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User within Company, Sign-in Blocked - Adding into Sharepoint Error

If a user within the company has their sign-in blocked, when marking down that user's account within a SharePoint page, would the error "Your organization's policies do not allow you to share with these users" appear?

I believe so, but wanted confirmation from others as well.

I think because this users account has sign-in blocked status, O365 is taking it as this user is outside the organization, even though this user is in organization.
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Hi @Technician123-3743
If a user within the company has their sign-in blocked, then the sharing will also be clocked.

Per my test, when I set the sharing policy to "Only people in your organization", then I share file with the sign-in blocked account ( in the organization previous), I get this error:

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Hi @Technician123-3743
I am checking this thread, is there any update?
If yes, please feel free to post back.

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Technician123-3743 answered

That was it! Thank you!

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