Hello @Paul Lethin,
Thanks for reaching out to Microsoft Q&A.
To prevent users who are configured to use SMS from being prompted to set up the Microsoft Authenticator app, you can adjust your Conditional Access policy and Authentication Strength settings. Here's a step-by-step guide:
- Review Authentication Strength Configuration
- Ensure your Authentication Strength explicitly allows both:
- Password + SMS
- Password + Microsoft Authenticator (Push Notification)
- Navigate to Azure AD > Security > Authentication Methods > Authentication Strength.
- Verify that the selected strength includes SMS as a valid option without prioritizing other methods.
- Split Conditional Access Policies by User Groups
Conditional Access policies can target specific groups. To avoid prompting SMS-only users for the Microsoft Authenticator app:
- Create a separate group for users who are limited to SMS (e.g.,
SMS_Only_Users
). - Duplicate the Conditional Access policy and modify it to:
- Apply only to the
SMS_Only_Users
group. - Use an Authentication Strength that includes Password + SMS without Password + Microsoft Authenticator.
- Apply only to the
- Ensure Method Availability in Authentication Methods Policy
- Navigate to Azure AD > Security > Authentication Methods.
- Confirm that Microsoft Authenticator is not required for the
SMS_Only_Users
group. - Set up authentication methods policies to ensure SMS is available and no conflicting configurations are forcing additional methods for these users.
- Check Exclusions in the Conditional Access Policy
In the original Conditional Access policy, you can:
- Add an exclusion for the
SMS_Only_Users
group to avoid prompting them for Microsoft Authenticator.
- Test the Configuration
- Use a test user account that is part of the
SMS_Only_Users
group. - Ensure they can log in with Password + SMS without being prompted for Microsoft Authenticator.
Please reach out to me if you need further assistance.
Siri