@Shubham Sharma @Saravana Kumar D
We apologise for keeping you waiting.
We contacted Microsoft directly and, at the end of June, the following facts came to light.
We have not yet received any notification regarding the roll-out of the fix, so we will check again with the team members responsible for liaising with Microsoft within our organisation.
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After escalating the matter within Microsoft and conducting further investigations, we confirmed that, whilst licence assignment should in principle be possible with ‘LicenseAssignment.ReadWrite.All’, an issue is currently occurring: using ‘LicenseAssignment.ReadWrite.All’ alone results in a 409 error being returned at runtime—as you had observed—and a ‘DirectoryValueExistsException’ being recorded in the audit log.
We have confirmed that we are currently working on a fix to enable licence assignment using ‘LicenseAssignment.ReadWrite.All’ alone, and that this is scheduled to be rolled out within the next few weeks.
In light of the above, please consider that the error occurring in your environment on this occasion was, as you had surmised, caused by a permissions issue.
We apologise for any inconvenience caused by this issue on our part.
If you wish to assign licences via command line and are in a hurry, we would appreciate it if you could, for the time being, also grant the ‘User.ReadWrite.All’ permission and execute the command.
Once the fix has been rolled out, assignments will only be possible using ‘LicenseAssignment.ReadWrite.All’; therefore, please assign only ‘LicenseAssignment.ReadWrite.All’ and check whether you can assign the licence.
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