxy settings may not be configured properly to connect internet.

Solution

Open Internet Explorer (with Run as administrator privilege)-> click Settings (gear icon) in top-right corner -> Internet Options -> select Connections tab -> LAN Settings -> set Automatically detect settings and remove Proxy settings if configured.