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Hi Rebecca,
We appreciate you spent time doing tests and sharing the result with us. We understand this problem has affected your work and apologize for the inconvenience.
Considering all your external users can use account with MFA perfectly well for their own tenant and the error message only appears when they try to access SharePoint and OneDrive in your tenant, the best way to troubleshoot this issue is to report it to the related team and check your tenant from back end for further investigation.
We sincerely recommend you inform your Microsoft 365 administrator of this issue and help you create a support ticket via Microsoft 365 admin center. The support team has higher permission to remotely help you, check your tenant from background, they also have more resource to investigate the issue further. This is the most efficient way in handling this case for you.
For reference: How do I find my Microsoft 365 admin Get support | Microsoft Docs
Thanks for your patience and understanding. Hope you are keeping safe and well!
Best regards,
Tina