SharePoint stopped auto-creating guest accounts when sharing files

Bhawna Sharma 5 Reputation points
2026-06-04T20:42:00.1133333+00:00

Hi

About 2 years ago, sharing a file with an external user was super straightforward. SharePoint would send them an invite email, they'd accept it, and a guest account would automatically appear in Entra ID. No admin involvement needed, it just worked.

Now that same flow seems completely broken. Invite emails don't always go out, and more importantly guest accounts aren't being auto-created anymore when I share files. External users are hitting the AADSTS90072 error when they click the link because there's no guest account for them in the directory yet.

Microsoft 365 and Office | SharePoint | Other | Other

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  1. AI answer

    2026-06-04T20:42:39.1266667+00:00

    The behavior change is caused by how SharePoint/OneDrive external sharing now integrates with Microsoft Entra B2B and by your current external sharing/B2B settings.

    Key points from the current model

    1. Two different external sharing models exist:
      • SharePoint external authentication (no Entra B2B integration):
        • No guest account is created when sharing files/folders.
        • External users authenticate via one-time passcode (OTP) to the email address the item was shared with.
      • Microsoft Entra B2B integration enabled:
        • A guest account is always created when files/folders or sites are shared.
        • Microsoft Entra external collaboration settings (guest invite settings, domain restrictions, cross-tenant access, etc.) apply.
      This is summarized in the external sharing overview:
      • Without Entra B2B integration: “No guest account created; Microsoft Entra settings don’t apply.”
      • With Entra B2B integration: “Guest account always created; Microsoft Entra settings apply.”
    2. Guest account creation paths Guest accounts are created in any of these cases:
      • A file, folder, or site is shared or reshared with the guest and they see access denied.
      • A site was shared with the guest at any point.
      • A guest account was manually created in Microsoft Entra B2B.
      With B2B integration enabled, this guest creation is the standard path for external sharing.
    3. External collaboration settings can now block invitations If external collaboration/B2B settings are restrictive, SharePoint/OneDrive sharing can fail or behave inconsistently:
      • Errors like “Guest invitations not allowed for your company” or “This invitation is blocked by cross-tenant access settings” occur when B2B collaboration settings block invitations.
      • These settings override Microsoft 365 sharing settings when Entra B2B integration is enabled.
      To restore the previous “it just works” behavior, external collaboration settings must allow guest invitations and cross-tenant access for the target domains.
    4. One-time passcode vs Entra B2B
      • When B2B integration is not enabled, SharePoint can still use ad hoc sharing via one-time passcodes (OTP). In this mode, guest accounts are not created for file/folder sharing, and Entra external collaboration settings don’t apply.
      • When B2B integration is enabled, OTP-based ad hoc external recipients are replaced by B2B guests, and guest accounts are created and governed by Entra external collaboration settings.
    5. Why AADSTS90072 appears now AADSTS90072 typically appears when a user tries to access a resource in a tenant where they don’t yet have a guest account or where cross-tenant/B2B policies block them. In the current model:
      • If Entra B2B integration is enabled but external collaboration settings or cross-tenant access settings block invitations, the guest account is not created and the user can’t complete sign-in.
      • If Entra B2B integration is disabled and OTP sharing is used, no guest account is created by design; users authenticate via OTP instead of as B2B guests.

    Practical steps to restore automatic guest creation

    1. Confirm SharePoint/OneDrive are integrated with Entra B2B
      • Ensure SharePoint and OneDrive integration with Microsoft Entra B2B is enabled so that guest accounts are always created for file/folder sharing and Entra external collaboration settings apply.
    2. Verify external collaboration settings in Entra ID
      • In Microsoft Entra ID → External Identities → External collaboration settings:
        • Ensure guest invite settings allow the appropriate roles (admins and/or users with Guest Inviter role) to invite guests.
        • Ensure guest user access is not overly restricted in a way that blocks access.
      • Review cross-tenant access settings and Microsoft cloud settings to ensure they don’t block invitations or access for the partner tenants.
    3. Check SharePoint/OneDrive external sharing levels
      • In the SharePoint admin center → Sharing:
        • Ensure external sharing is set to “New and existing guests” or “Anyone” for SharePoint and OneDrive, depending on policy.
      • At the site level, ensure the site’s sharing setting is not more restrictive than the organization-level setting.
    4. Understand and choose the desired model
      • If the goal is automatic guest account creation and consistent B2B governance, use Entra B2B integration and configure external collaboration settings to allow invitations.
      • If the goal is OTP-only ad hoc access without guest accounts, keep B2B integration disabled and rely on the one-time passcode model; in this case, guest accounts will not be created for file/folder sharing by design.
    5. Optional: make guests discoverable in people picker
      • If guest accounts are created but not easily selectable, enable ShowPeoplePickerSuggestionsForGuestUsers at tenant and site level using Set-SPOTenant and Set-SPOSite so existing guest users can be searched in the SharePoint people picker.

    Once Entra B2B integration and external collaboration settings are aligned, sharing a file with an external user will again result in a guest account being created in Entra ID and invitations working reliably, while also being governed by Entra’s external collaboration and cross-tenant access policies.

    References:

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  2. Ruby-N 13,320 Reputation points Microsoft External Staff Moderator
    2026-06-04T23:01:47.5633333+00:00

    Good day @Bhawna Sharma, and I appreciate the clear explanation of your concern.  

    Just to gently clarify before we go any further, this is a user‑to‑user support forum. I don’t have the ability to access or investigate individual accounts because this is a user-to-user support forum. Moderators and contributors, including external Microsoft employees, do not have access to internal systems or the ability to directly take action on Microsoft product features. However, I truly hope I can help review your situation, offer some guidance, and support you in finding the right next steps as best as possible.   

    From your description, the behavior you are experiencing aligns with recent updates where SharePoint and OneDrive sharing now follow Microsoft Entra B2B policies, which have been rolling out by default since May 2026. The error AADSTS90072 typically indicates that the external user has not yet been added as a guest, or that the invitation process is being blocked by tenant settings. 

    Please see the following workarounds that will help you verify the issue:  

    Note: The steps below require action from your organization’s IT admin; if you’re an end user, please contact them and feel free to share this information. In case you do not know who is your IT admin, kindly refer to this article: How do I find my Microsoft 365 admin? - Microsoft Support  

    Option 1: Verify SharePoint and OneDrive sharing model 

    Step 1: Please ask your SharePoint or IT admin to confirm whether Entra B2B integration is enabled. They can run the following command in SharePoint Online Management Shell: 

    Connect-SPOService -Url https://<tenant>-admin.sharepoint.com 
Get-SPOTenant | Select EnableAzureADB2BIntegration 

    If the result shows True, the integration is enabled. If False, it is not yet enabled. 

    User's image

    Step 2: If the external user does not yet exist in Entra ID, ask the file owner to reshare the file or site. It is important to generate a new sharing link rather than reusing the existing one. 

    Step 3: Ask the external user to open the new link and complete sign in. A guest account should be created automatically during this process. 

    Option 2: Review Entra External Collaboration settings 

    These settings often block guest creation even when SharePoint sharing is correctly configured. 

    Step 1: Go to Microsoft Entra admin center > Entra ID > External Identities > External collaboration settings. 

    Step 2: Review Guest invite settings: 

    The admin may consider setting it to "Anyone in the organization can invite guest users". 

    If it is restricted, the admin may need to adjust the setting or assign appropriate permissions. 

    Step 3: Review the Collaboration restrictions section and confirm that the external user’s domain is not blocked. 

    Step 4: Save any changes after updating the configuration. 

    Option 3: Manually create the guest user (workaround) 

    This can help restore access quickly while further investigation continues. 

    Step 1: Go to Microsoft Entra admin center, then navigate to Entra ID, Users > Select New user > Invite external user. 

    Step 2: Enter the external email address and display name, then send the invitation. Confirm that the user appears in the list with status Pending acceptance. 

    Step 3: Ask the file owner to reshare the file or site after the guest user is created. 

    Step 4: Ask the external user to accept the invitation, clear their browser cache by selecting All time and then sign in using the same email address that received the invitation. 

    Note: If the external user signs in with a different account, access may fail and require deleting and reinviting the guest user. 

    Option 4: Contact Microsoft Support 

    If the issue still persists after trying the steps above, I recommend reaching out to your IT administrator to create a support ticket via Microsoft 365 Admin Center > Support > Help & Support for further backend investigation.  

    A technical support engineer can perform a remote session to investigate the situation, verify the backend configurations, and run any necessary synchronization tools to resolve the problem. If the issue requires further attention, they can escalate it to a specialized team for deeper analysis.    

    I hope this information is helpful. If you have any questions or need further support, please don’t hesitate to reach out at any time. 

    Thank you for your patience and understanding. 

    If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have any extra questions about this answer, please click "Comment".            

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