Hi @Trinadh ,
Thank you for contacting Q&A Forum. I would like to provide my findings and proposed solution:
Email OTP is only used for Self-Service Password Reset (SSPR) and B2B collaboration scenarios where users can’t be authenticated through other means, such as Microsoft Entra ID, Microsoft accounts (MSA), or social identity providers. That’s why Email is not included as a supported method in Microsoft Entra ID multi-factor authentication.
Could you please confirm how you're planning to use Email OTP? If you're using B2B collaboration, it's important to note that Email OTP cannot be limited to just one app—it’s part of the required process for creating guest accounts in the resource tenant.
Looking forward to your clarification so we can provide more targeted guidance.
Kindly let me know if this work for you and please let me know if you have any further questions.
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Best regards,
Eric