Hi Atat Redihan,
To answer your question directly: Yes, this is the standard and expected operational design for remote Entra-joined devices. It is not a bug.
Here is the technical reality of why this happens and how you handle it in a federated environment:
1. The Cached Credential Bypass: An off-network Entra-joined workstation does not have a line-of-sight to your on-prem Domain Controllers. It authenticates against the local LSA cache and its Primary Refresh Token (PRT). Because it cannot reach the local directory, the machine has no immediate awareness of the "force password change" flag. The old cached password will continue to unlock the machine until the PRT expires or is forcibly revoked.
2. The Temporary Password Rejection: The standard Windows logon credential provider cannot natively process an AD FS "User must change password at next logon" prompt when the device is off-network. When the user enters the temporary password, Windows simply sees an invalid credential/PRT mismatch and rejects it.
The Enterprise Solutions:
The Web-First Approach (Fastest workaround): Instruct the remote user to log into portal.office.com via a mobile device or web browser first. This will trigger the proper AD FS password change flow. Once they set a new permanent password, they can connect their laptop to the internet and log in with the new permanent password.
Enable Web Sign-in (Long-term fix): Use Intune to enable the Web Sign-in credential provider for Windows. This forces the lock screen to render the actual Entra ID / AD FS web authentication page, allowing the remote user to process the "force password change" flow directly at the Windows login screen.
Immediate Enforcement: If security requires the cached credentials to stop working immediately, an Administrator must go to the Entra ID portal and click "Revoke Sessions" for that user. This invalidates the PRT and forces a fresh authentication.
If this clarifies the mechanics of your federated identity architecture, please click "Accept Answer".
Tracy Le.