Need some way to deal with: "AADB2B_0001 : We cannot create a self-service Azure AD account for you because the directory is federated"
Not all B2B invites can be redeemed successfully. Failures happen for reasons that are out of the inviters control (leading to an inability to fix the problem) and are not predictable (leading to poor user experience).
I suspect this problem happens most frequently when a partner organization bungles taking ownership of their tenant. MSFT needs to make it much harder for people to render their production tenant in such a disfunctional state.
Mike Farrow commented
Any movement on this? Our organization has run into this issue as well.
Jesse Lambert commented
We have a very large client base and utilize Azure B2B for our client portals. We are seeing this more and more, and I echo what Jeremy has said. It's a very bad user experience, and very difficult to explain to the average user. I've been very impressed with B2B, but this is a big gap.