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SharePoint site collection admins can't register apps or update permissions

Symptoms

You experience the following issues in SharePoint:

  • When you try to register an app on the AppRegNew.aspx page (such as https://contoso.sharepoint.com/_layouts/15/appregnew.aspx), you receive the following error message:

    Your SharePoint admin doesn't allow site owners to create an Azure Access Control (ACS) principal. Please contact your SharePoint administrator.

  • When you try to update app permissions on the AppInv.aspx page (such as https://contoso-admin.sharepoint.com/_layouts/15/appinv.aspx), you receive the following error message:

    Your SharePoint admin doesn't allow site owners to update app permissions. Please contact your SharePoint administrator."

Cause

These errors occur because of enhancements that were made to the security measures for administrative governance. The enhancements changed the default procedures for app registration through AppRegNew.aspx and permission updates through AppInv.aspx. Because of this change, site collection admins can no longer register apps or update app permissions unless they are explicitly authorized to do this by the SharePoint admin.

Resolution

To change the new default behavior, the SharePoint admin must run the following Set-SPOTenant cmdlet to allow site collection admins to manage the Azure Access Control (ACS) service principal:

Set-SPOTenant -SiteOwnerManageLegacyServicePrincipalEnabled $true

Note

The SiteOwnerManageLegacyServicePrincipalEnabled property becomes visible in tenant settings in SharePoint Online Management Shell version 16.0.23710.12000 or later versions. The new default value of the property is FALSE. Before the enhancements were made, the default value was always TRUE and couldn't be changed.