AADSTS53003 - Access Blocked by Conditional Access

AADSTS53003 – Access Blocked by Conditional Access Policy

Error: AADSTS53003 – Access has been blocked by Conditional Access policies. The policy does not allow token issuance.

This error occurs when a Conditional Access policy in the customer tenant blocks access to the Sync 365 service principal or delegated admin account.


Cause: The customer tenant has a policy that restricts access from external users or apps — including those used by Sync 365 — and hasn’t excluded the appropriate accounts or service principals.

How to Identify the Policy

  • Login to the customer's Azure portal
  • Open Microsoft Entra ID (Azure AD)
  • Go to Users → Sign-in logs
  • Select User sign-ins (non-interactive)
  • Filter by application name "Sync 365 License" 
  • Click into the failed sign-in
  • Click Conditional Access policy to see any applied.
  • Look for one with a Blocked Result to find the one that is blocking it.

Resolution

To fix the issue, adjust the Conditional Access policies in the customer tenant:

  1. Login to the customer’s Microsoft Entra ID portal
  2. Go to Conditional Access → Policies
  3. Identify the policy blocking access in the Sign-in logs
  4. Edit the policy and make the following changes:
  5. In the Users  section, click Exclude → select "Service provider users"
    1. All:  excludes all service providers with tenant relationships
    2. Select:  allows you to specify specific tenant IDs — be sure to enter your tenant ID
  6. Save the policy and retry the connection in Sync 365

More guidance: