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Thank you for posting this in Microsoft Q&A.
I understand that you are experiencing a login issue related to Multi-Factor Authentication (MFA) after attempting to upgrade from a legacy MFA system to a new MFA system.
The error code 50074 indicates that authentication is required and that the user did not pass the MFA challenge.
Microsoft Employee Azure tenants are being enforced with multi-factor authentication (MFA) policy for all users and resources.
Could you please check the status of the Multi-Factor Authentication for Microsoft partners and vendors conditional access policy?
To resolve this issue, you may want to exclude certain users from the conditional access policy.
- Go to Policies in Microsoft Azure.
- Look for the policy named "Multi-Factor Authentication for Microsoft partners and vendors."
- Update the policy to exclude the impacted users.
Hope this helps. Do let us know if you any further queries.
Thanks,
Navya.
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