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Application User form is missing in Dynamics 365

The option to use Server-to-Server authentication in Dynamics 365 is an important technical approach. It consists of two elements:
 1. Azure AD application
 2. Dynamics 365 Application user created with the Azure AD application's ID
There are many posts about this concept, please do a search and learn it.

What I want to show you here is how to solve the problem - Application User form is missing:


In order to create an Application user through the web interface, you need to go to:
Settings -> Security -> Users -> New:

If everything is OK you will see the User's new form and the "Application User" option will be available:
If you don't see it, this mean that the form is not Active and you need to active it.  Here are the steps: Step 1: Navigate to the Customise the System:

Step 2: Select User entity and choose Forms:

Step 3: Select the filter "All Forms"

Step 4: Select "Application User" form and click "Activate":

Step 5: Confirm t…