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MAM policies are not directly applicable to Outlook for on-premises Exchange users.
Microsoft Intune App Protection (MAM) policies are not directly supported for Outlook when the mailbox is hosted on an on-premises Exchange environment.
According to my research, implementing Hybrid Modern Authentication (HMA) is the appropriate solution for applying Microsoft Intune MAM policies to users in an on-premises Exchange environment.
According to my research, implementing Hybrid Modern Authentication (HMA) is the appropriate solution for applying Microsoft Intune MAM policies to users in an on-premises Exchange environment.