Entra ID breaking 365 Apps for business - Unable to disable/enable automatic updates.

Question

I have an issue with Entra ID (basic, as bundled with MS 365 apps for business) is breaking the backend of MS 365 Apps for business. I am unable to disable/enable automatic updates from the Account tab of any 365 App. I need to be able to manually enable/disable updates to ensure these rental laptops do not auto-update themselves when offsite with a client.

Clicking on disable updates Step 1, brings up the popup Step 2 then returns back to Step 1 without disabling updates or any visible changes to the "Update Options" drop-down menu.

Step 1

Step 2

Testing
I can confirm the issue is caused after adding an Entra ID user account to a clean install of Windows 11 Pro / Clean install of MS Apps for business.

Deleting the Entra ID user account does NOT restore the ability to enable/disable automatic updates.

This issue currently affects approximately 10 laptops, a mix of laptops of varying ages, W10/11, Dell/HP, and started after updating Windows / Office approximately around the 15th Feb.

MS 365 Support
I have been in discussion with the MS support team for MS 365 Apps for business for over a week and they have not been able to resolve the issue. They have now advised me to raise a support request with Entra ID, support however it seems support is only offered for billing/subscription for Entra ID basic. I am now left in a black hole with no direct support from MS for a product bundled with MS Apps for business...

I would be grateful for any assistance to identify what is causing this behavior within Entra ID and how to resolve it.