TL;DR#

If you want to re-assign a Windows 365 Business Cloud PC license, you have to wait for the seven-day grace period to end before the new user’s Cloud PC will provision. This is not the case for Windows 365 Enterprise Cloud PCs as you can force deprovision and end the grace period manually on the previously licensed user’s Cloud PC.

Issue#

In this specific scenario, we have 4 Windows 365 Business Cloud PC licenses (not Enterprise Cloud PC).

We unassigned a Cloud PC license from user A and assigned it to user B who has never had a Cloud PC.

After a few days, user A still has their Cloud PC and user B does NOT have a Cloud PC despite being licensed for one.

When user B opens https://windows.cloud.microsoft they get the error: “It looks like your system administrator hasn’t set up any resources for userb@example.com yet. Please choose a different account or try again. If you believe you have received this message in error, please contact your system administrator.”

Cause#

As defined in Microsoft’s documentation, when you unassign a Cloud PC license, the user’s Cloud PC enters a seven-day grace period. If you re-assign the license to another user within that seven-day grace period, the new user’s Cloud PC WILL NOT provision until the seven-day grace period is over.

I have confirmed this by contacting Microsoft Business Support to discuss the issue.

However, you MAY be able to end the grace period early by force deprovisioning the Cloud PC of the user the license was previously assigned to. In our case, user A.

The major caveat here is this requires you to have Windows 365 Enterprise Cloud PC licenses. If you do not, Microsoft Business Support confirmed you will NOT see Cloud PCs in the Intune “All Cloud PCs” page and will see the message “Windows 365 license required” when loading the admin page.