You need to provide the App permission to Sharepoint on site level. You might have given SharePoint Online site permission to the registered application for the main site, but probably not for the subsite.

Even I am facing the same error, MS support says that there is something wrong with the SPN, but it was working fine till yesterday, no changes have been made and suddenly it stopped working for one of the sharepoint sites, the others are working just fine for now but i think those will also stop working anytime soon.

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The other possible reason could be that the particular site has been moved under a private network. Kindly check the same, in case it is so, then you need to use Self hosted IR insted of Autoresolve integration runtime.

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If you need to do if programmatically then you can use below XML:

We just started having the same issue. Similar use case. The test connection was working after initial setup (using self hosted IR) for about a week or two and then today it stopped working and we are seeing the same error (specifically "actual status code: Conflict" part of error). Has anyone found a solution for this issue? Or any ideas on how to troubleshoot?

The SharePoint Online List Linked Service connection failed around a week ago. We never had this issue before, connection just failed suddenly. We already ensured that the Service Principal havs authorization to read the Sharepoint source, so it shouldn't be an authorization problem. In fact, the Sharepoint Linked Service is working correctly for other Sharepoint sites, just not for this specific source.