Microsoft does provide a license removal tool, users would need to log back in to office when its used as you seem to have noticed. I suggest bringing this up on your next TUB. Microsoft will need to provide guidance but I don't think there is another way.

macadmins.software/tools/

A while ago, our IT team had to move an employee’s Office 365 account to a new tenant after a company restructuring. We needed a secure and easy way to do it manually without third-party tools. After searching online, I found the Office365Solutions.org website, and to my surprise, they had a step-by-step guide on how to perform Office365 Tenant-To-Tenant Migration. The guide explained how to transfer emails, calendars, contacts, and OneDrive files using Microsoft’s built-in tools like PowerShell. The key steps included setting up both tenants, updating permissions, modifying DNS records, and verifying data after the move. By following the guide, we successfully migrated the employee’s data with minimum time and it is totally worth it.

Migrating from one Office 365 tenant to another can be tricky, but you can do it manually by following these steps:

1. 
   

   Plan & Prepare – First, check your domain settings, create a list of users, and ensure both old and new tenants are ready.

   
   


2. 
   

   Backup Important Data – Before starting, save emails, contacts, and files to avoid losing any information.

   
   


3. 
   

   Set Up Migration – Use Microsoft’s Exchange Admin Center (EAC) or PowerShell to move mailboxes between tenants.

   
   


4. 
   

   Transfer the Domain – Remove your domain from the old tenant and set it up in the new one. Don’t forget to update DNS records.

   
   


5. 
   

   Verify Everything – After migration, check if emails, contacts, and OneDrive files are working properly in the new tenant.

   
   

This manual method works, but it requires technical skills and can take a lot of time. If you want an easier and faster way, try the DRS Softech Microsoft 365 Migration Tool. It automates the process, ensuring a smooth and secure transfer of emails, contacts, and calendars. No need for complex setups or scripts—just a few clicks and your data is migrated effortlessly.

Are you struggling with the complexities of Microsoft 365 tenant to tenant migration? Look no further than Mails Daddy! Our specialized cross-tenant migration service ensures a smooth, secure, and efficient transition for your organization. We understand that migrating between Office 365 tenants can be a nightmare of potential data loss and operational downtime.
Mails Daddy offers a comprehensive solution that handles everything from mailboxes to shared resources with minimal disruption to your business operations. Our migration experts can move up to 1.5 GB per mailbox per hour under optimal conditions, ensuring a rapid and reliable transfer of your critical communication infrastructure. Whether you're dealing with a merger, acquisition, or organizational restructuring, we've got the tools and expertise to make your tenant migration seamless.

Microsoft does provide a couple of supported ways to remove/reset Microsoft 365 App licenses from devices.

1. Office License Removal Tool

   • Microsoft has a dedicated License Removal Tool that clears out activation and licensing information for Microsoft 365 Apps.

   • This is useful when moving a user to a new tenant, since it forces Office to prompt for fresh sign-in without needing to manually dig through credential stores.

2. Microsoft Support and Recovery Assistant (SaRA)

   • SaRA has an “Office Sign-in” and “Activation” troubleshooter that can also wipe cached tokens and reset the activation state.

   • Many migration teams use this instead of deleting entries manually, since it automates the cleanup and prevents issues with half-removed credentials.

3. Office Licensing Reset Scripts

   • Microsoft publishes PowerShell/command-line scripts to remove the tokens.dat and clear cached credentials. These are lightweight and can be pushed out via Intune, GPO, or SCCM to help at scale.

For tenant-to-tenant moves, you can approach CloudBik. They offers solutions for complete tenant data transfer.