Hello Kusai Merchant,
Thank you for posting query in Microsoft Q&A.
As per description, we understand that users are not able to access the application and getting the AADSTS50020 error.
When a guest user tries to access an application or resource in the resource tenant, the sign-in fails, and the AADSTS50020 error message is displayed.
I suggest you to check the below causes.
1. Guest user was not invited
The guest user who tried to sign in was not invited to the tenant. Make sure that you follow the below steps to invite the guest user.
Sign in to the Microsoft Entra ID as at least a User Administrator.
Browse to Identity > Users > All users.
Select Invite external user from the menu.
Here, you're inviting the guest to your tenant using their email address. For this quickstart, enter an email address that you can access.
Email: Enter the email address for the guest user you're inviting.
Display name: Provide the display name.
Invitation message: Select the Send invite message checkbox to send an invitation message. When enabling this checkbox, you can also set up the customized short message and another CC recipient.
Select the Review and invite button to finalize the process.
Review and invite
The final tab captures several key details from the user creation process. Review the details and select the Invite button if everything looks good.
An email invitation is sent automatically.
After you send the invitation, the user account is automatically added to the directory as a guest.
Accept the invitation
Now sign in as the guest user to see the invitation.
Sign in to your test guest user's email account.
In your inbox, open the email from "Microsoft Invitations on behalf of Contoso."
In the email body, select Accept invitation. A Permission requested by: page opens in the browser.
Select Accept.
The My Apps page opens. Because we haven't assigned any apps to this guest user, you'll see the message "There are no apps to show." In a real-life scenario, you would add the guest user to an app so the app would appear here.
2.Check whether the resource tenant's guest user is older than the home tenant's user account
Compare the age of the resource tenant's guest user against the home tenant's user account. You can make this verification by using Microsoft Graph or MSOnline PowerShell.
Issue a request to the MS Graph API to review the user creation date, as follows:
GET https://graph.microsoft.com/v1.0/users/{id | userPrincipalName}/createdDateTime
Then, check the creation date of the guest user in the resource tenant against the creation date of the user account in the home tenant. The scenario is confirmed if the guest user was created before the home tenant's user account was created.
Once you have verified the above two solutions and if still the issue persists, please let me know for further troubleshooting.