Hello Marek Curda,
Thank you for posting your query in the Microsoft Q&A forum.
When you whitelist a particular domain within your tenant and then invite users from that domain, the account invited is a work account of the guest user which has been created within the Entra ID environment of the whitelisted tenant.
If this account doesn't exist in Azure (meaning in any Azure Organization) then two scenarios kick in here
- If you whitelist a particular domain but the user account exists outside Azure (like created in Godaddy), then the users won't be allowed access to your tenant as it doesn't belong to the whitelisted tenant, rather it belongs to Microsoft personal tenant.
- If you didn't whitelist any particular domain, then the user will be invited as a personal account as it doesn't exist in Azure.
So if the custom domain isn't attached to any tenant, then users are invited to using the domain, a personal account is created.
If the domain finally get verified in Azure and the same user account is created, a dual account will be enabled.
Let me know if further assistance is needed.
Babafemi