Microsoft 365 licenses have stopped applying automatically through dynamic groups. The groups use extensionAttribute1, and affected users show as members. There are available licenses, and previously reported conflicts have been resolved. What else should I check?
Why did group-based licensing stop applying to users?
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Check the affected license in the Microsoft 365 admin center under Billing, then Licenses. Look for errors or issues associated with the group and individual users. Even if earlier conflicts are fixed, there may be another assignment error to investigate.
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Are there multiple license products assigned through the same group? Check availability for each one, not just the main license. A shortage in another assigned product could prevent the expected assignment.
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Check whether the affected users have a usage location set. A blank location can cause licensing problems. You could also try removing and reapplying the license to the group, though I'd check the errors first so you don't lose a useful clue.
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I'd also look at timing and recent changes. Membership showing up doesn't necessarily tell you whether license processing has completed. Check whether the affected users have been waiting longer than expected, and whether anything changed in the group, its dynamic rule, or its license assignment before the problem started.
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a-very-brief-kerfuffle:
There is only one license product assigned per group, so that doesn't appear to explain this case.