Symptoms

You log in the Protection Console as a customer group company administrator and attempt to add a Microsoft 365 organization as described in the User Guide.

This leads to a download prompt for the local agent for Microsoft 365 instead of redirecting to the Microsoft 365 login page.

Troubleshooting 

The behavior is expected if the tenant has "Enhanced security" enabled.

Check if Enhanced security mode is enabled on customer group level:
1. Log in to the Management Portal on partner level
2. Select the customer group
3. Select "Configure"
4. Scroll down to the "General information" section

This feature was introduced with the C21.02 update to provide special settings for clients with increased security demands. This mode requires mandatory encryption for all backups and allows only locally set encryption passwords. Cloud services cannot access the encryption passwords. Due to this limitation, some features like Cloud-to-Cloud backups are not available for tenants in the Enhanced security mode. This is not an issue but a product limitation by design.

Solution

Since it is not possible by default to disable "Enhanced security" once it was enabled, the solution is to create a new tenant without "Enhanced security" enabled.