How to properly add dependecy of entity class to other classes and reduce coupling

I was reading the dependency inversion principle. It states that the module should be dependent on abstraction. I understand most of the parts, and I can apply them. There is one place where there is confusion.

Whenever we call a dependent class method. We sometimes pass parameter as an object. And this object needs to be instantiated and pass as parameter

Entity.cs

public class Entity
{
    public string Prop1 {get; set;}
    public string Prop2 {get; set;}
}

ClientClass.cs

public class ClientClass
{
    private readonly IDependentClass _dep;
    public ClientClass(IDependentClass dep)
    {
         _dep = dep;
    }
    public void Method()
    {
         var e = new Entity();
         _dep.Method(e)
    }
}

DependentClass.cs

public class DependentClass: IDependentClass
{
    public void Method(Entity e)
    {
    }
}

Here the Entity class is just a data transfer object. But it has a concrete dependency on ClientClass and DependentClass which violates the DIP. Is my understanding correct? How to fix this?