Hello @Randy ,
I understand that you created a conditional access policy for only devices that are registered and compliant with your email tenant and to access to your WebView2 email application.
You are getting the Error code: 53000 even though the status of the device is complaint. This error usually gets When DeviceNotCompliant - Conditional Access policy requires a compliant device, and the device isn't compliant. The user must enroll their device with an approved MDM provider like Intune. For additional information, please visit **Conditional Access device remediation***.***I want you to check the sign in logs to see the deviceID is passed or not? You can verify by going the azure portal Identity > Monitoring & health > Sign-in logs.
Are you using Edge every time attempts to sign-in? There is a known issue with the other browsers that can cause this error to occur. If there is no device information sent in the sign-in logs, this might be the problem. Device information is sent when there is a PRT, and the user is logged onto the browser. If the user is trying to login with other browsers rather than edge, the extension is needed, Also the device check fails if the browser is running in private mode or if cookies are disabled.
If this is the case, you can test by asking the user to logon to the Edge browser or install the extension to see if the issue is resolved.
Refer the document for conditions and extensions: https://learn.microsoft.com/en-us/entra/identity/conditional-access/concept-conditional-access-conditions
Hope this helps. Do let us know if you any further queries.