In a GitHub post, Microsoft says that interactive Graph sessions using the default Microsoft Graph Command Line Tools app will use WAM in the future. Some administrators use older versions of the Microsoft Graph PowerShell SDK for continued access to browser-based authentication, but this won’t be possible once Microsoft makes the server-side change to enforce WAM on an undefined future date. Teams and Exchange Online also use WAM, apparently for better security.
The Microsoft Graph PowerShell Command Line tools app is how people run Microsoft Graph PowerShell SDK cmdlets. The app can suffer from permissions creep, meaning that over time, the app accrues a set of delegated permissions used by people to access different types of Microsoft 365 and Entra ID information. All is fine until an internal limit is reached, at which point authentication fails and some permissions must be pruned.
Entra ID allows unprivileged users to update the user principal name for their accounts via the admin center or PowerShell. It seems silly because no justification for allowing people to update such a fundamental property is evident. Perhaps Microsoft has some excellent logic for allowing such updates to occur, but blocking access seems like the right thing to do.