Apple Login fails with Managed Apple IDs on supervised iPhones with iOS 17.3 version

We noticed that Apple Login fails if we try to login with Managed Apple ID on iOS 17.2 & 17.3 This issue could have been introduced in iOS 17 but we did not have iOS 17.0 or 17.1 to validate this.

There are few prerequisites to this:

1. Should be a supervised device. It can be enrolled in ABM or ASM.
2. Apple ID should be Managed Apple ID
3. Device should have a passcode policy
4. Device should have “allowListedAppBundleIDs” added in the “com.apple.applicationaccess” payload

If either of the above conditions are not met, then the issue does not happen. If the device is set up in the above way and we try to login with Managed Apple ID, then the login fails. Please refer the recording at this link: https://drive.google.com/file/d/1XG17loAuH_GB1IyGdwD8txjkHZWqGeD1/view?usp=drive_link

We reproduced the issue three times and got the log files:

1. Issue occurred at: 21st March 2024 at 19:54:58 IST a. Log file name: sysdiagnose_2024.03.21_19-55-26+0530_iPhone-OS_iPhone_21D50(07.54.58 pm).tar.gz b. Link: https://drive.google.com/file/d/1nk-cQPrVEZrAUgVmrxPCsSRDd4aNF8eK/view?usp=drive_link
2. Issue occurred at: 21st March 2024 at 19:59:44 IST a. Log file name: sysdiagnose_2024.03.21_20-00-02+0530_iPhone-OS_iPhone_21D50(07.59.44 pm).tar.gz b. Link: https://drive.google.com/file/d/1VPcF77G2SK2c1rBK4S2GbLCAiQEeYPOB/view?usp=drive_link
3. Issue occurred at: 21st March 2024 at 20:03:27 IST a. Log file name: sysdiagnose_2024.03.21_20-03-39+0530_iPhone-OS_iPhone_21D50(08.03.27 pm).tar.gz b. Link: https://drive.google.com/file/d/1zlLLMd0ugJoiZtmpWlarREFDl1vjZoWP/view?usp=drive_link

During the above tests, this was the setup

1. Passcode Policy: a. requireAlphanumeric: true b. minLength: 13 c. allowSimple: false
2. allowListedAppBundleIDs: This can be anything but atleast one of them should be enabled. For example a. com.apple.AppStore b. com.apple.MobileAddressBook c. com.apple.calculator d. com.apple.camera e. com.apple.DocumentsApp f. com.apple.facetime

What results I expected: The user should be able to login without an issue What results I actually saw: The user does not login

We also created a ticket in Feedback assistant in March but haven't received any response: FB13694721