Hello @NW Admin,
Thank you for posting your query on Microsoft Q&A.
I understand that you have configured a Conditional Access policy requiring MFA from all locations except trusted ones, by adding your public IP address to named location policies. However, during testing, users are prompted for MFA from all locations, even trusted ones.
This behavior occurs because you have enforced MFA using both Per-User MFA (https://account.activedirectory.windowsazure.com/usermanagement/multifactorverification.aspx) and a Conditional Access policy. As Per-User MFA is enabled which resulting in MFA prompts for sign-ins.
To effectively enforce MFA for user sign-ins, you have several options such as Security Defaults, Per-User MFA, and Conditional Access policies. However, using both Per-User MFA and Conditional Access, it will check both policies upon user's sign-ins. As you have excluded trusted locations from Conditional access policy, CA policy will not be applied on trusted sign-in and Per-user MFA is getting applied, and user is triggered with an MFA prompt.
The recommended approach is to disable Per-User MFA and enforce MFA solely through Conditional Access policies.
I hope this information is helpful. Please feel free to reach out if you have any further questions.
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Thanks,
Raja Pothuraju.