Bypassing Conditional Access policies that have a resource exclusion
There is a documented enforcement gap in Conditional Access policies that apply to “all resources” but have an exclusion for at least one resource. What is not documented, is that this gap is much larger than what one would expect, and that the documented mitigation doesn’t actually work. The good news if you are an Entra admin is that this is now considered legacy behaviour that Microsoft is changing and that if your tenant isn’t automatically migrated yet you can opt-in to the new behaviour which addresses and fixes this issue. If you have a policy with a resource exclusion, I would highly recommend applying this change.