A cloud-based identity and access management service for securing user authentication and resource access
Hi @trebiax
Thanks for reaching out to Microsoft Q&A.
This topic is a little bit confusing but let me try to share some more information about it.
Configurable Token Lifetime policy can only be used on the resource application, not the client one. So, you can assign it to O365, Teams, or any other resource application that you need to sign in against, which means that you'll have a different token lifetime for all the tokens requested for that resource app, not to the requesting user / application.
One more thing I'd like to clarify is that you cannot change Refresh Tokens lifetime anymore:
The reason why it works when you set the parameter IsOrganizationDefault = $true, is because it makes the policy to be valid for the whole tenant, not only for an application, that's why you are seeing it being applied as you expected it to be. It could work if you don't mind changing the token lifetime for all the applications, but I don't think it's what you are looking for based on what I understood from your request.
Let me know if you have further questions about this.
Thanks,
Fabio