Single Sign On Issues for Microsoft O365 OneDrive

As of 11:00 AM PST on July 2, a case has been opened with Microsoft, and they are actively reviewing this incident. Authentication to all Microsoft O365 Office applications is working as expected except for OneDrive; users receive an error when authenticating to Microsoft OneDrive via the IdP-initiated SSO login flow (the Okta org app dashboard). Authentication to OneDrive using the SP-initiated SSO (via the Microsoft Office login page) is working normally. A workaround is available for affected users. Please refer to this Knowledge Base article for details: https://support.okta.com/help/s/article/server-error-in-application-when-attempting-to-access-onedrive?language=en_US.
We will continue to monitor and will provide updates as they become available.