Issue: Conditional Access - App Exclusion not working when All Apps are included
As we discussed over the call, earlier the policy which was configured "Block Policy" where all cloud apps were included and excludes one app.
According to testing, users who attempted to visit one app in their browser were blocked, which is a normal occurrence it's by design feature. as we saw its calling Microsoft graph Therefore, in order to enable access to one app which was excluded you need to modify the policy instead of block policy you can set up a grant policy which requires double security. This is a result of a policy's effect since certain cloud apps have service dependencies, or dependencies on other cloud apps Service-dependencies Service-dependencies
as an alternative we suggested to you to create a grant CA policy which includes office 365 and exclude that one app which we saw and it's working now.
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I hope this clarifies things.
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