Teams app - Seamless SSO error

Hello 

We have turned on Azure AD Seamless SSO feature in our tenant as per instructions from Microsoft docs (enable through Azure AD Connect and GPO to target set of pilot users - security group to add the URL to the Trusted Zone of the SOE device). 

We are noticing other users who are NOT part of pilot users getting unexpected popup within the Teams application (see attached) whey access the files (SharePoint)

This is not expected behavior. 

This is also happening on BYOD devices who are NOT supposed to be part of the pilot users group. 

We would like to know what is causing the issue and solution to fix this ASAP. 

Teams Version 1.3.00.3564

Windows 10 build 1703,1909

Thanks