Microsoft 365 Compatibility
This setting applies only to web security features, not to IPS.
The Microsoft 365 Compatibility feature exempts Microsoft 365-related domains, marked as Optimize and Allow in Microsoft's endpoint categories, to bypass inspection and policy enforcement by web security features, allowing traffic to those domains to pass through unaltered. The domains are excluded from HTTPS decryption and content filtering. The Microsoft 365 traffic appears in the Secure Access reports, however, since HTTPS inspection is disabled, traffic is logged only at the host/domain level and does not show the full URL.