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We have a requirement where in there will be AD users and external users that will access the SharePoint 2019 application.

The front end of the application is developed in SharePoint Hosted Add-In.

We needed a customized login page, so we configured Form Based Authentication (FBA).

As, Hosted App uses STS (Subscription Token Service) and so does the FBA, the conflict of which resulted in redirection issue to Hosted App. (Could not redirect to Hosted App)

Is there any workaround or best possible way to achieve the above requirements?

Any help is much appreciated!

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I would drop FBA and instead do AD FS & WAP w/ a non-claims aware relying party. This will allow you to use FBA (WAP) and Windows pre-auth. Your 3rd party users will need Active Directory domain accounts.

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