Hi Peter,
Thank you for the response.
I did go through the whole idea of split tunelling; currently i believe the VPN is setup to route local traffic and the ISP would be responsible for the traffic on the internet browsing part;
With the current setup i believe accessing portal.office.com while having the VPN connected would still take the IP address provided by my ISP; however there is a catch to this and i need to do some testing;We do have ADFS setup and i believe the VPN routes the traffic to the adfs servers when authenticating to office 365; in this case the ADFS server would be a local resource that could be reached via the VPN tunnel and if that stands true then i believe the conditional access polices would allow any device that has vpned to access o365 as a whitelisted IP user.
I hope that makes some sense.