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While this is not an solution to the outstanding issue it should serve as a workaround for most till Microsoft resolves the issue.
Beginning around 11-12 October 2025 the Conditions subsection disappeared from the Policy Assignments and Controls of Conditional Access Policies when utilizing the Microsoft Entra Admin Center. Additionally, some settings, such as "Use app enforced restrictions" may appear greyed out.
I have confirmed, editing a policy with Conditions specified with the admin console in this state will not adversely impact existing conditions. Additionally, existing policies will continue to function with the specified conditions.
When attempting to Create or Edit a Conditional Access Policy, using the Azure Portal: (https://portal.azure.com/#view/Microsoft_AAD_ConditionalAccess/ConditionalAccessBlade/~/Policies) provides access to the Conditions subsection and can be used as a workaround.
In a handful of cases, it has been noted that creating or editing a conditional access policy in the Azure Portal, with conditions specified in the policy, has resulted in the subsection reappearing in the Entra Admin Center for all policies, although this behavior was only observed in about 1/4 of the tenants tested.
I hope this helps everyone.
Matthew England
Principal Partner
TEN (www.ten-partners.com )