This documentation site is for the versions of matrix-authentication-service maintained by the Matrix.org Foundation (github.com/matrix-org/matrix-authentication-service), available under the Apache 2.0 licence.
Encrypted Application Services/Bridges currently leverage the m.login.application_service login type to create devices for users.
This API is not available in the Matrix Authentication Service.
We're working on a solution to support this use case, but in the meantime, this means encrypted bridges will not work with the Matrix Authentication Service.
A workaround is to disable E2EE support in your bridge setup.