If your Conditional Access policy is greyed out there are a few potential causes:
- You mention that you have E3 licenses. If you are referring to the Office 365 E3 license, this does not include Conditional Access. To use Conditional Access you need at least a P1 Premium license for any user who makes use of the feature. However, if you have the Microsoft 365 enterprise E3 license, Conditional Access is included since the Entra ID Premium P1 license is included with that.
- Ensure that you are signed in with a Global Admin account that has at least a Premium P1 license assigned to it.
- There might be a conflicting Conditional Access policy that is blocking your access, so I would recommend confirming if there are other administrators in your organization who might have policies impacting your sign-in. An administrator with access can disable the policy causing the issue.
If you check under Microsoft Entra ID > Licenses > All products , you can confirm which licenses are available for your tenant and whether you have the correct number available.
If you check under Microsoft Entra ID > Licenses > Licensed features , you can confirm whether Conditional Access should be available for your tenant. Sometimes I've seen similar issues happen if you only recently activated a license and it needed some time to propagate.
Let me know if this helps and if you still run into this issue.
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