In an effort to enhance security and streamline administration, Microsoft introduced the Authentication methods policy for Azure AD. This policy allows administrators to manage the MFA and SSPR settings from a single location, simplifying the overall user experience. However, it's important to note that the migration process has a limitation when it comes to hardware OATH tokens.

Microsoft has stated that hardware OATH tokens are not currently supported (but "coming soon") during the migration process to the Authentication methods policy (so, keep the "Migration in progress" option selected). They advise users who are utilizing hardware OATH tokens to avoid completing the process until further notice. This recommendation is crucial to ensure uninterrupted access for users relying on these tokens.

While Microsoft has not provided specific reasons for this limitation, it is likely due to the need for additional development and testing to fully integrate hardware OATH tokens into the new policy framework. By advising users to delay the migration, Microsoft aims to prevent any potential disruption in the authentication process and ensure a smooth transition.