Quick Answer
The answer is to enable NTLM v1 authentication on the managed domain. This is correct because Microsoft Entra Domain Services (Azure AD DS) disables NTLM v1 by default as a security best practice, yet legacy applications that require NTLM authentication cannot fall back to Kerberos and thus need this older protocol explicitly turned on. On the MS-102 exam, this scenario tests your understanding of hybrid identity authentication options and the trade-off between security and compatibility; a common trap is assuming NTLM v2 is sufficient, but legacy apps often demand v1 specifically. Remember the key distinction: Azure AD DS blocks NTLM v1 out of the box, so you must deliberately enable it for those older systems to authenticate. A helpful memory tip is “Legacy needs v1—enable it to run.”
This MS-102 practice question tests your understanding of implement and manage microsoft entra identity and access. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your organization uses Microsoft Entra ID and has enabled Microsoft Entra Domain Services (Azure AD DS). You need to ensure that legacy applications that require NTLM authentication can still authenticate against the managed domain. What should you configure?
Configure Kerberos delegation
Why wrong: Kerberos is not NTLM; legacy apps may not support it.
Disable NTLM v1 authentication on the managed domain
Why wrong: This would prevent legacy apps from authenticating.
Enable NTLM v1 authentication on the managed domain
This allows legacy apps to use NTLM.
Enable password hash synchronization for the managed domain
Why wrong: Password hash sync is a prerequisite, not a configuration for NTLM.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Enable NTLM v1 authentication on the managed domain
Legacy applications that require NTLM authentication must have NTLM v1 enabled on the managed domain because Azure AD DS, by default, disables NTLM v1 for security reasons. Enabling NTLM v1 allows these older applications to authenticate against the managed domain using the NTLM protocol, which is necessary when Kerberos is not supported.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Configure Kerberos delegation
Why it's wrong here
Kerberos is not NTLM; legacy apps may not support it.
Disable NTLM v1 authentication on the managed domain
Why it's wrong here
This would prevent legacy apps from authenticating.
Enable NTLM v1 authentication on the managed domain
Why this is correct
This allows legacy apps to use NTLM.
Related concept
Read the scenario before looking for a memorised answer.
Enable password hash synchronization for the managed domain
Why it's wrong here
Password hash sync is a prerequisite, not a configuration for NTLM.
Common exam traps
The trap here is that candidates often confuse enabling NTLM v1 with disabling it for security, or think that password hash synchronization alone enables NTLM authentication, but the key is that NTLM v1 must be explicitly enabled on the managed domain for legacy apps that require it.
Detailed technical explanation
NTLM v1 is a challenge-response authentication protocol that is considered weak due to vulnerabilities like pass-the-hash attacks. Azure AD DS allows administrators to selectively enable NTLM v1 via the domain's NTLM authentication settings, which modifies the security policy on the domain controllers to allow NTLM v1 traffic. In a real-world scenario, this is often needed for legacy line-of-business applications that cannot be upgraded to support NTLM v2 or Kerberos.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Enable NTLM v1 authentication on the managed domain — Legacy applications that require NTLM authentication must have NTLM v1 enabled on the managed domain because Azure AD DS, by default, disables NTLM v1 for security reasons. Enabling NTLM v1 allows these older applications to authenticate against the managed domain using the NTLM protocol, which is necessary when Kerberos is not supported.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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