Hello JoseMoreno-MSFT,
It seems like you're facing some issues with the Arc onboarding process related to Conditional Access in the Microsoft Non-Production tenant. The error message you're receiving indicates that the device requesting access needs to be managed, which often relates to Conditional Access policies set by company.
The problem is the distinction between the CORP and the resource tenant (Non‑Production):
- Your device is compliant and managed by the CORP tenant. This allows your personal sign‑in to succeed. The Conditional Access policy is active in the Non‑Production tenant and requires the device accessing the resource (the Azure Arc cloud app) to be managed and compliant in the Non‑Production tenant.
- The token you receive is being used by the azcmagent on the nested VM, which is neither your compliant laptop nor a device managed by the Non‑Production tenant. Crucially, the Non‑Production tenant cannot natively trust the compliance claims from the CORP tenant unless Cross‑Tenant Access Settings are explicitly configured to do so.
- Even if your laptop was the device making the call, Non‑Production still needs to be configured to trust the compliant device claim from CORP for your authentication to grant access. Since you are using the device code flow from the nested VM, the compliance check fails entirely.
Here are a few points to verify and resolve the Conditional Access issue:
- Verify device compliance in Non‑Production: Check whether the device is enrolled in Intune for the Non‑Production tenant and part of the required groups/policies.
- Review Conditional Access policies: Confirm which policies are applied in Non‑Production, and whether they specifically require device enrollment and compliance in that tenant.
- Confirm tenant scoping in login flow: Ensure the device login process is correctly scoped to Non‑Production. Using https://microsoft.com/devicelogin?tenant-id=<tenant-id> directs authentication to the right tenant, but Conditional Access still enforces Non‑Production’s compliance requirements.
If you’ve still experiencing issues, please help us with the below details:
- Is your device enrolled in Intune for the Non‑Production tenant, or only in CORP?
- Have the Conditional Access policies in Non‑Production been reviewed?
- Is the login flow correctly scoped to Non‑Production when using the tenant‑ID parameter?
- Do you encounter the same issue with other Non‑Production resources, or only with Azure Arc onboarding?
Hope this helps, please let us know if you need further assistance, thanks.