Device became Unregistered after reset password prompt on Sonoma 14.0

Got this error today on all MS Apps and the Company portal. The end user said he was prompted to reset his password which he did but stuck on the loading screen after entering. He did a force reboot and got all these errors when trying to open apps.

macOS Sonoma 14.0

Tried reinstalling MS Apps, but the same issue

Also excluded the user temporarily from the conditional access policy

now starting the Sonoma 14.1 update which is taking forever to complete