Yes, On-behalf of flow is supported for guest users but you need to keep in mind that the guest accounts work for single tenant applications only. Please refer to the documentation - Who can sign in. I also recommend you to refer to the Compare B2B collaboration and B2C in Azure AD documentation to learn more about applying appropriate features to your external identity scenarios.
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@Rahul Metangale Here are answers to your questions -
personal accounts to sign in. Users do not need to be a guest user of the tenant to use this end point.
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