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Based on your description, I think this behavior may come from the Conditional Access policy or Security Defaults are likely enforcing MFA on non-interactive sign-ins. Actionable Message cards use a background token (via Exchange/Outlook) to POST your response. If a policy requires MFA for that token exchange, the call will fail because no interactive prompt can occur.
This explain while in staging, you probably had no such policy or more relaxed settings, which is why it worked there.
In this situation, there are some initial things you can apply first to see if you can solve the problem:
1/ Check Azure AD Sign-In Logs:
Identify which policy triggered the MFA requirement. The sign-in log (under Non-interactive category) will show the specific Conditional Access policy or if Security Defaults was applied.
Link instructions: https://learn.microsoft.com/en-us/entra/identity/monitoring-health/concept-sign-ins#non-interactive-user-sign-ins
2/ Use Conditional Access "What If" tool:
In Azure AD Conditional Access, use the “What If” tool to simulate the user’s sign-in to Exchange Online. This helps confirm which policies are applying MFA.
You can read here for more information: https://learn.microsoft.com/en-us/entra/identity/conditional-access/what-if-tool
3/ Adjust Conditional Access Policies:
Modify your policy so that it doesn’t require MFA for the actionable message scenario. For example, exclude “Exchange Online” (or the specific accounts) from the MFA-required policy.
In the meantime, you can review MFA Settings by verify Security Defaults (Azure AD > Properties) – if enabled, consider disabling it and using custom policies. Also check this LINK to ensure test accounts are not enforced for MFA outside of Conditional Access.
Additionally, I have found this thread may have the necessary information to provide more insight about this concern: https://learn.microsoft.com/en-us/answers/questions/1185637/seeing-login-failures-with-non-interactive-sign-in
Hope my answer will help you, for any further concern, kindly let me know in the comment section.
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