Hi @Neil Adams ,
The Azure API connections app is by design not available for selection/exclusion in CA policy. If your policy includes "All cloud apps", the Azure API connections resource (fe053c5f-3692-4f14-aef2-ee34fc081cae) will be evaluated since this is a first party app that cannot be excluded.
Applying a Conditional Access policy to All cloud apps will result in the policy being enforced for all tokens issued to web sites and services. This option includes applications that aren't individually targetable in Conditional Access policy, such as Microsoft Entra ID/Azure AD.
Note that not all Microsoft Entra ID/Azure AD apps are available for selection/exclusion in Conditional Access because not all the apps are meant to have a CA policy applied directly to them. You can review this info and the list of available apps in the article Cloud apps, actions, and authentication context in Conditional Access policy - Microsoft Entra | Microsoft Learn.
There are two possible solutions/workarounds for your scenario:
- One possible solution would be to try the Filter for apps feature Filter for applications in Conditional Access policy to tag the Azure API connections app with a custom attribute and then exclude it from the CA policy.
- Another workaround for this would be to make the Conditional Access Policy more granular to not include "All cloud apps."
Let me know if this helps and if you have further questions.
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