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MD-102 Practice Question: Refer to the exhibit

Exhibit

Exhibit: The following is a snippet from a Microsoft Entra ID audit log for a user sign-in event:

{
  "id": "12345678-1234-1234-1234-123456789012",
  "createdDateTime": "2025-03-01T14:30:00Z",
  "userPrincipalName": "user@contoso.com",
  "appDisplayName": "Microsoft Graph PowerShell",
  "status": {
    "errorCode": 50058,
    "failureReason": "The user does not have an eligible license for this application."
  },
  "conditionalAccessStatus": "notApplied",
  "riskLevel": "none",
  "deviceDetail": {
    "deviceId": "00000000-0000-0000-0000-000000000000",
    "operatingSystem": "Windows 10",
    "browser": "Other"
  }
}

Refer to the exhibit. A user attempts to sign in to Microsoft Graph PowerShell and receives the error shown. What is the most likely cause?

⚠ Common exam trap

Microsoft often tests the misconception that MFA registration or device compliance is the root cause of Graph PowerShell sign-in failures, when in fact the underlying license requirement for Microsoft Entra ID is the specific gate that Microsoft enforces for directory API access.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

The user does not have an appropriate Microsoft Entra ID license assigned.

The error shown indicates that the user lacks the required license for Microsoft Entra ID (formerly Azure AD) features needed to sign in to Microsoft Graph PowerShell. Microsoft Graph PowerShell requires an appropriate Microsoft Entra ID license (such as Premium P1 or P2) to access directory-level APIs and authentication methods. Without this license, the service cannot validate the user's identity for Graph API calls, resulting in the sign-in failure.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
The user is not registered for MFA.
Why it's wrong here
No MFA error in the log.
✓
The user does not have an appropriate Microsoft Entra ID license assigned.
Why this is correct
Error code 50058 indicates missing license.
✗
The device is not registered in Microsoft Entra ID.
Why it's wrong here
Device is not relevant to license error.
✗
The sign-in was blocked by a Conditional Access policy.
Why it's wrong here
ConditionalAccessStatus is 'notApplied'.

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MD-102 Practice Question: Refer to the exhibit

Exhibit

Why each option matters

Option-by-option breakdown

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