in Oauth Client credentials flow, when application gets an access token after authenticating using the credentials There will be a Service Principal SignIn event. I wanted to know whether there will be a SPN SignIn event for Oauth authorization code flow as well. Here the client id, auth code and client secret (incase of web app) is sent to Oauth token endpoint to get a access token. But I'm not sure if it will generate a SPN Sign In event.
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No, when you use authorization code flow, it will not generate a SPN Sign In event.
It will generate a new record(under "Service Principal sign-ins" tab) when you use client credentials flow, because client credential uses a service principal to do authentication (shown as below screenshot).
But when you use authorization code flow, it will generate a record under "User sign-ins (interactive)" tab like below screenshot. Because authorization code flow uses user account to do authentication but not service principal.