MS teams is blocked even though MS365 apps are excluded from Conditional access Policy

Question

Hello all,

We have a situation where we have created a Conditional access policy targeting mobile OSs, android, and iOS which blocks all the cloud apps. However, we have excluded M365 apps because of teams messages. still, it's getting blocked by the same CA policy.

upon checking I can confirm that the application ID from the Sign-in Logs of the user points me to the MS Teams enterprise app, all seem to be correct from my perspective, however, it's still getting blocked.

I have gone through a few MS Learn articles and all article suggest the same thing: to exclude the Ms365 app from this CA policy as they have a bunch of dependencies on other 365 first-hand apps.

Has anyone come across this situation and been able to get around this issue?