External Gov users can't access Power BI Service

I've got some users that have gov microsoft accounts and when they try to access reports published to our external capacity, they are met with a message stating - 

"We can't finish sining you up because Microsoft Fabric free isn't currently available for your work or school account associated with {Government email}"

Some Fabric settings have been enabled as they've rolled out in our tenant settings, but before I toggle anything there, I want to see if anyone else has had this issue and how it was resolved.

This does seem like a new issue that's come up in the past few months(past June 2023).