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Hi and thanks a lot for your thorough investigation! We’ve also noticed connection issues trying to transition from the “normal”…
In the MTO settings did you check the box to set up the Federation Trust for Exchange Online (see “Calendar”…
This is exactly the issue I see as of Sept 2025 in the new Outlook. It works fine in classic…
I set up both org sharing (through MTO) AND individual sharing policies and I still can’t see even Free/Busy between…

But I do not think they will implement changes. I read that basic auth even on HVE will go by…