Incorrect "subscription expired" message locks M365 Family users out of services [Update]

Just a day after the Exchange Admin Center went down, several users, including Neowin readers, have now reported an issue while trying to access Microsoft 365 under a Family subscription. According to the reports, Microsoft is showing a "Your Microsoft 365 Family subscription has expired" message with a prompt asking them to renew their subscription when they try to log in.

Many users report that this error happens for invited members. The main account is able to access 365 services just fine. It's like the whole world congregated under this one Microsoft Support Community thread, complaining about how their work's been disrupted, with some even demanding compensation.

It appears this is a global issue that Microsoft is aware of. We've seen users from Germany, Argentina, the UAE, South Africa, and more complain about this issue.

The company has made two updates to its Service health page regarding the error. Based on the first update, the team suspects a "potential licensing issue" that's stopping users from accessing M365 services.

Title: Some users may be unable to access Microsoft 365 services

User impact: Users with Microsoft 365 Family subscriptions may be unable to access Microsoft 365 services.

Current status: We're investigating a potential licensing issue that may be causing impact to occur.

The next update has Microsoft claiming that it is looking into telemetry to try to isolate the source of the issue:

Title: Some users may be unable to access Microsoft 365 services

User impact: Users with Microsoft 365 Family subscriptions may be unable to access Microsoft 365 services.

Current status: We're reviewing service telemetry and recent changes within the service to isolate the source of the issue.

This is a developing issue, and the next Service Health update is expected by Thursday, April 10, 2025, at 3:30 PM UTC, so definitely check back by then.

Update, April 10th, 2025, 3:32 PM UTC: Microsoft says it has "identified a recent change" causing the impact and is "currently reversing the change" to resolve the issue.

Update, April 10th, 2025, 5:30 PM UTC: Microsoft says it is "continuing to revert the change to fully restore functionality," with some users already reporting remediation. For those still experiencing issues, the company recommends "refreshing the browser or restarting the application" to update client-side caching, which may help resolve the problem more quickly.

Final Update, April 10th, 2025, 6:30 PM UTC: Microsoft says it has undone the change that was causing the issue and refreshed the service-side caching, with telemetry confirming that the problem has been resolved. To ensure things work properly on your end, you should refresh your browser or restart the application to update your client-side caches.

The preliminary root cause was that a recent change caused license information to populate incorrectly, leading to the impact. As a next step, Microsoft is further reviewing its testing and validation processes prior to deployment to help prevent similar issues in the future.