Thank you for posting your query on Microsoft Q&A.
I understand that you are trying to change sign in type from federated to userPrincipalName.
When we enable users for SMS-based authentication using Microsoft Entra ID we get federated sign in type. So, to change sign in type from federated to userPrincipalName you need to disable it by following below steps:
1.Select the user you want to change the sign in type from federated to userPrincipalName.
2.On the left pane, click on Authentication Methods.
3.Click on Delete phone number, then you can see federated sign in type is disabled.
In future if you do not want federated type sign in. Follow below steps:
1.Go to users> Authentication methods.
2.From the list of available authentication methods, select SMS.
3.Then uncheck the "User for Sign-in" box. Then the sign in type is changed to userPrincipalName.
Hope this helps. Do let us know if you have any further queries.
If this answers your query, do click Accept Answer
and Yes
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Thanks,
B. Siri Chandana.