I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this!
Since the Microsoft Q&A community has a policy that "[The question author cannot accept their own answer. They can only accept answers by others] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#why-only-one-accepted-answer)"
I'll repost your solution in case you'd like to "[Accept] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#accepted-answer-in-a-question-thread)" the answer.
The problem was that a user of identity 'mail' never had an identity server which seems to create problems when accessing Azure Portal.
To resolve, you were able to force a identity of type 'MicrosoftAccount' by turning off 'Email one-time passcode'. Once this was off, the user creation process explicitly told us it would create a Microsoft Account for the new user.
To turn off 'Email one-time passcode': Go to Azure Active Directory > External Identities > All Identity Providers and ensure Email one-time passcode is set to No.