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This is really an issue when moving environments to another tenant. When you move a Business Central environment to a new tenant, the user records from the old tenant persist in the environment. These users don't have a BC license and cannot be deleted through the UI because they are no longer linked to Microsoft Entra ID (Azure AD). This creates clutter and confusion, especially in environments with many users.
Solution:To resolve this issue, you need to enable the feature: “Propagate the 'Allow depreciation when placed in service and disposal are in the same fiscal year' from Fixed Asset parameters to all newly created asset books.” Once this feature is enabled, the system functions as expected.