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Entra ID is a verification solution that allows users to present a digital credential, called a verifiable credential (VC), to prove their identity. Entra ID does not access any data from the external organization's Active Directory. The VC is issued by a trusted issuer, and it contains claims about the user's identity that are verified by the issuer. The claims in the VC are then presented to the relying party (RP), which is the organization that is verifying the user's identity. The RP can choose which claims to accept and which to reject, based on their own policies and requirements. So, in summary, Entra ID does not access any data from the external organization's Active Directory, but it allows users to present a verified digital credential that can be used to prove their identity to the RP.
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