I have seen a very similar redirect issue before with my own Microsoft ID. The usual solution is to clear the browser cache, use a fresh browser, or use an incognito session. Switching to the Brave browser has resolved it in the past for me.
Are you using federated authentication? If you are using federation authentication and the user does not already exist in Azure Active Directory, the user cannot be invited. https://learn.microsoft.com/en-us/azure/active-directory/external-identities/troubleshoot
This can also happen if your redirect URIs are not sending the users to the right spot, but this doesn't sound like the case based on your subscription.