Read on here.
If you have a paid subscription to Microsoft 365, you also have a free Azure AD subscription. You can use Azure AD to create and manage user and group accounts. To activate this subscription, you have to complete a one-time registration. Afterward, you can access Azure AD from your Microsoft 365 admin center.
https://learn.microsoft.com/en-us/microsoft-365/enterprise/azure-integration?view=o365-worldwide#azure-ad-editions-and-microsoft-365-identity-management
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