Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Hi @Ankit Pandey ,
This time, you have to fulfill both allow domain settings and security group settings , they need to be satisfied at the same time. (Only people in the security group can share to users in the allowed domain, all other cases will report this error). The setup condition for organizations in sharepoint is an “AND” relationship.
After you have created the domain allowlist,there is no way to get around this restriction, or create exceptions. This is the expected behavior by microsoft.
Sorry, I apologize for misunderstanding you at first. In a word, allowing some users to share externally with anyone outside of the allowed domain is not possible to accomplish. I deeply regret this.
Hope the information can help you. Your understanding and patience will be highly appreciated! Hope you have a good day and keep safe!
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