Preventing unlicensed Microsoft 365 users from signing in
You can prevent all unlicensed users in your Microsoft 365 organization from signing in by editing their sign-in status.
To prevent unlicensed users from signing in
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Log in to the Microsoft 365 admin center (https://admin.microsoft.com) as a global administrator.
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In the navigation menu, go to Users > Active Users.
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Click Filter, and then select Unlicensed users.
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Select the check boxes next to the user names, and then click the ellipsis (...) icon.
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From the menu, select Edit sign-in status.
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Select the Block users from signing in check box, and then click Save.