Are you referring to this?:
SMS wont be blocked, just not preferred.
If not, please provide a link to the doc you referencing.
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So my understanding is that in July 2023, user accounts that have MFA enabled will no longer be able to use SMS for MFA. You will not be able to add users to an exemption group that will allow them to still use SMS after July 2023. Microsoft will no longer support SMS for certain types of sign-ins, including sign-ins from new devices and sign-ins that require multi-factor authentication. This is being done to improve security and reduce the risk of unauthorized access.
Is this true, and will all users essentially have to use the authenticator application and hardware-based tokens?
Are you referring to this?:
SMS wont be blocked, just not preferred.
If not, please provide a link to the doc you referencing.