I am currently a global admin in both my home tenant and foreign AD tenant. I am trying to invite users using PS code I've used in the past (see below) but now it's creating a new Azure AD user instead of inviting them. I noticed this by the source field under the user properties. It should say External Azure Active Directory but now it's Azure Active Directory. I'm not sure how this is possible as the domain of the user that was created is not even registered with that tenant. Anyone else see this before?
Connect-AzureAD -TenantId $sub.TenantId -Credential $cred -Verbose
New-AzureADMSInvitation -InvitedUserDisplayName $user.DisplayName -InvitedUserEmailAddress $user.eMail -SendInvitationMessage $false -InvitedUserType Member -InviteRedirectUrl "http://myapps.onmicrosoft.com"