Hi, Anand
Based on your description, I understand that you had an issue with proxy address conflicts when assigning licenses.
The error message occurs if an MEPF object that exists only in Microsoft Entra ID uses the proxy address that you want to assign.
To resolve this issue, you need to identify the duplicated ProxyAddresses value that's causing the error and also identify which two or more objects are involved in the conflict.
Here are some suggestions:
1.It is recommended that you check for and remove any conflicting proxy addresses in Exchange Online.
A proxy address can only be assigned to one object at a time. After determining which object is in conflict, delete or change the proxy address associated with that object.
You could use Get-EXORecipient -ResultSize unlimited | Where-Object {$_.EmailAddresses -match "<conflicting SMTP address>"} | fl Name, RecipientType, EmailAddresses
2.Then check and remove any conflicting proxy addresses in Microsoft Entra ID.
You can use command Get-MailPublicFolder -ResultSize Unlimited | Where-Object {$_.EmailAddresses -match "<conflicting SMTP address>"} to search for conflicting proxy addresses.
Then you can use the command Set-MailPublicFolder -Identity <public folder name or GUID> -EmailAddresses @{remove="<conflicting SMTP address>"} -EmailAddressPolicyEnabled:$false to remove the conflicting SMTP addresses.
More information can be found Proxy address conflict when adding an email address in Exchange Online - Exchange | Microsoft Learn
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