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Your organization has a Microsoft 365 tenant with the domain name gitbit.org.

The MFA configuration is shown below.

Multi-Factor Authentication

Your Microsoft 365 tenant has the following users.

User chart showing 3 users

What will happen when User1 and User2 log in?

User2

User1

The MFA Status Enabled means the user must set up MFA during the next login.

Since "Allow users to create app passwords to sign into non-browser apps" is checked that means a user can use the app password to log in when MFA is not an available option.

https://www.gitbit.org/course/ms-500/learn/The-many-ways-to-implement-multi-factor-authentication-MFA-in-Microsoft-365-nAAIvNbtk

https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-userstates

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