Azure AD Guest OTP with Group License


Hi All,
I Have Very Strange Issue using Azure AD Guest OTP
I Invite Guest and during the Invention i added this Guest to Group called "Guest Group"
the Guest clicked on "Accept Invitation" and go with the OTP Process Without any issue and sign in as expected, he did this several times - work like a charm
then - I Assigned to the "Guest Group" License (Office 365 E3) as I wanted the Guest will have License in the environment , since then - when the guest click on the URL (from the Email) to access the Microsoft 365 - he get the following error "that Microsoft account doesn’t exist" - he keep thinking this is Microsoft Account - and not OTP - and no OTP Sent as before
even if i removed the Group Licensing from that group - we still getting the Same Error
only re-invite the user (assign to the group without License) make the user work again?
do Guest Account that using OTP can’t assign license to them ?


@Nati Papirovitch 



@Alex Simons (AZURE) 

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