If you remove Dynamics 365 license from a user, but have other Microsoft 365 E3 or E5 licenses, and applications related to Dataverse (formerly Common Data Service) are enabled, they will appear as "valid users", which will cause confusion for customers.

Therefore, if displaying it as an "invalid user" when removing Dynamics 365 license from the user, the customer can use Dynamics 365 (Online) more user-friendly.