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Users are able to access O365 services even after their licenses removed!!
We have observed that when we remove the licenses of any user, the user is still be able to access the service. I am not sure if this is by design or a bug. However, if you are Office 365 Admin, this...
Microsoft simply does not enforce license requirements for some services. This has been a "known issue" for SPO for years now, ever since we got Guest access. Other services similarly allow the user to access the functionality without a license. Which doesnt mean that you are not required to have a license, as in most cases you will be breaching the license agreement.
We've seen the same thing, and confirmed that's how it functions (as Vasil mentioned). If you have Azure AD Premium though, you can use conditional access to block users from specific apps, even if their license is enabled.