Hello @Simon Sefcik
Thanks for the comment and follow-up information provided.
A federated domain in Microsoft Entra ID is a domain configured to authenticate users using federation processes, such as Active Directory Federation Services (AD FS). All federated users must be created on-premises and synced using the Microsoft Azure Active Directory Sync Tool.
Hence, a federated domain cannot be set as the primary domain in Azure Active Directory. The primary domain can only be a managed domain. To set a federated domain as the primary one, you must first convert it to a managed domain. However, this procedure may affect the users and services linked to the domain.
I'd like you to please visit this link to help convert your ADFS domain to a managed domain.
I hope this answer helps! If you have any more questions, please don't hesitate to ask.
Reference: https://learn.microsoft.com/en-us/entra/identity/users/domains-manage
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