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SharePoint external sharing shifts to Entra B2B as one‑time passcodes are retired

If your organization (like so many others) use the sharing feature in OneDrive and SharePoint for external collaboration in Microsoft 365, then this change is one of those changes that’s easy to underestimate at first glance. Behind the scenes, the authentication model for SharePoint and OneDrive sharing is being modernized, and it has some very real implications for how external users access content going forward. SharePoint one‑time passcode authentication is being retired in favor of Entra B2B Microsoft has announced the retirement of SharePoint One‑Time Passcode (SPO OTP) authentication for external sharing in OneDrive and SharePoint, replacing it with Microsoft Entra B2B as the standard authentication model. This shifts external access from email-based verification to managed guest identities in Entra. Existing Entra B2B guest users will see no change, while users who previously relied on OTP must transition to guest accounts. For new sharing, guest accounts are created automatica...

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