In a certain scenario, you might want to block User from signing into Microsoft 365 entirely at the tenant level. Here’s how you do it
Block user from signing-in into Microsoft 365 tenant is a feature in the Microsoft 365 admin center that allows administrators to block users from signing into their tenant. It can be used to prevent malicious activity or protect data. This feature also enables administrators to revoke access for any user without having to delete them from the directory. Administrators can also configure settings such as password policies and multi-factor authentication, which will help protect against unauthorized access attempts.
This feature is especially useful when dealing with external users who may not have access to your internal network or resources, but still need access to certain applications or services within your organization's cloud environment.
Block user from signing-in into Microsoft 365 tenant | D365 Demystified