In a hybrid deployment, any user who you want to home online must first be created in the on-premises deployment, so that the user account is created in Active Directory Domain Services. You can then move the user to Skype for Business Online, which will move the user's contact list.
User account was created on-premises active directory long time ago. User had Office 365 license assigned but with MS Teams feature turned off. I have turned on MS Teams license for the user, but he is shown now as external (see pictures attached).
I do not want to migrate user to Skype online, cause we are still on a pilot phase.
Any suggestions what could have changed here that users are now reflecting as externals?
ok, the next place to check would be the LYODS (Lync online directory services) and Teams Directory), one of them may have a sync problem with AAD, sorry, but I don't know how do actually do the check.