Question 1 · Manage Azure identities and governance
Contoso has a Microsoft Entra ID tenant. The IT team wants to enable group-based licensing for Microsoft 365 E5 licenses. They assign the license to a security group named 'LicenseGroup-E5'. After the assignment, they notice that 3 users in the group have a license error. What are the TWO most common reasons that would cause a license assignment error for users in a group-based licensing scenario? (Select TWO)
Select 2 answers.
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Correct answers: B, E
- B. The tenant does not have enough available Microsoft 365 E5 license seats to cover all group members.
- E. The users' usage location property is not set in their Microsoft Entra ID profile.
The two most common causes of group-based licensing errors are: (1) insufficient license seats — if the tenant has fewer available licenses than group members, some users will receive an error; and (2) missing usage location — Microsoft requires that a user's 'Usage location' attribute be set before a license with location-restricted services (like Microsoft 365 E5) can be assigned. Guest users CAN receive group-based licenses if usage location is set and licenses are available. Both dynamic and assigned membership groups support group-based licensing. Conflicting service plans can cause errors in some scenarios but are less common than the two selected; the question asks for the MOST common. MFA has no bearing on license assignment.