Unexpected Authentication Issue

[Arne-RFA]

When using an account that has a CAP that has "Require authentication strength" set to "Phishing-resistant MFA" (and an account that has a FIDO2 key enrolled), it is not possible to authenticate into a client tenant using Intune Manager.

If another authentication method (such as Number matching) is enabled, it will prompt the other MFA method, and then error as per the below.

I have not had any time to investigate further, but I have a feeling that it is related to the Graph authentication flow.