Hi Jorge,
The password is first port of authentication and MFA is the second, as you know Azure AD multifactor authentication (MFA) helps safeguard access to data and apps while maintaining simplicity for users. It provides additional security by requiring a second form of verification .
User has used his account and this is using only user name and password as the primary authentication method. and MFA is enforced, password in the cloud means only Cloud based password and no writeback, that is when password writeback is not enabled, you can check in the configuration.
Hope this helps.
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