@Dilan Nanayakkara Thanks for posting in our Q&A.
For this issue, I have tried this action in my lab. I have added the teams app as the protected app and configure the Cloud resources same as yours. Then I deployed it to my user group, I can login the teams desktop app without any issue.
To clarify this issue, please check some information:
- Please show the screen shots of the protected apps in this WIP policy.
- Please check if the Enterprise context shows UPN suffix in the Task Manager > Details to make sure that the WIP policy is deployed successfully.
If there is anything update, feel free to let us know.
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